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Another fertilizer and oil plant was installed this season on Dall Island, southeastern Alaska, by the North Pacific Fish and Oil Company, which has its headquarters in Seattle, Wash. The following information of its scope and purposes was obtained from Mr. F. J. Farmer, manager: The site, buildings, etc., cost $12,000. The number of hands employed are 22. One steamer and two sailboats were used in gathering fish. Fishing gear consisted of two drag and two purse seines. It was intended to use dog-fish and refuse from salteries and canneries in the business, and neither herring nor salmon. At the date of the visit operations had not yet begun, and no report has been received since. It did not seem probable, however, that much more than to get the business into smooth running order would be accomplished this year.

The Alaska halibut business has made a great stride forward during the past season, and is undoubtedly still in its infancy. The waters of the passages between the multitude of islands from the boundary northward clear to the Gulf of Alaska teem with this valuable fish, which attain to a very large size, 200-pounders being not uncommon and still larger ones being frequently taken. The method of fishing for them is simple, and any one with a boat and a strong hand line can find a lucrative occupation in taking them. They are shipped first to Seattle, Wash., and from that port distributed eastward in refrigerator cars. As showing the rapid increase in the industry, it is noted that during the last four months of 1904 the output grew from 832,500 pounds, valued at $28,596, in 1903, to 2,412,876 pounds, worth $82,154. The industry is rapidly expanding, and being highly profitable with slight requirement of capital is a most valuable and reliable resource for poor men. The market price has gone up during the past season from 23 cents per pound to 3 cents to first-hand buyers. In the Middle West and Eastern markets the fish retails at from 20 to 35 cents. Much of the supply for even Atlantic coast cities now comes from Alaska and Puget Sound regions.

MISCELLANEOUS.

There was a singular prevalence of small salmon at nearly all Alaska fisheries this season, and the most experienced fishermen were at a loss to account for them. At Chignik and Cook Inlet they were thought to be fish hatched at Karluk, which are perhaps the smallest of Alaska salmon. At the latter place, also, almost the entire summer run was made up of unusually small fish, averaging 20 to the case, against the common average of 13 or 14. It may be that the Karluk hatch is getting back and diffusing itself through adjacent waters. But the fact that these fish were below the normal size of Karluk salmon and were found at points much farther away than the places mentioned, makes this explanation questionable.

A considerable number of what appeared to be genuine fresh-water white-fish were taken in Bristol Bay this season.

For several years Superintendent Wetherby, at Kussilof, Cook Inlet, has offered a reward to the fisherman who brought in a shad, having been impressed with the belief that sooner or later that species of fish would make its way from the Sacramento River into the waters of the North Pacific. This summer his expectation was realized, and a fine female shad full of roe was brought in. But a single one was caught.

The increasing difficulty of securing sufficient numbers of Chinamen for the operation of the canneries, mentioned in former reports, was the occasion of a good deal of trouble to the packers this season, and various experiments for relief were resorted to. Many more Japs than usual were employed. While the latter were not quite satisfactory if employed in gangs of mixed nationalities, by themselves they proved excellent workers. In addition to the Japs at different places there were found Mexicans, Porto Ricans, Filipinos, and South Americans. It has come to be almost impossible to supply the very large plants with Chinese gangs only, and the problem of filling their places with an equally good class of workers is bound to be perplexing for some time to come.

The putting up of dry-salted salmon for the Japanese trade is a growing branch of the Alaska fish industry, and is important in that it utilizes the dog or "chum" variety, of which the supply is practically unlimited, but which is undesirable for either canning or salting in the usual manner. The Japanese demand for this product already exceeds the present supply, and it is not doubted that the market would steadily keep pace with an enlarged production. A packer who has been giving his attention to this line of the business says: "We and all who have tried dry-salting dogs or 'chums' regard them, without exception, the very best kind of salmon we have ever seen. If the American public could only know how good a fish they are, I feel sure a large home market would be opened for a fish with which Alaska waters are teeming, and for which there has been heretofore little use."

RECOMMENDATIONS.

I have the honor to submit the following recommendations: 1. That there be a general revision of existing laws and regulations for the protection of the salmon fisheries. This suggestion has been made by me in each succeeding annual report since my connection with the work. Though the matter has been more or less considered in Congress from time to time, no changes thus far have been accomplished, despite the fact that there is no dissent that the crudities and inconsistencies of the act urgently demand a cure.

2. That the tax on canned salmon, which now makes no distinction between the more valuable and the cheaper grades-in which there is a difference of nearly 50 per cent in market value-be modified to recognize this condition. The present rate of taxation has been peculiarly burdensome upon the packers of so-called "pink" fish, who, of late years, have had a struggle for existence.

3. That an appropriation sufficiently liberal to provide for the erection and equipment of not less than four first-class hatcheries—say $200,000-be asked for.

4. That, for the reasons given elsewhere in this report, the regulation requiring the maintenance of hatcheries by all persons taking salmon for commercial purposes in Alaska waters be rescinded. The season's report of the assistant agent is given herewith. Respectfully submitted.

HOWARD M. KUTCHIN, Agent at Salmon Fisheries of Alaska.

The SECRETARY OF COMMERCE AND LABOR.

REPORT

OF THE

COMMISSIONER OF NAVIGATION

REPORT

OF THE

COMMISSIONER OF NAVIGATION.

DEPARTMENT OF COMMERCE AND LABOR,

BUREAU OF NAVIGATION, Washington, November 5, 1904.

SIR: I have the honor to submit to you the annual report of the Bureau of Navigation, comprising statistics and recommendations, as prescribed by law.

On July 1, 1903, the Bureau of Navigation became a part of the Department of Commerce and Labor, pursuant to the act of February 14, 1903, which created that Department. The severance of established relations and the establishment of new relations necessarily was attended with some embarrassments. Probably more than any other Bureau transferred from the Treasury Department the Bureau of Navigation at the outset experienced the effects of changed relations. Its daily duties in respect of the movements of vessels, transportation of cargoes and passengers, entry, clearance, etc., requiring prompt performance in the interests of commerce, involved close relations with the collectors of customs and cooperation at times with the customs division, special agents, and other branches of the Treasury service. When those relations were severed it was not entirely clear just what portion of some details of work were intrusted to the Secretary of Commerce and Labor and what to the Secretary of the Treasury. The act of Congress creating the new Department was necessarily broad in its terms, and left the readjustment of details to administrative officers. The Bureau of Navigation considered that the purpose of Congress in creating a Department "to foster, promote, and develop the foreign and domestic commerce shipping and transportation interests of the United States" supplied the principle of readjustment, and that matters involving shipping were within the province of the new Department and outside the province of the Treasury. Various questions of construing the act were sent to the Attorney-General for an opinion to guide the Departments. In one of these opinions (August 13, 1903) the Attorney-General held:

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The general line of cleavage established by the act creating your Department between it and the Treasury Department leaves "navigation" with you and little with the Treasury Department, which does not concern the collection, keeping, minting, and disbursing of the public treasure. Accounts relating to "navigation are accounts relating to "business within the jurisdiction" of your Department.

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In case of doubt we are accordingly justified in saying that a matter which belongs to navigation, as this does, has been transferred to you.

21301-05-42

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