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and the proposed expenditures in 1937 and 1938 for the group of nonreservatioa boarding schools:

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These funds are used for the purchase of subsistence, supplies, clothing, bici instruments, athletic equipment, materials for handcraft, feed for livestock, and numerous miscellaneous items needed in connection with school activities. Development of the arts and crafts program in our schools will necessitate considerable leeway in use of funds. "Indian moneys, proceeds of labor", will be called into use extensively in connection with this part of the school program.

Miscellaneous educational expenses, various tribes, including public school tuition. $100,000.—Under this heading are included miscellaneous expenditures authorized by treaties or specific acts of Congress, funds being used either for certain definite objects specified or to supplement other available funds. A sample of this type of fund is the one entitled "Interest on Sioux fund, education" from which approximately $10,000 will be used during 1937. This money arises under section 17 of the act of March 2, 1889 (25 Stat., p. 895). This act provides that $3,000,000 shall be deposited in the Treasury to the credit of the Sioux Nation as a permanent fund to bear interest at 4 percent per annum, and the interest is made available for annual expenditures, half for educational purposes and half for annuities. The main fund is being pro rated, and as shares are withdrawn the annual interest available for educational purposes becomes less. There are other funds of a similar nature, but the expenditures therefrom are being reduced each year because of the depletion of the funds. Unforeseen demands may arise during the year which may cause small expenditures from funds of various tribes, if such funds are available. During the present year we are compelled to use tribal funds on some reservations for the purchase of clothing and textbooks for pupils enrolled in public schools. We estimate $100,000 will be used during 1938.

Language change.—The changes in the text of this item are proposed so that it will conform generally to the gratuity item.

CHANGE OP LANGUAGE

Mr. Johnson. You suggest some changes in the text of this item.

Mr. Dodd. This item aiithorizes the use of $312,995 of tribal funds, for purposes similar to those under the gratuity appropriation item, and the changes in the text of this item will make it read almost identically with the preceding item.

We would like in connection with this item to suggest the same change with reference to the effective date of the contracts—that is, in the last two lines of page 157, strike out the words "in advance" and insert the words "from the date of admission."

That amendment will make it follow the language in the previous item.

Mr. Johnson. Personally, I see no objection to the amendment.

Mr. Dodd. The funds in this item are all taken from the various tribes. We transfer out of the item $17,825 of charges heretofore made because the tribal funds have become exhausted. That is made up of $12,875 of funds of the Shoshones in Wyoming, and $4,950 of the Cheyenne River Indians of South Dakota.

Mr. Fitzpatrick. In taking these tribal funds, do you get the approval of the tribes?

Mr. Dodd. We seek their approval now if they have organized under the Reorganization Act. Previously we did not seek their approval.

Mr. Fitzpatrick. What do they do to evince their approval? Do they vote on it?

Mr. Dodd. Usually, when matters of this sort are presented to the tribes, they are submitted to the tribal council, which is a representative group of the tribe elected by its own people, serving for a given period of time.

Mr. Fitzpatrick. If it is agreeable to them, the funds are used, but, otherwise, you would not take them.

Mr. Dodd. We have not gotten the system thoroughly worked out yet. We have been required to do that only since the passage of the Indian Reorganization Act. That act gives the tribes power to veto the disposition of their tribal assets. In another year's time every request for the use of tribal funds will be supported by a resolution of the tribe, which we will present to the committee, or we will present to the committee the objections of the tribe to the use of the funds.

Mr. Fitzpatrick. Suppose Congress did not give you that power, would you use it just the same? If they disagreed with you, or did not sanction it, you state that you would then submit it to Congress. Suppose Congress did not take action on it, would you go ahead and use the funds just the same?

Mr. Dodd. We would be compelled to follow the action of Congress, because the action of Congress in a way would supersede the 1934 act.

Mr. Fitzpatrick. When this gets underway, the tribes' power of veto will not amount to anything.

Mr. Dodd. We hope that it will mean something. We hope that Congress will take that into consideration in the use of Indian tribal funds. Over a period of years, many millions of dollars of capital funds of Indian tribes have been used for administrative purposes, and in some cases the tribes have vigorously protested. In one case, the Chippewas of Minnesota filed a suit in the Supreme Court of the District of Columbia, but it was overruled because of the right that Congress had to appropriate those funds. When we went before the Budget Bureau, we had this question before us: We were suggesting the transfer of some of these charges to gratuity appropriations, but the tribes had a balance to their credit, and the Budget disapproved our recommendation.

Mr. Fitzpatrick. Of course, these funds are under your control.

Mr. Dodd. Yes, sir; but we cannot use them without specific authorization of Congress.

Mr. Fitzpatrick. Assume that you do not get that specific authorization.

Mr. Dodd. Then we would have one of two things to do—either transfer the charges to gratuity money or cut off the service, because we could not use the funds without specific appropriation by Congress.

Included in this estimate is an item of $63,750 for tuition of Chippewa Indians in the State of Minnesota, $41,400 for the Menominees, and $207,845 to be used for miscellaneous educational purposes.

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EDUCATION OF UNALLOTTED OSAGE INDIAN CHILDREN, OKLAHOMA

Mr. Johnson. On page 159 you have an item for the education o! Osage Indians in Oklahoma.

Mr. Dodd. I submit the following justification for the record:

The Osage Boarding School was established in 1872 and was operated until 1922, when, by reason of availability of public-school facilities, it was closed The Osages pay taxes on their surplus land and other property and the Indiar. children attend public schools with the whites without payment of tuition except for pupils outside of ttie district where they attend. After closing the boardine school, annual appropriations in varying amounts for educational purposes amone this group of Indians were made until the fiscal year 1932. The appropriate. was used for salary and expenses of a dav-school representative who served as s contact man between the Indians and scfiool-district officials, and for education, through contract arrangement, of certain pupils in the St. Louis Mission Boards Schooi. Diminishing revenue, and the unequal advantages enjoyed by sow members of the tribe in having their children educated at the expense of thf tribe, caused the tribal council to refuse to approve the contract for 1931 and in 1932 the appropriate ■ was discontinued.

It later developed that among the tribe there were Indians who did not shire in the distribution of tribal funds, and under date of December 8, 1931, the tribal council adopted a resolution reading in part as follows:

"That the Commissioner of Indian Affairs and Secretary of the Interior be re

Suested and they are hereby requested to authorize the Superintendent of tt" 'sage Indian Agency to pay to the Sisters of Loretto in charge of the St. Louis Mission School such amount or amounts that may be requisitioned by the Osagt Council, or a committee from that body, for education expenses of children of Osage blood in attendance at the said St. Louis school who do not have the funds themselves or their parent to bear such expense, such pupils to be designated by the council or their committee in cooperation with the superintendent.'

Based upon the request of the tribal council, an appropriation of $4,000 was obtained in the second deficiency act, fiscal year 1932. Of this amount $1,530 was obligated for expenditure in i932 in accordance with a resolution of the tribal council dated August 9, 1932.

The council, on August 27, 1932, adopted another resolution requesting the expenditure of not to exceed $2,470 during the fiscal year 1933 for similar purposes and has approved the expenditure of $2,000 for 1937.

It should be noted that the tribal council, or a committee thereof, will cooperate with the local superintendent in selecting the pupils to benefit by this aid.

The council has passed a resolution approving this expenditure for 1938.

Mr. Johnson. These are tribal funds, and I assume, of course, that this expenditure of tribal funds meets with the approval of the tribal council.

Mr. Dodd. Yes, sir; and later on in our justifications there is a com* plete resolution of the Osage Tribe covering the expenditure of this amount.

REIMBURSABLE LOANS TO INDIANS FOR PAYMENT OF TUITION, ETC.

Mr. Johnson. On page 159 there is an item for reimbursable loans to Indians for the payment of tuition, and for other expenses in connection with the education of Indian children in higher educations institutions. ,

Mr. Dodd. The following justification is submitted for the record

Authority.—This appropriation is authorized by section 11 of the India Reorganization Act, approved June 18, 1934, which provides that: ..^

''There is hereby authorized to be appropriated, out of any funds in the Inlt States Treasury not otherwise appropriated, a sum not to exceed $250,000 ann ally together with any unexpended balance of previous appropriations made P suant to this section, for loans to Indians for the payment of tuition and otn expenses in recognized vocational and trade schools: Provided, That no' ro than $50,000 of such sum shall be available for loans to Indian students in high schools and colleges. Such loans shall be reimbursable under rules established by the Commissioner of Indian Affairs."

General.—Taken as a whole, Indians are extremely poor, and it is impossible for the majority of parents to finance long and expensive training for their children. The total annual income for large numbers of Indian families is as low as $50. This means that even high school training is beyond the reach of their children as they cannot provide money for books, noon-day lunches, and clothing. Without aid from the Federal Government in the form of educational loans, professional and vocational training is not available for the average Indian bov and girl. The appropriation for educational loans under the act of June 18, 1934, made possible for the first time a training program adequate to the needs of Indian young people. The opportunity has been appreciated, and loans have been eagerly applied for.

Most of the students receiving educational loans achieved real success both in their school work and in their personal relationships on the campus. Forty-eight students were graduated last year and are returning to the Indian country in various capacities as teachers, housewives, agriculturalists, ministers, craftsmen, and leaders of their tribes. A still greater number will be graduated next year and the year following, while others who are preparing for such professions as law, medicine, and social work will require longer training. The accomplishments of these students is proof that the human material for leadership has existed all the time, the only lack having been encouragement and opportunity.

There has been a definite policy of employment of Indian leadership wherever possible. The greatest handicap has been lack of adequately trained Indians. The program of advanced education is making it possible to select and train Indians to render not only professional and administrative services, but to meet other needs of local communities. An effort is made through the local educational loan committees, Indian Service personnel, and the tribal councils to encourage promising young Indians to take whatever training is necessary to meet the local needs.

We believe that the appropriation of funds for loans for specialized training to selected Indian young people will prove a sound business investment. Repayment of all loans is required.

The first appropriation made pursuant to the Indian Reorganization Act for educational loans was $175,000 for the fiscal year 1936. Only $54,205 was expended, because of limitations imposed by the act and by the Comptroller General. Our estimated expenditures for 1937 are $75,480 from the unexpended balance of the original appropriation. The remaining $45,315 is, by the text of this item, continued available for use in 1938. This amount, added to the $50,000 of new money requested will provide only $95,315 for loans in 1938.

Use of 1936 funds.—During 1936, under the authorizations then effective, educational loans aggregated $56,274.71 from Treasury appropriations and $6,037.50 from tribal funds. A total of 399 Indian boys and girls were given assistance. Of this number 244 students have returned to school for the year 1936-37; 66 have completed training or accepted employment, 76 have dropped out of school because of illness, marriage, failure, or for other causes. Loans granted during 1936 ranged from $50 to a maximum of $650 per individual.

Use of 1937 appropriations.—There follows a statement showing disposition thus far made of the 1937 appropriation:

Vocational work

Number of loans made from this fund for trace and vocational work (44 renewals and 58 new ones) 102

Number of different trades and vocations represented 18

Total amount of loans made to the 102 students, $18,658.33.

Nurses (21 renewals and 24 new ones) 45

10 girls are training in Philadelphia, Pa., hospitals; the others are in hospitals and university schools of nursing located in various cities throughout the United States. Total amount of loans to 45 nurses in training, $5,099.

Business (25 new ones) 25

An effort has been made this year to encourage Indian students of the Southwest to take business courses, and we have at the present time several promising Navajos, Pimas, and Pueblos in training for stenographic and clerical positions which may be available in or near their communities. Total amount of loans to 25 business-college students, $5,072.33.

Vocational work—Continued

Diesel engineering (3 renewals and 6 new ones) 9

Interest in the operation of various types of Diesel engines is increasing among Indian young men and we are encouraging those who appear to be qualified to train themselves for this work. Total amount of loans to 9 Diesel engineering students, $2,450.

Trade electricity (2 renewals and 4 new ones) 6

These students are taking 1- or 2-year courses in electricity in trade schools and are not to be confused with those enrolled for 4-year electrical engineering courses in colleges. These young men do practical work connected with the installation of electric light plants, mechanical refrigeration units, and house wiring. Total amount of loans to 6 trade electricity students, $2,040.

Weaving 3

Because of the revival of Indian crafts, we have made an effort to find suitable Indian girls to train for weaving and had 1 girl train for this work last year. She found employment immediately upon completion of her course. Total amount of loans to 3 weaving students, $160.

Beauty culture 2

We have had some difficulty in placing the 6 girls trained in this work last year, and we have therefore made only 2 loans this year to candidates for training in this field. Total amount of loans to 2 beauty culture students, $500. One student in each of the following trades or vocational courses: Baking, radio sound technician, printing, embalming, teaching, forest ranger, comptometer operator, carpentry, laundry operation, barbering, combined barbering and beauty culture, laboratory technician 12

Total amount of loans to 12 students, $3,337.

Total number of students 102

Total amount loaned for vocational work, $18,658.33.

Use of 1937 appropriationHigh schools and colleges

Total number of loans made from this fund for training in colleges and in

universities (171 renewals and 53 new ones) 224

Number of professions and vocations represented 20

Total amount of loans made to the 224 students $46,82

We are continuing to place as many students as possible in State colleges and universities and many of the 224 students are in State institutions:

STATE UNIVERSITIES, 83

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Oregon 3

Kansas 1

Utah 1

North Dakota 2 ! South Dakota

New Mexico 2

Oklahoma %

Colorado i

New York «

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