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

Acres Area of reservation

1, 470, 934. 44 Area allotted.

- 1, 465, 350. 51 Unallotted.-----

20.00 Total, subject to lease for oil and ga

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:

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Indian Territory Illuminating Oil Co...
Oklahoma Natural Gas Corporation (formerly Osage & Oklahoma Co.)..
Oklahoma Power & Water Co. (formerly Sand Springs Home)...
Osage Gas Producing Co. (formerly Owen Osage Oil & Gas Co.)
Cities Service Gas Co. (formerly American Pipeline Co.).
Pawhuska Oil & Gas Co...
City of Pawhuska.
City of Foraker...

337, 440
107, 200
104, 960
165, 760
181, 120

6, 400
19. 680

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July 19, 1917
Oct. 25, 1922

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

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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:

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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.

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

re coming, or who have no interest at all in this money rather than o permit the Osages to spend the balance of their funds?

Mr. DODD. Congress has more recently put certain restrictions on t. All of the expense of the Osage Agency are borne from tribal unds and we inserted in our justification a resolution of the tribe upporting the estimate which we have submitted.

Every year they pass a resolution covering the appropriation of noney 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 und is for expenses of tribal councils or representatives thereof.

I note some new language in there in regard to “Supplies and quipment, not to exceed $5 per diem in lieu of subsistence, and not o exceed 5 cents per mile for use of personally owned automobiles, ind 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: Blackfeet..

$2, 450 Cheyenne and Arapaho.

700 Cheyenne River...

760 Coeur d'Alene.-------

300 Colville


500 Five Civilized Tribes (Creek Nation)

200 Flathead.

2, 100 Fort Berthold..

1, 750 Fort Belknap.

2, 600 Fort Hall...

1, 000 Fort Peck..

2, 200 Hoopa Valley

100 Keshena....


800 Klamath

125 6, 000 5, 000

Crow -

Kiowa -----

5, 000

Mission... NavajoOsage..



- $300 -- 300


Pine Ridge
Rocky Boy's..
Tongue River
Turtle Mountain
Yakima -



-----------. 41, 755 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.

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. By 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 84 is allowed, and this we consider little enough.

To specify the tribes whose funds would be used is not feasible 18 months in advance of the time when the appropriation will cease to exist. But in no event can the fund be used for purposes other than those specified in the item, and then only when the expenditure is requested by the tribe.

Language changes.—Changes in text will permit (a) purchase of supplies and equipment required for official use of tribal councils; (b) payment of per diems, rather than to compel Indians to take receipts, and to submit itemized expense vouchers when some members of councils cannot speak, read, or write the English language; (c) payment of mileage for use of personally owned automobiles on some reservations the only means of speedy conveyance. The foregoing items explain the changes made in the last proviso.

Mr. Dodd. You will notice on going down to the bottom of the item that some of the text has been omitted. What happens in connection with that is that the per-diem limit is set at $5 instead of $6 as shown at the bottom of the page.

We have had some difficulty which more recently has been corrected with the General Accounting Office as to whether or not we could pay an Indian a per diem or not, their ruling first being that they had to travel under the standard travel regulations, and not being employees of the Federal Government they could only pay them on an actual expense basis.

We do not expect full-blood Indians to take receipts and keep records of their expenses. You cannot expect that. We did not recommend the limit of $5. We felt that $6 in the discretion of the Secretary was more appropriate, but the Budget in standardizing the per-diem allowance felt that the best thing to do would be to limit it to $5.



Mr. JOHNSON. The next item is on page 248 and is for the maintenance of the Gallup-Shiprock Highway in New Mexico.

Mr. Dond. There is no change in that item. That item is recognized by special act of Congress. The justification is as follows:

The act of June 7, 1924 (43 Stat., p. 606), authorized an appropriation of $20,000 for maintenance of that portion of the Federal-aid highway across the Navajo Indian Reservation from Gallup to Shiprock, N. Mex. This act reads as follows:

That there is hereby authorized to be appropriated annually, out of any money in the Treasury not otherwise appropriated, the sum of $20,000, or so much thereof as may be necessary for each fiscal year, to be expended under the direction of the Secretary of the Interior, for maintenance of that portion of the Federal-aid highway from Gallup, New Mexico, to Shiprock, New Mexico, across the Navajo Indian Reservation, reimbursable from the tribal funds of the Indians of said reservation: Provided, That Indian labor shall be employed as far as practicable: Provided further, That if no funds are available, no expenditure shall be made."

Authorization for the use of $20,000 of Navajo tribal funds for maintenance and repair of this road was contained in the act of March 3, 1925 (43 Stat., p. 11411163). As Navajo tribal funds became depleted, beginning with the act of March 7, 1928 (45 Stat., p. 200-225), the necessary annual appropriations were made from public funds to be reimbursed, however, from future accruals to such funds.

This road is a part of United States Highway 666 from Gallup, N. Mex., to Cortez, Colo., where it joins United States Highway 160. The distance from the southern boundary of the reservation to Shiprock is 62.5 miles. The road was constructed with the joint use of Federal aid, State, and county funds. Because of the large area of Indian land in the State and consequent low income from taxation of Indian lands and other property, it is necessary that funds be provided for maintenance of the portion of this highway within the Navajo Reservation.

139751--37-pt. 1---87

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