done to enable ocean-going vessels to land their cargoes without lightering.

During the past year considerable development work has been done in the Matanuska coal fields. At Eska Creek the engineering commission is operating a mine which is now producing about 175 tons of coal per day, and in addition extensive prospecting work is being done to ascertain the extent of the deposits. At Chickaloon, where the best naval and coking coal is to be found, the commission has done a large amount of prospecting work. Private parties, working under a Government lease, are also doing development work in this vicinity. The commission has been able to produce sufficient coal to supply its own needs and the needs of the Cook Inlet country and to accumulate a large amount available for export whenever ocean tonnage is provided. In addition, lignite coal of good quality is being mined contiguous to the railroad at a point near the Little Susitna River. In the Nenana coal fields some prospecting work has been going on, and several very promising veins are being developed, some in the immediate vicinity of the railroad.

Agricultural development is progressing favorably in the Matanuska Valley and at other points along the railroad line. The farmers have been hampered by lack of a market for their products. It is hoped that this will be gradually remedied by the future development of the mining districts.

Very good reports come from the Willow Creek and other mining districts contiguous to the railroad. It is believed that when conditions become normal again, large development will take place in both agricultural and mining industries.

The railroad, like many other enterprises, is suffering from the unusual conditions prevailing because of the great war. Many of our young men have entered the military service, and many more will undoubtedly follow. Others, tempted by the somewhat extravagant stories of high wages being paid in the States, have left the country. The forces working on the railroad have been reduced over 50 per cent. Despite these drawbacks, good progress is being made, and it is believed that the present year will see extensive additions to the operated line.

The loyalty of the commission employees has been conspicuously shown by their very liberal contributions to the Red Cross, and large subscriptions to the Liberty loan and purchase of War Savings Stamps.

OTHER RAILROADS.

Besides the Government railroad being constructed and operated by the Alaskan Engineering Commission, the only other operating railroads are the Copper River & Northwestern Railway, from Cordova to Kennecott, and the Pacific & Arctic Railway & Navigation Co., a part of the White Pass and Yukon Route, from Skagway to White Pass, and the Yakutat & Southern Railroad, from Yakutat to the Seetuck River.

In his report for the last fiscal year, my predecessor in office drew attention to the fact that the Yakutat & Southern Railroad, while probably performing the duties of a common carrier, had escaped

the payment of all taxes on the claim of being a private railroad. This matter is now under investigation.

On the Seward Peninsula none of the railroads are publicly operated. The Council City & Solomon River Railway has been torn up and the salvage is awaiting shipment. The Seward Peninsula Railway, from Nome to Shelton may have the same fate meted out to it. It still serves a most useful purpose as freight is transported over it on light cars hauled by dog teams, but the road bed is rapidly disintegrating.

THE ALASKA FUND.

The revenues derived by the Federal Government from business and trade licenses outside of incorporated towns and which are passed to the credit of the Treasurer of the United States and by him credited to the Alaska fund under the act of Congress approved January 27, 1905, amounted to $293,161.65 for the fiscal year 1918, as against $259,370.24 for the fiscal year 1917, an increase for the year of $10,829.41. The sums collected during the fiscal year 1918 in each of the four judicial divisions were as follows: First division, $127,905.11 for 1918, as compared with $88,852.11 for 1917; second division, $8,597.68 for 1918, as compared with $13,892.96 for 1917; third division, $137,047.40 for 1918, as compared with $116,185.88 for 1917; fourth division, $19,611.46 for 1918, as compared with $40,439.29 for 1917.

The increase in revenues for the fund is found in the first and third divisions and is due to the increased fisheries output. The net amount of cash received from the first judicial division, however, was only $118,418.31; the difference, amounting to $9,486.80, represents canceled fish hatchery certificates, rebates credited to certain salmon canneries for the release of salmon fry, in lieu of cash payments of taxes on their output. The net amount of cash from the third judicial division was only $114,085.40; the difference, $22,962, represents hatchery rebates as above.

The total revenues received for taxes levied by the Federal Government within incorporated towns, from business and trade licenses, which were paid by the clerks of the district courts directly to the treasurers of the various towns, were: First division, $59,538.45 for 1918, as compared with $91,122.86 for 1917; second division, $8,356.12 for 1918, as compared with $11,756.15 for 1917; third division, $11,017.86 for 1918, as compared with $35,981.44 for 1917; fourth division, $4,271.76 for 1918, as compared with $34,126.37 for 1917; a total of $83,184.19 for 1918, as compared with $172,986.82 for 1917, a decrease of $89,802.63, due principally to the loss of saloon-license revenues when the prohibition law became effective.

Besides the revenues derived by the Federal Government from business and trade licenses of all kinds in incorporated towns and outside of incorporated towns, taxes are levied on fisheries products as follows: Canned salmon, 4 cents per case; pickled salmon, 10 cents per barrel; salt salmon, in bulk, 5 cents per hundred pounds; fish oil, 10 cents per barrel, and fertilizer, 20 cents per ton. Section 260, Compiled Laws of Alaska, 1913, provides that the catch and pack of salmon in Alaska by the owners of private salmon hatcheries op

erated in Alaska shall be exempt from all license fees and taxation of every nature at the rate of 10 cases of salmon to every thousand red or king salmon fry liberated; that is, a rebate of 40 cents is allowed on every 1,000 red or king salmon fry released.

Sixty-five per cent of the money paid into the Alaska fund is appropriated for the construction and repair of roads and trails outside of incorporated towns and to be expended under the direction of the board of Alaska road commissioners, 25 per cent for the maintenance of schools outside of incorporated towns, and 10 per cent for the relief of indigents, under the act of Congress approved March 3, 1913.

TERRITORIAL FINANCES.

The Territory has its own fiscal system, controlled by laws enacted by the Territorial legislature, which is entirely separate and apart from the revenues derived by the Federal Government from business and trade licenses and which are covered into and disbursed from the Alaska fund in the Federal Treasury. The Territorial revenue act, passed by the Alaska Legislature, session of 1917, imposes the following license taxes: Attorneys at law, doctors, and dentists, $10 per annum; automobiles operating for hire, $5 per annum; bakeries doing a business in excess of $500 per annum, $15 per annum; electric light and power plants, one-half of 1 per cent of the gross receipts in excess of $2,500, and one-half of 1 per cent of the net profits from supplies sold; employment agencies operating for hire, $500 per annum; salmon canneries, 4 cents per case on kings, reds, or sockeyes, 2 cents per case on medium reds, 2 cents per case on all others; salteries, 2 cents per 100 pounds on all fish salted or mild cured, except herring; fish traps, fixed or floating, $100 per annum, so-called dummy traps included; cold-storage plants, a graded tax from $10 to $500 per annum, according to amount of annual business done; fish-oil works, using herring in whole or in part in the manufacture of fish oil, $2 per barrel; fertilizer and fish-meal plants, using herring in whole or in part, $2 per ton; laundries, a graded tax, from $25 to $75 per annum, according to amount of business done; meat markets, a graded tax, from $25 to $500 per annum, according to amount of business done; mining, 1 per cent of the net income in excess of $5,000; ships and shipping, vessels registered in Alaska not paying a tax or license elsewhere, doing business for hire or engaged in the freight and transportation business, $1 per ton on net tonnage, customhouse measurements; telephone companies, one-half of 1 per cent of gross receipts in excess of $1,500; waterworks, one-half of 1 per cent of gross receipts in excess of $2,500; public messengers, $25 per annum. The taxes collected under this act, also other taxes and revenues accruing to the Territory, are covered into and disbursed from the Territorial treasury. The fiscal year of the Territory corresponds to the calendar year. The condition of the Territorial treasury for the fiscal year ended December 31, 1917, is as follows: Total receipts from all sources, $1,056,447.06; total disbursements under the various appropriations made by the Territorial legislature, $373,953.95; balance of cash on hand December 31, 1917, $682,493.11.

ALASKA INSANE.

Under contract with the Secretary of the Interior the legally adjudged insane of Alaska are cared for at the Morningside Hospital, near Portland, Oreg., the contractor for the last 14 years being the Sanitarium Co. In all, 743 persons have been admitted to the hospital. On June 30 there were 211 patients in the establishment, an increase of 2 over the fiscal year 1917. The distribution was as follows: Males, 186; females, 25. There were 55 receptions during the year, 37 discharges, and 16 deaths. There are three doctors in attendance for 225 patients, as compared with one doctor for about 300 patients in the average State asylum. Commencing from July 1, 1917, the rate paid per patient was $35 per month. This rate, however, was based upon conditions as of that date and is not an adequate compensation on which to furnish the best of care and subsistence and to defray the heavy overhead expenses. Relief should be afforded The Sanitarium Co. at the earliest possible moment. At my request an unannounced inspection of the sanitarium was made by a resident of Alaska in whom I have confidence, who reports to me that all patients are as well cared for as circumstances will permit. He conversed with several of the inmates with whom he was acquainted and found little complaint. A suggestion made concerning more room for the recreation of the patients is being complied with, as well as several minor suggestions. Patients are afforded every opportunity for outdoor exercise and for work on the sanitarium farm if they so desire. The sanitarium was also visited by the Assistant to the Secretary of the Interior.

DETENTION HOSPITALS.

Reference was made in report of the governor for 1917 of lack of funds for the proper maintenance of the detention hospitals for the insane located at Fairbanks and Nome. The hospitals were constructed in 1913. At Fairbanks partial use has been made of the hospital, but at Nome the building has never been occupied. At Nome the large Catholic hospital has been closed and all patients are now being treated at the hospital for the natives, which is inadequate for the purpose. It seems as though an arrangement might be effected whereby the detention hospital might be utilized to care for all hospital patients, both native and white, and thus do away with the present unsatisfactory service.

PIONEER'S HOME.

The Pioneer's Home is an institution entirely supported by the Territory. Any worthy person who has been a resident of Alaska for five years preceding and who is from any cause incapable of selfsupport may make application for admission to the home. The buildings at Sitka formerly used as a barracks for the United States. marines are occupied by the home. The home serves a most useful purpose. Old pioneers who have spent their years on the outskirts of civilization and who, through adversity, can no longer support themselves can find in the home a haven of rest in which to spend their declining years. The buildings are still the property of the

Navy Department, but the title should be vested in the Territory of Alaska, so that needed improvements and additions may be safely made. On June 30, 1918, there were 64 inmates, as compared with 70 the preceding year; there were 22 admissions; 7 were discharged; 1 committed to the asylum at Morningside; and 18 deaths. Of those discharged, 3 were pensioned by the Territory.

COAST AND GEODETIC SURVEY.

The Coast and Geodetic Survey in the continuance of the hydrographic surveys of Alaskan waters operated two vessels during parts of the year. The purpose in view was a closer survey of the approach to Cross Sound, the principal entrance from western to southeastern Alaska. As a result of the labor shortage caused by the war, the Coast and Geodetic Survey had difficulty in maintaining the necessary complements of men on its vessels in Alaskan waters, and this became more and more acute until one of the vessels had to be withdrawn from the surveys before the close of the season and was unable to proceed to the field in the spring of 1918.

During the course of the year two wire-drag parties were put into Alaskan waters by the Coast and Geodetic Survey, and they covered portions of the inside passages of Frederick Sound and Lynn Canal. Many unknown dangers to shipping were found by these wire-drag parties and now appear on the charts issued by the Federal Government, so that shipping can proceed with an assurance of safety in the waters that have been covered by surveys of this kind.

For the purpose of obtaining data for the prediction of tides and supplying magnetic tables, a permanent tidal station, where continuous records of the height and time of tides were obtained, was maintained at Craig throughout the year; and a magnetic observatory, where magnetic and seismological records were obtained throughout the year, was maintained at Sitka.

Agencies in Alaska for the sale to the public of the charts, tide tables, coast pilots, etc., issued by the Coast and Geodetic Survey, were as follows:

Cordova: Northern Drug Co.
Haines: N. G. Hanson.

Juneau: The old post-office store.
Ketchikan: Ryus Drug Co.

Kodiak: W. J. Erskine Co.

Petersburg: Petersburg Packing Co.
Seward: The Seward News Co.
Sitka: Charles M. McGrath.

Valdez: Owl Drug Co.
Wrangell: F. Matheson.

During the summer of 1917 two primary triangulation parties operated in southeast Alaska. The object of this work is to furnish the control for the charts and maps, and in cooperation with the geodetic survey of Canada to place the charts and maps of all Alaskan territory on the final geographic datum, called the North Ameri can Datum. When this has been accomplished contiguous charts and maps will not have gaps, overlaps, and offsets, which when present are sources of great trouble to the map makers and user. Congress has authorized geodetic surveys in the interior of Alaska, and these will be begun as soon as engineers and funds are available. This work consists of determinations of latitudes, longitudes, bearings, distances, and elevations, without which detailed mapping operations can not be carried on in a satisfactory manner.