One thousand two hundred and eighty reindeer were imported from Siberia. There are now in Alaska approximately 300,000, and it is estimated that two-thirds of them are the property of the Eskimos. Within less than a generation the reindeer industry has advanced through one entire stage of civilization, the Eskimos inhabiting the grazing lands from the polar regions to the North Pacific Ocean; it has raised them from the primitive to the pastoral stage, from nomadic hunters to civilized men, having in their herds of reindeer Assured support for themselves and opportunity to accumulate wealth. It is estimated that there are in northern and western Alaska approximately 200,000 square miles of treeless region, worthless for griculture, which could furnish pasturage for about 4,000,000 reindeer. It is possible that at a date not far distant the United States may draw a considerable part of its meat supply from the reindeer herds in Alaska.

In making its public schools centers of social, industrial, and civic fe in the native villages, the Bureau of Education took pioneer action in making an educational agency reach an entire community. The establishment of the Alaska reindeer service was the earliest governmental action providing, by the introduction of a new industry, practical vocational training adapted to community needs, guaraneeing assured support, and is showing results in training a primitive race toward independence and responsible citizenship.

U. s. S. "BOXER"

In April, 1920, the U. S. S. Boxer, a wooden vessel, used by the Government as a training ship for naval cadets, was transferred to the Interior Department for the use of the Alaska division in conection with its work in Alaska. Funds have been appropriated and ased to make repairs and remodel this schooner and equip it with modern machinery at a cost of approximately $100,000, and she is -day a sturdy craft, braving the waters of the Pacific and Arctic Oceans as far north as Point Barrow. Annually she carries a heavy onnage of supplies and equipment, teachers, doctors, and nurses to the coast stations and to the distributing points on the mouths of arge rivers. When transportation is closed in the north she serves a floating school. The first expedition of the kind ever undertaken vas made in a four months' cruise to points in southeastern Alaska. he carried on board natives of Alaska with ship's officers and special structors, with equipment to teach units of work that would afford portunities to the native boys for the acquisition of new knowledge d the development of manipulative and managerial skill. Such purses were offered as navigation, with special training covering the peration and care of Diesel engines, dynamos, and marine machinery; adio telegraphy, or wireless, including practice work in installation f wireless receiving and sending sets; cooking, with instructions d practice in the preparation of a proper marine menu; general mentary subjects, with special emphasis in speaking and writing English, history, including civil government, personal hygiene, and physical training; lectures on such virtues as cleanliness, morality, courage, dependability, and politeness.

INDUSTRIAL EDUCATION

In the ordinary day schools for the natives in Alaska industrial education supplements the fundamental work of the schools. The study of animal husbandry, home economics, and manual training helps to connect the home life and the life of the community with the school, adds interest to the academic subjects, and makes skilled and efficient citizens. Any industrial subject properly taught is highly cultural. Special industrial schools are in the process of organization at Eklutna, Kanakanak, and White Mountain, where the Government has made appropriations and buildings have been erected and teachers especially qualified sent in to develop industrial courses along the lines of animal husbandry, carpentry, household management and home making, nursing and sanitation, art, music, and physical education.

DISEASED LIVESTOCK

Excellent progress is shown in the eradication of disease in livestock throughout the Territory. An extensive inspection of livestock-the third one to be made in the Territory-was conducted during the last half of the year 1923 by a veterinary inspector of the Bureau of Animal Industry of the Department of Agriculture. His report shows that bovine tuberculosis is well under control in the Territory; that the excellent cooperation by cattle owners, more rigid inspections at the source of importation, and marked improvement in the general sanitary conditions in Alaskan dairies have greatly enhanced the progress of disease control.

A total of 706 cattle were tested in the towns of Kodiak, Fairbanks, Anchorage, Kennecott, McCarthy, Chatanika, Nenana, Seward, Matanuska, Valdez, Latouche, Cordova, Sitka, Petersburg, Haines, Juneau, Douglas, Skagway, Wrangell, and Ketchikan. Of the number tested 690 proved to be in a healthy condition; only 16 reacted under the test and were slaughtered.

An increase of 42 per cent in the number of dairy cattle was noted in one town and an increase of 69 per cent in another. The consumption of dairy products has greatly increased under the inspection service made possible by the Alaska Legislature, aided by the Federal Government.

The fourth inspection of livestock in the Territory is now being conducted, results of which will be shown in a later report.

TERRITORIAL FINANCES

The Territory has its own fiscal system, controlled by laws enacted by the Territory legislature, which is entirely separate and apart from the revenues received by the Federal Government from business and trade licenses, and which are covered into and disbursed from the Alaska fund in the Federal Treasury. Territorial revenue acts have been amended from time to time, the act in effect at this time, chapter 31, Session Laws of Alaska, 1921, and amendments thereto, imposing the following license taxes:

Doctors, including persons practicing medicine, surgery, or osteopathy, and attorneys at law, $10 per annum; optometrists, $15 per annum; dentists, $25 per annum; undertakers, $10 per annum; automobiles, according to purpose for which operated, a tax of $10

and $15 per annum; bakeries, a graded tax of $5 per annum for each $1.000 worth of business done annually in excess of $3,000; electric light and power plants, one-half of 1 per cent per annum of the gross receipts in excess of $2,500 and of the net profits from supplies sold; telephone companies, one-half of 1 per cent per annum on gross receipts in excess of $1,500; waterworks, one-half of 1 per cent per annum on gross receipts in excess of $2,500; clam canneries, 3 cents per case; salmon canneries, a basic tax of 10 cents per case on kings and reds or sockeye, and an additional tax ranging from 5 cents per case to 20 cents per case on certain sized packs in excess of 10,000 cases; on medium reds, cohoes, and pinks, a basic tax of 42 cents per case and an additional tax ranging from 2 cents per case to 6 cents per case on certain sized packs in excess of 25,000 cases; on chums, a tax of 3 cents per case, and an additional license tax of 1 per cent on net income; salteries, 15 cents per 100 pounds on red king salmon, 5 cents per 100 pounds on white king salmon, 10 cents per 100 pounds on codfish, 22 cents per 100 pounds on all other salted or mild-cured fish; fish traps, fixed or floating, so-called dummy traps ncluded, $200 per annum and an additional tax of $2 per 1,000 on all fish caught in any one trap in excess of 100,000; gill nets and stake nets, $2 per 100 fathoms or fraction thereof; seines $10 for the first 150 fathoms and $5 additional for each 25 additional fathoms or fractions thereof; nonresident fishermen, $5 per annum (the schedule nonresident fishermen only effective to date to January 1, 1924); cold-storage plants, a graded tax of from $10 to $500 per annum, according to the amount of business done; fish buyers (dealers in fresh fish), one-tenth of 1 per cent per pound on fish purchased, except for sale at retail, whether or not the fish buyer operates a coldstorage plant; fish-oil works and fertilizer plants, 40 cents per 50gallon barrel for oil and 40 cents per ton for fertilizers and fish meal; hale oil and fertilizer, 50 cents per 50-gallon barrel for oil and 50 tents per ton for fertilizer; laundries, a graded tax of from $25 to $75 per annum, according to amount of business done; meat markets, a Zaded tax of from $50 to $500 per annum, according to amount of business done, and an additional $50 imposed for each $20,000 worth of business done in excess of $100,000 per annum; mercantile estabhments doing a business of more than $100,000 per annum, $50 per num on each $20,000 of excess; mining, 1 per cent of net income in excess of $10,000 and not in excess of $500,000, 12 per cent of net come in excess of $500,000 and not in excess of $1,000,000, 14 per ent of net income in excess of $1,000,000; oil wells, 1 cent per barrel aexcess of 5,000 barrels from each well per annum; public messengers, £25 per annum; ships and shipping, vessels registered in Alaska and gaged in local freight and transportation business or in business for e, $1 per net ton, customhouse measurement; dealers in noncoholic beverages, $10 per annum; manufacturing and repair shops, graded tax of from $10 to $50 per annum, according to number of en employed; sawmills (lumber mills and shingle mills), 5 cents er thousand for shingles and 10 cents per thousand feet, board Beasure, of lumber per annum. The legislature of 1925 made some or changes in the foregoing schedules, most of which, however, to not become of effect until after January 1, 1926.

There is no general system of property taxation in effect in Alaska, but the Territory is in receipt of other revenues in addition to license

taxes, railroads paying tax of 1 per cent of gross receipts, 25 per cent of the receipts of the national forests in the Territory accruing to it, and a poll tax act, levying for school purposes a tax of $5 per annum on all men between the ages of 21 and 50 years, is in effect. Estates of deceased persons without heirs escheat to the Territory. The legislature of 1919 passed inheritance and profits tax laws, but only small results have thus far been realized under these laws.

The 1923 session of the Territorial legislature enacted a revenue measure imposing a license tax on the business of fur farming, trapping, and trading in pelts and skins of fur-bearing animals, the law referred to being chapter 89, Session Laws of Alaska, 1923, and repealing the previous fur-tax law enacted by the 1921 legislature. The new law which became effective from and after August 1, 1923, provides for payment of an annual license fee in sum of $10 per business of fur farming; $15 per annum for stationary fur buyers, $100 per annum for itinerant fur buyers, and $15 per annum for each itinerant agent of a stationary fur buyer; additional taxes are imposed on pelts bought, acquired, or sold. The 1923 session of the legislature also enacted a revenue measure providing for the licensing of fishermen in the Territory of Alaska, this law being chapter 94, Session Laws of Alaska, 1923. By provisions of amendatory act by the 1925 legislature the following license fees became of effect for and after such year: Resident fishermen of all classes, $1; nonresident fishermen using other fishing appliances than seines, $10; nonresident fishermen using seines $25.

License taxes collected and other revenues accruing to the Territory are covered into and disbursed from the Territorial treasury, the fiscal year of the Territory corresponding to the calendar year. The condition of the Territorial treasury for the year ended December 31, 1924, was as follows:

At the close of the year covered by this report there were 13 Territorial and 4 national banks doing business in the Territory. The Territorial banks are located at Ketchikan, Wrangell, Petersburg, Juneau, Skagway, Cordova (2), Valdez, Seward, Anchorage, Iditarod, Nome, and Hyder. National banks are located at Juneau, Ketchikan, Anchorage, and Fairbanks. The number of banks in the Territory remained the same during the year, voluntary liquidation of a Territorial institution in the town of Anchorage being off-set by a newly organized national bank in the town of Ketchikan.

The Territorial Banking Board, composed of the governor, the secretary, and the treasurer of the Territory, continued its supervision over the Territorial banking institutions. All such were examined during the year and made reports of condition and published statements under call, as required by law.

Combined deposits in the several Territorial banks at call of June 30, 1925, totaled $6,920,937.97 as compared with total of $6,609,427.81 at corresponding call of June 30 of the year previous. At call of

June 30, 1925, combined capital of all Territorial banks totaled $630,000 as compared with $605,000 for the year previous, loss of $25,000 by liquidation of the Anchorage bank being more than offset by capital increases elsewhere. Combined surplus and net undivided profits totaled $287,881.34 as compared with $417,609.02 of the year previous. On June 30, 1925, under call from the comptroller, the national banks of the Territory showed combined capital of $200,000, surplus and undivided profits of $156,522.65 and deposits of $3,176,294.84. Aggregate banking figures for the Territory on June 30, 1925, were approximately as follows: Capital, $830,000; surplus and undivided profits, $445,000; deposits, $10,097,000. Approximate totals for the year previous were: Capital, $755,000; surplus and undivided profits, $556,000; deposits, $8,374,000.

ALASKA FUND

The Federal Government derives revenue from business and trade licenses issued outside of incorporated towns, which is collected by the clerks of the district courts, deposited 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. Sixty-five per cent of the money paid into this fund is appropriated for the construction and repair of roads and trails outside of incorporated towns and expended under the direction of the Alaska Road Commission; 25 per cent is appropriated for the maintenance of schools outside of incorporated towns, expenditures being made upon requisitions by the governor of Alaska upon the Treasurer of the United States, through the Secretary of the Interior; and 10 per cent is appropriated for the relief of indigents, disbursed by the Federal judges, under the act of Congress approved March 3, 1913.

The sums collected during the fiscal year 1925 and a comparison with the previous fiscal year are shown in the following tabulation:

The net amount of cash turned into the Treasury in the fiscal year 1925 for the account of the Alaska fund in the first division was, however, $96,006.78, the difference of $6,893.60 being the aggregate of rebates made and credited to certain salmon canneries for the release of salmon fry in lieu of cash payment of taxes on their output; and the net amount of cash turned into the Treasury for the account of the Alaska fund in the third division was $101,012.54, the difference of $5,550 being the amount of rebates to certain salmon canneries for release of salmon fry in lieu of cash payment of taxes. The act approved June 26, 1906, provides that the catch and pack of salmon in Alaska by owners of private salmon hatcheries operated in Alaska shall be exempt from all license fees and taxation of every