Mr. MERITT. The proceeds from these ceded lands were paid out under the act of 1904.

Mr. ELSTON. You are evidently, in the things that are being done by the bureau, presuming that the Red Lake Indians are going to prevail in litigation, or you would not be making the distribution that you are making now, for fear that you would have to repay them. Would the Government be recouped on their payments to the Red Lakes, or would it be a mistake and the money paid them never be recovered?

Mr. MERITT. We would not discontinue administering the Indian affairs because of some alleged claims of Indians. It is our duty to go ahead and carry out the legislation enacted by Congress. On practically all these reservations the Indians have alleged claims against the Government. Pending the settlement of those claims we proceed in an orderly manner carrying out the laws of Congress and awaiting the determination of the litigation.

The CHAIRMAN. Is that all that you desire to ask upon this phase of the question? If so, Mr. Meritt can go ahead with his regular argument in rebuttal to Mr. Ballinger's testimony.

Mr. MERITT. Mr. Chairman, the statement was made by Mr. Ballinger that a large amount of the Chippewa funds were being wasted in the administration of the affairs of the Chippewa Indians and created the impression that it was impossible to get a statement of the financial affairs of those Indians. That statement, like a great many other statements that have been made in connection with Chippewa matters, is misleading. We submit to Congress annually a report showing exactly the amount of the moneys that are expended for administrative purposes and in order that the committees may have the information, and it shows exactly how the department expended the appropriations during the last fiscal year. I will ask that this short report be included in my testimony. It is found in House document No. 384, Sixty-sixth Congress, second session. This statement goes into detail, showing exactly how every dollar of the Chippewa funds are expended.

The CHAIRMAN. Without objection it is so ordered.
Mr. MERITT. The report referred to is as follows:

[House of Representatives. Document No. 384, Sixty-sixth Congress, second session.]

DEPARTMENT OF THE INTERIOR,
Washington, December 1, 1919.

SIR: In compliance with the provisions of the act approved May 18, 1916 (39 Stat.; 123-135), I have the honor to transmit herewith a detailed statement of expenditures from the tribal funds of the Chippewa Indians of Minnesota for the fiscal year ended June 30, 1919.

Respectfully,

ALEXANDER T. VOGELSANG,

Acting Secretary.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES.

Cass Lake School..

$3,717.78

$282.22

$4,000.00

CHIPPEWA IN MINNESOTA FUND, INCREASE OF COMPENSATION.

White Earth Agency.

$11,017.00 $11,017.,00

CHIPPEWA IN MINNESOTA FUND, LOGGING OPERATIONS, ACT OF JUNE 27, 1902 (32 STATS. L., 400).

CHIPPEWA IN MINNESOTA FUND, COUNCIL AND DELEGATIONS, ACT OF MAY 25, 1918 (40 STATS. L., 573).

Council and delegations..

$850.00

$1,430. 16

2 $1,000.00

$3,280.16

CHIPPEWA IN MINNESOTA FUND, PER CAPITA PAYMENTS, REFUNDS, ETC.

NOTE.-Expenditures from "Interest on Chippewa in Minnesota fund"

were for school purposes excepting amounts for per capita payments.

501, 044. 47

Mr. MERITT. There is also complaint of large amounts of funds that are being expended for administrative purposes. I want to point out to the committee that what they call administrative purposes is misleading because we are required by law to pay out this money, not only for school purposes, but for per capita payments, and they have got us charged up with the expenditure of the Chippewa funds for administrative purposes when we pay the money out to them per capita and when we are following the legislation enacted by Congress regarding the distribution of their funds, support of their schools, and so forth. In support of this statement, Mr. Chairman, I want to read into the record section 7 of the act of January 14, 1889:

That all money accruing from the disposal of said lands in conformity with the provisions of this act shall, after deducting all the expense of making the census, of obtaining the cession and relinquishment, of making the removal and allotments, and of completing the surveys and appraisals, in this act provided, be placed in the Treasury of the United States to the credit of all the Chippewa Indians in the State of Minnesota as a permanent fund, which shall draw interest at the rate of 5 per cent per annum payable annually, for the period of 50 years, after the allotments provided for in this act shall have been made, and which interest and permanent fund shall be expended for the benefit of said Indians in the manner following: One-half of said interest shall, during the said period of 50 years, except in the cases hereinafter otherwise provided, be annually paid in cash in equal shares to the heads of families and guardians of orphan minors for their use; and one-fourth of said interest shall, during the same period and with the like exception, be annually paid in cash in equal shares per capita to l other classes of said Indians; and the remaining one-fourth of said interest shall, during the said period of 50 years, under the direction of the Secretary of the Interior, be devoted exclusively to the establishment and maintenance of a system of free schools among said Indians, in their midst and for their benefit, and at the expiration of the said 50 years, the said permanent fund shall be divided and paid to all of said Chippewa Indians and their issue then living, in cash, in equal shares: Provided, That Congress may, in its discretion, from time to time, during the said period of 50 years, appropriate for the purpose of promoting civilization and selfsupport among the said Indians, a portion of said principal sum, not exceeding 5 per cent thereof. The United States shall, for the benefit of said Indians, advance to them as such interest as aforesaid the sum of $90,000 annually, counting from the time when the removal and allotments provided for in this act shall have been made, until such time as said permanent fund, exclusive of the deductions herein before provided for, shall equal or exceed the sum of $3,000,000, less any actual interest that may in the meantime accrue from accumulations of said permanent fund; the payments of such interest to be made yearly in advance, and, in the discretion of the Secretary of the Interior, may, as to three-fourths thereof, during the first five years be expended in procuring live stock, teams, farming implements and seed for such of the Indians to the extent of their shares as are fit and desire to engage in farming, but as to the rest in cash; and whenever said permanent fund shall exceed the sum of $3,000,000 the United States shall be fully reimbursed out of such excess for all the advances of interest made as herein contemplated and other expenses hereunder. * *

*

I quoted this provision for the purpose of showing that we are required by legislation to do certain things in the Chippewa country, and we are doing these very things required of us. We make an annual report to Congress showing exactly where every dollar of Chippewa funds is expended.

The CHAIRMAN. What allotments have been made under that section? There have been no allotments made to the Red Lake Band? Mr. MERITT. No, sir; this section does not require that allotments shall be made on the Red Lake Reservation. This section refers to distribution of moneys in the administration of Indian affairs. I will explain later the reason why we have not made allotments on the Red Lake Reservation.