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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 boy 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)__

Number of different trades and vocations represented...

Total amount of loans made to the 102 students, $18,658.33. Nurses (21 renewals and 24 new ones).

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)...

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.

102

18

45

25

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.

6

Trade electricity (2 renewals and 4 new ones).

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-

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... _ _

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

Total number of students.

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

Use of 1937 appropriation-High schools and colleges

Total number of loans made from this fund for training in colleges and in universities (171 renewals and 53 new ones)...

Number of professions and vocations represented_
Total amount of loans made to the 224 students....

3

2

12

102

224

20

$46, 822

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:

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The 20 professions represented by the 224 students are divided as follows:

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Thirty-two jurisdictions located in 18 States and Alaska are represented in the loans made from the college fund. The total amount of college loans by States is as follows:

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Under existing regulations preference in granting educational loans is given to full-bloods and wards of the Government. Sixty-nine full-blood Indians are attending colleges and universities. Applications are submitted through the educational loan committees to the reservation superintendent and bear his endorsement. Loans are restricted to Indians unable to secure an education without Government aid. Loans covering tuition and subsistence and other reasonable expenses may be granted for postgraduate attendance at special courses offered in Government Indian schools such as the tractor school at Phoenix, advanced secretarial work at Haskell, and in vocational courses which may be opened from time to time in addition to secondary offerings of these schools. Applicants are required to submit reliable recommendations in regard to ability, character, and performance, and they must demonstrate definite aptitude for the training desired and the vocation chosen. They must support their applications by authentic reports from educators and other persons who know of their capacity.

Loans are granted for 1 year only and renewal depends upon proper application and evidence of serious purpose. The total amount of the loan to an individual is not limited by the regulations, but an effort is made to keep under $300 a year and within $1,000 for the entire period for which assistance is rendered. Reasonable security is required.

The reservation superintendent is held responsible for securing prompt repayment; he arranging the terms of repayment with the student. Repayment is expected to begin within 3 months after completion of a 4 years' course at a rate which will insure total repayment within 8 years. Repayment of short courses is expected to be made more promptly. If the borrower fails to carry out the repayment terms of his agreement, general authority is granted the disbursing agent to make payment from individal funds of the borrower or cosigner.

Change in language.-It will be noted that we are proposing a change in language which will permit the use of these funds for apprentice training in recognized institutions or in approved and established firms. We have found that some of the best opportunities for a real and practical educational training program are

available on an apprentice-training basis with a number of institutions and established commercial firms. No compensation is offered by these firms during the apprentice-training period, and consequently for our Indian youth to be able to take advantage of such opportunities it is essential that funds be made available for their support during this training period.

We are also proposing new language concerning reimbursement. This is similar to that contained in the items for reimbursable loans to Indians under the appropriation for industrial loans. We are attempting to impress upon the Indian youth the necessity for repaying their loans.

Mr. JOHNSON. I notice you have some new language in this item for apprentice training. Is this new legislation?

Mr. DODD. It is to explain more in detail the purpose of the appropriation item.

CHANGES IN LANGUAGE-APPRENTICE TRAINING

Mr. JOHNSON. Referring to this provision covering apprentice training, do these apprentices attend school?

Mr. FICKINGER. The apprentice training under this item is to take care of a situation where, for example, a certain Indian can be placed in a large commercial concern of some kind, or an industrial concern, where he can get some specialized training right on the job. As you know, there is no money actually paid to apprentices of that kind. Consequently, an Indian would have no money of his own for subsistence during that period of training. He must have funds of some kind, and we make funds available from this loan fund. In other words, it is a loan to him during his apprentice training period, which he in turn pays back to the Federal Government when he gets a job after completing his training.

Mr. JOHNSON. It seems to broaden section 11 of the WheelerHoward Act.

Mr. DODD. It would broaden, or, at least, interpret the types of institutions that come within the Wheeler-Howard Act. That section provides loans to Indians for the payment of tuition and other expenses in recognized vocational and trade schools, and then provides that not more than $50,000 may be used for loans to Indian students in high schools and colleges.

Mr. FICKINGER. It is really a clarification.

Mr. DODD. Yes; that is correct.

Mr. FICKINGER. For example, there was some misunderstanding as to whether, or not, a student could be loaned some of those funds to attend an agricultural college in accordance with the wording of the act. The Comptroller's Office was apparently not clear on the thing. It was a matter of interpretation on the part of the Comptroller as to whether, or not, an agricultural college could be classed as one of the colleges that was included in the act. It is for that purpose that some of this language is placed here a means of clearing the atmosphere as to the different types of schools to which students can be sent. We felt that it was the general intent of Congress when this bill was considered that students should be given the opportunity to attend the types of schools that would afford the particular type of training that would be of the most benefit to them.

Mr. JOHNSON. At the bottom of page 159 there seems to be some additional new language.

Mr. DODD. Section 11 of the act provides that these loans shall be reimbursable under rules established by the Commissioner of Indian Affairs. In the items with reference to educational loans under the industrial loan appropriations both from the Treasury and tribal funds, the requirement is that payment shall be made in not to exceed 8 years.

Mr. FITZPATRICK. Is there any interest on these loans?

Mr. DODD. No, sir; there is no interest on this money. This provision simply conforms to the provision in the industrial item available for educational loans.

LEASE, PURCHASE, REPAIR AND IMPROVEMENT OF INDIAN SCHOOL

BUILDINGS

Mr. JOHNSON. The next item is a gratuity item, for the repair and maintenance of buildings at day schools and reservation boarding schools.

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

General. This fund covers the cost of repair and maintenance of Indian boarding and day schools except nonreservation boarding schools receiving specific appropriations. Aside from routine repair and improvement requirements of the many buildings comprising these plants, the cost of upkeep of heating, lighting, power, sewer, and water systems constitutes a heavy annual expense. Many of the buildings are old and are of frame construction, and deterioration is rapid unless a considerable amount is expended annually for repairs. Demands from the field for this money are so pressing that practically every cent of the appropriations is expended and it is then necessary to postpone from year to year some extremely urgent needs. School buildings in the Indian Service are put to hard use and a liberal repair fund is essential to keep them in a presentable condition.

In addition to ordinary routine repairs and improvements, expenditures in varying amounts must be made each year for projects of a more or less special nature, such as remodeling, reflooring, and reroofing, minor additions or alterations to buildings, purchase and installation of boilers and other heating equipment, installation of septic tanks or other sewage disposal facilities and improvement of domestic water supplies. Expenditures for water supply purposes have been particularly heavy during the past few years, due not only to increased consumption but in many places to partial or complete failure of the usual source of supply.

This appropriaton may be divided into the following general headings:

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1. Repair and maintenance, boarding schools, $201,500 (increase, $17,500). This amount allowed for 1937, including $20,000 for special repairs at the Riverside and Fort Sill Schools, Oklahoma, was $204,000. We are requesting an apparent increase of $17,500 for 1938, but taking into account the special item of

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