SEC. 7. That the Secretary of the Interior is hereby authorized to perform any and all acts and to make such rules and regulations not inconsistent with this act as may be deemed necessary and proper for the protection of the interests of said nations and for the purpose of carrying the provisions of this act into full force and effect: Provided, That upon the expiration of any developed lease, if the lessee thereof shall not apply for its renewal, or if the sale of any coal or asphalt tract upon which operations have begun shall be forfeited and canceled, the Secretary of the Interior is hereby authorized to take possession of said expired lease or canceled tract and dispose of the same under the provisions of this act, or take whatever steps may be necessary to preserve and protect such property: Provided further, That nothing in this act shall be construed or held to affect in any way the right to dispose of the coal and asphalt deposits of the Choctaw and Chickasaw Nations by sale as now authorized by law. Senate bill 3655 is designed to provide for the leasing of segregated coal and asphalt deposits of the Choctaw and Chickasaw Indian Nations in Oklahoma for a period not to exceed 15 years. By section 29 of the act of Congress of June 28, 1898, certain lands belonging to said tribes were segregated from allotment in severalty and reserved for coal deposits. Provisions were made for the execution of leasing for the exploration for coal and asphalt of such deposits, leases to extend for a period of not more than 30 years; that by the terms of said act, all leases made upon the said deposits would expire by their own terms on or before September 25, 1932; that there is no authority of law for the execution of further leases upon said deposits; that it is the wish of the Indian tribes concerned that this bill be enacted to enable the making of leases upon tracts already partially developed for a period of not to exceed 15 years from said September 25, 1932. It is further provided that any lessee may take an addition to his developed lease in contiguous land in an acreage not to exceed 640 acres when it is shown that to do so will serve the best interests of the Indian tribes. This is deemed necessary and advisable by reason of the fact that all of the mining operations conducted in this coal area are carried on by what is commonly termed "slope mining," and inasmuch as the outcrop of a vein of coal may be upon the tract, the dip of the vein in its development may lead to an adjacent tract many feet below the surface so that unless the privilege of extension for the operation of these veins upon such tracts be granted, the deposits will be lost to the tribes in that it is not feasible to sink a shaft the distance of some twentyfive hundred feet to reach the coal vein that by its dip has gone this far into the ground. The cost of sinking a shaft to deep coal is prohibitive. For this reason this bill is submitted for passage. Manifestly unless provision of law is made for making of leases to conserve these coal deposits already explored, the entire deposit when so explored will be lost to the Indians. The other provision of the bill seeks to extend the time of period of purchase upon coal deposits heretofore bought under the provisions of existing law. By reason of the economic conditions as they now exist, it is deemed advisable that an extension of time for a period of five years be granted these purchasers to pay for said deposits rather than to cancel them. This bill has been agreed to by all parties concerned, including the tribal officials of the two tribes affected, and by the Bureau of Indian Affairs. This bill was introduced at the request of the Secretary of the Interior, as set forth in the following letter, which is appended hereto and made a part of this report. DEPARTMENT OF THE INTERIOR, Hon. LYNN J. FRAZIER, Chairman Committee on Indian Affairs, United States Senate. MY DEAR MR. CHAIRMAN: There is inclosed herewith a draft of legislation to authorize new leases within the Choctaw and Chickasaw coal and asphalt area, Oklahoma; and to extend the time for the completion of payments, where certain of the deposits have been purchased on deferred installments. A number of coal and asphalt leases were made by the Choctaw and Chickasaw Coal Mining Trustees and approved by the Secretary of the Interior for terms of 30 years under authority contained in the agreement with the tribes set out in section 29 of the act of June 28, 1898. (30 Stats. L. 495-510.) The act of May 25, 1928 (45 Stats. L. 737) provides for the granting of extensions of the terms of existing leases, upon certain conditions, if desired by the lessees, until September 25, 1932. The original term of some of the leases will continue until said date. All of the leases will expire on or before that date. The Indians realize this, and have expressed a desire that an act be passed to authorize the making of new leases on developed tracts. According to the report of the Choctaw and Chickasaw Coal Mining Trustee for the fiscal year ended June 30, 1931, the leases within this area yielded a royalty last year of $33,516.72. Over 418,000 tons of coal were mined. There are, according to said report, 33 leases in force, covering approximately 30,390 acres. In addition 14 leases of approximately 14,000 acres have expired in which the lessees have applied for extensions of the terms thereof until September 25, 1932, pursuant to the provisions of the act of May 25, 1928, supra. are, of course, a number of mines on these leased lands; some of them in good condition and being operated at the present time. We will have a problem of taking care of these mines after September 25, 1932, unless we are authorized by Congress to make new leases so that it will be possible to keep them in operation. There It would seem advisable to make new leases on the developed tracts only, since it is the desire of the Indians and of the Government as well, to sell the coal and asphalt deposits as early as practicable and close up tribal affairs. Making new leases on undeveloped tracts would, no doubt, discourage interest in the purchase of same. The renewal of leases on tracts already leased and developed, for an additional term of 15 years from and after September 25, 1932, as proposed in the inclosed draft of bill we believe, would give sufficient time for the mining out of the remaining deposits in all of the developed tracts under lease; and this is in accordance with the desire of the principal chief of the Choctaw Nation and the governor of the Chickasaw Nation. With respect to the part of the inclosed draft relative to a further extension of time, not to exceed five years, within which the purchasers of coal deposits heretofore bid in, may complete their payments, attention is directed to the provisions of the act of May 25, 1928, above mentioned, by the terms of which authority was granted for extensions to such purchasers, upon application and the furnishing of adequate surety, until May 25, 1932. It was then believed that within the period allowed all purchases would be completed so that deeds could be issued to the purchasers. Additional time, however, now appears necessary as a number of the purchasers have not been able to meet their payments. According to the report of the superintendent of the Five Civilized Tribes Agency for the fiscal year ended June 30, 1931, there remains uncollected, from the sale of coal and asphalt minerals, the sum of $121,842.99. It is the desire of the department that these purchases be completed if possible, rather than to declare forfeitures as the sale of the deposits is our ultimate aim and must be accomplished before the affairs of these tribes can be closed under existing law and departmental supervision withdrawn. It is appropriate to add that the coal industry in Oklahoma is less profitable and more difficult to finance than in some other parts of the country for the very obvious reason of the presence and use in that State, and in outlying regions as well which would be available to the coal industry, of large quantities of fuel oil and natural gas. The oil and gas industry is a very decided competitor in the markets available to the coal mines in the Choctaw and Chickasaw area. In view of these conditions it would appear reasonable to grant another 5-year period during which the coal operators may complete the payments for the deposits they have agreed to purchase. The interests of the tribes we believe would be fully protected under the provisions of the inclosed draft of bill. Early and favorable consideration of the matter is recommended. Very truly yours, RAY LYMAN WILBUR, Secretary. AUTHORIZING EXTENSION OF CONTRACTS FOR PROSECUTION OF SUITS FILED BY THE CHIPPEWA INDIANS OF MINNESOTA AGAINST THE UNITED STATES AND NOW PENDING IN THE COURT OF CLAIMS MARCH 2 (calendar day, MARCH 3), 1932.-Ordered to be printed Mr. SCHALL, from the Committee on Indian Affairs, submitted the following REPORT [To accompany S. 2364] The Committee on Indian Affairs, to whom was referred the bill (S. 2364) authorizing the Secretary of the Interior to extend or renew the contracts of employment of the attorneys employed to represent the Chippewa Indians of Minnesota in litigation arising in the Court of Claims under the act of May 14, 1926, having fully considered the same, report thereon with the recommendation that it do pass with the following amendment: Strike out all after the enacting clause and insert in lieu thereof the following: That the Secretary of the Interior be, and hereby is, authorized to renew the contracts of employment heretofore entered into with the attorneys employed to represent the Chippewa Indians of Minnesota in the suits instituted in the Court of Claims under authority of the act of May 14, 1926 (44 Stat. L. 555), as amended, on a year to year basis but not to exceed three years, as the Secretary of the Interior may deem advisable and for the best interests of said Indians. Said attorneys shall be entitled to such compensation for their services, in addition to that heretofore paid to them, as the Court of Claims in its discretion may allow from any amount recovered in any such suit, which compensation shall not exceed the sum of 5 per centum of any such recovery for the attorney for the Chippewa Indians of White Earth Reservation and a like compensation for the firm of attorneys employed by the other bands of Chippewa Indians of Minnesota: Provided, however, That the Secretary of the Interior shall continue to pay out of tribal funds belonging to the Chippewa Indians all actual and necessary expenses incurred by said attorneys in such litigation as authorized by and subject to the limitations contained in the act of April 11, 1928 (45 Stats. 423): And provided further, That the compensation and expenses of the attorney or firm of attorneys employed under existing law to represent the Red Lake Band of Chippewa Indians of Minnesota shall be paid out of any money to the credit of said Indians in the Treasury of the United States not otherwise appropriated. Under the authority contained in the act of May 14, 1926 (44 Stat. L. 555), a contract was entered into by the White Earth Indians, employing an attorney of their own selection, and a contract was entered into by all the remaining Chippewa Indians, employing a firm of attorneys of their own selection, to prosecute all claims which the Chippewa Indians had against the United States arising under or growing out of the act of January 14, 1889 (25 Stat. L. 642), or any subsequent act of Congress in relation to Indian affairs, which contracts were approved by the department. By express limitation contained in the act of May 14, 1926, said employment was limited to a period of five years. The contracts thus entered into provided for an annual payment to the attorney and firm of attorneys, during said 5-year period, of $6,000 each, or a total of $12,000, and for a contingent fee. Following their employment said attorney and firm of attorneys promptly filed five suits against the United States, each suit embracing from 2 to 12 claims, and each claim embracing a very large number of items, in some instances in excess of 4,000 items. The prosecution of the claims necessitated an investigation of the disposal of lands, the receipts of moneys, and disbursements extending over a period of more than 40 years. The claims are very complicated, necessitating a very large amount of time and work. The contracts expired December 31, 1931. There is no one authorized to appear for the Indians in the court and conduct their cases. The extension or renewal of the contracts is therefore necessary if the Indians are to be permitted to conclude the prosecution of their claims. In view of the uncertainty of recovery, the department believes that the annual salaries heretofore paid the attorneys should be discontinued and that the attorneys should be placed solely upon a contingent-fee basis. The bill as amended authorizes the court, at the conclusion of any suit in which there is a recovery, to allow the attorney representing the White Earth Indians such compensation for the work done in that suit as in the opinion of the court is just and proper, taking into consideration the amount heretofore paid said. attorney, in no event to exceed 5 per cent of the amount recovered and to make a similar allowance on the same basis to the firm of attorneys representing all the other Chippewa Indians of Minnesota. The Red Lake Band of Chippewas has intervened in one of these suits for the reason that they believe their interest might be adversely affected by a recovery therein. Counsel for this band has been employed under the provisions of existing law, all compensation of such counsel being charged against the separate fund standing to the credit of the Red Lake Band. The concluding proviso of the bill permits the continuance of this arrangement which seems proper. When the bill (S. 2364) was first submitted for report, the department under date of February 16, 1932, recommended an amendment. After further consideration, the department orally recommended the amendment adopted by your committee. The report of the department, which is appended hereto and made a part of this report, is as follows: Hon. LYNN J. FRAZIER, DEPARTMENT OF THE INTERIOR, Chairman Committee on Indian Affairs, United States Senate. MY DEAR MR. CHAIRMAN: In response to your request of December 29, 1931 for a report on S. 2364, which would authorize the Secretary of the Interior to extend or renew the contracts of employment of the attorneys employed to represent the Chippewa Indians of Minnesota in litigation arising in the Court of Claims under the act of May 14, 1926 (44 Stat. 555), I transmit herewith a memorandum on the subject that has been submitted by the Commissioner of Indian Affairs, to which attention is invited. If the proposed bill is amended as suggested, this department will interpose no objection to its passage. Very truly yours, RAY LYMAN WILBUR, Secretary. Memorandum for the Secretary. DEPARTMENT OF THE INTERIOR, Reference is made to the request of the chairman, Committee on Indian Affairs, United States Senate, for report on S. 2364, which would authorize the Secretary of the Interior to extend or renew contracts of employment of attorneys to represent the Chippewa Indians of Minnesota under the act of May 14, 1926 (44 Stat. L. 555). The records show that under the jurisdictional act of May 14, 1926 (44 Stat. L. 555), authorizing the Chippewa Indians of Minnesota to enter suit against the United States in the United States Court of Claims, formal contracts were entered into with Mr. Webster Ballinger, an attorney of this city, and the Chippewa Band of the White Earth Reservation, Minn., and with Messrs. Baldwin, Baldwin, Holmes & Mayall, attorneys of Duluth, Minn., for the remaining bands of Minnesota Chippewa; that these agreements, which expired by limitation January 1, 1932, were each for a period of five years at a salary of $6,000 per annum, and also included the necessary expenses of these lawyers in prosecuting the claims of their clients; that each has received as fees thereunder $30,000 or a total of $60,000 from Chippewa tribal funds in addition to the expenses and costs incurred in the work; and that the suits filed as indicated are still pending before the Court of Claims, and it may be several years before a final decision is reached in these matters. It is shown also that early in November, 1931, the attorneys called in person and requested a renewal of these contracts upon the same terms and conditions as the former ones; and that after consideration of the matter it was concluded that we would not be justified in recommending that these contracts be renewed subject to the same terms and conditions. However, as the litigation is still pending and the Indians are in need of continuing the services of the attorneys, we are of opinion that the bill should be amended as follows: Page one of the bill, strike out all after the enacting clause and insert the following in lieu thereof: That the Secretary of the Interior be, and hereby is authorized to renew the contracts of employment heretofore entered into with the attorneys employed to represent the Chippewa Indians of Minnesota in the suits instituted in the Court of Claims under authority of the act of May 14, 1926 (44 Stat. L., 555), on a year-to-year basis but not to exceed three years from the date said contracts expired according to their terms, as the Secretary of the Interior may deem advisable and for the best interests of said Indians. During the period of any such renewal the said attorneys shall be entitled to such compensation for their services as the Court of Claims, upon final determination of said suits may allow from any amount recovered, which compensation shall not exceed the sum of five per centum for the attorney of the Chippwa of the White Earth Reservation, Minnesota; and the firm of attorneys employed by the other bands of Chippewa of Minnesota, shall receive a like contingent fee: Provided, That nothing herein contained shall operate to prevent payment to said attorneys of actual and necessary expenses incurred by them in connection with such litigation, as authorized by section eight of the said act of May 14, 1926, as amended by the act of April 11, 1928 (45 Stat. L., 423)." Should the foregoing amendments be made, it is recommended that the bill receive favorable consideration. C. J. RHOADS, Commissioner. O |