One thousand eight hundred and eighty-seven of these estates were those on which trust patents had issued, 176 restricted fee patents, 51 personal property, and 97 inherited interests. A fee of $15 is collected in each of these cases.

One hundred and eighteen will cases were received, 58 of which were approved, 17 disapproved, and 40 filed without action. Three were canceled.

Fifteen examiners of inheritance were engaged in holding hearings on 26 reservations and on the public domain.

In addition to the above, 2,914 miscellaneous cases pertaining to the probate work were disposed of and 6,009 letters written.

OSAGE OIL AND GAS LEASES.

On November 9, 1918, March 5, 1919, and June 6, 1919, there were sold at public auction at Pawhuska, Okla., certain Osage Indian lands for lease for oil-mining purposes aggregating 95,337 acres for a bonus consideration of $10,299,900, in addition to stipulated royalties, an average of about $101 an acre.

The lands leased for oil consisted of 160-acre tracts adjoining production and scattered tracts selected with a view of opening up new pools of oil. Leases covering these tracts are for a period of five years, and as long thereafter as oil is found in paying quantities, provided that such term shall not extend beyond the date the title to the minerals remains in the Osage Tribe. The oil leases provide for a royalty in addition to the bonus paid of 163 per cent, except when wells on a quarter-section tract or fractional part of a quarter section are sufficient to average 100 or more barrels per well per day, the royalty on oil is 20 per cent. The royalty on gas is 163 per cent based on a value of 18 cents per 1,000 cubic feet for gas at the well, which is equivalent to 3 cents per 1,000 cubic feet.

The Osage Reservation under which oil and gas is reserved to the tribe until 1931, unless otherwise provided for by Congress, comprises approximately 1,500,000 acres, of which 680,000 acres on the east side were leased for oil under a blanket lease authorized by Congress which expired March 16, 1916. New leases have been made, covering about 1,126,528 acres for gas, and 403,000 for oil not including about 39,000 sold for lease for oil and 319,000 acres sold for lease for gas on June 6, 1919. The oil leases aggregating about 403,000 acres are included in the lands leased for gas.

On June 30, 1919, there were 124 wells being drilled, 4,442 producing oil wells, 468 producing gas wells, and 1,930 dry and abandoned wells. The gross production of oil from July 1, 1918, to June 30, 1919, amounted to 12,138,086 barrels, of which the Osage Tribe received 2,043,458 barrels. The total receipts of the Osage Tribe from oil and gas leases during the fiscal year amounted to approxi

mately $11,000,000, which does not include unpaid bonus still due. The total amount accruing to the tribe from oil and gas during the year amounted to approximately $17,000,000.

The price obtained by oil operators for oil during the past year has been $2.25 per barrel at the well. In some instances a premium of from 5 cents to 80 cents per barrel has been paid for oil purchased by local refineries.

OIL AND GAS IN THE FIVE CIVILIZED TRIBES IN

OKLAHOMA.

There were under lease for oil and gas mining purposes in the Five Civilized Tribes 717,594 acres. Leases were filed during the year covering 187,217.90 acres. Royalties on production during the year amounted to $3,416, 805.10, and advance royalties, annual rentals, and bonus amounted to $657,180.12, a total revenue from oil and gas leases of $4,073,985.22. The total production on restricted land amounted to 10,180,862 barrels of oil.

During the year 493 wells were drilled, of which 307 were producing wells, 57 producing gas wells, and 129 dry holes.

METALLIFEROUS MINERALS.

Section 26 of the Indian appropriation act approved June 30, 1919 (Public, No. 3), authorizes the mining of metalliferous minerals on unallotted lands of Indian reservations within the States of Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon, Washington, and Wyoming, under regulations to be prescribed by the Secretary of the Interior.

A draft of regulations has been prepared to put this provision into effect. In the meantime instructions have been issued to the superintendents in charge of Indian reservations not to permit anyone to go on the reservations for the purpose of prospecting.

OIL AND GAS-OUTSIDE THE FIVE CIVILIZED TRIBES AND OSAGE NATION.

Oil and gas leases on restricted Indian lands under the jurisdiction of the Kiowa Agency have been in great demand. These leases are sold at public auction to the highest and best bidder. During the fiscal year 24,449 acres were leased for a bonus consideration of $748,145, an average of about $31 an acre, which is unusually good for a comparatively new field. The total revenue to the Indians on the Kiowa Reservation from oil and gas during the year amounted to about $800,000 The work of development on this reservation is progressing satisfactorily, 3 producing oil wells and 1 gas well were brought in, and 13 wells were in the course of drilling.

On June 30, 1919, there were 37,732 acres of restricted Indian land covered with oil and gas mining leases on the Otoe Reservation. Of this acreage 1,790 acres were leased during the past fiscal year. The total revenue received by the Otoe Indians from oil and gas mining leases during the period from July 1, 1918, to June 30, 1919, was $50,589.48.

There has been considerable activity in the oil and gas mining industry on the Pawnee and Ponca Reservations, where a number of producing wells were brought in and the incomes of the Indians. have been substantially increased.

QUAPAW AGENCY.

Affairs at this agency have assumed extensive proportions during the last year by reason of the unprecedented growth of the lead and zinc mining industry, the establishment of several towns and cities to accommodate the mining population, and the various enterprises that have sprung up in connection therewith. So rapid has been the development that the business of the agency for a single month now equals its annual volume in the recent past. The exact population of the mining district is unknown, but it is said that 50,000 persons located in the north half of Ottawa County between 1916 and 1918, the major portion of whom are still living therein. The heavy work of this jurisdiction has made it necessary for the superintendent to maintain a branch office at Miami, Okla., in order to supervise the mining operations, to prepare income-tax data, and to attend to the sale of lands for town-site purposes, which is now one of the most pressing matters before his office. Of very great importance also is the proposed sale for road-building purposes of the chat piles, commonly called tailings, composed of pulverized refuse rock from the mines. There are thousands of tons of this material available for roads, and the proposition of furnishing the chat for use in the construction of highways, which are being built in many of the States under joint Federal and State control, has been taken up in a preliminary way with the Department of Agriculture. This agency has developed in a brief time from a simple rural and school proposition into a great business factor controlling the largest deposit of lead and zine known in any one place here or abroad. In fact, the Miami-Picher district probably produces over one-half of the output of the whole United States.

REIMBURSABLE FUNDS.

The use of reimbursable funds during the year has been somewhat restricted, due to the fact that only $150,000 was appropriated. The amount available was expended to the best advantage possible for

the benefit of the Indians, in the purchase of seeds, implements, and other articles to aid them in their agricultural and other industrial pursuits.

The matter of making collections due under reimbursable agreements is being given careful attention. Where the Indian has money to his credit and is able to pay, the superintendent has authority to insist on payment, while in other cases where the account is delinquent and the Indian is without means, an extension of time is granted, additional credit being extended in some cases where it is necessary to enable the Indian to put in a crop. Collections have been good, and at several agencies the number of accounts has been reduced materially. The beneficiaries have been enabled to get a start and in many instances no longer require assistance from reimbursable funds. Forty per cent of the amount expended for individuals Indians has been repaid. The balance must not be considered delinquent as it is payable in installments which are not due. The tribal herds established from funds of this character in previous years have proven profitable, and are of themselves a guaranty of payment. It is the intention to eventually place this stock among the individual Indians, which can be done at a less price under this plan than would be possible if stock were to be purchased for them in the open market.

New regulations governing the handling of reimbursable funds were promulgated during the year, and a new system of reimbursable accounting installed. A special supervisor is now visiting the different reservations, going over reimbursable matters with the superintendents, with special reference to the use being made of these funds and their collections.

INDIVIDUAL INDIAN MONEYS.

In furtherance of the plan adopted several years ago under the "Declaration of policy" referred to in previous reports, having in view the gradual emancipation of the Indians from governmental control, the disbursement of individual Indian funds belonging to both adults and minors has been governed by more liberal principles. Competency for this purpose was determined on a less stringent basis, and if an adult Indian was reasonably competent he was given unrestricted control of his funds, which affords him experience in the management of his own affairs along practical business lines. The funds of minors have been authorized for their own benefit, such as the development of their allotments, and medical treatment, the purchase of stock (marked with the minor's brand), special schooling, etc. In some cases upon being appointed legal guardian and furnishing sufficient bond, the minor's funds were turned over

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to the parent, who thereby became responsible to the county court for its proper expenditure.

During the past fiscal year over $10,000,000 individual Indian funds were either paid directly to the Indians or expended for their benefit, with encouraging results in most cases.

ANNUITY AND PER CAPITA PAYMENTS.

In conformity with the policy inaugurated several years ago, direct cash annuity and per capita payment during the year have been confined to those required by law to be made in this manner, in all other cases the money being deposited in bank to the credit of the participants, subject to expenditure under the individual Indian money regulations. The principal distribution during the year was that of $200,000 among the Indians of the Uintah and Ouray jurisdiction, in Utah, from funds appropriated by Congress out of the $3,000,000 "Ute judgment fund" on deposit in the United States Treasury to the credit of these Indians, a substantial proportion of which was used in getting water on the Indian allotments under the plan approved by the department in 1915, with the view of saving the water rights, as explained elsewhere in this report.

SEGREGATION OF TRIBAL FUNDS.

Section 28 of the act of May 25, 1918 (40 Stat. L., 591), authorized the segregation of tribal funds, under certain conditions, as follows: That the Secretary of the Interior be, and he is hereby, authorized, under such rules and regulations as he may prescribe, to withdraw from the United States Treasury and segregate the common, or community funds of any Indian tribe which are, or may hereafter be, held in trust by the United States, and which are susceptible of segregation, so as to credit an equal share to each and every recognized member of the tribe except those whose pro rata shares have already been withdrawn under existing law. Provided, however, That the funds of any tribe shall not be segregated until the final rolls of said tribe are complete: And provided further, That the foregoing shall not apply to the funds of the Five Civilized Tribes, or the Osage Tribe of Indians, in the State of Oklahoma, but the funds of such tribes and individual members thereof shall be deposited in the banks of Oklahoma or in the United States Treasury and may be secured by the deposit of United States bonds. Particular attention is invited to the proviso, which reads:

*- * *

That the funds of any tribe shall not be segregated until the final rolls of said tribe are complete.

As there was then no authority of law for closing the rolls on many of the reservations, the above proviso had the effect of nullifying the authority conferred in the main portion of the item; therefore, it was necessary to obtain legislative authority to close the rolls, before further action could be taken with respect to the segregation of tribal funds. This authority is embodied in the Indian appropria