$20,000 would be changed to $17,800, and the closed bracket would also be dropped and the total at the end of the item would be changed. Mr. LEAVY. That is out of their own funds? Mr. DODD. Yes; that is out of their own funds and we think that inasmuch as the Indians are not asking the Government to pay for it, that their request should be granted. WISCONSIN Mr. JOHNSON. The next item of tribal funds is found on page 238, and is for the Keshena agency Wisconsin. Mr. DODD. I submit the following justification for the record: The Keshena Reservation in eastern Wisconsin is inhabited by approximately 2,077 Indians of the Menominee Tribe and consists of 231,524 acres of unallotted land. This reservation is heavily timbered and the Government operates a large sawmill which not only serves to dispose of the marketable timber but furnishes employment to a number of Indians. In normal times between 4 and 5 hundred thousand dollars a year is required for the conduct of the lumber business on this reservation. The present balance to the credit of this tribe is $1,070,356, exclusive of $54,949 not available for use because of special acts of Congress. Receipts during 1935 aggregated $657,474, most of which accrued from timber operations. Of the total balance, $980,293 is in the Menominee log fund. The tribal income from other sources was only $1,669. The amount requested for 1938 may be classified for the following purposes: (a) This represents the amount annually set aside for contract hospital services for the Menominee Indians in Wisconsin. The hospital was erected from tribal funds a number of years ago, and was operated by the Indian Service until 1934. Then, at the request of the tribe, the hospital property was leased to the Bureau of Catholic Indian Missions. It is now operated by the Catholic Sisters and the Indian Service pays a lump sum of $16,000 per annum for all medical service rendered, which includes operation of the 58-bed hospital and medical service rendered in the homes of the Menominee Indians. This is less than the average cost of operating the hospital for the fiscal years 1931 to 1934, inclusive. costs for these years were reported as $21,744.89, $23,087.46, $16,446.16, and $15,065.20, respectively. Under this system of operation, there is a saving to the tribe, as the overhead costs have been considerably reduced. At the same time hospital facilities are available for whites living in the community. The (b) This item covers the salaries of the superintendent and nine clerks and other agency employees, the employment of irregular labor for miscellaneous agency work, purchase and repair of office and other equipment, communication service, traveling expenses of employees, and other incidental administrative expenses. (c) The sum of $10,000 will be used entirely for the care of indigent Menominee Indians who have no means of support and who are cared for by relatives or friends. Operation of the old-folks home established on this reservation several years ago was found to be impracticable. For 2 years it was closed because of inadequate funds. A more satisfactory arrangement for the care of the indigent is provided through home care. (d) The remaining $1,500 is to provide funds for removing snow from reservation roads during the winter months. The Menominee Indians have paid from their own funds, over a considerable period of time, all expenses of Federal activities on their reservation. These expenditures have covered not only operating costs of the agency but education, hospitalization, agricultural extension, and other features. To meet these costs the capital of the tribe has been steadily diminished. We show a balance to their credit at this time of $1,125,305. Of this amount approximately $55,000 is not available for support, and $980,293 is in a capital fund established by specific acts of Congress. The Menominee 4 percent fund, in which there is a present balance of $90,281 and to which was added $655,805 during the past year, represents a revolving fund used to finance timber operations on this reservation. Excluding the funds above mentioned the Menominees have about $17,000 against which there are overdrafts in two funds of $17,630. The income last year from all sources other than timber activities was $1,669. Mr. DODD. That is the other item Mr. Wilkinson discussed. He referred to the contract, and we have prepared an amendment which is offered if the committee wants to include that item in the bill. FEES AND EXPENSES OF ATTORNEYS I suggest that in line 1 on page 238, we change the figure $61,500 to $75,600. Then at the end of the paragraph change the semicolon to a colon and insert: Provided, That not more than $14,100 of this appropriation may be used for fees and expenses of attorneys employed under contract, approved by the Secretary of the Interior, during the fiscal years 1936, 1937, and 1938. If these various amendments are adopted, then the total on page 239 would be changed accordingly. Mr. LEAVY. How large is the tribal fund in this case? Mr. DODD. At the present time they have more than $1,000,000. They have quite a large timber operation on that reservation. They had about $1,250,000 as of March 19. Mr. LEAVY. What sort of service does this firm of attorneys render the Indians? I understand this was the firm that was induced by the Indians to represent them? Mr. DODD. Yes; I will read from the statement that was presented by Mr. Wilkinson the other afternoon. He says that among the legal problems confronting the Menominees at the present time and which had been and are being handled by the attorneys under the aforesaid contract were the following: (1) Over 20 lawsuits are either pending or threatened before courts or industrial commissions arising from injuries sustained at the Menominees' lumber mill; (2) The drafting of a complete system of self-government for the Menominees, including a Federal charter and constitution; (3) The drafting of a complete business organization, to the end that these Indians may increase their freedom to do business and thus preserve their assets. Mr. LEAVY. Don't your legal department do that for them at their request? Mr. DODD. We have attempted, in drafting these constitutions and charters, to do that with our own group of attorneys. The Indians, however, requested this, and they felt that because of the large amount of timber that they have and the value of their property that they had a right to have outside legal help rather than to rely entirely on the Bureau. Mr. LEAVY. Where do those attorneys reside? Mr. DODD. The Menominee Indians contracted with the firm of Hughes, Schurmann & Dwight of New York City. Mr. LEAVY. Of what place? Mr. DODD. They have headquarters in New York City. The firm of Moyle & Wilkinson of Washington represents them here and, as I understand it, are doing much of the work. Mr. LEAVY. No lawyers from the State of Wisconsin are employed at all? Mr. DODD. No, sir. Mr. JOHNSON. As their representative said, they want lawyers on the other side of the fence. Mr. DODD. Yes. Mr. JOHNSON. That is customary. Mr. LEAVY. I think if they had a bona-fide need for counsel they ought to employ counsel on the ground who are members of the bar where the suits are threatened and who are familiar with the situation, rather than distant counsel, like New York City counsel. SUPPORT OF CHIPPEWA INDIANS OF MINNESOTA Mr. JOHNSON. The next item of tribal funds is found on page 240, in regard to the Chippewas in Minnesota. Mr. DODD. I submit the following justification for the record: The Consolidated Chippewa Agency, at Cass Lake, Minn., has jurisdiction over the Chippewa Indians in the State of Minnesota belonging to the Fond du Lac, Twin Lakes, Grand Portage, Pine Point, Nett Lake, Leech Lake, Mille Lac, and White Earth Reservations, with a total Indian population of approximately 12,680. In addition there are approximately 1,968 members of the Red Lake Chippewa Band under the jurisdiction of the Red Lake Agency. The principal sum on deposit to the credit of the Chippewa Indians accrued under section 7 of the act approved January 14, 1889 (25 Stat. 645). Any expenditures made from the principal Chippewa fund are divided between the Consolidated Chippewa and the Red Lake jurisdictions on the basis of population, approximately 88 percent being allocated the former and 12 percent the latter. The present balance in this fund, after setting aside all amounts authorized for expenditure during 1937, is approximately $438,120. Receipts from all sources during the past year were only $5,723. Past history in connection with expenditures from Chippewa tribal funds fully justify transferring the administrative expenses of the Consolidated Chippewa and Red Lake Agencies to gratuity funds. The balance in the fund is now less than a half-million dollars. While much of the fund has been distributed to the Indians per capita, a large part thereof has been used for agency administration, hospital support, and for educational and other purposes. Thus capital that could be used advantageously in financing a program for the advancement of this group of Indians has been diminished, and only meager permanent benefits have been obtained. The expenditures during 1936 from this fund were as follows: The 1937 appropriation is being used approximately as follows: (c) Developing agriculture and stock raising among Indians._ $40,000 11, 400 4,000 -29, 600 Total____ 85,000 Amount retained for 1938.-This item, as submitted, provides funds for relief purposes only, including boarding home care for some pupils who are attending public schools. It is difficult to determine what the relief situation might be during 1938. Relief agencies and work projects are taking care of the situation this year, except for some of the old and indigent Indians to whom rations are being issued; and for hospitalization, dental and medical service, and burial expense, by the Indian Service. In the event the present source of relief should cease and work should not be available, the amount requested would be extremely limited. It has been estimated that approximately 10,000 Indians of the Cass Lake jurisdiction have been on relief rolls during the past year. This includes both work and direct relief. Of this number approximately 20 percent must be taken care of through direct relief by the Indian Service, direct relief by other Federal, State, or county agencies, boarding schools, and foster home care of children. It is this class of relief clients that must have consideration. If it becomes necessary for the various counties to assume the cost of direct relief, the Indian Service will be required to take care of at least a part of the direct-relief load for the reason that the counties are not financially able to carry it. A portion of this fund is being used this year for foster-home care of school children, and it will be necessary to carry these charges during 1938. It may also be found desirable to provide for some of the old and indigent, by placing these unfortunates in homes of individuals qualified to give home care. În such cases monthly allowances would be made for those being given this home care. Transfer of other charges.-The remaining balance to the credit of these Indian and the extremely small annual accruals, will not permit further inroads fo Indian administration. To repeat the 1937 appropriations in 1938 would pro duce the following effect upon the tribal fund: On June 30, 1920, the Chippewa Indians (Red Lake excluded) had $5,343,216 on deposit in the Treasury. To that was subsequently added by special legislative enactment about $3,000,000. Thus, in a period of 16 years this once vast estate, together with annual accruals thereto, has diminished to so small an amount that further appropriations for Indian Service operations are not justified. We therefore propose to transfer to gratuity funds the following amounts: (a) Agriculture and stock raising. Total... $4,000 11, 400 29, 600 45, 000 (a) This represents salaries and expenses of two farm agents employed to aid the Indians in their agricultural pursuits. The net salary of the two positions is $3,360, the remaining $640 being used for traveling and other expenses of these employees. (b) Three full-time physicians, and one employed on a contract basis, are paid from this fund. The net salaries aggregate $9,900. Since they are assigned to reservation practice, it is necessary that they be provided with transportation facilities and that funds be provided for purchase of gasoline and oil, car repairs, purchase of medical supplies, and other incidental expenses in connection with their duties. The $11,400 covers salaries and expenses of these employees. (c) General agency administrative expenses cover purchases of new equipment, repair of office equipment, automobiles, and farm machinery, travel expense of employees, communication service, purchase of stationery and office supplies, and numerous incidental expenses of maintaining the Consolidated Chippewa and Red Lake Agencies. The salaries of 10 clerks, 2 field clerks, a field aide, and an Indian assistant are paid from this appropriation. Language change. The text changes proposed in the first part of the item are self-explanatory, when considered in connection with the statements immediately preceding. Aid to the indigents would not be necessary if they had any cash, or assets that could be converted into cash. Land holdings of these individuals no doubt would revert to the tribe, upon death of the allottee, in keeping with the purpose of the Indian Reorganization Act. We therefore propose elimination of the text requiring reimbursement of funds used in aiding indigent Chippewa Indians. Mr. DODD. There is a reduction of $45,000 covering the transfer to agriculture and stock raising, $4,000; transfer to conservation of health, $11,400; and transfer to support of Indians, $29,600. The $40,000 is to be used for the care of indigent Chippewa Indians. Now as we stated before, we are keeping in this bill $104,000 of charges against the Chippewa funds. Their income last year was only $5,000 and to continue this appropriation this year and in 1939 the money that is already in the bill will break the Chippewa Indians. Mr. JOHNSON. I think in the case of these Indians we are justified in doing it, but in some instances they are bringing in bills to give per capita to the Indians and yet transfer it out of the gratuity item. Mr. DODD. Those bills, though, Mr. Chairman; are not endorsed by the Department. Mr. JOHNSON. I am glad to know that. EXPENSES OF TRIBAL OFFICERS, FIVE CIVILIZED TRIBES Mr. JOHNSON. The next item in regard to tribal funds is found on page 24 and relates to the expenses of tribal officers of the Five Civilized Tribes, Oklahoma. Mr. DODD. I submit the following statement for the record: Total estimate, 1938. $33, 600 33, 600 33, 600 The act of June 28, 1898 (30 Stat., p. 495), and subsequent agreements between the Choctaw, Chickasaw, Creek, and Seminole Tribes, Oklahoma, authorized the allotment of lands and equalization of allotment payments to members of the several tribes. The total expenditure involved under this authorization in the past has not exceeded $30,000. It is not possible to determine a definite figure due to the equalization of allotments feature, but there is no great amount involved for this purpose in any 1 year. The disbursements have been largely for salaries and expenses of tribal officials. The following statement gives in detail the expenditures for salaries and expenses of the several tribal officers during 1936: The affairs of the Cherokees have been closed; the Creeks have a small amount of tribal property yet to be disposed of; the Choctaws and Chickasaws have a considerable acreage of coal and asphalt lands and other valuable assets upon which only a small amount is realized annually; and the Seminoles have a small amount of tribal property remaining, including the Mekusukey School plant. Valuable oil wells are located on the land of this school. The following tabulation sets forth the status of tribal funds of the Five Civilized Tribes: |