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LEASING LANDS ON PORT MADISON AND SNOHOMISH OR TULALIP INDIAN RESERVATION, WASH.

AUGUST 20, 1940.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. ROGERS, of Oklahoma, from the Committee on Indian Affairs, submitted the following

REPORT

[To accompany S. 253]

The Committee on Indian Affairs, to whom was referred the bill (S. 253) leasing lands on Port Madison and Snohomish or Tulalip Indian Reservation, Wash., having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

Your committee have examined thoroughly the merits of this bill. The report dated February 27, 1940, submitted to the Honorable Elmer Thomas, chairman of the Senate Committee on Indian Affairs, by the Acting Secretary of the Department of the Interior, is fully explanatory of the intent and purposes of this proposed legislation. The report follows:

Hon. ELMER THOMAS,

DEPARTMENT OF THE INTERIOR,
Washington, February 27, 1939.

Chairman, Committee on Indian Affairs,

United States Senate.

MY DEAR MR. CHAIRMAN: Further reference is made to your request for a report on S. 253, a bill to authorize the leasing of certain Indian lands subject to the approval of the Secretary of the Interior.

The purpose of the bill is to authorize the Secretary of the Interior to approve leases on any Indian lands on the Port Madison and Snohomish or Tulalip Indian Reservations in the State of Washington, for periods not exceeding 25 years, with a proviso for the renewal of said leases for an additional term of not exceeding 25 years.

Other than for mining purposes, restricted allotted Indian lands may not now be leased under existing law for terms in excess of 5 years. (See secs. 393 et seq., title 25, U. S. C.) Section 17 of the act of June 18, 1934 (48 Stat. L., 984), limits the leasing of tribal lands by an organized and incorporated tribe to 10 years.

The bill relates to the Port Madison and Snohomish or Tulalip Reservations. Concerning the Port Madison Reservation, it is proposed to establish an extensive

summer resort. This would involve the building of roads, summer homes, waterpipe lines, electrical transmission lines, and other improvements. The present ownership of the land which might be included in a resort is divided, individual Indians owning part and white persons the balance. It would not be practicable to develop the resort except by using all of the lands as one unit. The Indians are not in a position to do this and at present neither they nor the owners of the other lands are able to derive any substantial benefit from the lands. None of the Indian lands which would be involved are now improved. If the Indian lands could be leased for a long term, the owners of the non-Indian lands have expressed a willingness to develop all of the lands into a resort. They would not be justified in expending the money necessary to do this unless assured the use of the lands for more than 5 years in order to recover, if possible, their investment. The Indians would receive more benefit from the lands in the way of lease rentals than they will ever derive from them in their present state.

The Snohomish or Tulalip Reservation consists of tribal, restricted allotted, and privately owned lands. On this reservation over 500 acres of tide-land are subject to the overflow of salt water. This land has never been of any use to the Indians and never will be if left as it now is. The Superintendent has reported that if a dike could be erected to keep out the sea water, the land would, after the salt has been washed out, become the best agricultural land on that reservation. The Indians are unable to undertake the building of the dike and no Federal funds are available for such a project. At least one company is known to be willing to undertake the development of the lands without cost to the Indians or the Federal Government, provided it is granted a lease for a term long enough to enable it to recover the cost of the project through use of the lands after the reclamation work is completed. It is estimated that it will be 4 years before the lands can be put in a productive state.

The possibility of the reclamation of the areas on the two reservations by the Indians has been given careful attention, but it is not considered practicable. The initial costs would be high and the Indians would have to borrow money to finance the work; further, they would be entering upon a type of undertaking with which they are not familiar and in which they have not shown any special interest. In the circumstances, it is believed better to permit outside interests to accept the responsibility of reclaiming the lands. Under the leases the Indians would receive substantial benefits in the form of rentals and without the risk of loss. They would also receive the permanent improvements remaining upon the lands at the termination of the leases. The Indians of these two reservations have adopted the provisions of the Indian Reorganization Act of June 18, 1934 (48 Stat. L., 984).

In order that it may be clear as to who is to make the leases, etc., it is suggested that the bill be amended by inserting in line 5 after the word "leased" the words "by the Indians"; also, that the part of line 8 after the word "years" and lines 9 and 10 be stricken therefrom and the following inserted in lieu thereof: "Provided, however, That such leases may provide for renewal for an additional term not exceeding 25 years, and the Secretary of the Interior is hereby authorized to prescribe such rules and regulations as may be necessary to carry out the provisions of this Act."

In view of the foregoing, I recommend that S. 253, if amended as suggested, receive favorable consideration.

The Acting Director of the Bureau of the Budget has advised that there is no objection to the presentation of this report to the Congress.

Sincerely yours,

HARRY SLATTERY, Acting Secretary of the Interior.

LEASING COAL AND ASPHALT DEPOSITS OF CHOCTAW AND CHICKASAW NATIONS IN OKLAHOMA

AUGUST 20, 1940.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. ROGERS of Oklahoma, from the Committee on Indian Affairs, submitted the following

REPORT

[To accompany S. 2617]

The Committee on Indian Affairs, to whom was referred the bill (S. 2617) to authorize the leasing of the undeveloped coal and asphalt deposits of the Choctaw and Chickasaw Nations in Oklahoma, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass.

The amendment is as follows:

Page 1, line 4, after the word "lease" insert the language: "to the highest responsible competitive bidder."

Page 2, line 20, strike the period insert a colon and add the following language: "Provided further, That for the purposes of this Act that where qualified Indians are available employment preference shall be given to them in mining operations by the lessee on Indian lands."

Your committee has given careful consideration to the provisions of this proposed legislation. A draft of proposed legislation was submitted to the President of the Senate by the Secretary of the Department of the Interior. There accompanied the draft a full explanation of the purpose of the suggested measure. This communication was dated June 2, 1939, and was signed by the Secretary of the Department of the Interior. It follows:

The PRESIDENT OF THE SENATE.

DEPARTMENT of the Interior,
Washington, June 2, 1939.

SIR: There is transmitted herewith a draft of proposed legislation to authorize the leasing of the undeveloped segregated coal and asphalt deposits of the Choctaw and Chickasaw Indian Nations in Oklahoma.

The act of April 21, 1932 (47 Stat. 88), authorizes the Secretary of the Interior to lease any developed tract of unsold coal and asphalt deposits of the Choctaw and Chickasaw Nations. There is no authority, however, for the leasing of undeveloped tracts of coal lands except that granted by the act of June 26, 1934

(48 Stat. 1240), and the act of April 21, 1932, supra. The former act authorizes the leasing of small undeveloped tracts where they adjoin developed tracts and are needed by the operator in further developing an existing mine. The latter act contains a provision which authorizes the Secretary of the Interior to add not to exceed 640 acres to any developed lease where it is shown such addition is necessary for the successful operation of the lease. The attached draft of bill, if enacted, will grant authority for the leasing of any of the remaining coal and asphalt deposits of the Choctaw and Chickasaw Nations which cannot be leased under existing legislation.

The coal and asphalt deposits under a considerable area were reserved to the Choctaw and Chickasaw Tribes. Since the development of oil and gas in Oklahoma, and its widespread use, there has not been any great demand for coal, and consequently the Indians have received only a comparatively small consideration from the lease and sale of such deposits. They feel that if any opportunity arises to dispose of any of these deposits it should be done, and have asked that legislation of the character transmitted herewith be enacted. The mining trustee of the Choctaw and Chickasaw Nations recommends that authority be procured for the leasing of the undeveloped coal and asphalt lands.

In the past the coal and asphalt deposits have been offered for sale and for lease. The advisability of doing both at the same time has been considered and found unwise. The coal is mined from outcrops. The sale of a small tract along an outcrop may render it impractical to mine a large amount of coal farther back from the outcrop, particularly if poor mining practices have been followed on the sold tract. This Department, of course, retains no control over mining on sold tracts but does have authority to supervise mining on leased tracts and can require that the mines be operated in a manner which will insure the recovery of the greatest amount of coal. In view of this, a provision has been placed in the proposed legislation revoking all authority for the sale of the coal and asphalt deposits.

While there is no immediate demand for leases on the tracts which would be affected by the proposed bill, we should be prepared to meet such demand when the occasion therefor arises in order to derive as much revenue as possible from these assets belonging to the Indians. For this reason, I feel that the wishes of the Indians should be granted, and therefore recommend that the enclosed draft of proposed legislation receive favorable consideration.

The Director of the Bureau of the Budget has advised me that there is no objection to the presentation of this legislation to the Congress.

Respectfully,

HAROLD L. ICKES, Secretary of the Interior.

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RESIDENCE REQUIREMENTS FOR CERTAIN
POSTMASTERS

AUGUST 20, 1940.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. RAMSPECK, from the Committee on the Civil Service, submitted the following

REPORT

[To accompany H. R. 10012]

The Committee on the Civil Service, to whom was referred the bill (H. R. 10012) to amend the act of June 25, 1938, extending the classified civil service to include postmasters of the first, second, and third classes, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

On page 1, line 7, strike out the word "not".

On page 1, line 9, strike out the word "where" and insert the word "unless".

On page 1, line 10, strike out the word "decides" and insert the word "finds".

On page 2, line 1, strike out the word "impracticable" and insert the word "impossible".

GENERAL STATEMENT

The present law governing the appointment of postmasters of the first, second, and third classes (act of June 25, 1938, 52 Stat. 1076) requires that persons eligible for appointment must have actually resided within the delivery of the office or within the city or town where same is situated for 1 year prior to the date of such appointment, if the appointment is made without competitive examination; or for 1 year prior to the date fixed for the close of receipt of applications for examination, if the appointment is made after competitive examination. Operation of the act develops that there are a number of offices where no applicants can meet the residence requirement H. Repts. 76-3, vol. 5-61

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