Appointment.

SIR: You are hereby appointed a special agent of the Department of State for the purpose of making an investigation at Victoria, B. C., and elsewhere, to obtain such testimony as is possible, and to report upon matters connected with the claims presented by the British Government before the Tribunal of Arbitration to convene at Paris.

You will receive more specific instructions from W. H. Williams, esquire, special agent of the Treasury Department in San Francisco, and under whose direction you will act in the matters entrusted to you. I am, sir, your obedient servant,

JOHN W. FOSTER.

Report.

SAN FRANCISCO, CAL., November 19th, 1892.

To the honorable the SECRETARY OF STATE:

SIR: I have the honor to report that in accordance with my letter of appointment as special agent of the State Department, I reported to Major W. H. Williams, special Treasury agent, and from him received the following verbal instructions: To proceed at once

Instructions.

to Victoria, British Columbia, and to obtain such testimony as I was able, in the Bering Sea controversy in relation to the cost of sealing vessels, their outfits, and so forth, and all other matters appertaining to the question at issue before the Tribunal of Arbitration to be hereafter convened in Paris.

Pursuant to such instructions, I proceeded directly to Victoria, British Columbia, leaving San Francisco on the 10th of October, 1892, and arriving at Victoria on the 13th. I at once took steps to find out the disposition of the sealers towards the United States in the Bering Sea controversy. As a result of my investigations I found that public sentiment was very bitter against our Government, that the citizens of the city of Victoria were in sympathy with the sealers and that they were very cautious what they said in relation to sealing.

Public sentiment bitter against United

States.

Difficult to obtain written testimony.

The Sealers Association of Victoria has among its members some prominent citizens of the city and has a great deal of influence, and the residents seem to be afraid to incur the displeasure of the association. I at once saw that it would be utterly impossible to obtain written testimony in Victoria contrary to the interests of those engaged in the sealing business, because any person giving such testimony would be boycotted by those in sympathy with the sealers and probably ruined financially. A few days after my arrival I formed the acquaintance of several owners and masters, as well as many of the crew and hunters of sealing vessels, and owing to the fact that they supposed, from my inquiries, that I desired to

Sources of informa

tion.

engage in sealing the coming season, they talked freely with me as to

the cost of building, outfitting, and furnishing sealing vessels, and also in relation to the wages paid or the "lay" of the crew, the probable profits for the future, and their experience with the sealing fleet in the past few years. The following is the substance of these various conversations, from notes made at the time when they were held, together with the names, occupations, and experiences of my informants, which notes are substantially correct transcripts of the conversations, all of which took place in the city of Victoria between October 14th, 1892, and November 16th, 1892.

Captain D. Morrison, who was mate on the sealing schooner Willie McGowan, this year, stated to me that sealing boats cost $100 apiece when new, and that it costs from $7.00 to $10.00 per month for subsistence per man.

Cost of boats and subsistence.

ward.

Captain Sieward, owner of the sealing schooners Dora Sieward and Mascot, and who has had seven years' experience in Cost of Dora Sie- the sealing business, stated that his provision bill for a crew of twenty-five men on the Dora Sieward was $1,200 for a cruise of seven months. He further stated that steam vessels for sealing purposes were very poor property and that not one in the fleet has ever paid expenses since it was built. He also said that the Dora Sieward is 99 tons register, that she is new and first-class and cost $14,000 all equipped and outfitted for a season's cruise. Regarding the coasting trade of sealing vesCoasting trade un sels during the months of October, November, December, and January, Mr. Sieward said "It would not pay and there was nothing in it." He further stated, that Carne & Munsie (grocers, shipowners and outfitters of vessels) told him on October 31st, 1892, that they would agree to furnish groceries, supplies, etc., for an Indian crew for one-half what it would cost to fit out an sive than whites equal crew of white men; that they had had both white (Capt. Sieward). and Indian crews on their vessels, and that an Indian crew was not over half the expense of a white crew. He also said that Indians furnished their own canoes and canoe outfits.

profitable.

Indians less expen

Captain McLain, master of the sealing schooner Favorite, made me the following statements:

Indians as expensive as whites (Capt.

McLain).

I have employed both white and Indian hunters; Indians are now as expensive as white hunters; they want everything and plenty of it. Five or six years ago I could feed them on molasses, rice, or anything, and they would be satisfied. Then it did not cost much to feed them. They are always paid by the skin and furnish their own canoes and spears. Formerly they did not use the gun but very little, preferring the spear; but now they use the gun mostly. The cost of feeding a white crew is from $7.50 to $8.00 per month to the man. $2,000 will cover everything for a crew of twenty-five men for an eight months' cruise.

Captain Pinckney, master of the sealing schooner Henrietta, stated to

me:

Provisions for a cruise of seven to eight months for a crew of twenty-three to twenty-five men will cost about $1,600 to $1,800; this also includes Cost of equipment. ammunition. Indians furnish their own canoes and are paid so much for each skin, but receive no wages. They are sometimes given $10.00 each bounty money to get them to go North. We give them bread, rice, sugar, and potatoes. The sealing season begins about March 1st and closes from August 1st to September 1st; generally aim to get home by the first of September.

Captain McDonald, mate on the sealing schooner Favorite in 1892, stated:

Cost of provisions.

It does not cost over $8.00 per month per man for food. I am confident $2.00 a week will feed a man well.

Coasting trade unprofitable.

As to the matter of "coast trading" during the months of October, November, December, and January, I have conversed with Captains McLain, Morrison, Pinckney, Sieward, McDonald, and several others, and they each and all said that "there is nothing in it and it would not pay to fit out for it," and cited me to the fact that if it would pay there would be plenty of the vessels engaged in it, instead of laying in the harbor here during those months.

Carnie & Munsie, Captains Grant, Sieward, and others in Victoria are engaged in or interested in the mercantile business and own several schooners each, so that they are in the best possible position to engage in the "coast trade" and make it profitable, if anyone could, and they would certainly do so if there was any profit in it. As it is, not one of the sealing fleet goes into that business during the winter. There are at this time about fifty-five (55) sealing schooners in Victoria harbor laying idle. This fact alone is conclusive evidence as to the profitableness of the "coast trading business."

William Turpel, esq., who is the proprietor of the Central Ship Yards at Victoria, and also owner of the sealing schooner Cost of provisions. Sadie Turpel, stated to me that his provision bill for 23 men for an eight months' cruise was $1,500, and about $400 worth of the provisions were brought back. He also stated that he estimated the difference of building a schooner for steam auxiliary would cost about $200 more for the carpenter work.

Extra cost for steam.

Cost of schooner.

H. R. Foot & Co., who are builders of yachts, boats, and canoes, stated that they would build a schooner for me at the rate of $75 per ton gross tonnage. Mr. Foot is now building a steam schooner of 16 tons capacity, the price of which he stated to be $2,000 all complete, with compound engines, boiler, and surface condenser. He further stated that he would advise me not to build a schooner supplied with

auxiliary steam power, as such vessels so far have Auxiliary steam. failed to prove satisfactory or successful on account power not advantaof their not being able to carry proper sails, so as to

geous.

be good sailing vessels, and have not sufficient steam capacity to use steam altogether.

Cost of boats.

R. W. Calvin, esq., proprietor of the Clyde Ship Yards, stated to me that he would build sealing boats at the following prices: Copper-nail boats, $110 each; galvanized boats, $98 each, all outfitted with oars, sail, etc.; and he further stated to me that he would advise the use of the galvanizednail boats, as he considered them better, and that the majority of the boats in use by the fleet were galvanized nailed.

Cost of provisions.

Mr. Munsie, of the firm of Carne & Munsie, already mentioned, stated that the cost of a stock of provisions for a crew of 23 to 25 for a cruise of 7 to 8 months would be $1,400 to $1,500. This is exclusive of the ammunition required.

Cost of steam

Martin Kelly, a dealer in stoves and tinware at Victoria, informed me that he was having a steam schooner for sealing, purposes constructed by Clark & Watson, of Victoria, schooner. the description of which he gave as follows: Length over all, 75 feet; beam, 14 feet; depth of hold, 7 feet; capacity, about 70 tons. To be supplied with a folding propeller and the best machinery, with power to speed her fully 11 knots per hour, the contract price for such vessel being $10,000.

Insurance rates.

The following statement in relation to insurance on sealing vessels was given me by R. P. Rithet & Co., agents of the Sun Fire and Marine Insurance Company, of San Francisco, and also for Lloyd's agency at Victoria. The rate on sealing schooners and cargo is 7 per cent per annum, 4 per cent guaranteed, the policy to be canceled 24 hours after the arrival of the vessel in port. For short rates they gave the following figures: Rate for 4 months, 4 per cent, or $40 per $1,000; rate for 7 months, of 7 per cent, or $40.83 per $1,000; rate on a vessel while lying in harbor, 12 per cent per annum.

I hereto append a memorandum handed me by one of said firm in relation to the insurance rates above referred to, which is marked Exhibit A.

I was further informed by Robert Ward & Co., insurance agents of Victoria, that the rate on sealing schooners and their outfits is 7 per cent per annum, and the rate is the same on steam schooners as it is on sailing vessels.

Cost of engine and

boiler for E.B.Marvin.

The sealing schooner E. B. Marvin having been advertised for sale by an auctioneer on November 7th, 1892, a copy of which advertisement I hereto append, marked Exhibit B, I made inquiries as to the cost of furnishing said schooner with steam auxiliary. I received from the Victoria Machinery and Iron Works a written tender by which they offered to furnish me an engine and boiler for the schooner E. B. Marvin as follows: "Upright engine, 14x14, with Clyde boiler, 84 inches diameter, 120 inches long, delivered at Victoria, for the sum of $4,400," which tender I hereto attach, marked Exhibit C. They also stated to me that such an engine and boiler would be of sufficient power to drive the said schooner at a speed of from 8 to 9 knots an hour.

B. Marvin.

The said auction sale of the schooner E. B. Marvin having been adjourned until the 9th day of November, 1892, I atAuction sale of E. tended such sale in the company of Captains Pinckney, McClellan, Seiward, McLain, Smith, and McDonald. The price for which the said vessel was sold was $6,800, all complete, with seven boats, ten Parker shotguns, one rifle, and everything belonging to her except the stores and provisions.

On the 3rd day of November I viewed the model of a sealing schooner which a Mr. Cline, of Victoria, intends to build this Cost of schooner Winter. He stated to me that he already had the lumnow building. ber out for her, and the sealing boats, and that the size of the vessel would be as follows: 66 feet keel; 83 feet over all; 20 feet beam and 9 feet hold, with a registered tonnage of 65 tons. The cost of the schooner and six boats all ready for the rigging and sails would be $5,000, and the cost of the rigging and sails would be $1,500, making a total of $6,500 for the vessel outfitted with boats, sails etc., ready to receive her stock of provisions for a cruise. Charles Powers, an old seal hunter who had had seven years' experience, stated that the lay of hunters 5 or 6 years ago was Lay and wages. only $1.50 per skin, and that the wages of boatmen and seamen were $30 per month.

I had several conversations with Captains Morrison, Pinckney, McLain, McClellan, Smith, and several others who are in the sealing business, and who practically agreed on the following facts: That the seals go as far south as the coast of Lower California, and Migration of seals. that many of the sealers start out in the latter part of January or fore part of February, and go south until they meet the

Reason.

seals, and having fallen in with them, follow them north into Bering Sea. Regarding the proportion of female seals in a Females in catches. catch, different parties varied in their estimates, some placing the percentage at about 60 per cent, while others placed it at 75 per cent of the whole. The majority of them quote the latter figure as being nearest to the probable percentage. The reasons they gave me for there being a greater number of females killed than males is that the females are generally heavy with young and are not so active or lively as the males; consequently they are much easier to capture. The same parties also informed me that the British Government, in the Bering Sea controversy, would maintain that the number of females killed is no greater than the number of males killed, but they stated that such a proposition did not accord with the facts.

I herewith append to my report specifications for two sealing schooners, one of 35 tons register and the other of 80 tons register, which I submitted to William Turpel, propri- bids for schooners. etor of the Central Ship Yards, of Victoria, and also to

Specifications and

H. R. Foot & Co., shipbuilders, of said city, marked exhibits D and E. I also append the written bids on said specifications that I received from the said William Turpel, marked Exhibit F, and also the written bid thereon, which I received from H. R. Foot & Co., marked, Exhibit G. Mr. Foot, of the last-mentioned firm, stated to me that the cost in carpentering work to fit such vessels for auxiliary steam would be very small, and that he would make no extra charge for it should I decide on putting in such steam auxiliary.

Bids for furnishing

I also append two written bids from Victoria firms showing cost of furnishing such vessels with steam, steam. marked Exhibits H and I.

All of which is respectfully submitted.

A. J. HENRY,

Special Agent State Department.

EXHIBIT A.

Insurance rates on sealers.

7 per cent per annum, 4 per cent guaranteed, to be cancelled 24 hours after arrival in port.

Insurance rates.

For 4 mos. on $1,000 would be equal to guarantee say, 4 per cent, or $40. For 7 mos. on $1,000 would be equal to 7-12ths of 7 per cent, or $40.83. Carry 3-4 valuation of vessel and full valuation on invoice of cargo.

EXHIBIT B.

Advertisement of sale of E. B. Marvin.

[Auction on Monday, Nov. 7th, at 11 a. m.-Sealing schooner.]

I have been instructed by the managing owner to sell by auction at my salesroom, Fort and Langley streets, the fine schooner E. B. Marvin, 117 net and 123 gross tonnage, sale of E. B. Marvin. built in Kennebunk, Maine, U. S. Frame and plank

Advertisement of

ing of white oak, copper fastened; her bottom was metaled last year.