PACIFIC SALMON FISHERIES. %49 
artificial propagating plant or hatchery, and shall produce yearly and place in the 
natural spawning waters of each fishery so operated red-salmon fry in such numbers 
as shall he equal to at least four times the nwaber of mature fish taken from the said 
fisheries by or for him or them during the preceding fishing season. The manage- 
ment and operation of such hatcheries shall be subject to such rules and regulations 
as may hereafter be prescribed by the Secretary of the Treasury. They sha'l he open 
for inspection by the authorized official of this department; annual reports shall he 
made, giving full particulars of the number of inale and female salmon stripped, the 
number of eggs treated, the number and percentage of fish hatched, and all other con- 
ditions of interest; and there shall be made a sworn yearly statement of the number 
of fry planted and the exact location where said planting was done. 
On January 24, 1902, this regulation was amended so as to require 
the planting of ‘“red-salmon fry in such numbers as shall be equal to 
at least ten times the number of salmon of all varieties taken from 
the said fisheries.” 
Although the regulation was mandatory, but few of the packers 
obeyed it, some because no suitable place was to be found within a 
reasonable distance of their plants, others because the establishment 
and operation of such a hatchery would cost more than their returns 
from the industry justified, and others because of lack of knowledge 
required in hatchery work. ‘he greater number of them absolutely 
ignored it, and as a result those who conformed to the regulation 
were placed under a heavy financial handicap. The injustice of this 
arrangement was patent on its face, and in 1906, when a compre- 
hensive revision of the law was made by Congress, provision was 
made for reimbursing in the future those cannery men who operated 
salmon hatcheries. ‘The section covering this point reads as follows: 
Sec. 2. That the catch and pack of salmon made in Alaska by the owners of pri- 
vate salmon hatcheries operated in Alaska shall be exempt from all license fees and 
taxation of every nature at the rate of ten cases of canned salmon to every one thousand 
red or king salmon fry liberated, upon the following conditions: 
That the Secretary of Commerce and Labor may from time to time, and on the 
application of the hatchery owner shall, within a reasonable time thereafter, cause 
such private hatcheries to be inspected for the purpose of determining the character 
of their operations, efficiency, and productiveness, and if he approve the same shall 
cause notice of such approval to be filed in the office of the clerk or deputy clerk of the 
United States district court of the division of the District of Alaska wherein any such 
hatchery is located, and shall also notify the owners of such hatchery of the action 
taken by him. The owner, agent, officer, or superintendent of any hatchery the 
effectiveness and productiveness of which has been approved as above provided 
shall, between the thirtieth day of June and the thirty-first day of December of each 
ear, make proof of the number of salmon iry liberated during the twelve months 
immediately preceding the thirtieth day of June by a written statement under oath. 
Such proof shall be filed in the office of the clerk or deputy clerk of the United States 
district court of the division of the District of Alaska wherein such hatchery is located, 
and when so filed shall entitle the respective hatchery owners to the exemption as 
herein provided; and a false oath as to the number of salmon fry liberated shall be 
deemed perjury and subject the offender to all the pains and penalties thereof.  Dupli- 
cates of such statements shall also be filed with the Secretary of Commerce and Labor. 
It shall be the duty of such clerk or deputy clerk in whose office the approval and 
proof heretofore provided for are filed to forthwith issue to the hatchery owner, caus- 
ing such proofs to be filed, certificates which shall not be transferable and of such 
denominations as said owner may request (no certificate to cover fewer than one 
thousand fry), covering in the aggregate the number of fry so proved to have been 
liberated ; and such certificates may be used at any time by the person, company, cor- 
poration, or association to whom issued for the payment pro tanto of any license fees 
or taxes upon or against or on account of any catch or pack of salmon made by them 
in Alaska; and it shall be the duty of all public officials charged with the duty of col- 
lecting or receiving such license fees or taxes to accept such certificates in lieu of 
money in payment of all license fees or taxes upon or against the pack of canned 
salmon at the ratio of one thousand fry for each ten cases of salmon. No hatchery 
owner shall obtain the rebates from the output of any hatchery to which he might 
