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Mr. DODD. This is to consolidate their reservation by getting rid of some checker-board holdings within the reservation. They want this area there for grazing sheep. As it is now, they are trespassers on other lands.

Mr. RICH. Are the lands owned by individuals or by the Government?

Mr. DODD. They are owned by individuals.

Mr. RICH. Do we not have some Federal lands there with which to make the exchanges? Could it be done by getting rid of some Federal holdings?

Mr. DODD. Not in this area. If you will refer to this map, you will see what I mean. This [indicating] is the exterior boundary of the reservation. There have been some white people who have received public domain allotments within this area.

Mr. RICH. Are they living on the land? Mr. DODD. Yes, sir; some of them are. We have had many conferences with the people who now occupy the lands, and agreements have been reached.

Mr. RICH. What is the charge per acre for that land?

Mr. DODD. I will ask Mr. Stewart, of the Land Division, to answer that.

Mr. STEWART. That land averages about $2 per acre, for grazing land. This item provides for payments for the land and for the improvements. These lands are entirely surrounded by NavajoIndian lands within the reservation area, and they are unable to make any use of the land or the improvements. It is impossible for them to relinquish these lands to the Government by making exchanges, because there are no lands on the public domain there available for exchange.

Mr. RICH. The average price, you say, is about $2 per acre.
Mr. STEWART. Yes, sir; for that type of land.

Mr. FITZPATRICK. How does that price compare with the assessed valuation of the land?

Mr. STEWART. The assessed valuation is rather lower than thatperhaps, $1.50 per acre. It is semiarid desert land, and is only usable for grazing.

Mr. FITZPATRICK. You say the assessed value is about $1.50 per

acre.

Mr. STEWART. I think so; I do not have any accurate information at hand.

Mr. JOHNSON. Are the Indians in favor of spending their money that way?

Mr. DODD. Yes, sir; they have asked that this be done.
Mr. JOHNSON. It is agreeable to them?

Mr. DODD. Yes, sir.

Mr. RICH. Have the Indians in that locality any funds to their credit which they can use for the purpose of acquiring additional land? Mr. DODD. They will use tribal funds under both of these items. Both are tribal fund items. The Navajos have a total of about $132,000 to their credit. Last year they received about $62,000 from oil royalties, and they have obligated most of that money for the purchase of land.

Mr. FITZPATRICK. Will any part of that fund be paid to agents, lawyers, or brokers in making the transfer?

Mr. DODD. No, sir; not 1 cent of it.

LEASING OF LANDS FOR NAVAJO INDIANS

Mr. JOHNSON. The next item is on page 86, for leasing of lands for Navajo Indians, as follows:

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

Regular appropriation, 1937 act__

Base for 1938...

Total estimate, 1938.

$20,000

20,000

20, 000 There are large areas of lands in Arizona and New Mexico in private ownership that are utilized by Navajo Indians and have been leased annually over a long period of years for their benefit, the lease rentals having been paid from tribal funds under proper congressional authority. These leased lands are included in areas eventually to be acquired by purchase or exchange and added to the Navajo Reservation under the general Navajo land-consolidation program. Such purchases and exchanges, so far as lands in Arizona are concerned, have been authorized by the act of June 14, 1934 (48 Stat., p. 960), and the necessary funds with which to make these purchases have been appropriated. Owing to details as to title and other requirements in connection with such purchases and exchanges, however, it has not been possible to acquire lands as promptly as was expected. This work is being pressed as rapidly as circumstances will permit.

As to lands in New Mexico which have been leased annually, authority for their purchase and acquisition by exchange was contained in the New Mexico-Navajo legislation, identified as S. 2213 and H. R. 6542 in the last session of Congress. Unfortunately this legislation failed of enactment.

It is necessary, pending addition of the lands to the Navajo Reservation, to secure them through lease for use by the Navajocs. If this is not done, their stock-raising program will be seriously handicapped. The sum necessary for such purposes is estimated to be about $20,000 annually or until such time when funds are provided for land purchases in New Mexico. During the present fiscal year leases have been executed to date covering 532,976.63 acres involving an annual rental of $17,710.63. There is a balance of approximately $132,000 to the credit of the Navajo tribe at this time

Mr. JOHNSON. This is also an item payable from tribal funds.

Mr. DODD. Yes, sir. This is a continuing item that has been in the bill for several years.

Mr. JOHNSON. When do you propose to purchase this land?

Mr. DODD. As soon as the New Mexico boundary bill is passed by Congress. We will then seek an appropriation to carry it into effect, and at the end of about 2 years' time we should be able to dispense with the leasing of further areas. During the last fiscal year we had leases covering 532,000 acres for which we paid approximately $17,800. The Indians desire to lease those lands for grazing purposes.

ACQUISITION OF LANDS FOR INDIAN TRIBES

Mr. JOHNSON. The next item, on page 87, is for the acquisition of lands, etc.

Mr. DODD. The following justification is submitted for the record: Regular appropriation, 1937 act__.

Unexpended balance forwarded to 1937....

Deduct nonrecurring and other items not required in 1938: Purchases

Total appropriations, 1937...

completed..

Base for 1938_

Total estimate, 1938..

$1, 000, 000 898, 650

1, 898, 650

1, 898, 650

Increases requested for 1938: Contractual authorization, 1937 act... 1, 000, 000

1, 000, 000

Basic authority.-The Indian Reorganization Act approved June 18, 1934 (48 Stat. L. 984), has as one of its major purposes the restoration of lands to Indian ownership. While the Secretary of the Interior could in the past place restrictions against further disposition of the Indian-owned lands, either tribal or individual, he was powerless to acquire new areas to replace the vast acreage that has passed out of the possession of the Indians, except as funds were provided by Congress for use in special cases. The act mentioned forbids the "sale, devise, gift, exchange, or other transfer of restricted Indian lands or of shares in the assets of any Indian tribe" except in certain cases covered in section 4 of the act, which reads in part as follows:

"That such lands or interests may, with the approval of the Secretary of the Interior, be sold, devised, or otherwise transferred to the Indian tribe in which the lands or shares are located or from which the shares were derived or to a successor corporation; and in all instances such lands or interests shall descend or be devised in accordance with the then existing laws of the State, or Federal laws where applicable, in which said lands are located or in which the subject matter of the corporation is located, to any member of such tribe or of such corporation or any heirs of such member: Provided further, That the Secretary of the Interior may authorize voluntary exchanges of lands of equal value and the voluntary exchange of shares of equal value whenever such exchange, in his judgment, is expedient and beneficial for, or compatible with, the proper consolidation of Indian lands and for the benefit of cooperative organizations.'

The act then authorizes annual appropriations for the acquisition of new lands, in the following language:

"SEC. 5. The Secretary of the Interior is hereby authorized, in his discretion, to acquire through purchase, relinquishment, gift, exchange, or assignment, any interest in lands, water rights, or surface rights to lands, within or without existing reservations, including trust or otherwise restricted allotments whether the allottee be living or deceased, for the purpose of providing land for Indians.

"For the acquisition of such lands, interests in lands, water rights, and surface rights, and for expenses incident to such acquisition, there is hereby authorized to be appropriated, out of any funds in the Treasury not otherwise appropriated, a sum not to exceed $2,000,000 in any one fiscal year:

* **

"The unexpended balances of any appropriations made pursuant to this section shall remain available until expended.

"Title to any lands or rights acquired pursuant to this Act shall be taken in the name of the United States in trust for the Indian tribe or individual Indian for which the land is acquired, and such lands or rights shall be exempt from State and local taxation."

The Appropriation Act for the fiscal year 1936 provided $1,000,000 for the acquisition of lands for Indian tribes in carrying out the provisions of the Indian Reorganization Act. This sum is one-half of the amount which had been originally set up as the annual need over a period of years to accomplish even a reasonable rehabilitation of the Indian tribes of the United States through the repossession of lands within existing reservations which had been alienated from Indian use. This money will be used only for the purchase of lands within the borders of existing reservations, except in isolated cases where there are bands or groups of landless Indians. Only minor factors of resettlement of any white population will be involved in land purchases made with these funds.

Land acquisition under Indian Reorganization Act.-Pursuant to the provisions of the Indian Reorganization Act, a total of 189 Indian groups have elected to place themselves completely within the provisions of that act. With the $1,000,000 appropriated for the fiscal year 1936, it was possible to extend landacquisition benefits partially to only 33 of these Indian groups, for whose benefit we have contracted to buy land to date (Sept. 14, 1936), as follows:

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The average per-acre cost, including improvements and water rights, for the areas listed above is $7.67 plus.

For 1937 a further sum of $1,000,000 was appropriated and authority was granted to contract for further purchases to the extent of $1,000,000. The expendable $1,000,000 appropriation has been allocated for use to date as follows:

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Contractual obligations, not exceeding $1,000,000, have been planned as

follows:

California:

Hoopa Valley (landless Indians).
Mission Agency (landless Indians).
Sacramento Agency (to be planned).

$100,000

85,000

100, 000

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100, 000

Blackfeet.

Flathead.

North Carolina: Cherokees.

North Dakota: Turtle Mountain (landless public domain).

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The land-acquisition provisions of the Indian Recrganization Act must be further extended to these and the remaining Indian groups which elected to participate in the benefits of that act, so that the benefits of credit, tribal enterprises, and other factors of rehabilitation authorized by the act may proceed in unison. With an appropriation of only $1,000,000 annually for such land acquisition, it will be exceedingly difficult to accomplish the full mission of economic independence and social rehabilitation contemplated by the act in question.

Land needs.-The following table is an estimate of the acres and values of land required generally for Indian usage to provide a productive capacity sufficient to accomplish their eventual rehabilitation and elevate them to a reasonable standard of living:

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It should be noted that appropriations annually over a period of years for the acquisition of land for Indians is not in the nature of an emergency relief measure of short duration, but should be considered in the light of a permanent rehabilitation measure, which will eventually result in placing the Indians of the United States beyond the need of charity or emergency relief measures, and will restore to them, at least partially, lands which were alienated before corrective legislation afforded them protection from the loss of lands essential to their existence.

For the purpose of a practical program, the needs listed are divided into two classes. The sum total of the two gives the estimated area required to raise the Indians to the standard of living of rural whites before the depression. Under "urgently needed" is included the land required to permit all Indians including enrolled and unenrolled landless individuals and bands, and individuals and tribes with insufficient land-to reach a mere subsistence level above the verge of starvation and the dole. The economic plight of most of these Indians is desperate and they constitute a serious relief problem that at present is met inadequately or not at all. Under "deferred" is included the additional lands that eventually should be provided to enable the Indians as a group to attain the modest standard of living of the rural white population before the depression. The estimates are tentative. They are subject to revision after further intensive field study of the local land and economic problem of each reservation.

139751-37-pt. 1- -58

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