780 INVESTIGATION OF THE FUE-SEAL INDUSTRY OF ALASKA. 



and divers chattels, and paid for it, together with the 81 small dwelling houses which 

 the old company built for the natives' occupation — about $65,000. Those people have 

 lived in these cottages, rent free, during the last 18 years, and do live in them now, 

 under the same privilege, repairs and paint being also furnished gratis. 



Under the present changed order of affairs the Government needs at once part of 

 this plant above recited at least, and, for that matter, should not hesitate to take it 

 entirely off the hands of the new lessees as the condition of the business noAV stands; 

 also the money paid on account of the native houses should be promptly refunded by 

 the Government to the new lessees, for, as I have said, there can not be any division 

 of responsibility in the coming change of nursing these exhausted rookeries back to 

 good order. The work has got to be entirely free from any and all suspicion of private 

 and intrigue and gain during the next seven years, or it had better not be undertaken. 

 This will require the removal of everybody from these islands except the natives and 

 the Government officers and employees. These resident men should consist of the 

 existing staff of four Treasury agents, a physician for each island, and a school-teacher 

 and storekeeper also, in each village, including a mess cook, and la~ ndryman. 



On account of the remoteness of their situation, those officers and employees of the 

 Government should be housed on these islands and supplied with rations and fuel 

 free of cost to themselves, otherwise the enforced abnormal expense of livkg there 

 would render their salaries absurdly inadequate. These supplies can be regularly 

 purchased in San Francisco every spring by the collector of customs of that port 

 and sent up to the seal islands on the revenue cutters which annually have cruised 

 and will cruise around about them throughout each coming season. 



While the Secretary of the Treasury is fully empowered by existing law, I believe 

 to take any or all steps necessary to preserve and protect these interests of the Govern- 

 ment on the seal islands of Alaska, yet the passage of a bill substantially like the follow- 

 ing draft will save him from some misunderstanding and doubt in the minds of our 

 people as to the precise limit of his authority. He also needs the authority of law 

 for the establishment of the school-teachers, physicians, etc. 



By unanimous consent a recess was taken until 2 o'clock p. m. 



Committee on Expenditures in the 



Department of Commerce, 

 House of Representatives, 



Saturday, March 1J,, 1914- 

 Th? committee this day met, Hon. John H. Rothermel (chairman) 

 presiding'. 



TESTIMONY OF MR. HENRY W. ELLIOTT— Continued. 



The Chairman. Mr. McGuire, you may proceed. 



Mr. McGuire. What was the date of the report from which you 

 read yesterday ? 



Mr. Elliott. November 17, 1890, to Secretary William Windom. 



Mr. McGuire. If you made any recommendation with respect to 

 the allowance of rebates to the company by the Government, what 

 was that recommendation ? 



Mr. Elliott. That they should have a rebate on that rental, not 

 to pay in full the annual rental of 860,000, because they expected to 

 get (30,000 seals and they only got 20,000 seats. As they were to be 

 taken off the islands on my recommendation, I said it was not fair 

 to collect this entire sum: that evidently they promised to pay 

 $60,000 for the annual rental of the islands with the full understand- 

 ing that they were to get 60,000 seals annually, and, therefore, failing 

 to get 60,000 seals, and only getting 20,000, it seemed to me that if 

 they were to be removed that they ought not to pay a full j-ear's 

 rental. 



