DISCOVERY, OCCUPATION, AND TRANSFER. 11 



steady increase of prosperity. Each succeeding chief manager, or 

 governor, vied with the reports of his predecessors in making a 

 record of great display in the Hne of continued explorations, erec- 

 tion of buildings, construction of ships of all sizes, and the estab- 

 lishment of divers new industries and manufactories, agriculture, 

 etc. 



The second term of the Russian American Company's charter 

 expired in 1841, and the directors and shareholders labored most 

 industriously for another renewal ; the Crown took much time in 

 consideration, but in 1844 the new grant was confirmed, and 

 rather increased the rights and privileges of the company, if any- 

 thing ; still matters did not mend financially, the affairs of the large 

 corporation were continued in the same reckless management by 

 one governor after the other — with the same extravagant vice-regal 

 display and costly living — with useless and abortive exj)eriments in 

 agriculture, in mining and in shipbuilding, so that by the approach 

 of the lapsing of the third term of twenty years' control, in 1864, 

 the company was deeply in debt, and though desirous of continuing 

 the business, it now endeavored to transfer the cost of maintaining 

 its authority in Alaska to the home Government ; to this the Impe- 

 rial Cabinet was both iinwilling and unable to accede, for Russia 

 had just emerged from a disastrous and expensive war, and was in 

 no state of mind to incur a single extra ruble of indebtedness 

 which she could avoid. In the meantime, pending these domestic 

 difficulties between the Crown and the company, the charter ex- 

 pired ; the Government refused to. renew it, and sought, by send- 

 ing out commissioners to Sitka, for a solution of the vexed prob- 

 lem. 



Now, if the reader will mark it, right at this time and at this 

 juncture, arose the opportunity which was quickly used by Seward, 

 as Secretary of State, to the ultimate and speedy acquisition of 

 Russian America by the American Union. Those difficulties which 

 the situation revealed in respect to the affairs of the Russian Com- 

 pany conflicting with the desire of the Imperial Government, made 

 much stir in all interested financial circles. A small number of 

 San Francisco capitalists had been for many years passive stock- 

 holders in what was termed by courtesy the American Russian Ice 

 Company — it being nothing more than a name really, inasmuch as 

 very little ever was or has been done in the way of shipping ice to 

 California from Alaska. Nevertheless these gentlemen quickly con- 



