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PRESERVATION COUNCIL HOUSE OF CHOCTAW NATION Mr. Johnson. The next item in regard to tribal funds, page 243, relating to the Tuskahoma council house, is bracketed out.

Mr. Dond. This item was inserted in the appropriation bill at the request of representatives of the Choctaw Nation. Steps have been taken to reacquire the property, and plans are in progress for restoring this structure, which has an historical value to the Choctaw people.

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SUPPORT OF OSAGE AGENCY AND PAY OF TRIBAL OFFICERS Mr. Johnson. The next item is for the support of the Osage Agency in Oklahoma.

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

Appropriations for the support of Osage Agency, and for financing the supervision of oil and gas activities, were much larger during years of peak production. For the past few years the appropriations have been: 1931 $264, 000 | 1935.

$109, 220 1932 259, 000 | 1936.

161.000 1933.--150. 000 1937.

159, 000 1934.

125, 000 The appropriation for the present year included the following increases: (a) Repair of agency buildings.-

$1,500 (b) Purchase of automobiles -

2, 000 (c) 1 clerk.----

1,800 (d) Lawbooks.-----

- 1, 200 Total.------

------- 6, 500 Items (a) and (c) represent annual recurring charges. Items (6) and (d) were special items which are deducted in arriving at the base figure for 1938.

The increases requested for next year are discussed in the order of their appearance in the tabulation preceding. The entire amount requested is covered by an approving resolution of the tribal council.

Promotions, $2,000,—This is to provide one-step promotions for a few deserving employees at this agency. No increases of any consequence have been granted in recent years.

Automobile replacements, $2,500.—This agency has 22 automobiles in operation for general official use. No replacements were made in 1934 or 1935. Special provision was made for replacements this year to the extent of $2,000. Further purchases of new cars will be necessary in 1938.

New personnel, field offices, $16,580.—This item covers the following positions: 1 senior clerk.-1 stenographer and typist (junior clerk), for assistance in guardianship and probate matters.-

1, 440 1 junior clerk for stenographic help for appraiser, farm agent, educational field agent, and field nurse------

1, 440 2 Indian assistants for the Hominy and Fairfax offices, at $1,080 each... 2, 160 2 Indian assistants capable of doing stenographic work to assist with

Indian supervision.----------1 Indian assistant in tax department.---

1, 080 1 senior clerk for loans and investments.-

2, 100 1 junior clerk for operation of bookkeeping machines..

1. 440 1 Indian assistant to assist in the accounting division.

080 1 Indian assistant for switchboard operator.------Total.

-- 16, 780 The need for these positions is outlined in a communication from the acting superintendent under date of July 8, 1936, from which we quote as follows:

"Since the reduction in the personnel in this office in 1932, work has been greatly handicapped and we have been unable to handle same efficiently. The Osage Indians as a whole desire their business handled in an efficient manner, but they

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do not feel the tribe should pay tor help when the revenues obtained from investments go wholly to the restricted Indians. During the fiscal year 1936 there was $106,730.09 revenue from building and loan stock, mortgages, and other investments made from restricted Indians' accounts in this office, and $458,833.35 from interest obtained from lump-sum investments of restricted Indians, such as Liberty bonds and deposits in banks by the disbursing agent. The acts of 1921 and 1925 provide for such investments, but do not say directly that the personnel, or the expenses of such investments shall be paid from tribal funds. We are very much in need of help as follows:

"Clerk for handling guardianship and administrative matters, such as auditing and investigating accounts which, from past experience, has shown there has been a great loss to the individual Indians, probate matters, etc. This clerk should be paid, in my estimation, $2,800 per annum. A stenographer and typist with accounting experience should be employed to assist him at $1,440 per annum.

"There should be an Indian assistant furnished for the field offices at Hominy and Fairfax, Okla., at $1,080 each. There is a farmer at Hominy and field aid at Fairfax who spend their mornings in the field and their afternoons in the office doing clerical work. They are unable to care for same properly and the Indians are dissatisfied for the reason they cannot obtain the service desired.

"A junior clerk should be furnished who is capable of doing stenographic work, the office work of Mr. James P. Lawyer, appraiser, Mr. Marcell H. Derdeyn, farm agent, Mr. Frank Goldstein, educational field agent, and Miss Virginia Mooney, field nurse. They are greatly handicapped in their activities, for the reason they have no one to do their clerical work.

"Mr. William H. Rudrauff, senior clerk no. 13, is handling loans and investments in this office, the amount of which at this time is $5,000,000, the revenue from same during 1936 being $106,730.09. Mr. Rudrauff has been doing most of this work by himself, but has been assigned a clerk full time during the last 60 days, who will continue with him until the position of Indian assistant for 4 months has expired, at which time he will only have a clerk half time. A senior clerk at $2,100 should be furnished to assist him so that he can care for the work while Mr. Rudrauff might be in the field looking after real-estate loans.

"In 1931 there were three persons in the tax department, but since that time it has been cared for by Mr. Virgil L. Marks, senior clerk. An Indian assistant should be provided for this department so that the taxes may be kept to date, at a salary of $1,080.

“When the personnel was reduced at this agency a very efficient record was being kept in the individual accounts, but due to shortage of help one particular record which was kept daily showing the net balance of each Osage Indian, authorizations against his account, securities owned, and his total cash balance, was discontinued. This record should be reestablished, as well as other records which were discontinued. In fact with two persons caring for the individual accounts, the work has run behind and is not efficient. An additional cierk at $1,440 per annum should be provided for this department.

“The property has almost gone astray at Osage Agency since the reduction of the force, as there has been no one to look after it. Property records should be kept current, as well as many statements that are desired for the accounts. The appropriation clerk is not able to keep up with all the records desired. One Indian assistant and one junior clerk should be provided for this department in order that the personnel clerk who acts as stenographer for the disbursing agent, prepares purchase orders, etc., may be relieved of some of her heavy duties, and the accounting department put on a current basis.”

Appeal, case of Tucker v. Mullendore, $500.-This item is inserted at the request of the tribe, expressed in the following resolution:

"Whereas in the case of Stephen J. Tucker, Jr., v. E. C. Mullendore et al., No. 15507, in the District Court of Osage County in a decision rendered on November 27, 1935, denied the plaintiff a recovery against the defendants for the rental value of land owned by the plaintiff enclosed in a pasture used by the defendants, the court applyng chapter 54 of the Oklahoma Session Laws of 1927, and holding that the owner of grazing land cannot recover from the one who pastures same if enclosed in a boundary as defined by said Oklahoma statute; and,

"Whereas foundation has been laid from which an appeal from said judgment may be taken to the Oklahoma Supreme Court and if necessary to the Supreme Court of the United States; and as this is a matter affecting large portion of the Osage Indians owning land in Osage County, and the plaintiff is unable to finance the appeal of said case; and,

"Whereas it appears that it would be to the best interest of the Osage Tribe as a whole that the above case be prosecuted to the Supreme Court; Now, therefore, be it

Resolved, and it is hereby resolved, By the Osage Tribal Council that & su CC to exceed $500 shall be allowed in the appropriation for the fiscal year 1938 fa the purpose of financing an appeal in the above mentioned case of Tucker T. Mullendore. Done in regular meeting of the council on this 12th day of February 1936.

"(Signed) FRED LOOKOTT.

Principal Chiej. “Attest: “(Signed)

F. X. REVARD,

“Secretary."

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The full amount requested for use at Osage Agency during 1938 is covered by the following resolution of the tribal council:

“Whereas the income for the operation of the Osage Indian Ageney is derived from royalties from oil and gas, bonuses sale of oil leases, and rentals on leases sold in lieu of drilling owned by the Osage Tribe of Indians as whole; and

"Whereas the income for the fiscal year 1936 was $4,585,198.71 and the expense of operation for 1936 was 3.5 percent of the income; and

“Whereas it is necessary that funds be provided for the operation of Osage Indian Agency as to personnel, purchase, expenses of tribal council, etc.; and

“Whereas the budget listed below was presented by the acting superintendent of Osage Indian Agency in the amount of $172,372 for the fiscal year 1938; and

“Whereas the council desires its business to be conducted in an efficient manner: Now, therefore, be it

Resolved and it is hereby resolved, By the Osage Council in session assembled, this 6th day of July 1936, it is respectfully requested that the Commissioner of Indian Affairs through Congress have set aside $172,372 for the operation of Osage Indian Agency for the fiscal year 1938 as follows: 1. Salaries per salary list for 1937

$100. 200 2. Increases for deserving employees.

000 3. Annual estimate of supplies.---

5, 000 4. Telephone and telegraph expense.. 5. Electricity, water, and ice. -----

2 500 6. Insurance on tribal buildings..

1, 282 7. Upkeep and repairs to office equipment 8. Travel expense on official business.----

1, 500 9. Repairs to buildings -----

2, 500 10. Purchase of automobiles for official use.. 11. Repairs to automobiles..

1. 000 12. Office supplies and purchase of office equipment. 13. Oil lease sale expense.---

600 14. Salaries, tribal attorney and secretary 15. Salaries of tribal council...

7, 050 16. Interpreter hire...

1, 140 17. Law-and-order work.----

1, 500 18. Clinic: Salaries.---------

440 Rental of office...

660 2 automobiles (exchanged).

1, 200 Travel expense......

400 Annual estimate supplies

1, 000 Special equipment...

500 Unforeseen needs.----

300

12, 500 19. Payment, well locations on homesteads..-.

8,000 20. To reimburse expense case Tucker v. Mullendore not to exceed (resolution no. 11, February 12, 1936, att.)....

500 21. Inforeseen needs..ccccccc---

1, 500

160, 372 22. Expense tribal council to Washington, etc....

10, 000 23. St. Louis Mission School -------------

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2, 000 -Total

172, 372 "Be it further resolved and it is hereby further resolred, That if permissible by law that the Secretary of the Interior pay the following positions from the earnings on restricted individual Indian money which are invested in real-estate mort

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gages, building and loan stock, Government securities, and deposited in banks to the credit of the disbursing agent, as set out in council resolution no. 26, a copy of which is attached hereto, inasmuch as the employees mentioned do work on restricted Indians, accounts and for their direct benefit and the tribe as a whole receive no benefit therefrom. Virgil L. Marks, senior clerk no. 10, grade 9, net salary---------------- $1, 820 Thomas P. Myers, principal clerk no. 12, grade 11, net salary --William H. Rudrauff, senior clerk no. 13, grade 11, net salary.-

2, 300 Leo F. Rocque, senior clerk no. 14, grade 9, net salary -------

1, 920 Dominick A. Scavarda, senior clerk no 22, grade 9, net salary --

820 Marguerite G. Tucker, assistant clerk no. 26, grade 7, net salary

440 Frank E. Whitney, senior clerk no. 43, grade 9, net salary ---

820 Vacant, assistant clerk no. 55, grade 7, net salary---

1, 440 Total.

14, 960 And if payment of these salaries are allowed from earnings on restricted individual money, $14,960 be deducted from the $172,372 allowed from tribal funds leaving $157,412 to be paid from tribal funds and $14,960 from earnings on restricted individual funds; be it further

Resolved, That if the following positions are created as requested in resolution no. 26 attached, that they be allowed and payment made from earnings on restricted individual accounts. Senior clerk..

$2, 800 1 stenographer and typist (junior clerk).---

1, 440 2 Indian assistants for the Hominy and Fairfax offices at $1,080 each.- 2, 160 1 junior clerk for stenographic help for appraiser, farm agent, educational field agent and field nurse

1, 440 2 Indian assistants capable of doing stenographic work to assist Indian supervision.---

2, 160 1 Indian assistant in tax department.-------

1, 080 1 senior clerk for loans and investments.-

2, 100 1 junior clerk for operation of bookkeeping machines.

1, 440 1 Indian assistant to assist in the accounts division..

1, 080 1 Indian assistant for switchboard operator.------

1, 080

16, 780 FRED LOOKOUT,

Chief of Osage Tribe. Attest:

F. N. REVARD, Secretary.

with

Resolution no. 26, referred to above, relates to the collection of fees for services rendered individual Indians in connection with income producing investments. Income from such investments in 1936 aggregated $565,563.

The resolution endorsing this estimate distinguishes between tribal funds and fees collected. To comply strictly with the method of procedure outlined by the tribe would require the establishment of a special deposit account, which would not be reflected in the budget. Fees may be collected for services to individual Indians under the provisions of section 413, title 25, United States Code, which reads:

“The Secretary of the Interior is hereby authorized, in his discretion and under such rules and regulations as he may prescribe, to collect reasonable fees to cover the cost of any and all work performed for Indian tribes or for individual Indians, Ĩ leases, or other sources of revenue: Provided, That the amounts so collected shall be covered into the Treasury as miscellaneous receipts, except when the expenses of the work are paid from Indian tribal funds, in which event they shall be credited to such funds."

Particular attention is directed to the proviso directing that such fees shall be credited to tribal funds when the expense of the work performed is paid from such funds. Our method of handling the matter will show the total expenditures for the Osage Agency, and the tribal funds will be reimbursed for advances made to cover the expenses of investment operations.

General information.--The Osage Reservation, purchased from the Cherokee Nation in 1883, has an area of about 1,470,640 acres, and is inhabited by appropmately 3,363 Indians, of whom more than 2,600 are mixed bloods. The original Osage tribal roll contains 2,229 names. These Indians pay taxes on their surplus lands and other properties. Since the passage of the act of March 3, 1921 (41 Stat. 1249), the Osage tribe has also been paying a gross production tax of 3 percent and a road tax of 1 percent to the State. Their children are accepter in public schools on an equality with white children. No tuition is paid except in cases of attendance outside the district in which the parents reside.

The Osage Agency is one of the largest and most important in the Service, insofar as volume of business is concerned, and is supported entirely from tribal funds. Annual receipts and disbursements from oil and gas royalties and related sources have reached as high as $52,000,000, and per capita payments made from funds accumulating from oil and gas production have varied from around $400 to more than $13,000 a year. Payments during the past year amounted to about $2,080 per capita. The total authorized for distribution was $4,636,320.

Section 3 of the act of June 28, 1906 (34 Stat. 539-543), provided for the allotment of lands and disbursement of the funds of the Osage Indians, and reserved to the tribe all oil and gas regardless of the ownership of the surface of the land until April 8, 1931. The ownership of the minerals in the tribe has been extended to April 8, 1958, by subsequent legislation, Mining leases covering Osage mineral lands are made through the tribal council with the approval of the Secretary of the Interior, royalties on all minerals being determined by the Secretary with the approval of the President. The act of March 2, 1929 (45 Stat. 1474), requires the offering of at least 25,000 acres for oil mining leases annually. The following tabulation gives data of interest in connection with oil and gas activities on the reservation: Number of leases filed during the year.------

141 Number of leases approved during the year.--

141 Number of leases disapproved during the year.

None Number of leases canceled during the year.. Number of leases in force at end of year.--Total acreage leased during the year...

22, 346, 33 Total acreage under lease end of year.----

298, 292. 05 Unleased acreage.---

167, 158 46 Number of producing oil wells drilled during year.

201 Number of producing gas wells drilled during year.. Number of dry holes completed during year.. Total number of producing oil wells at end of year.--

9, 374 Total number of producing gas wells at end of year.. Gross oil production for year (barrels)-

16, 563, 694. 02 Royalty oil production for year (barrels) --------

2, 857, 084. 80 Gas production for year (cubic feet) -

10, 481, 102, 000 Casinghead gas production for year (cubic feet)

19, 054, 821, 840 Total barrels since first production ---------

472, 384, 694

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Income:

Interest on deferred payments.------
Bonus on deferred payments.--
Bonus received for leases made during year
Royalty on oil production.
Advance royalty-------
Annual rental...
Casinghead gas royalties
Gas royalties. -----

$3. 248 00

23, 380.00 1, 185, 575.00 2, 941, 987. 59

50.00 36, 888 85 115, 716. 55

275, 171. 22

4, 582, 017. 21 ------- 257, 352, 127. 02

Total for fiscal year..--

Total since first discovery -----

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