Page images

lo not feel the tribe should pay tor help when the revenues obtained from investnents 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 investnents made from restricted Indians' accounts in this office, and 8458,833.35 from nterest obtained from lump-sum investments of restricted Indians, such as liberty bonds and deposits in banks by the disbursing agent. The acts of 1921 ind 1925 provide for such investments, but do not say directly that the personnel, ir the expenses of such investments shall be paid from tribal funds. We are very nuch in need of help as follows:

"Clerk for handling guardianship and administrative matters, such as auditing .nd investigating accounts which, from past experience, has shown there has )een a great loss to the individual Indians, probate matters, etc. This clerk hould be paid, in my estimation, $2,800 per annum. A stenographer and typist vith 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 ind Fairfax, Okla., at $1,080 each. There is a farmer at Hominy and field aid it Fairfax who spend their mornings in the field and their afternoons in the office loing clerical work. They arc unable to care for same properly and the Indians ire dissatisfied for the reason they cannot obtain the service desired.

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

"Mr. William H. Rudrauff, senior clerk no. 13, is handling loans and investments n this office, the amount of which at this time is $5,000,000, the revenue from same luring 1936 being $106,730.09. Mr. Rudrauff has been doing most of this work )y himself, but has been assigned a clerk full time during the last 60 days, who vill 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 las 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 i salary of $1,080.

"When the personnel was reduced at this agency a very efficient record was aeing kept in the individual accounts, but due to shortage of help one particular ■ecord which was kept daily showing the net balance of each Osage Indian, luthorizations 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 iccounts, the work has run behind and is not efficient. An additional clerk at 51,440 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 el 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 a sun. -:" to exceed S500 shall be allowed in the appropriation for the fiscal year 193» Is the purpose of financing an appeal in the above mentioned case of Tucker i Mullendore.

"Done in regular meeting of the council on this 12th day of February 1936.

"(Signed) Fred Looion.

"Principal Chief. "Attest*

"(Signed) F. N. Retasb.


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

"Whereas the income for the operation of the Osage Indian Agency is deriv-: from royalties from oil and gas, bonuses sale of oil leases, and rentals on lea^ ■old 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 expeiA of operation for 1936 was 3.5 percent of the income; and

"Whereas it is necessary that funds be provided for the operation of OsarIndian Agency aft to personnel, purchase, expenses of tribal council, etc.; and

"Whereas the budget listed below was presented by the acting superiotende-". of Osage Indian Agency in the amount of 5172,372 for the fiscal year 193S; ato

"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 assembie-i. this 6th day of July 1936, it is respectfully requested that the Commissioner of Indian Affairs through Congress have set aside 8172,372 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 2.000

3. Annual estimate of supplies 5, 000

4. Telephone and telegraph expense 1, 000

5. Electricity, water, and ice 2,500

6. Insurance on tribal buildings 1,282

7. Upkeep and repairs to office equipment 400

8. Travel expense on official business 1,500

9. Repairs to buildings 2. 500

10. Purchase of automobiles for official use 2.500

11. Repairs to automobiles 1, 000

12. Office supplies and purchase of office equipment 1,000

13. Oil lease sale expense 600

14. Salaries, tribal attorney and secretary 6, 700

15. Salaries of tribal council 7, 050

16. Interpreter hire 1, 140

17. Law-and-order work 1, 500

18. Clinic:

Salaries. $8, 440

Rental of office 660

2 automobiles (exchanged) 1, 200

Travel expense 400

Annual estimate supplies 1. 000

Special equipment 500

Unforeseen needs 300


19. Payment, well locations on homesteads 8, 000

20. To reimburse expense case Tucker v. Mullendore not to exceed (reso

lution no. 11, February 12, 1936, att.) 500

21. Unforeseen needs 1,500

160, 372

22. Expense tribal council to Washington, etc 10, 000

23. St. Louis Mission School 2.000

Total 172.372

"Be it further resolved and it is hereby further resolved. 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 mortgages, 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 2, 400

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 1, 820

Marguerite G. Tucker, assistant clerk no. 26, grade 7, net salary 1, 440

Frank E. Whitney, senior clerk no. 43, grade 9, net salary 1, 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 with 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.

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, to be paid by vendees, lessees, or assignees, or deducted from the proceeds of sale, 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 Cherokw Nation in 1883, has an area of about 1,470,640 acres, and is inhabited by appronmately 3,363 Indians, of whom more than 2,600 are mixed bloods. The origin*. Osage tribal roll contains 2,229 names. These Indians pay taxes on their surpji;lands and other properties. Since the passage of the act of March 3, 1921 i4! 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 accepted 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 abou". $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 ha.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 49

Number of leases in force at end of year 1, 821

Total acreage leased during the year 22, 346, 33

Total acreage under lease end of year 298, 292. 05

Unleased acreage 1, 167, 158. 46

Number of producing oil wells drilled during year 201

Number of producing gas wells drilled during year 6

Number of dry holes completed during year 46

Total number of producing oil wells at end of year 9, 374

Total number of producing gas wells at end of year 935

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, S40

Total barrels since first production 472, 384, 694


Interest on deferred payments S3, 24S. 00

Bonus on deferred payments 23, 380. 00

Bonus received for leases made during year 1, 185, 575. 00

Royalty on oil production 2, 941, 987. 59

Advance royalty 50. 00

Annual rental 36. 888. S5

Casinghead gas rovalties 115, 716 55

Gas royalties . 275, 171. 22

Total for fiscal year 4, 582, 017. 21

Total since first discovery 257. 352, 127.02

A resume1 of status of lands in the Osage, as applied to oil- and gas-mining leases up to June 30, 1936, follows: Aera

Area of reservation 1, 470, 934. 44

Area allotted 1,465,350. 51

Unallotted 20.00

Total, subject to lease for oil and gas 1, 465, 370. 51

Area reserved for townsites, etc 5, 563. 93

Total 1, 470, 934~44

7 leases, oil and gas 12, 443. 15

1,814 leases, oil 285, 848. 90

Total, 1,821 leases, oil and gas 298, 292. 05

214 leases, in rental status 32, 225. 05

35 leases, not in rental status (homestead lands) 2, 922. 96

70 leases, Sept. 24, 1935, sale 11,139.08

74 leases, Feb 11, 1936, sale 11,687.25

Area unleased:

Oil 1, 167,078.46

Gas 15,799.36

Gas leases.—Gas leases were executed under authority of the Osage tribal council and approved by the Secretary of the Interior to lessees named without bonus consideration, viz:

[blocks in formation]

Indian Territory Illuminating Oil Co

Oklahoma Natural Oas Corporation (formerly Osage & Oklahoma Co.)

Oklahoma Power & Water Co. (formerly Sand Springs Home)...

Osage Oas Producing Co. (formerly Owen Osage Oil & Gas Co.)..

Cities Service Gas Co. (formerly American Pipeline Co.)

Pawhuska Oil <fc Gas Co

City of Pawhuska _

City of Foraker

[merged small][ocr errors]

Acreage remaining was sold at public auction in quantities and for amounts appended and leases executed which are owned as follows:


Bonus received for oil and gas leases:

Oil and gas $537, 618. 58

Oil leases 113, 147, 769. 53

Gas leases 1,063,920. 48

Total 114,749,308. 59

Section 5 of the act of March 3, 1921, provides for payment of gross production tax of 3 percent of the amount received by the tribe as royalties from sales of oil and gas, to the State of Oklahoma, and a further sum of 1 percent to the county for road and bridge construction and maintenance only. Payments made for this purpose during the year ended March 31, 1936, are as follows:

« PreviousContinue »