26 APPENDIX TO CASE OF GREAT BRITAIN. 
By virtue of this bargain with Prince Matsukoff, who was Governor of the Com- 
pany, Mr. Hutchinson proposed to take possession of the fur trade of Alaska and the 
Seal Islands, and left for Victoria (British Columbia) and San Francisco to make the 
necessary arrangements. At the former place he met with a Mr. Kohl, owner of a 
British steamer called the “ Fidelitor,” with whom he entered into partnership, and 
the firm still exists under the name of Hutchinson, Cole, and Co. The steamer 
obtained an American register under the plea that she was a Russian vessel at the 
time of the transfer of the territory to the United States, and was thus enabled to 
carry on the coasting trade. Preparations were made in 1868 for working the fur 
trade of the newly-acquired possession, and especially for the occupation of the 
Pribylov Islands, to which, by virtue of the arrangements with Prince Matsukoff, 
the new Company considered they had an exclusive right. Upon their arrival 
there, however, they found them occupied by experienced sealers from New London 
and Stonington (Connecticut) under one Captain Morgan. A fight for possession 
seemed imminent, but a division of the season’s catch was finally agreed upon. 
While the two parties were thus amicably at work, M. Pflugel, Russian Vice-Consul 
at Honolulu, arrived at the head of an expedition, believing that he should find the 
‘islands unoccupied, but was eventually forced to retire before the combined forces 
of Captain Morgan and Mr. Hutchinson. It now became obvious that the Govern- 
ment must take means to preserve these valuable seal rookeries, and in the winter 
of 1868 an Act of Congress was passed, the conditions for permission to take seals 
being, however, reserved for future Congressional action. ‘The coalition between 
Hutchinson and Morgan still continued, and finally led to the organization of the 
powerful and wealthy Alaska Commercial Company. Since 1870 this Company has 
controlled the entire fur trade of Alaska, and by virtue of its alliances with the 
lessees of the Russian Seal Islands, controls the valuable fur-seal trade of the world. 
With strong political influence in the Congress of 1876, it obtained a lease of the 
Pribylov Islands for twenty years at a rental of 55,000 dollars a-year, and a royalty 
of 2 dol. 62 ¢. per skin, the take to be limited to 100,000 skins a-year. Itis calculated 
that the Company pays annually 315,000 dollars to the United States Treasury, 
which, after paying all the expenses of the Territory, yields more than 4 per cent. 
per annum on the purchase-money paid to Russia for Alaska. 
To preserve this revenue through future years the protection of the seals from 
legal capture or disturbance on their annual visits to the islands has been deemed 
an absolute necessity, and hence the prohibition against approaching or landing on 
the islands and the vigilance of the United States cruizers in the Behring’s Sea. 
It is not, however, generally understood that the Alaska Company controls the fur 
trade of all the mainland and islands of Alaska lying west of the 141st meridian 
of west longitude, and that its operations over this vast extent of territory and 
coast are entirely distinct from, and have no connection with, its exclusive control 
of the Seal Islands, which it holds by virtue of its lease from the United States 
Government. 
Outside of these islands it holds no exclusive rights or franchise from the Govern- 
ment, nor does it pay any rent or royalty to the Government on the territory it occu- 
pies or the furs it procures from the natives. It has no rights over any other citizen 
or company of citizens who may desire to trade in competition with it, and yet it 
has been aided by the Revenue Marine in suppressing competition from rival traders, 
for it appears that, under instructions from the Treasury Department, the Revenue 
cruizers board and examine every trading-vessel sighted in the Behring’s Sea or on 
the north-west coast of Alaska, except the vessels of the Company. If a pretext 
can be found, an officer is placed on board with instructions to take the vessel to 
Ounalaska and discharge her cargo. She is then sent to San Francisco, where the 
United States Marshal finds that there is no cause for condemnation, and, as the 
object of breaking up her voyage has been gained, she is released and restored to 
her owners. ‘The vessels subjected to this treatment come trom British Columbia 
and Japan, and are, it is said, fitted out for contraband trade. 
WASHINGTON, September 1886. 
11 No. 5. 
Sir L. West to the Earl of Iddesleigh.—( Received October 4.) 
WASHINGTON, September 21, 1886. 
My Lorp: With reference to my preceding despatch, I have the 
honour to inclose to your Lordship herewith copies of correspondence, 
as published in the newspapers, relative to the seizure of British sealers 
in Alaska waters. 
I have, &e. (Signed) L. S. SACKVILLE WEST, 
— ee 
