Bureau of Indian Affairs statement of increases 1938 over 1937-Continued

If I may touch for just a moment or two on some of those items: In the 1937 appropriation bill there were certain nonrecurring items aggregating $1,017,934.86. So that, this budget on its face, carries an actual increase in Treasury appropriations of $6,088,104.24.

In 1937 no funds were provided in the regular Interior bill for construction purposes. In this bill $1,905,000 is included; $780,900 was provided for irrigation construction purposes, and in this bill there is an increase of $1,309,100.

We are asking for an increase in the revolving loan fund of $540,000. The total in the bill is $1,520,000, and for the year 1937 $980,000 was appropriated for this purpose. We are asking for an increase of $499,305 in connection with our educational activities.

REVOLVING LOAN FUND

Mr. JOHNSON. Now with reference to this so-called revolving loan fund item. I believe that your office is asking for a total of $1,520,000 for 1938?

Mr. DODD. Yes, sir.

Mr. JOHNSON. You have how much on hand?

Mr. DODD. We have had appropriated so far against the gri authorization of $12,000,000-that is $10,000,000 in the Indian Re organization Act, and $2,000,000 in the Oklahoma Welfare Acthave had appropriated so far $3,480,000.

Mr. JOHNSON. But, how much is on hand and unexpended? Mr. DODD. We have approved loans for about $670,000, and w have commitments which will bring it up to almost $1,000,000. was explained yesterday morning, briefly, the first year of operati under that act was absorbed in organizing the tribes, and in getting lot of the preliminaries out of the way. As charters have been issued now these tribes are requesting loans, and we have actually set asicabout $674,000, and we have other commitments that run that figure to almost a million dollars. The amount requested in this bill w bring the gross appropriation to an even $5,000,000, against a gros authorization of $12,000,000. If that is allowed, we feel that we w be able to go along through the fiscal year 1938. I would like t emphasize here, as well as later on, that the demand for loans is no growing because the preliminary work in many instances has bec disposed of.

Mr. JOHNSON. Let me see if I have it clear. You are asking for $1,520,000 additional for 1938?

Mr. DODD. Yes, sir.

Mr. JOHNSON. How much of that fund heretofore appropriated do you actually have on hand that is unexpended?

Mr. DODD. $2,806,000, in round figures, is actually on our books. as of today. That disregards any commitments we have. You ask how much of that amount is actually expended?

Mr. JOHNSON. Yes; actually expended. How much is the balance that is unexpended?

Mr. DODD. We have $2,806,000 that is unexpended as of today. Mr. JOHNSON. $2,806,000 unexpended?

Mr. DODD. Yes, sir.

Mr. JOHNSON. Óf that sum how much is committed?

Mr. DODD. We have approximately $300,000 right now.

Mr. JOHNSON. You have commitments for $300,000?

Mr. DODD. Yes, sir.

For conservation of health work we are asking for an increase of something more than $500,000, all of which will be explained in connection with that item.

Then, for increases due to specific acts of Congress during the last session, we are asking a total increase of $314,471.24. I omit numerous small items that will be included in the statement I have here. The increase may appear to be large when first considered. We feel. however, that a careful analysis of the statement we have submitted will indicate that it is not out of proportion to the activities of the Indian Service.

Mr. JOHNSON. Do you have any more tables or statistics which you desire to present for the record?

Mr. DODD. No, sir. That completes the submission of the general tables, and, so far as I know, the rest of the things that we have to discuss will be discussed in connection with the various items in the bill as they are taken up.

Mr.

Mr. JOHNSON. If there is no objection, we will start with the bill, unless the Assistant Commissioner desires to make a statement. Commissioner, is there any general statement you would like to make? Mr. ZIMMERMAN. No.

DEFINING CLASSIFICATION OF TRIBAL FUNDS, GRATUITIES, AND REIMBURSABLE FUNDS

Mr. JOHNSON. For the benefit of the new members of the committee, I think it might be well, Mr. Dodd, to explain briefly the difference between tribal funds, gratuities, and reimbursable funds.

Mr. DODD. I will take the smallest classification of funds first. Here in the back of the bill there are four items which are carried annually in fulfillment of permanent treaty obligations of the United States. There is one item of $4,500, one item of $6,000, one item of $10,500, and one item of $30,000. Those items are to fulfill permanent provisions of ancient treaties, and it is an obligation that the Government has to meet each year.

GRATUITY APPROPRIATIONS

As to the classification of funds, there are what we term "gratuity appropriations", which come from the Federal Treasury, the same as appropriations for every other agency of the Government. Those appropriations cover the entire range of Indian Service activities, the maintenance of physicians on reservations, the salaries and expenses of all nurses, the operation of some close to 100 hospitals and sanatoria, the operation of approximately 35 reservation boarding schools, and 18 nonreservation boarding schools, and something near to 200 day schools, and then the administrative expenses of the various field units, the small headquarters offices that are responsible for the administration of the reservations, and it also includes certain funds for forest protection, for agricultural extension work, and many other phases of Indian administration.

TRIBAL FUNDS

The tribal funds are moneys used largely for the same type of services as are supported with Treasury funds. The tribal funds are derived from the estates of the Indians, and Congress sees to it that some of those funds are approprated each year for administrative purposes.

REIMBURSABLE FUNDS

The reimbursable funds are moneys that are loaned for various purposes, and eventually will be paid back. The revolving loan fund is one. Irrigation operation and maintenance charges, and some construction, and items of that character are included in that classification. That covers all four funds.

Mr. JOHNSON. If there is nothing further in the way of question, we will proceed with the consideration of the bill.

First we have the Snyder Act. That is the basic law, and it is always included in the bill.

Mr. RICH. That is one of the permanent acts?

Mr. DODD. That is the basic act authorizing appropriations for the Indian Service.

OFFICE OF THE COMMISSIONER

SALARIES

Mr. JOHNSON. The first item is for salaries in the Office of the Commissioner of Indian Affairs and other personal services in the District of Columbia, $510,090.

Mr. DODD. The following tabulation shows the total number of employees in the Washington office, and the appropriations from whiet their salaries are paid. (Proposed, 1938.)

Mr. DODD. I offer the following justification for the general salary item for the Washington office:

The

Historical. Congress by act of August 7, 1789, created the War Department and assigned to it, among other duties, those relating to Indian affairs. Bureau of Indian Affairs was organized in that Department on March 11, 1824 with Thomas L. McKenney at its head. He was responsible for administration of the fund for civilization of the Indians under regulations established by the Department, examination of claims arising out of laws regulating intercourse with Indian tribes, and routine correspondence with his representatives in the field The act of July 9, 1832, created the office of Commissioner of Indian Affairs, whe was to have, subject to the Secretary of War and the President, "the direction and management of all Indian affairs and all matters arising out of Indian reistions". The first Commissioner of Indian Affairs was Elbert Herring of New York. There have been since that time 31 Commissioners of Indian Affairs coming from 16 different States and the District of Columbia. The majority of them have been men residing east of the Mississippi. On June 30, 1834, legislation was enacted to provide for the organization of the Department of Indian Affairs. This act has been considered the organic law of the Indian Bureau.

It was not until the act of March 3, 1849, that the administration of Indisa affairs passed from military to civil control. This act created the Department of the Interior.

*

Section 441 of the Revised Statutes provides that "The Secretary of the Interior is charged with the supervision of public business relating to the Indians".

Section 463 of the Revised Statutes reads "The Commissioner of Indian Affairs shall, under the direction of the Secretary of the Interior and agreeable to such regulations as the President may prescribe, have the management of all Indian affairs and of all matters arising out of Indian relations."

Many treaties and agreements have been made with Indian tribes and many laws have been enacted relating to the affairs of approximately 200 separate bands or tribes of Indians scattered throughout 28 States of the Union. Treaties, agreements, and acts of Congress, cumulative over a long period of years, have expanded the scope of the Indian business, and appropriations have been increased to meet new requirements. Day schools, boarding schools, hospitals, and sanatoria, and irrigation projects have been built for Indian use, forestry and extension work have been undertaken; heirs of deceased Indians are determined through direction of a specific enactment; and local administrative headquarters have been established to handle the ever-growing Indian business. Many appropriations grew out of administrative policies. Upon the enactment of the Budget and Accounting Act of 1921, a change took place in the method of making appropriations. Legislative committees of Congress, previously endowed with appropriating powers, were shorn of such powers and the formulation of appropriation bills was placed in the hands of the general Appropriations Committees of Congress, acting through various subcommittees. Thus the Indian Affairs Committee of the House of Representatives ceased to consider appropriations for the Indian Service and the former Indian appropriation bill was merged with the bill making appropriations for the Interior Department. In the first year of this change points of order were made on the floor of the House against many appropriations for Indian Service activities. These points of order were sustained on the ground that the appropriations were not authorized by existing law. When the appropriation measure went to the Senate it was a mere skeleton in comparison with the amounts actually required for Indian Service functions. This condition of affairs led to the passage of the act of November 2, 1921 (U. S. C., title 25, sec. 13), commonly referred to as the Snyder Act, which legislation authorized appropriations for the Indian Service in the following language:

"That the Bureau of Indian Affairs, under the supervision of the Secretary of the Interior, shall direct, supervise, and expend such moneys as Congress may from time to time appropriate, for the benefit, care, and assistance of the Indians throughout the United States for the following purposes:

"General support and civilization, including education.

"For relief of distress and conservation of health.

"For industrial assistance and advancement and general administration of Indian property.

"For extension, improvement, operation, and maintenance of existing Indian irrigation systems and for development of water supplies.

"For the enlargement, extension, improvement, and repair of the buildings and grounds of existing plants and projects.

"For the employment of inspectors, supervisors, superintendents, clerks, field matrons, farmers, physicians, Indian police, Indian judges, and other employees. "For the suppression of traffic in intoxicating liquor and deleterious drugs. "For the purchase of horse-drawn and motor-propelled passenger-carrying vehicles for official use.

"And for general and incidental expenses in connection with the administration of Indian affairs."

Later enactments have authorized appropriations for specific purposes, both of a continuing and non-recurring nature.

General.-The function of the Indian Bureau in Washington is to formulate policies in connection with Indian administration and perform duties placed upon it by treaties and acts of Congress. For this purpose a group of approximately 213 employees, including the Commissioner and Assistant Commissioner, is employed in Washington.

It would be impossible to outline the many and varied duties of this personnel. The amount of correspondence in recent years has increased to such an extent that existing personnel finds it almost impossible to keep the work of the office current. Not only has there been a tremendous increase in ordinary routine business, but an increasing number of Indians are corresponding with Washington headquarters on subjects of interest both to individuals and to the tribes. There 139751-37-pt. 1-53