814 APPENDIX TO CASE OF GREAT BRITAIN. 
48 { Inclosure 2 in No. 77.] 
Extract from the “New York Times” of June 20, 1891. 
Tuk COMMERCIAL COMPANY PROTESTS.—The North American Commercial Com-~- 
pany has entered its protest against the assent of the United States Government to 
the closed season for sealing in Behring’s Sea, and has given notice that it claims to 
be indemnified by the Goy ernment: for its losses not only for this year, but last year, 
in having the number of seals that it was permitted to take under its Contract cut 
down. It is evident that the Company which took the lease of the sealing privileges 
of the Islands of St. George and St. Paul for a term of twenty years from the Ist 
May, 1890, has a rather hard bargain. It is bound to incur a considerable expense 
in maintaining the natives, without reference to the number of skins taken; and it 
invested quite a large amount in the “plant” and property purchased from its pred- 
ecessor. The preparation of each season’s work is, of course, an expensive matter. 
The terms of the lease give the Secretary of the Treasury discretion in determin- 
ing the number of seals that may be taken each season. Last year the number was 
fixed at 60,000, but, on the 20th July, the operations of the Company were stopped 
by the Agents of the Government, when only a little more than one-third of the 
allotted number had been taken. ‘This year the Secretary of the Treasury again, on 
the 13th April, issued an order permitting the capture of 60,000 seals, and prepara- 
tions were made by the Company accordingly. But under the closed-season Agree- 
ment the number has been cut down to 7,500, sufficient merely to cover the cost of 
maintaining the natives. Now the Company claims that the Government had no 
right to reduce the number after it had been once fixed for the year under the contract 
of. lease, and it will claim to be indemnified for its losses. It says that the loss last 
year was 400,000 dollars, and, of course, it will be much larger this year. Besides 
this, the Company asserts that it has expended 150,000 dollars in the maintenance 
and education of the natives, which should be reimbursed. It seems likely, there- 
fore, to have a nice little claim upon the Government for 1,000,000 dellars or more. 
The Company, through its counsel, has some remarks to make about the inter- 
national and jurisdictional aspects of the case. which are sheer impertinence. As 
to its legal claims, not being familiar with the exact terms of the Contract, we shall 
not undertake to pass an opinion. Apparently, the Secretary of the Treasury 
assumes that his discretion to fix the number of seals to be taken from year to year, 
and to supervise and regulate the killing, includes the right to reduce the number 
at any time during the season, while the Company denies this. But one thing is 
very clear. If it was found necessary last year to stop the Company’s operations in 
July, when only 21,000 seals had been taken, it was very poor policy this year to 
fix the limit again, before the season opened, at 60,000, and that, too, after the pro- 
posal for a closed season had been made and negotiations were on foot for giving it 
effect. Does it not look as though the Government itself had prepared the way for 
this claim for a large indemnity in case an Agreement for a closed season should be 
made? Is not this protest another step in the process of laying the basis for a claim 
upon the Government equivalent to the profits of a full sealing season of which the 
order permitting a catch of 60,000 seals was the first step? If so, it may be that 
Mr. Blaine, by his delays and his intlnence, succeeded in doing his friends of the 
North American Commercial Company a very substantial service after all. 
No. 78. 
Sir J. Pauncefote to the Marquis of Salisbury.—( Received July 2.) 
[Extract.] 
WASHINGTON, June 23, 1891. 
With reference to your Lordship’s telegram of yesterday’s date, con- 
taining the instructions issued to the British cruizers in Behring’s Sea, 
I have the honour to inclose copy of a Memorandum which I this day 
personally delivered to the Acting Secretary of State. 
it aie 
a ee ee 
