Omineca by over 300 miles of rough country, unknown geographically, and scarcely, if at all, prospected. Gold has long been known on the lower part of the river Stikine, by which Cassiar is approached from the coast; but it occurs there in light, scaly particles, like those obtained on many of the bars of the Fraser. The rich deposits lately discovered lie on the sources of the river Dease and about Dease Lake, the upper end of the latter being separated by only a few miles of low country from a part of the Stikine. The Dease empties into the Mackenzie, and thus passes to the Arctic Sea. The discovery of this district is due to Mr. Thibert and a companion, who reached it from the east in 1872, after three years spent in trapping and prospecting. Mr. Good, in the report already referred to, states that the area of the Cassiar gold-field, as at present developed, comprises a tract of country of at least 300 square miles. The number of miners employed during the summer of 1875 was over 800, and the gold obtained is estimated at a little less than a million of dollars. In 1876, according to the report of the minister of mines of British Columbia, the estimated gold yield was $556,474, and 1,500 miners and others visited the mines. The yield for 1877 is estimated by Mr. Vowell, gold commissioner, at $499,837. The number of men at the mines, exclusive of Indians, is said at no time to have exceeded 1,200, of whom 300 to 400 were Chinese. Dease and McDame Creeks, the two most important in the district, are about 100 miles apart, while discoveries have been pushed northward and eastward on river systems connected with the Dease to a distance estimated at 370 miles, in a region which probably lies beyond the Province of British Columbia, and in the as yet unorganized northwest Territory. A promising quartz vein, containing gold, silver, and copper, has been discovered on McDame Creek, and a lode of argentiferous galena on the river Francis or Deloire.

Mr. Arthur W. Vowell, gold commissioner and stipendiary magistrate, also uses this language regarding these mines, for the year 1877, in his report to the provincial secretary:

Considering the many difficulties which have beset the miners, and the fact that there have not been as many engaged this year, I think that, on the whole, the results for 1877 are not unfavorable, but rather go to prove that Cassiar stands to-day a mining district second to none in the province as regards the number of men it employs, its great extent, its prospects, and the fact that it is as yet, except as regards a very limited portion of it, undeveloped.

The miners who have already returned in October of the present year report the discovery of new very rich diggings. They were only discovered a short time before the season became too far advanced to work, but during the short time they were worked the yield was enormous.

Here the miners congregate in large numbers, from 1,500 to 2,000 at certain seasons of the year, the number increasing each year, going and coming. A large number of them go into winter quarters with Indian women, hibernate, play cards, and drink whisky until the ice melts in the spring, when they return to the mines and try their luck again.

The impetus given to Indian labor by employing them and their canoes in the transportation of merchandise has had a very beneficial effect and added no little to the prosperity and trade of the place, for the Indian generally spends every dollar earned by him.

The price on the steamers from Wrangel to Glenora Landing, 150 miles, is $40 per ton measurement, whereas the Indian takes it for $30 per ton weight. They deserve to be encouraged in their enterprise, and nothing will go farther to render them docile and tractable than the very fact of their being dependent upon the white man for employment. These canoes are regularly cleared by the deputy collector, who personally takes an account of every portion of their cargo. This necessitates his being absent from his office, very often for days at a time. One officer at this port is insufficient; there should be, as said before, another assigned here.

It frequently happens an inspector has to be sent to Karta Bay, Klawack, and other points, and the interests of the government are always in jeopardy if temporary inspectors are selected from the lazy, goodfor-nothing, loafing class of men who are hanging around the waterfront waiting for an odd job.

The foreign steamers have to be discharged by an inspector; the deputy collector cannot attend to this. They have to be watched at night as well to prevent the illicit importation of foreign merchandise as to guard against the surreptitious landing of alcoholic liquors from our own ports.

The public business, if attended to at all, should be done properly, and the volume here is such that, if not strictly looked after, loss to the revenue must necessarily ensue.

Mr. Dennis had his office in good order, and his books, papers, and accounts disclosed strict fidelity and attention to business. An examination of his collections showed him accountable for the sum of $131.83 in fees and duties. The cash on hand was: Gold, $10; silver and currency, $121.83. As remarked previously, an iron safe is absolutely needed at this office.

Coastwise merchandise, which is first landed at Victoria and subsequently shipped in foreign bottoms to Wrangel, is identified as follows: Merchandise of this description passes through Victoria in transitu, and such an entry is made at Wrangel, and certificate of landing is signed by the deputy, which is afterwards returned to the custom-house at Victoria. The entry specifies packages, with weights and values. This is kept on file at the Wrangel office. The town of Wrangel contains several stores, restaurants, hotels, &c. The buildings are for the most part, however, small. The Indian village will be described hereafter. Statistics regarding the trade of Wrangel will more fully appear in a petition subsequently incorporated in this report, of its citizens to Congress praying for some mode of civil government.

COAL DEPOT.

Wrangel Island should be made a government coaling station; it is far more central than Sitka, and is 180 miles nearer to the Nanaimo coal-mines, in British Columbia, where all steamers bound to the northward take in their supply of coal. It is also more central for vessels to coal here bound to the Aleutian and Seal Islands. A large vessel loaded with coal at Nanaimo could be towed up by a revenue-cutter by the inside passage, and after discharging could likewise be towed to sea, thus materially reducing the cost of transportation. A fine site is presented for a location, the point of land occupied by Shasta Hauck (Shustack). There is abundance of ground without trenching upon the space occupied by his lodges and buildings. A small wharf can be constructed at small expense, and all the facilities can be had for discharging and loading coal. This is a very important question to be decided by the department without further procrastination. It is a screaming farce to send these small cutters to Alaska with only sufficient coal to take them there and return, making no allowance or provision whatever for bad weather or accidents. An appropriation should be had this year of at least $10,000 for sending a cargo of coal to Southeastern Alaska, for the use of revenue-marine vessels cruising there. The reason for appropriating so large an amount at one time is, that by sending a large cargo the cost of transportation is reduced. It will cost more in proportion to send 500 tons of coal than 1,000.

The time is not far distant, however, when Alaska will furnish her own coal, and the great expense of transportation will be thus avoided

SPECIAL INVESTIGATIONS.

The following papers were, on April 1, 1876, sent by the department to Special Agent S. D. Mills, at that time in charge of the district, for

investigation and report. Mr. Mills leaving for the Atlantic States soon thereafter, he referred them to me.

WAR DEPARTMENT, Washington City, March 4, 1876.

SIR: I have the honor to inclose copy of letter of January 12, 1876, from the commanding officer of Fort Wrangel to the collector of customs at Sitka, forwarding a sworn statement of T. J. McCully, charging one Baronovich, a trader, with smuggling dutiable goods into Alaska from British Columbia.

Very respectfully, your obedient servant,

The Hon. SECRETARY OF THE TREASURY.

GEO. M. ROBESON,
Acting Secretary of War.

HEADQUARTERS, FORT WRANGEL, ALASKA,
January 12, 1876.

SIR: I have the honor to forward for your action the sworn statement of Thomas J. McCully, charging Charles V. Baronovich, a trader at Karta Bay, Prince of Wales Island, Alaska, with smuggling dutiable goods into Alaska from British Columbia during the summer of 1875, thereby defrauding the United States customs.

McCully appears to be a credible young person, and I have no reason to doubt the correctness of his statement.

In case of the successful prosecution of a suit against Baronovich, I would suggest that the Treasury Department be urged to allow McCully the fullest benefit of the law in his character of informer. Baronovich is indebted to McCully for a whole season's mechanical labor, for which the latter is unable to obtain payment. Very respectfully, your obedient servant,

M. P. BERRY,

Collector of Customs, Sitka, Alaska.

S. P. JOCELYN,

Captain Twenty-first Infantry, Commanding.

(Through the acting deputy collector, Fort Wrangel.)

Personally appeared before the undersigned, a commissioned officer of the United States Army, and commandant of the military post of Fort Wrangel, Alaska, one Thomas J. McCully, who, being duly sworn, deposes as follows, viz:

From March 12, 1875, to about December 1, 1875, I resided at the trading post of Charles V. Baronovich, Karta Bay, Prince of Wales Islands, Alaska, being in the employ, as cooper, of said Baronovich. About June 25, 1875, the said Charles V. Baronovich brought, or caused to be brought, from Fort Lapwai, in British Columbia, to his store at Karta Bay, in Alaska, a lot of English-made blankets, in number sixty, more or less. About August 1, 1875, the said Charles V. Baronovich brought, or caused to be brought, from Fort Simpson, in British Columbia, to his store at Karta Bay, in Alaska, a canoe load of hard bread, flour, and blankets, the said cargo consisting of ten sacks of flour, four boxes of hard bread, and a lot of English blankets, not less than one hundred in number. About September 1, 1875, the said Charles V. Baronovich brought, or caused to be brought, from Fort Simpson, in British Columbia, to his store at Karta Bay, in Alaska, sixty English blankets.

Of this last lot I am exact as to the number, as the blankets were wet during the voyage, and I counted them as they were exposed in the air to dry.

I am less positive as to the precise dates, as I made no memorandum at the time, but all the articles enumerated were brought from Fort Simpson to Karta Bay during the time I was employed by Baronovich, i. e., between March and December, 1875.

I am positive that the United States import duties were not paid by the said Charles V. Baronovich, or other person, upon any of the blankets, hard bread, or flour mentioned in this statement, as the said Baronovich frequently informed me that the said duties had not been paid, but that the fact of importation had been concealed from the customs officials, and he, the said Baronovich, often remarked to me that a man was a fool to pay duties in Alaska, as goods could be just as readily smuggled, and so much saved. THOMAS J. MCCULLY. Subscribed and sworn to before me, at Fort Wrangel, Alaska, this 12th day of Jau uary, 1876. S. P. JOCELYN, Captain Twenty-first Infantry, Commanding.

I certify that in taking the above affidavit paragraph 1031, Revised Army Regulations, 1863, has been complied with.

S. P. JOCELYN, Captain Twenty-first Infantry, Commanding.

[Indorsements.]

HEADQUARTERS DEPARTMENT OF THE COLUMBIA,
Portland, Oreg., February 2, 1876.

Official copy (with inclosure) respectfully furnished the assistant adjutant-general, headquarters Military Division of the Pacific, for the information of the Treasury Department.

O. O. HOWARD, Brigadier-General, Commanding.

HEADQUARTERS MILITARY DIVISION PACIFIC,
San Francisco, February 19, 1876.

Respectfully forwarded to the Adjutant-General.

J. M. SCHOFIELD,
Major-General.

Copy of communication of commanding officer, Fort Wrangel, to the collector customs, Sitka, inclosing sworn statement of T. J. McCully, charging Charles V. Baronovich, a trader, with smuggling dutiable goods into Alaska from British Columbia, &c. Official copy.

E. D. TOWNSEND,

Adjutant-General.

APRIL 1, 1876.

Respectfully referred to Special Agent Mills, San Francisco, Cal., for such investigation as he may be able to make. BLUFORD WILSON,

Solicitor.

I found the complaining witness, McCully, at Wrangel, who substantiated verbally to me everything contained in his affidavit, but seemed unwilling to testify against Baronovich. Upon further questioning him, I ascertained that Baronovich had paid him the greater portion of the sum claimed by him, and I shrewdly suspect this affidavit was made more to compel a settlement than for any great zeal for the welfare of the public service. At all events, I found that McCully would prove a most unwilling witness.

Subsequently I took the Wolcott and steamed for Karta Bay, where the trading post of Baronovich is situated. I read to him the charges, which he indignantly denied, interlarding his conversation in broken English with oaths and expletives. The antecedents and previous character of this man are bad, and I have no doubt but that he has been a systematic smuggler for years.

I made thorough examination of his store and stock of goods on hand, and found no other evidences of smuggling. He has sold nothing to speak of for two years, his fishery has been closed, and he has done no business of any kind worth mentioning. He is deeply in debt and very

poor.

In addition to this, the man is so badly paralyzed and is a helpless cripple, he can barely speak distinctly and can hardly get about. In fact his system is so broken that in my opinion he cannot live long.

A party of San Francisco capitalists have purchased his copper mine, and from the high character of the gentlemen composing the company, I feel assured there will be no more smuggling at this point if they can prevent it. Baronovich has made his last cruise, his sands of life are nearly run, and no longer will his pirate craft thread the water of Karta Bay and adjacent archipelago laden with contraband goods.

In order to prosecute him, it would be necessary to have him indicted either in the courts of Oregon or Washington Territory, at great ex

pense, and in view of the time that has elapsed, the difficulty of obtaining testimony to convict, and all the circumstances of the case, and feeling satisfied there will be no repetition of the offense, I respectfully recommend no further proceedings be had, and the papers in the case are herewith returned.

EXPEDITION OF THE REV. MR. DUNCAN, MISSIONARY, TRADER, MAGISTRATE, ETC., AT METLACATLAH, BRITISH COLUMBIA.

Among other matters which have laid dormant for two years, awaiting an opportunity for personal investigation, has been the following correspondence submitted to me by the department:

CUSTOM-HOUSE, SITKA, ALASKA,

Collector's Office, June 15, 1876.

SIR: I have the honor to lay before you the following. During the afternoon of June the 7th, while at Port Wrangel, I received per hands of an Indian the following dispatch from Deputy Collector Milletich, stationed at Tongas:

"CUSTOM-HOUSE, TONGAS,
"May 28, 1876.

"SIR: I have just been informed by a reliable party that Mr. Duncan, missionary of Metlacatla, British Columbia, is now fitting out four large canoes, with goods consisting of blankets, silk goods, ammunition, guns, and molasses, &c., to the amount of five or six thousand dollars, and intends in a few days to send the canoes, with Indians of that place, to the Chilcat country, A. T., to trade those goods. I understand that Mr. Duncan makes a business of sending goods to Alaska; he has been smuggling goods in Chilcat and other places in Alaska Territory for a great number of years. Had I any facilities at hand, I should have endeavored to capture the smugglers, but I am alone on this island, and cannot get any Indians for a crew, they being absent from their village. I would further inform you that about the 18th instant three canoes, from Silka and Tacou, called at this port on their way to Fort Simpson and Skeena River, British Columbia. I understand that they left the latter places loaded with molasses which they purchased there, and are now on their way home.

"I am,

sir, very respectfully, &c.,

"A. MILLETICH, "Acting Deputy Collector and Inspector."

While reading the above communication a fleet of eight canoes hove in sight of the custom-house, ten or more miles to the westward, heading north through Duke of Clarence Straits. Believing it to be a "Hydah fleet on their way to Wrangel, but little attention was paid to their movements for the space of an hour, when finding that only one, the leading canoe, headed toward the port, I concluded that it was the smuggling fleet, and thereupon proceeded to inaugurate a chase with such means as I could command.

There being no steamer of any kind in the harbor, I went to the Stickine Indian town, and, after two hours' delay, succeeded in employing a canoe to chase. After waiting an hour for the head Indian to collect a crew, he refused to go. Another hour was spent, and I succeeded in employing a canoe with twelve paddles and steersman, and got them off with a guard of troops furnished by Captain Jocelyn, commanding post at Wrangel, and Deputy Collector Dennis, under orders to follow the fleet to the Northwest Stickine Sands, and if finding that the fleet had entered and was any distance out in Prince Frederick's Sound, to abandon the chase, for the reason that the canoe was too light to venture. My only hope was to catch them on the sand, waiting for the flood tide to get over into the sound, or that they might go into camp, but in neither instance was I right; the tide was a neap or half tide, which left the channel open, and, with a half gale, they pushed on.

The elements seemed to conspire against my success, because, in less than ten minutes after leaving Wrangel, a strong wind, rain, and fog came in from the west, which operated seriously against the expedition, which, by the peculiar configuration of the islands, made it favorable for the smugglers. Nevertheless, against the storm, the canoe traveled about twenty miles in less than two hours. Finding it impossible to overtake the running fleet in less distance than one or more hundred miles, Mr. Dennis gave up the chase.

In conclusion, I must say that it was only by arousing the cupidity of the Indians