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ning of the hearings owing to his illness. I am glad to observe that, he has fully recovered and I know his statement will be of benefit and interest to the members of the committee.

Secretary Ickes. Thank you, Mr. Chairman.

Gentlemen, I appreciate this opportunity to address you. Of course, my statement will necessarily be a general one, and it would have been made at your first hearing if I had not been in bed.

Mr. Johnson. I suggest that the Secretary's statement appenr in the record at the beginning of our hearings.

The Chairman. Yes; that will be done. We will be glad to hear your statement, Mr. Secretary.

GENERAL STATEMENT

Secretary Ickf.b. I hope that the next time I appear before your committee in connection with the annual appropriations the department will carry the new designation proposed by the President, namely, the Department of Conservation. The proposed title would be more indicative of our activities. There is not a single Government agency that now has the function of promoting the conservation of our natural resources, although six of the seven bureaus of the Department of the Interior and three divisions under the Secretary are engaged directly in such work. In my opinion, the mere designation of a Department of Conservation would assist materially in the preservation and wise use of our natural resources by establishing a. unified national conservation policy which is so greatly needed in this epoch if we are to avoid the mistakes of the past. Conservation would be given an entity heretofore lacking in our scheme of Government. A consciousness of conservation would be created in the minds of legislative and executive officials alike. There would be placed on the officers of the new department a definite responsibility that does not now exist anywhere in the Government. Even though some conservation agencies were continued in other branches of the Government, a department of conservation would exert a desirable influence.

During my 4 years as Secretary of the Interior it has been my endeavor to strengthen the Department in all of its public relationships with a view to dealing equitably and conscientiously with citizens who come before it. The benefits of this policy have been reflected in numerous ways. In establishing the grazing service, I arranged for local autonomy in the management of the range. In the program of rehabilitating the^Virgin Islands, the native population has been given a chance to participate to an unprecedented extent through the activities of the Virgin Island Co. in the growing of sugarcane and the manufacture of rum. As a result, the islands will be self-supporting in a very few years. The Division of Investigations has been reorganized within the present li.->cal year and the consolidation with the investigative work of the Public Works Administration has been abolished. The American Indians have been sriven an opportunity to participate in the management of their own affairs. Every aggrieved employee of the Department's staff of more than 40,000 has the right of appeal directlv to the Secretary of the Interior.

I regret to announce the death of Dr. William A. White, the late superintendent of St. Elizabeths Hospital, who has appeared before your committee for many years. Dr. White was a great physician,ffbcienl executive, and a fine citizen. He had been associated with if institution since 1903 und had devoted more than half of his life3Br to the public service. His untimely death is a severe blow to the acrfiral world in general and to the Department of the Interior in articular.

RECLAMATION CONSTRUCTION PROGRAM

The Federal reclamation construction program is progressing satisirTorihr. All operating projects had a prosperous year during 1936, ~ciT<» the fact that some of tliem wore in the heart of the area stricken ■» drought for the second time in 3 years. Water conserved by the F*deral projects not only brought crops to harvest on the lands served wt the reclamation canals, but in many ways mitigated the effects of » drought of 1936 in wide surrounding areas. Without this well'.aon**} and soundly executed program, now 35 years old, last year's -x»ter would have had even more tragic effects in the West, and xate* in the drought area would have been more crippled than they

F^iera! reclamation has assumed its rightful place in the public ■ «rtructinn program in the West. There is probably no phase of ':+ national works program which will return more to the Nation trough repayment of costs, increased national wealth, conservation 'a precious resource and improved social and economic conditions ? a large area. This work, as it progressed in 1936, provided in kidition a large amount of employment at construction sites spread •i over the >Kest, and indirectly, in virtually every industrial center a the country.

The Budget estimates submitted and now before you will provide *■<• the continuance of this program on a relatively modest scale -idnng the 1938 fiscal year. The projects now under construction m*t be continued to completion or the result will be a waste of fads already expended ana a long delay in providing improvements taat are badly needed.

NATIONAL POWER POLICY

<»n January IS, 1937, the President appointed a committee to make -^•immendations to him with regard to a national power policy. In ka* letter appointing the Secretary of the Interior as chairman, the Praadent suid:

Pwwtt from the Bonneville project will be available for distribution this year. l«Tri!«l*tion is immediately necessary. At the same time, it is highly wmi-U- «h»t such legislation conform to a national power generating, transanal distributing policy, such policy to be uniform as far as practicable or ■ti—M». Thia does not mean identical rates in every part of the country but mean uniformity of policy. This policy once established will apply to projects, such as Boulder Dam and portions of the T. V. A. and to all • developments as they are completed during the next few years.

The committee has already submitted a progress report relating to "he Bonneville project and is now actively engaged in carrying out ••he other phases of its assignment. The members of the committee, a addition to the Secretary of the Interior, are: Frederic A. Delano, Vice Chairman, National Resources Committee; James'M. Landis, Chairman, Securities and Exchange Commission; Jolin M. Carmody, Administrator, Rural Electrification Administration; and Frank R McNinch, Chairman, Federal Power Commission.

Although the committee avails itself as much as possible of information available from the several Government agencies, it, nevertheless, requires a competent staff of its own to perform necessary research and work out details of the problem as directed by the committee.

OIL CONSERVATION POLICY OF THE FKDERAL GOVERNMENT

Five States—Kansas, Louisiana, New Mexico, Oklahoma, am! Texas—producing 73 percent of the national oil output, have adopted the policy of regulating oil production so as to prevent waste. Each State determines for itself tne amount of oil which currently may be* produced therein without waste.

Under the act approved February 22, 1935, generally known as the Connally hot-oil law, the Federal Government, through the Department of the Interior, supports the State policy of oil and gus conservation by providing that petroleum, or the products thereof, produced in excess of the amounts permitted by State law is contraband and mav not be moved in interstate or foreign commerce.

During the fiscal year ended June 30, 1936, the Department issued 5,908 certificates of clearance involving 222,034,00(1 barrels of petroleum at an over-all cost of about one-tenth of a cent a barrel. The administration of the law is so essentially a field activity that, of the 78 persons employed, GO are in the field and only 18 in Washington. The current appropriation for the administration of the act is $300,000

The act has been upheld uniformly in the Federal courts and no issue thereunder has been presented to the Supreme Court of the United States. The prosecution of cases rests with the Department of Justice which prosecutes civil and criminal proceedings under the act. Out of 248 cases in the courts, the Government has been successful in 231 and unsuccessful in 2, with 15 pending.

The Connally law expires by limitation on June 16, 1937, but a bill to make it permanent has now passed the Senate and is pending in the House. Only one Federal Tender Board, that for east Texas, has been established but, if the law is extended, it Ls very probable that a new Federal Tender Board will have to be established for the Corpus Christi area, and it is anticipated that an appropriation of $500,000 will be required for the fiscal year ending June 30, 1938.

INDIAN REORGANIZATION t ROC RAM

Collectively, the various elements of the Indian Reorganization Act, approved June IS, 1U34, aim to bring about a social ami economic rehabilitation of these wards of the Nation and to end certain disastrous policies and abu-es which had developed in Indian administration. In broad outline, the act aims to put a stop to the further alienation of Indian lands to white ownership which has been proceeding since 1VX7 at an accelerating rate. It reverses the traditional policy of destroying Indian si-lf-government and instead establishes a system of ho-ne rule wlii<li, we hope, will ultimately put an end to the Indians' deju-ndency on the arbitrary regulation of the Indian Bureau. It lays down a broad program designed to arrest the steady pauperization of Indians by providing them with land and access to an adequate

Mr. Leavy. But on Grand Coulee you are limited again, and can no longer spend P. W. A. money by reason of the limitation of Congress?

Secretary Ickes. That is right.

Mr. Leavy. And that may be true of Central Valley. I am not familiar with the regulations.

Secretray Ickes. That is true of Central Valley.

Mr. Leavy. Central Valley is a project that meets with your approbation and approval, and you recommend it to the committee?

Secretray Ickes. Oh, yes; absolutely.

The Chairman. The main obstacle, Mr. Secretary, in carrying out these worthwhile measures is the vast quantity of money that it requires?

Secretary Ickes. Ye9, sir; that is it.

The Chairman. And we cannot carry them all at once?

Secretary Ickes. That is true.

The Chairman. Each one has more or less to take its turn?

Secretary Ickes. That is right.

The Chairman. At the present time there are some States getting comparatively nothing?

Secretary Ickes. Yes, sir.

The Chairman. In other words, it is a question of cutting our garments according to our cloth somewhat?

Secretary Ickes. No; we cannot do them all at once; that is true.

The Chairman. And we do have to give respectful consideration to the estimates of the National Resources Committee and the Budget and the President himself, and the authorities that be, to systematize this enormous amount of work that we have laid, and which is in progress.

Emergency Activities And New Activities Established In The Interior Department

Mr. Rich. I was interested, Secretary Ickes, when I wrote you on February 25, in reference to the various organizations that have come into your Department, and those activities that have gone out of your Department, because I recall very definitely a year or so ago a statement that you made before the Public Lands Committee on conservation, and I am, in a measure, sympathetic with many of your ideas.

In order to be brief I would like to insert in the record the emergency activities that were established in the Department as given to me in reply to this letter, if that is satisfactory to you.

Secretary Ickes. That is quite all right.

Mr. Rich. And also the new activities that were established in the Interior Department, and the list of activities that were transferred to the Interior Department.

Secretary Ickes. Yes.

The Chairman. We usually put that in the record of the hearings. I think the last time we had 18 new activities.

Mr. Rich. They list some 20 new activities.

The Chairman. Yes.

(The letters and the lists of activities referred to are as follows:)

February 25, 1937. Hon. Harold L. Ickes, Secretary of the Interior,

Washington, D. C. My Dear Mr. Ickes: In order to give your Department the benefit of every possible consideration in connection with requested appropriation, I believe it would be very helpful if you would send me a list of agencies and bureaus under your departmental administration which have been created as emergency activities. Also, kindly note any new agencies or activities brought under your administration since your assumption of the secretaryship.

As one of the members of the subcommittee for the consideration of the Interior Department appropriation bill I think this information would be of value to me at this time.

Thanking you in advance for same, I am,
Very respectfully,

Robert F. Rich.

Interior Department, Washington, March 4, 1937. Hon. Robert F. Rich,

House of Representatives. My Dear Mr. Rich: In response to your request of February 25, I am glad to send you herewith a list of new activities brought under my supervision since assuming the office of Secretary of the Interior, and a list of the emergency activities established in this Department. Sincerely yours,

Harold L. Ickes,

Secretary of the Interior.

Emergency Activities Established In The Interior Department

1. Puerto Rico Reconstruction Administration.

2. Recreational demonstration projects in national parks.

3. Work camps in national parks.

4. Emergency conservation work in national parks, on Indian reservations, grazing areas, reclamation projects, territories, and island possessions, etc.

Secretary Ickes. The activities listed as 2, 3, and 4 are under the direction of regular agencies of the Department, but they operate as separate units thereunder. This list, of course, does not include emergency projects of the various bureaus and offices of the Department for which separate administrative units have not been established.

NEW ACTIVITIES ESTABLISHED IN THE INTERIOR DEPARTMENT

1. Division of Grazing, Office of the Secretary.

2. Division of Motion Pictures, Office of the Secretary.

3. Petroleum Conservation Division, Office of the Secretary.

4. Board of Indian Arts and Crafts.

5. National Bituminous Coal Commission.

6. Consumers' Counsel, of the National Bituminous Coal Commission.

ACTIVITIES TRANSFERRED TO THE INTERIOR DEPARTMENT

To the Office of the Secretary

1. United States Geographic Board.

2. Administration of Puerto Rico.

Separate Bureau

3. Bureau of Mines.

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