FUR-SEAL FISHEKIES OF ALASKA. 105 



case you turn four hundred people adrift on the world without any pos- 

 sible means of living. The islands produce nothing except a little gTass, 

 and I could not conceive of a policy that would admit of a sale of the 

 islands without establishing a reservation somewhere for these people ; 

 and if you establish a reservation you have got simply four hundred pau- 

 pers on the Government's hands without any means of feeding them ex- 

 cept by an appropriation. So it seems to me the Government in the 

 purchase of that Territory has taken upon itself certain responsibilities 

 which it must continue to regard. It can not turn them over, and the 

 Government should not be influenced by the mere matter of gain even 

 if it goes into the millions. It is not a thing they should sacrifice life 

 for, and it does not seem to me to be feasible. 



Q. As the business has developed, could the Government justly or 

 practically increase the rate of tax upon the privilege and the skins ? 

 Is there margin for an increase of the rates ? — A. I do not know thai: I 

 should be an impartial witness there. My opinion is the Government 

 has got the better end of the stick now. I am very clearly of the opin- 

 ion — I want to answer every question you choose to ask me, but of 

 course I do not desire to develop any more of the business affairs of the 

 company than is proper — but I can simply say on the statement I have 

 of officials there to-day that a careful examination of these figures and a 

 critical one will easily show that the returns which the Government 

 have received from this lease are greater, taking into account the 

 duties they collect on the dressed skins, than the profits the company 

 receive net. 



Mr. Felton. You speak of gross now ? 



The Witness. I speak of the net profits of the Government, which 

 is greater than that of the company. 



The Chaieman. Without inquiring into the private business of the 

 company at all, I want to know — there is a popular idea that the com- 

 pany is making a great deal more money than the Government. 



The Witness. If I could stand outside of myself and form an opin- 

 ion on this subject, which is difficult for a man to do, I should say with- 

 out hesitation that I think, taking into account the hazards and risks 

 which the lessees take upon themselves, with the burdens and charges 

 which are placed upon them by the Government, with the incidental 

 charges which the necessities of the business require, that present tax 

 and rental is all that they can afford to pay. This property is to be re- 

 garded somewhat in the light of a mining property. The possibilities 

 may be extinguished at any time. They might lose the ship which is 

 due now with a hundred thousand skins for the market. 



Mr. Jeffries. And that is now two weeks overdue ? 



The Witness. It is twelve days overdue. Disease might get amongst 

 the seals, the Government might be laggard in its action with regard to 

 orders and unlicensed hunters, and the result would necessarily be that 

 a large number of productive seal would be killed, and for the same 

 reason a certain class of skins which are taken by these marauders and 

 and which have paid no tax and no rental, and which are subjected to 

 none of these charges, and which are inferior by reason of their ina- 

 bility to cure them on the vessels as they are cured on shore, are thrown 

 upon the market in competition with our seal skins, which have paid 

 the rental and tax and all other charges, and the market has no bowels 

 of compassion for individuals, it gets the skins at the best rate it can, 

 and consequently the company have to sell theirs and come into compe- 

 tition with them and accept the price, whatsoever it may be. The risks 

 and hazards of the business, I say, are more comparable to tbe hazards 



