16 FUR SEALS OF ALASKA. 
pany but in the presence of these officials. This contract was entered 
into by express authority of an act of Congress. Under that act it 
is provided that the Secretary of the Treasury in making a new lease 
should have due regard to the interest of the former lessee.’ What 
was the action of the Secretary under that’ provision? He held that 
under it the North American Commercial Company must purchase the 
entire plant of the former lessee, the Alaska Commercial Company. 
This company was compelled to buy from the former lessee every 
house on that island erected for the protection and the comfort of its 
inhabitants that had been built by the Alaska Commercial Company. 
It had to buy its stores, its plant, its boats, its tackle, and, in fact, 
everything owned by it on the islands. It paid over a full value for 
all this property. 
Mr. Exxiorr. Sixty-three thousand dollars was all it paid. 
Mr. Fautxyer. In the opinion of those who know, the amount paid 
was above its value. My understanding is it reached far in excess of 
$63,000, although 1 have not the information upon which I can make 
a positive statement. What do we next find? 
The company entered into this contract with the understanding that 
after the first year they would be permitted to take 100,000 seals. It 
was limited to 60,000 the first year, but in fact only took about 28,000. 
The modus vivendi followed for two years, during which period the 
company was limited to 7,500 each; since then they have never gone 
over 30,000, but generally far below that number. 
Mr. Wixuiams, of Mississippi. In the meantime the price of seal- 
skins has gone up? 
Mr. Fautxyer. I will explain to you the profits of the company. 
Iam coming to that question. I want to show the relative hardship 
encountered by this company during this lease. The Alaska Com- 
mercial Company was taking 100,000 seals for twenty years. What 
has the North American Commercial Company taken during its lease? 
If you will refer to page 20 of the report of the subcommittee of the 
Committee on Territories you will find the figures. During the twelve 
years given of this company’s lease the average killing of seals has 
been 17,506 annually. An examination will show that under the origi- 
nal lease the Alaska Commercial Company paid 63 cents a skin asa 
bonus, whereas this company pays $7.624 per skin. You will find the 
aggregate payment under the Alaska Commercial Company’s lease was 
$3.17, and that under the Jease of the North American Commercial 
Company the Government receives for every sealskin 810.22, more 
than three times the amount paid by its predecessor, and yet: the catch 
has been reduced to an average of 17,506 skins instead of 100,000 
skins, the cost of the plant and the cost of running the business being 
about the same in both cases. 
On the same page of this report, Mr. Williams, you will find the 
price of the skins given in London. The cost of these skins for twelve 
years, as given by that committee, will show an average price of 
22.31. Deduct from that the $10.22 they have to pay the Govern- 
ment and you have $12 as the gross profit. From that vou must take , 
the cost of chartering and sending to the island a ship every fall and 
winter. You also have to deduct 50 cents for every skin taken, which, 
under the contract, is paid to the natives. Ona catch of 17,506 this 
would amount to $8,753. In addition to this you must deduct for the 
support of schools, supplying the teachers, the furnishing of medicine, 
