This commission was called upon to consider a number of international questions—­the Atlantic and inland fisheries, the Alaska boundary, the alien labour law, the bonding privilege, the seal fishery in the Bering Sea, reciprocity of trade in certain products of the two countries, and other minor issues.  For the reasons given in a previous part of this chapter (page 269), when referring to the commercial policy of the Laurier government, reciprocity was no longer the all-important question to be discussed, though the commissioners were desirous of making fiscal arrangements with respect to lumber, coal, and some other Canadian products for which there is an increasing demand in the markets of the United States.  The long and earnest discussions of the commission on the various questions before them were, however, abruptly terminated by the impossibility of reaching a satisfactory conclusion with respect to the best means of adjusting the vexed question of the Alaska boundary, which had become of great international import in consequence of the discovery of gold in the territory of Alaska and the district of Yukon in Canada.

The dispute between Great Britain and the United States has arisen as to the interpretation to be given to the Anglo-Russian treaty of 1825, which was made forty-two years before Russia sold her territorial rights in Alaska to the United States, that sale being subject of course to the conditions of the treaty in question.  Under the third article of this treaty[10]—­the governing clause of the contract between England and Russia—­boundary line between Canada and Alaska commences at the south end of Prince of Wales Island, thence runs north through Portland Channel to the fifty-sixth degree of north latitude, thence follows the summit of the mountains situated parallel to the coast of the continent, to one hundred and forty-one west longitude and thence to the frozen ocean.  That part of the line between fifty-six north latitude and one hundred and forty-one west longitude is where the main dispute arises.  Great Britain on behalf of Canada contends that, by following the summits of the mountains between these two points, the true boundary would cross Lynn Canal, about half way between the headlands and tide-water at the head of the canal, and leave both Skagway and Dyea—­towns built up chiefly by United States citizens—­within British territory.  The contention of Great Britain always has been that the boundary should follow the general contour of the coast line and not the inlets to their head waters.  On the other hand the United States contend that the whole of Lynn Canal up to the very top, to the extent of tide-water, is a part of the ocean, and that the territory of the United States goes back for ten leagues from the head of the canal and consequently includes Skagway and Dyea.  In other words the United States claim that the boundary should not follow the coast line but pass around the head of this important inlet, which controls access to the interior of the gold-bearing region.