261 



National Marine Fisheries Service Alaska Fur Seal Program Obligations 

 for fiscal year 1970 — Continued 



Seattle program office $165, 136 



Research laboratory 266, 837 



Supplies on hand 24, 208 



Administration 270, 400 



Total 3, 128, 336 



Receipts (meals, lodging, transportation, etc.) 399,726 



Net 2, 728, 610 



Mr. Potter. This indicates that the company gets around 40 percent 

 to 60 percent of the gross proceeds that are paid for the account of 

 the United States in the sale of the furs that are auctioned off. 



The existing contract between the Fouke Co. and the U.S. Govern- 

 ment calls for the submission of financial statements annually. 



Would you provide the committee with a copy of the most recent 

 financial statement submitted by the Fouke Co. ? 



Mr. Pollock. Yes, sir, and I would like to say generally I do not 

 know the specific answer, but I would like to make the remark that 

 Fouke processes Government-owned furs and they then sell them for 

 the Government, not for themsehes. 



Mr. Potter. I understand that. They sell them at a public auction. 



Mr. Pollock. Yes. 



Mr. Potter. Will you supply that information ? 



Mr. Pollock. Yes. 



(The information referred to was provided to the committee but 

 is considered confidential and was therefore placed in the committee 

 files.) 



Mr. Potter. My question was that, in a given year the Government 

 will get over $2.5 million and Fouke may take half of that, or $1,25 

 million. 



It seems to me this is a fairly comfortable margin. The real point 

 of my asking the question was we are all concerned with improving 

 the economy of the Pribilof Islands and I was just wondering if the 

 U.S. Government might profitably and properly work out some sort of 

 an arrangement whereby t'he Pribilof Islands would get a little bigger 

 share of the pie. 



Mr. Pollock. We have some figures here, 1965 to 1970 on the distri- 

 bution of the amount of money received from the sale of the Alaska 

 fur seal skins, the total net amount to the Fouke Co. and the amount 

 to the U.S. Government which we would be happy to provide. 



If you want additional information, and we do not have it here 

 today, we would be happy to provide it to you. 



It is my understanding that about 70 percent of the net proceeds are 

 given to iVlaska under the terms of the Statehood Act. 



Mr. DiNGELL. That is the net profit ? 



Mr. Pollock. That is right. 



Mr. DiNGELL. We are talking here about gross receipts from seal skin 

 sales. For example, 1961 gross receipts were $2,839,062. 



The Fouke Co. got for contract processing and sales cost $1,582,- 

 876 or 55.8 percent. 



Mr. Pollock. When was that ? 



Mr. DiNGELL. In 1961. It run over the past years, 55 percent, 55.8 

 percent, 53 percent, then 48.8 percent, 52.7 percent, 59.6 percent, 40 

 percent, 43.8 percent, 42 percent, 41.5 percent, 48.5 percent. 



