Superintendent Butler also recommended that, after completing this system, the remainder of the year and of the money be devoted to the numerous Indians who come to him from all parts of the reservation to ask aid in their small projects for the construction of small storage ponds and ditches to water from 10 to 15 acres. July 28 the Department was asked to authorize the expenditure of $3,500 for the Red Lake system, but it decided to authorize the expenditure of the $1,500 on small ponds and ditches and to delay action in regard to the Red Lake system until after it should have been examined by Inspector Graves. who has general supervision of Indian irrigation.

Southern Ute Reservation, Col.-The subject of irrigation for the Southern Utes is taken up under the head of Southern Utes on page 73. Fort Hall Reservation, Idaho.—November 5, 1897, Lieutenant Irwin, in charge of the Fort Hall Agency, reported that the Idaho Canal Company, in compliance with the terms of its supplemental contract of October 2, 1896, had completed the two diverting dams across the Blackfoot River, and had delivered the second 100 cubic feet of water per second at the point designated in said contract. December 18, 1897, he reported that liens had been filed against the company, amounting in the aggregate to some $13,944. December 28, 1897, the Department authorized the payment to the company of the second installment due under the terms of its contract being $37,500, less $15,000 to be retained until the company should file satisfactory evidence that the liens and indebtedness had been discharged. January 18, 1898, the Department authorized this office to cause an account to be stated in favor of the company for the aforesaid sum of $15,000, Lieutenant Irwin having informed the Department that the claims against the company had been settled, excepting for small amounts which could be settled at any time.

Previous to this, a change having been made in the officers of the company, and one of the sureties on its bond having become bankrupt, the company gave a new bond, which was approved by the Department December 13, 1897.

April 12, 1898, the office made a report on a communication from J. H. Brady, of St. Louis, Mo., dated March 18, 1898, in which he stated that he had entered into a contract with the Idaho Canal Company to complete its canal to Ross Fork Creek, according to the terms of its contract with the Government, and that he expected to do so, but that the financial condition of the company led him to believe that it would be unable to pay him for this construction until such time as it should receive the third and final payment of $22,500 from the Government. He therefore suggested that if it was the desire of the Department to have the contract completed at once or as soon as practicable he was ready and willing to do the work if the Government would so change the contract with the company as to enable it to be paid the $22,500 as soon as the work should be completed and approved by the Department, instead of waiting for the expiration of a year from the date of the

second payment, according to the terms of the contract. The office reported that it was decidedly opposed to any further modification in the terms of the contract.

April 15, 1898, Lieutenant Irwin reported that during the two preceding months liens and suits aggregating $16,887.64 had been filed against the company and that a mortgage for $50,000 had been given on the portion of the property known as the Government Canal; that it had also a bonded indebtedness of $300,000, and that on March 29, 1898, the affairs of the company had been placed in the hands of a receiver A. B. Scott, its former secretary. He reported these facts for such action as might be thought necessary to insure full compliance by the company with the terms of its contract, fearing that such complications might injuriously affect the interests and rights of the Government by interfering with the continuous delivery of water upon the reservation. This information was submitted to the Department April 22, 1898.

In accordance with Department instructions Agent Irwin was directed, May 13, 1898, to make an investigation and ascertain the status of the several liens and whether any of them had been satisfied. He was also directed to have the two contracts of the company recorded in the proper county records, which has been done.

July 7, 1898, C. A. Warner, who had succeeded Lieutenant Irwin as agent, reported that the Idaho Canal Company was not doing any work on the reservation toward the fulfillment of its contract and did not seem to be making any preparation to begin the same in the near future. July 26, 1898, the office reported the above information to the Department with the recommendation that Inspector W. H. Graves be sent to the Fort Hall Reservation to investigate the condition of the company and make recommendation as to the best course to be pursued. I seems probable that legal steps will have to be taken to protect th interests of the Government and the Indians.

Crow Reservation, Mont.-March 10, 1898, W. H. Graves, superintende in charge of the construction of irrigation works on this reservatio reported that the ditch on the east side of the Big Horn River was only a large and expensive undertaking, but would easily take ra with the most extensive and best constructed irrigation works in country and would supply an unusually fine body of valley land, ab 45,000 acres of the best portion of the Crow Reservation; that ab 12 miles of the upper portion of the canal was finished, or very ne so, with a head gate well under way; that the expenditures up to time had been $175,156.35, and that to complete it would require sum of $138,500. Speaking of the good effect upon the Indians re ing from their employment on the ditches, he said:

In payment for lands ceded to the Government they receive semiannually in about $6 each. To receive this they are required to go from the respective dis throughout the reservation in which they live to the agency and there remain the payments are made. To do this many of them travel long distances, an

expense is often greater than the amount they receive. Most of them spend the money they receive immediately at the trader's store for useless and unserviceable trifles. The money they receive from this source is of little, if any, value whatever to them. They realize this and many of them working on the irrigation ditches will not take the time nor trouble to go for their money, preferring to leave it or give it to others. On the other hand, the money they receive as wages for their labor on the ditches, the money they earn, they regard much more highly and expend with much more care and discretion. They receive it in sums sufficiently large to enable them to accomplish some desired end. Scores of them have by this means supplied themselves with good horses, wagons, and harness. Some have bought their own farm machinery and a few have built their own houses.

April 16, 1898, Capt. G. W. H. Stouch, acting agent in charge of the Crow Agency, forwarded to this office a petition signed by some 113 adult males, representatives of the Crow tribe, addressed to the Department as follows:

The undersigned, adult males and representatives of the Crow tribe of Indians, of Montana, assembled in council at St. Xavier Mission, on the Crow Indian Reservation, Mont., for the purpose of discussing the welfare of the Crow tribe, respectfully represent:

That the irrigating ditches now under construction under the direction of the superintendent of the Crow Indian Survey, lying east of the Big Horn River, on the Crow Reservation, are now nearly completed. The work has been conducted in the most thorough and substantial manner under a competent superintendent, and a very large sum of money has been spent thereon. A comparatively small sum will now complete these ditches so that they can be used by us, and that water can be taken out on our land. As the ditches are now they are of no use to us whatever. All work has been stopped for lack of money, and unless you can help us all our work of the last few years will be thrown away. With sufficient water we can raise large crops of hay and grain and support ourselves and our families.

The Government ration issues formerly issued to us by the agent have been stopped. The troops have been taken away from Fort Custer, and we have now no ⚫ market for the wild hay which can be raised without water, and which we formerly sold to the soldiers. If you can not help us to get money, so that we can water our lands and raise crops, we shall soon be without anything to eat; and it will then cost the Government more money to feed us during this year and next year than it would now take to finish our ditches, so that we can feed ourselves. We ask you to take enough money, out of any moneys of any sort belonging to the Crows, to complete these ditches, or one of them.

We have worked hard and have tried to do like the whites, and to support ourselves and our families. We have sent our children to school, and have tried to do everything that the agent and the superintendent of the ditches have asked. If you can help us a little now that we so much need it, the Crows will always remember you as their best friend.

Some $20,000 remained available for the work, and Superintendent Graves was instructed, April 19, 1898, to use this fund to place the ditch in the best possible condition to withstand the deterioration that would necessarily follow the suspension of the work for a considerable period.

April 26, 1898, the office recommended legislation authorizing the diversion of $120,000 from the annuity fund of the Crow Indians, to be expended under the direction of the Secretary of the Interior in the completion of the irrigation system on their reservation, but no action

was taken thereon by Congress. Believing that this is a highly important work and that the expenditure of their funds for its completion will result in much more benefit to the Indians than their use in any other way, I shall, at the beginning of the next session of Congress, renew that recommendation.

When the work is completed the Indians can be allotted their lands in severalty, and they will doubtless be willing to cede a considerable portion of their reservation.

Mr. Graves having been recently appointed an inspector, Mr. W. B. Hill has been placed in charge to continue the work under instructions of April 19 to his predecessor.

Fort Belknap Reservation, Mont.-June 7, 1898, the Department granted authority for the Fort Belknap agent to expend not exceeding $32,210 in the construction of a system of irrigation known as system No. 1 and in repairs to the Peoples Creek system. The Department also stated that it appeared that the extension of the Peoples Creek system, at an estimated cost of $2,970, was very much needed, and said that if work on the extension could be carried on while that on system No. 1 was in progress it might be included in the expenditure authorized. The Department also suggested the advisability of considering the agent's recommendation that another system (No. 2) be constructed immediately. After correspondence with Agent Hays the office recommended, July 27, 1898, that authority be granted for the construction of system No. 2 at a cost not to exceed $34,963, which authority was given September 12. These expenditures are all payable from funds belonging to the Indians.

Fort Peck Reservation, Mont.-In a report upon the Fort Peck Agency dated August 4, 1897, Inspector McConnell called attention to the abso lute necessity for an extensive system of irrigation on this reservation if the Indians were ever to become self-supporting. As the Indian had no funds of their own the office recommended, December 8, 1891 that Congress be asked to appropriate the sum of $140,000 for the co struction of a system of irrigation on the Fort Peck Reservation; b favorable action was not taken by Congress. It is represented that t Indians are desirous of ceding a portion of their reservation so as obtain funds for irrigation, but it is doubtful if there is any existi authority of law for negotiating with them. The matter will be f ther considered with a view of obtaining such authority if it be deen necessary and advisable.

Miscellaneous. The bulk of the appropriation for irrigation for fiscal year 1898 has been expended as follows:

It is believed that the appointment of an inspector "competent in the location, construction, and maintenance of irrigation works," which is provided for in the last Indian appropriation bill, will result in a much more intelligent and economical disbursement of irrigation funds than has hitherto been possible. I am also of the opinion that the Department is fortunate in securing for this position the services of an engineer so thoroughly competent, reliable, and honest as Mr. W. H. Graves, whose services as superintendent of the irrigation construction on the Crow Reservation for the last seven years have received the highest commendation.

LOGGING ON RESERVATIONS.

White Earth Agency, Minn.-From time to time under the act of February 16, 1889 (25 Stats., 673), authority has been granted by the President for the Indians of the White Earth and Red Lake diminished reservations to cut and sell dead timber standing or fallen on those reserves. In my last annual report a statement was made of the logging operations of the Indians during the season of 1896-97 under the authority granted by the President on September 24, 1896.

A clause in the Indian appropriation act of June 7, 1897 (30 Stats., 90), provides for the granting of authority by the Secretary of the Interior for the Indians in Minnesota to sell dead and down timber as follows, viz:

The Secretary of the Interior may, in his discretion, from year to year, under such regulations as he may prescribe, authorize the Indians residing on any Indian reservation in the State of Minnesota, whether the same has been allotted in severalty or is still unallotted, to fell, cut, remove, sell, or otherwise dispose of the dead timber, standing or fallen, on such reservation or any part thereof, for the sole benefit of such Indians; and he may also in like manner authorize the Chippewa Indians of Minnesota who have any interest or right in the proceeds derived from the sales of ceded Indian lands or the timber growing thereon, whereof the fee is still in the United States, to fell, cut, remove, sell, or otherwise dispose of the dead timber, standing or fallen, on such ceded land. But whenever there is reason to believe that such dead timber in either case has been killed, burned, girdled, or otherwise injured for the purpose of securing its sale under this act, then in that case such authority shall not be granted.

Under this provision the Commissioner of the General Land Office, who has control of the ceded Chippewa lands in Minnesota, prescribed certain regulations to govern the logging operations of the Indians on the ceded lands during the season of 1897-98, which were approved by the Department September 28, 1897. It is ascertained from communications received from the General Land Office, and the accounts of the United States Indian agent at the White Earth Agency for the fourth quarter, 1898, that timber to the value of $253,304 was cut and sold during the season. Of this amount 15 per cent was deducted for stumpage and for the purpose of paying certain expenses incident to the logging operations.