Z FUE-SEAL INDUSTRY OF ALASKA. 



That the herd had been depleted to such an extent in 1884 that the 

 Alaska Commercial Co. had difficulty in securing their average annual 

 quota. In spite of this fact, however, the said company continued 

 to take an annual average of about 100,000 seals, until their lease ex- 

 pired in 1890. On the expiration of this lease, the herd had been 

 depleted to such an extent that the new lessee, the North American 

 Commercial Co., had great difficulty in 1890, and failed in obtaining 

 their quota, and then commenced to kill female seals and yearlings, 

 which is now, and was in 1896, prohibited by law and the regulations 

 of the department. This unlawful killing of seals was reported July 

 31-September 7, 1890, to Hon. William Wiiulom, the Secretary of 

 the Treasury — he died January 29, 1891 — and his successor, Hon. 

 Charles Foster, took no steps officially to prevent a recurrence of such 

 loss to the Government; but, on the contrary, immediately removed 

 the agent on April 5, 1891, who reported it, and assigned him to 

 another position in the service. (See pp. 304-314, hearing No. 1.) 



That the conduct of the lessees, the North American Commercial 

 Co., through its officers and agents, coupled with the work of and the 

 interest they had in pelagic hunting, so reduced the seal herd of about 

 a million seals that in August, 1910, the number of seals on the islands 

 did not, as officially reported, exceed 133,000. That the lessees had 

 killed in 20 years 343,356 seals, from which they derived a net profit 

 of approximately $5,000,000, and by reason of which the Government, 

 after paying the expenses incident to the management of the fur-seal 

 herd during said period, derived no profit; but, on the contrary, 

 suffered a cash loss of more than $1,350,000. That the record of 40 

 years of leasing of the seal islands of Alaska (1870-1910) discloses the 

 fact that the Government has suffered a property loss of not less than 

 $80,000,000, caused by the almost complete commercial ruin of the 

 said seal herd, while the net revenue received by the Government, 

 under both leases, amounted to but $3,914,000 approximately. (See 

 pp. 176-178, hearing No. 1.) 



III. Your committee finds that the second lease which the Gov- 

 ernment entered into, namely, with the North American Commer- 

 cial Co., was obtained by fraud; in part, having consisted in the filing 

 of a false affidavit on the part of Isaac Liebes, president of said com- 

 pany. Testimony discloses the fact that the said Liebes, as president 

 of said company, did, on March 12, 1890, declare under oath in the 

 form of a written affidavit, which was placed on file in the Treasury 

 Department, with the papers in the case, to the effect that neither 

 he nor any of his associate lessees, was engaged in the business of 

 pelagic sealing, or in any violation of law. When in truth and in 

 fact, he, the said Isaac Liebes, was, at the very time of the tiling of 

 said affidavit, in full knowledge of the fact that his associate lessee, 

 Herman Liebes, was the owner of the schooner James Hamilton Lewis, 

 and that she had been outfitted by him, illegally cleared January 10, 

 1890, for hunting fur seals at sea, and for the very purpose of com- 

 mitting depredations on the high seas and in American waters, and 

 on the seal islands of Alaska, during the summer of 1890. That on 

 September 17, 1890, he, the said Isaac Liebes, president, as aforesaid, 

 became part owner of said vessel Janus Hamilton Lewis. That the 

 said Herman and Isaac Liebes, officers and stockholders of the said 

 North American Commercial Co., and as owners of the said James 

 Hamilton Lewis corresponded, combined, confederated with one 



