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STATEMENT OF MR. E. E. M'DONALD, OF BEMIDJI, MINN., REP.

RESENTING FULL-BLOOD CHIPPEWA INDIANS Resumed.

Mr. McDONALD. Touching upon the question, gentlemen, of expenditures of Indian funds, I desire to have incorporated as part of my remarks an itemized statement to be furnished by your committee relating to the items of $2,344.64 to John W. Carl, $1,566.75 paid to Henry W. Warren, $720.10 paid to B. L. Fairbanks, $1,684.25 paid to Webster Ballinger, as appears in this statement, which is marked "Exhibit A," which I desire to have made and printed as part of my remarks, if the committee please.

The CHAIRMAN. It is so ordered. (The paper referred to follows:)

EXHIBIT A.

Amounts expended from the appropriation of $10,000, act of May 25, 1918 (Public, No.

159), for council and delegation of Chippewa Indians.

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Mr. McDONALD. As I understand it, the bureau will furnish the detailed statement of these items that I have referred to and checked, and that detailed statement will be made part of my remarks ?

The CHAIRMAN. It is so ordered. (The paper referred to follows:) Regarding the statement submitted by Attorney McDonald as to expenditures made from the tribal funds of the Chippewa Indians of Minnesota, appropriated by the act of May 25, 1918, (40 Stat. L., 572), the sum of $2,344.64 shown to have been paid or expended on account of John W. Carl, a member of the Chippewa Legislative Committee, represents per diem, traveling expenses, board and lodging of Mr. Carl and for stenographic service employed at his request. The amounts actually expended from the above appropriation by or on account of Mr. Carl were as follows: Per diem...

$1,860.00 Traveling expenses.

165.40 Stenographic services.

54. 00 Board and lodging...

1, 051.09 Total.....

$3, 130. 49

The amount shown to have been expended on account of Henry W. Warren, Chippewa delegate, included the following items: Per diem....

$888.00 Traveling expenses, etc.

686.73 Total.......

... $1, 566. 73 The item of $720. 10 shown to have been expended on account of B. F. Fairbanks, included per diem and traveling expenses. The total actual expenditures were as. follows: Per diem....

$899. 84 Traveling expenses..

310.81 Total......

$1,210. 65 The sum of $1,684. 25 expended on account of Webster Ballinger, Chippewa attorney, included $1,500 for legal services and $184.25 for stenographic services, etc. The total amount actually expended from the above appropriation on account of Mr. Ballinger included $2,500 for legal services and $184.25 for stenographic services, etc.

Mr. McDonald. Something has been said, gentlemen, with reference to the frauds in cutting pine, and the conclusion may be drawn from the statement that the general council was responsible for the adoption of the plan of stealing.

Mr. BALLINGER. There was no claim of that kind. Mr, McDONALD. Of stealing the logs ? The CHAIRMAN. Just a moment-do you want that statement of Mr. Ballinger's to go in at that point ?

Mr. McDONALD. It may. I have no objection to it. I so understood the proposition. But so that your committee may be fully advised on that subject I will call your attention to a portion of section 5 of the act of June 27, 1902. I have in my hands--it is from my own library, so I can not give it to you-laws and treaties by Kappler, vol. 1, marked “Laws, second edition.” Your committee will have access to it.

The CHAIRMAN. What year is that?

Mr. McDONALD. It seems to have been printed by the Government Printing Office in 1904. On pages 759 and 746 Congress has definitely and in detail directed the manner in which all pine shall be sold.

Calling your attention now to this same subject of fraud 'I read from a portion of the report of the Subcommittee of the Committee on Expenditures in the Interior Department, which bears date February 2, 1912, and this part is marked "17, page 946”, if I am correct. At that time, Mr. Chairman and gentlemen of the committee, it was proposed to dispose of some of the Indian pines and the advertisement, as I recollect it—or as I am advised-provided that the timber should be sold and payment made' therefor according to what we call bank scale, as provided in this act—or similarly. Now there was opposition made to that plan 'and the opposition came from Mr. Beaulieu-not Mr. Gus Beaulieu, so that I may not confuse--and Mr. Ben L. Fairbanks, and on these two pages, 946 and 947 the matter discussed in Mr. Gus Beaulieu's testimony, as I understood it, was given under oath, and you will learn from that that they did not wish the timber sold and paid for according to bank scale, preferring the other method of paying for it by estimate or in some other way, contract, lump price or something, and these two gentlemen, as I recollect it, went to St. Paul and met Senator Clapp, and upon their representa

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'tions that that manner of selling timber according to bank scale would work an injustice upon the Indians, some steps were taken whereby Senator Clapp used his influence on the Secretary of the Interior and the bids were held up, and I do not know, although it is all disclosed in this proposition

The CHAIRMAN (interposing). Will you explain as concisely as possible what the term “bank scale" means?

Mr. McDONALD. I think I can best do that by reading this statute. It is covered by a statute, and I will read it hurriedly. This relates to the sale and is an amendment, if the committee please, to the act approved January 14, 1889. That is the Nelson Act:

Before being removed from the tract from which they are cut, all logs cut hereunder shall be stamped and bark marked—that is, stamped on the end with a big hammer which drives the fiber in and makes an indentation bearing the mark they use as that mark-shall be stamped and bark marked—which is done by an ax cutting whatever mark upon the outside they want-bark marked by the logger and numbered—that is, each log is numbered—and scaled by competent and experienced scalers to be appointed by the Secretary of the Interior and paid such reasonable salaries as may be fixed by him. Such scalers shall keep in suitable books for reference a record of the marks, also a complete list of the number of huuled logs with the scale of each log set opposite its number; that is, log No. 1 would be white pine, 16 feet long 8 inches in diameter at the top and contain 32 feet of timber. That is put in a book. Also a complete list and number of all logs with the sale of each log set opposite its number, said scale books to be open to the inspection of the check scaler or to any authorized Government representative at all times, and said logs shall be landed separately from all other logs, and the title to said logs shall remain in the United States for the benefit of the Indians, and said logs shall not be removed from the place of landing until the purchase price agreed upon shall

be fully paid to such officer of the Indian department as shall be designated by the Secretary of the Interior to account for and receive the same; and the Secretary of the Interior may, at the request of the chiefs of the said bands or tribes of Chippewa Indians of the State of Minnesota interested in the said timber sale, appoint check scalers to verify and inspect the work of the Government scalers, the said check scalers to be designated by the said chiefs and paid out of the funds of the Indians such reasonable compensation as may be fixed by the Secretary of the Interior.

The CHAIRMAN. That is sufficient. Mr. McDonald. Now, passing on hurriedly, touching this question of frauds upon the White Earth Indians, the testimony taken in the Graham investigation disclosed that after the adoption of the Clapp amendment there was great activity among those who were seeking to secure these lands, and there was a lumber

company--the record discloses the name—the Nichols-Chisholm Lumber Co., operating in that locality, with its mill-I don't know where the mill was located. It appears from this testimony that Mr. Fairbanks—Benjamin L. Fairbanks—now a member of this general council and very active in this proposition, was-this is the testimony of Gus H. Beaulieu, who was then also connected with this council—they were then in the employ, each of them, of the Nichols-Chisholm Lumber Co., receiving $100 a month added time when the Indians—when I speak of the Indians, I speak of these people that you listened to here—the Indians supposed that these men were acting in their interest and giving them advice at a time when they were drawing $100 a month salary from the Nichols-Chisholm Lumber Co.

The CHAIRMAN. The Chair is sorry to state to the gentleman that his time has expired, and he will be permitted to revise and extend his remarks under the suggestion made yesterday.

Mr. McDonald. And if the chairman pleases, as I am abliged to leave for home to-night, and if I can have a few days to do that?

The CHAIRMAN. You can have 10 days. Is that enough'
Mr. McDon ALD. Yes; thank you.
(Mr. McDonald's written statement follows:)

At the time of taking a recess interrupting my statements, I had referred to the fact that at a secret meeting of the so-called general council of Chippewa Indians of Minnesota held at White Earth June 12–14, 1915, a resolution was passed urging Congress to appropriate from the funds belonging to the Chippewa Indians of Minnesota about $110,000, of which about $45,000 was to go to the benefit of Gus Beaulieu and the remainder to Benjamin L. Fairbanks and others. When this information came to the attention of James I. Coffey, then a legislative committeeman of that general council, he immediately addressed a communication to a number of the headmen and representatives of the general council calling attention to the fact that a bill carrying such appropriation of Indian funds had been presented to Congressman Lindberg, of Minnesota and that there was being circulated amongst the members of Congress a written argument in the form of a pamphlet favoring the passage of such legislation. The Indians became very much excited and expressed their greatest opposition to this appropriation of the funds of the Chippewa Indians of Minnesota. This opposition grew until a meeting was called of all the headmen of tribes or bands of Chippewa Indians of Minnesota as well as many representatives of the said general council.

That written notice of the charges preferred against Mr. Morrison, Fairbanks, and others was duly given to each of them, but that none of them appeared at said council meeting.

That this meeting was held at the Indian Village of Ball Club, Itasca County, Minn., on the 25th day of April, 1918. It was called for the purpose of discussing and investigating the alleged unauthorized acts of John G. Morrison, jr., president of the General Council of Chippewa Indians of Minnesota, and the other officers that were in any manner connected with the attempt to rob the Indian funds. There were present at this meeting a very large representation of Indians. Each reservation was represented with the exception of {. Portage and Nett Lake, and said meeting was duly organized, Edward M. Wilson being elected chairman of the council and James A. Wakonabo secretary. That the general council unanimously adopted the following resolutions:

RESOLUTION 1.

Whereas this council represents the majority of the Chippewa Indians of Minnesota, and therefore it is hereby declared to be the general council of all the Chippewas of

Minnesota.
Resolution 2.

Whereas certain charges have been filed by James I. Coffey, at this general council of all Chippewas of Minnesota, against John G. Morrison, jr., president of the general council, and John W. Carl, B. L. Fairbanks, Henry W. Warren, Frank D. Beaulieu, E. J. Warren, George A. Berry, William Potter, and Nay-she-kay-we-gah-bow, as violating the constitution and by-laws of the General Council of the Chippewa Indians of Minnesota, and the resolutions of said general council, in promoting legislation, as attorneys and legislative committeemen of said Chippewa Indians of Minnesota, which was calculated to the injury and loss of said Chippewa Indians of Minnesota, as evidenced in the resolutions of said general council and the bills H. R. 8841, H. R. 8696, S. 3116, S. 3654; and Whereas said charges are proven to be true by said resolutions, and said bills introduced in the Congress of the United States; now, therefore, it is hereby Resolved, That said charges are accepted as true in their entirety, and said John G. Morrison, jr., John W. Carl, B. L. Fairbanks, Henry W. Warren, Frank D. Beaulieu, E.J. Warren, George A. Berry, William Potter, and Nay-she-kay-we-gah-bow, are guilty of the acts charged. And be it further Resolved, That John G. Morrison, jr., John W. Carl, B. L. Fairbanks, Henry W. Warren, Frank D. Beaulieu, E. J. Warren, George A. Berry, William Potter, and Nay-she-kay-we-gah-bow be, and they are hereby, removed from the offices they are now holding in the general council of the Chippewa Indians of Minnesota, and that said officers and men herein above named shall hereafter and forever be barred from holding seats and voting in the general council of Chippewa Indians of Minnesota.

RESOLUTION 3. . Whereas Paul H. Beaulieu is found to be in sympathy with the John G. Morrison,

jr., gang, and therefore is hereby removed from the office or secretary of the general council of Chippewa Indians of Minnesota.

RESOLUTION 4.

Whereas the so-called claims commission was created and organized on the 12th day of June, 1915, at White Earth, Minn., and was created under fraudulent conditions for a fraudulent purpose, and it is therefore declared to be fraudulent and is therefore declared to be void. RESOLUTION 5.

Whereas it is hereby resolved that James I. Coffey is hereby chosen and elected as ot of the general council of the Chippewa Indians of Minnesota in the place of ohn G. Morrison, jr., and be it further resolved that Benjamin Caswell is hereby chosen and duly elected as vice president of said general council; and be it further Resolved, That Chas. Bango is hereby chosen and elected as secretary of said general council, providing he is in position to accept and devote his time to the position.

RESOLUTION 6.

Whereas, Be it resolved by the general council of all the Chippewa Indians of Minnesota, held at Ball Club, Minn., on the 25th day of April, 1918, that two supervisors from Wo: D. C., be present at the next general council of all the Chippewa Indians of Minnesota, to be held at Bemidji, Minn., in July, 1918. One shall be selected by the Commissioner of Indian Affairs, and the other one shall be selected by the Board of Indian Commissioners. On motion duly made and seconded and carried by unanimous vote of all delegates present, that the proceedings of this general council of all Chippewas of Minnesota be printed and copies furnished to all Congressmen, Senators, and the Department of the Interior. On motion duly made and seconded, and carried by unanimous vote of all delegates (standing), an adjournment was taken and the council was closed by the chairman. That said John G. Morrison, jr., as president, and Paul H. Beaulieu were advised of the action of said council in removing them from said office. That thereafter, and on the 14th day of May, 1918, there was issued by James I. Coffey, president of the newly organized general council of Chippewa Indians of Minnesota, a call or notice of the sixth annual meeting of the general council of Chippewa Indians of Minnesota to be held at Bemidji beginning on the 9th day of July, 1918. That this notice designated the number of delegates that should be elected from each of the reservations; that thereafter elections were held on each reservation on the first Tuesday of June, 1918, at which time delegates were elected to attend said general council; that John G. Morrison, jr., persisted in continuing to act as president of the general council of Chippewa Indians of Minnesota and disregarded the action of the Chippewa Indians of Minnesota, represented by their chiefs and head men, and issued a notice of election of delegates and holding of the council at the same time and place as that named in the notices or calls issued by James I. Coffey; that said James I. Coffey, acting as president of said generral council of Chippewa Indians of Minnesota, pursuant to the action taken at Ball Club provided the city hall of the city of Bemidji as the place of assembly for the delegates elected persuant to his call; that previous to 9 a.m. of the 9th day of July, 1918, the delegates so elected pursuant to Mr. Coffey's call appeared at the city hall and called on the custodian for the key and were advised that the key, three days before, had been delivered to John G. Morrison, jr., but that they would locate him and have the hall opened up. That said Coffey and delegates remained until 10.30 o'clock; that said city hall was not opened; that said John G. Mossiron, jr., did not appear, and it is believed by the Indians that John G. Morrison, jr., had surreptitiously gotten the key to the building and prevented meeting of the elegates that were in attendance pursuant to the call of Mr. James I Coffey; that after waiting from 9 a.m. until 10.30 a.m. the delegates adjourned from the city hall to the Elko Theater, in the city of Bemidji, and there held their general council of Chippewa Indians of Minnesota; that said council meeting was organized by electing a presiding officer and secretary, and such proceedings were had that a resolution was adopted confirming in every particular the action of the meeting previously held at Ball Club April 25, 1918. . . That at said meeting there was also unanimously passed resolution No. 8, as follows: “Be it resolved, That the legislative committee obtain an act by the United States Congress for the appropriation of $10,000 for the expenses of the delegates of the eneral council and for the expenses and compensation of the legislative committee or the year ending June 30, 1919. Said fund to be available until exhausted.” That there were present at the said meeting of the general council of Chippewa Indians of Minnesota 67 delegates from White Earth, 2 from Fond du Lac, 12 from

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