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 approxi mately 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 surpius 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 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 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. Number of leases approved during the year. Number of leases disapproved during the year. Total acreage leased during the year. Number of producing oil wells drilled during year. Royalty oil production for year (barrels). Casinghead gas production for year (cubic feet) 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. Total for fiscal year.. Total since first discovery. 141 141 None 49 1, 821 22, 346. 33 298, 292. 05 1, 167, 158, 46 201 6 46 9, 374 935 16, 563, 694. 02 2, 857, 084 80 10, 481, 102, 000 19, 054, 821, 840 472, 384, 694 $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 A résumé of status of lands in the Osage, as applied to oil- and gas-mining leases up to June 30, 1936, follows: Area of reservation _ _ _ Area allotted.. Unallotted.. Total, subject to lease for oil and gas.. Area reserved for townsites, etc.. Total.... 7 leases, oil and gas. 1,814 leases, oil.. Total, 1,821 leases, oil and gas. 214 leases, in rental status. 35 leases, not in rental status (homestead lands). 70 leases, Sept. 24, 1935, sale_ 74 leases, Feb 11, 1936, sale. Area unleased: Oil.... Acres 1, 470, 934. 44 1, 465, 350. 51 20.00 1, 465, 370. 51 5, 563. 93 1, 470, 934. 44 12, 443. 15 285, 848. 90 298, 292. 05 32, 225. 05 2, 922. 96 11, 139. 08 11, 687. 25 1, 167, 078. 46 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: Indian Territory Illuminating Oil Co. Oklahoma Natural Gas Corporation (formerly Osage & Oklahoma Co.). Osage Gas Producing Co. (formerly Owen Osage Oil & Gas Co.). City of Pawhuska. City of Foraker.. Oct. 25, 1922 Acreage remaining was sold at public auction in quantities and for amounts appended and leases executed which are owned as follows: 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: EMPLOYMENT OF CURATOR FOR OSAGE MUSEUM Mr. JOHNSON. In this item there appears to be an increase of $18,380. Mr. DODD. I would like at this time to offer an amendment and then we will discuss the whole thing. On page 244, line 11, change the figure "$177,380" to "$189,180." Then at the end of the paragraph change the period to a colon and insert: Provided further, That not more than $1,800 may be used for the employment of a curator for the Osage museum, which employee shall be an Osage Indian and shall be appointed without regard to civil service laws and regulations upon the recommendation of the Osage Tribal Council. The purpose of that amendment may be stated briefly. With a grant of $25,000 of Public Works money we have reconstructed on the Osage Reservation one of the old buildings constructed with tribal funds many years ago. That was done at the request of the Indians. They have asked that one of their own members be appointed as a curator or a librarian or whatever title you choose to have. That is why we are suggesting increasing the item first by $1,800 and also directing that this employee shall be a member of the Osage Tribe. EXTRAVAGANT USE OF MONEY BY OSAGES Mr. LEAVY. Is that a tribe that has a large tribal fund? Mr. DODD. Yes; this tribe had a balance as of March 19, 1937, the sum of $2,702,876. This is the wealthiest of all reservations. Since oil and gas were first discovered on the reservation the Indians have received $257,352,127.02. Mr. JOHNSON. I want to ask you this question: Has that fabulous sum of money, in your judgment, been a blessing or a curse to the Osages? You can answer that on or off the record. Mr. DODD. Let me answer that this way: There are some Osages who have conserved their funds and have made good use of them; there are other Osages who with the help of the local merchants and others have found a way to spend their money as fast as they got it. We in the Indian Service feel that the Osages have made no more extravagant use of that money than any group of white people who would have money just dumped onto them from the mineral deposits under the land. Mr. JOHNSON. Possibly that is true, but at the same time I am told that a great many of the Osages have spent their money in riotous living, and consequently have not progressed as a tribe mentally or morally. Mr. LEAVY. Is this money held in common, in a common trust fund? Mr. DODD. It is individualized; there are 2,229 names on final Osage rolls. The oil and gas deposits are held in common for the tribe and quarterly distributions are made, the fund being transferred to the individual accounts of the members entitled to receive it. Mr. JOHNSON. Don't you think it would be good policy to conserve as much of these funds for the future welfare of these children who are coming, or who have no interest at all in this money rather than to permit the Osages to spend the balance of their funds? Mr. DODD. Congress has more recently put certain restrictions on All of the expense of the Osage Agency are borne from tribal unds and we inserted in our justification a resolution of the tribe supporting the estimate which we have submitted. Every year they pass a resolution covering the appropriation of money for the operation of their agency. TRAVELING EXPENSES, TRIBAL COUNCIL AND COMMITTEES Mr. JOHNSON. The next item of tribal funds is found on page 246 and is for expenses of tribal councils or representatives thereof. I note some new language in there in regard to "Supplies and equipment, not to exceed $5 per diem in lieu of subsistence, and not to exceed 5 cents per mile for use of personally owned automobiles, and so forth. Mr. DODD. I submit the following justification for the record: No general authorization for payment of expenses of members of tribal councils or of representatives of tribes when authorized to visit Washington existed until 1935. For a number of years annual appropriations were made from Osage tribal funds to cover travel and other expenses of members of the tribal council when visiting Washington on business relating to tribal matters. Small amounts were taken from other tribal-support authorizations from time to time to meet the expenses of one or two individuals when they were authorized to come to the seat of Government for conference purposes. The general practice, however, has been for legislation to be enacted authorizing an appropriation of a definite amount from the funds of a particular tribe in order that their representatives may visit Washington. The long delay occasioned by the enactment of enabling legislation and the further delay occasioned in obtaining appropriations pursuant to such authorizations caused a great deal of dissatisfaction on the part of the Indians, who felt that they should have the right to use their own money for the expenses of their representatives on business in which the tribe as a whole was interested. The first step in providing a general authorization for expenses of tribal councils and their representatives was the insertion in the 1935 appropriation act of an item with which consolidation of all prior authorizations was made. With the adoption of new policies looking to increased participation by the Indians in the administration of their own affairs, it has been necessary to have representatives of tribes proceed to Washington. We cannot hope to have an effective functioning of a tribal council if the individual members have to pay travel expenses out of their own pockets. Allotments for expenditures during the fiscal year 1936 aggregated $41,755 and were made for use at the following jurisdictions: Increase, $50,000.-There has been an apparent misconception of the purpose of this item. Some have expressed the view that it is an appropriation merely to defray the expenses of hand-picked delegations from Indian tribes when they are authorized to visit Washington by the Commissioner. It has been further suggested that these groups are brought to the seat of Government for the purpose of lobbying for either specific or general legislation relating to Indian administration. We admit that some tribal representatives visit Washington and seek an opportunity to express their views to their Representatives in Congress and to committees of Congress considering legislation affecting the interests of the tribe which they represent. There should be no criticism of this procedure. Too long legislation, good and bad, has been enacted upon the sponsorship of an individual, the Indian Bureau, or the Department. Usually the purpose to be served is intended to be solely for the benefit of a particular tribe, or for the Indian race as a whole. But the voice of the beneficiary of the legislation all too frequently has never been heard. By Again, questions of administration in past years have been decided by Bureau or departmental officials without giving any thought to the actual views of the Indians. In fact, the organization and functioning of tribal councils or business committees was discouraged. The Indians were in effect given to understand their views were not wanted. Thus areas would be leased for farming or grazing purposes, regardless of whether or not the tribe wanted to use the land. leasing, the tribal income was increased, and funds were thus provided for appropriation by Congress for Indian Service operation. The one tribe definitely an exception to the general rule has been the Osage, in Oklahoma. For many years that tribe has spoken, through its tribal council, on leasing, on legislation affecting its interests, and on appropriations for operating expenses of the Indian Service. Among other benefits granted Indian tribes by the Indian Reorganization Act of 1934 was the right to organize, and after organization the right to express themselves concerning Indian administration. The recognition of the Indians in our various programs has awakened a new interest in thousands of individuals and as time goes on we find a growing desire on the part of the Indians to participate in solving the varied local economic and administrative problems. The second element in this proposed increase is the payment of expenses of the officers and members of the tribal councils on the reservations. Not for expenses of so-called junket trips to Washington, but actual expenses at home. Among other things this would cover mileage allowance in going to and from council meetings, traveling expenses when engaged in some mission of benefit to the tribe; and per diem of $4 or $5 when they are attending to tribal matters, either through attendance at council meetings or otherwise. The per diem allowance would cover subsistence and lodging, and a small sum for compensation. Common labor on Emergency Conservation Work, road work, construction projects, and other enterprises averages $2.40 per day. If an Indian is employed, and takes time off to attend council meetings he should be granted compensation at least equal to his daily earnings. In some cases these men are employed as skilled mechanics or laborers, and draw wages as high as $8 a day. But taking the $2.40 a day average, and on the basis of a $5 per diem, $2.60 remains for food and shelter. The cheapest food he could buy would undoubtedly be at the employees' mess. For 3 meals he would be required to pay from $1.05 to $1.35 a day. His lodging, he would have to obtain where he could, and at whatever price may be asked. Thus a $5 per diem would be very modest. In nearly all cases, however, only $4 is allowed, and this we consider little enough. |