110 INVESTIGATION OF THE FUR-SEAL INDUSTRY OF ALASKA. 



lease was granted; but when they came to renew the lease the old lessees put up the 

 plea that the lease ought to go to them, because they had gone into this thing volun- 

 tarily and furnished the houses as a gift to the natives, and that that ought to be con- 

 sidered in their favor. Therefore, when the new bidding was invited, the new bidders 

 had to bid to do just as much voluntarily, without any recourse on the United States, 

 as the old bidders had done. Therefore, the new lessees bid to do exactly what that 

 lease calls for; that is, to furnish these houses free, just as the old lessees had furnished 

 them, without any recourse on the United States. 



Mr. Young. This contract between these lessees and the Government has no pro- 

 vision as to where the title to these houses shall go after the expiration of this lease. 

 Then, the question with me is, to whom do these buildings belong? 



Mr. Elliott. They belong to the natives, but you can not give them title, because 

 the houses are on a Government reservation. The new company had to buy them 

 from the old company or else build new ones. This was a gift by the old company 

 not thought of at the time their lease was granted. It was their own voluntary gift. 

 This was officially reported on in the Monograph on the Seal Islands, published by the 

 Tenth Census, in 1880. You will find it on page 24. 



Mr. Young. What was the amount the new company paid to the old company? 



Mr. Elliott. Something like the amount you have mentioned. 



Mr. Young. $23,960? 



Mr. Elliott. Yes. sir. The old company had to give up that lease, but the new 

 company had to assume every obligation that the old company had incurred, and this 

 obligation of $23,960 they assumed without recourse on the United States. 



The Chairman. Do we understand you to say that the Government paid this amount 

 when, in fact, the old lessees were liable to pay it? 



Mr. Elliott. Yes, sir: and they did pay it. 



Mr. McGillicuddy. How would the old company be liable for it after the lease was 

 canceled and the Government assumed the business itself? 



Mr. Elliott. The old company passed away with the first lease, of course, but the 

 obligation of the old company was assumed by the new one. 



Mr. McGillicuddy. But they would not be under any obligation to house the 

 natives after the lease was canceled? 



Mr. Elliott. But before they got the lease they had to assume that obligation of 

 the old company. 



Mr. McGillicuddy. You mean that the last company assumed it? 



Mr. Elliott. Yes, sir. 



Mr. McGillicuddy. Under the terms of that first lease, the lessees would not be 

 liable to house any of the natives after the lease expired? 



Mr. Elliott. They were not liable before the expiration, but they volunteered to 

 do so and did so. 



Mr. McGillicuddy. But this $23,960 was paid out after the cancellation? 



Mr. Elliott 1 . But that was a part of the terms or conditions under which they 

 secured the lease. Before they canceled the lease they had to assume this obligation 

 of the old company. 



Mr. McGillicuddy. But there was no obligation to build houses after the lease 

 expired? 



Mr. Elliott. Xo; they were, nevertheless, obligated to take the same stand that 

 the old company took and they agreed to assume all of the obligations of the old 

 company. 



Mr. McGillicuddy. I can not see how the lessees would be liable for the housing of 

 any of the natives after the lease was canceled. 



Mr. Elliott. They are not liable; but these houses have belonged to the natives 

 since 1873 and 1*74-1878. 



Mr. Boaers. Who built them? 



Mr. Elliott. The old company. 



Mr. Bowers. Who bought them from the old company? 



Mr. Elliott. The new company. 



The Chairman. Do I understand you to say that when the new company got the 

 lease there vraa a condition imposed that they would pay for these houses? 



Mr. Elliott. Certainly; to either pay for the old company's houses or build new 

 ones without recourse on the United States Government 



The Chairman. And that is the way the proposition stands? 



Mr. Elliott. Yes. sir. 



The Chairman. Here are some papers relating to this subject. I do not know 

 whether they should be put in the record, but that matter can be considered later 

 by the committee Please examine this paper and identify it. 



