Attention is especially directed to the provision that purchase of taxable lands under this authority shall not operate to remove such lands from the tax rolls.

A copy of the report of the Secretary of the Interior, dated February 26, 1954, and a copy of the report of the Director of the Bureau of the Budget, dated February 15, 1954, on S. 2330, a companion bill, introduced in the Senate, are attached hereto and made a part of this report, as follows:

Hon. A. L. MILLER,

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, D. C., February 26, 1954.

Chairman, Committee on Interior and Insular Affairs,

House of Representatives, Washington 25, D. C.

MY DEAR DR. MILLER: Reference is made to your request for a report on H. R. 6173, a bill to provide for the use of the tribal funds of the Southern Ute Tribe of the Southern Ute Reservation, to authorize a per capita payment out of such funds, and for other purposes.

I recommend that the bill be enacted if it is amended as hereinafter provided. This bill provides that, notwithstanding any other provision of existing law, the tribal funds on deposit in the United States Treasury to the credit of the Southern Ute Tribe of the Southern Ute Reservation may be expended or advanced for such purpose and in a manner, including per capita payments, the purchase of land or any interests therein or improvements thereon and water rights, as may be designated by the Southern Ute Council and approved by the Secretary of the Interior, subject to three limitations.

The first limitation prevents the removal from the tax rolls of any taxable lands which may be purchased under this authorization. This restriction is acceptable to the Southern Ute Tribe and demonstrates its willingness to contribute to the cost of running the State and local governments in which the tribal membership hopes eventually to participate on an equal basis with the non-Indian citizens. The second limitation subjects the advance of funds to the tribe for loans to individual Indians or to associations of Indians to the regulations applicable to loans from the general revolving fund established by the Indian Reorganization Act of June 18, 1934 (48 Stat. 984). The tribe wishes to have this safeguard and i will tend to simplify administration by utilizing an existing system of regulations. The presently effective regulations appear in 25 Code of Federal Regulations 21. The third limitation prevents the use of the funds in the United States Treasury to finance litigation against the United States.

The

H. R. 6173 grants a continuing authorization for the expenditure of the tribal funds of the Southern Ute Tribe of the Southern Ute Reservation that is substantially the same as the authorization currently granted by the tribal funds item, with respect to similar tribal funds of all Indian tribes, in title I of the Interior Department Appropriation Act, 1954 (Public Law 172, 83d Cong., 1st sess., 67 Stat. 261), and similar legislation for the 3 preceding fiscal years. tribal funds item in the current appropriation act authorizes the advance of any tribal funds on deposit in the Treasury of the United States to the Indian tribes during the current fiscal year for any purpose which may be designated by the governing body of the tribe involved if approved by the Secretary. H. R. 6173 would make this authorization, which is only effective for the current fiscal years, permanent legislation insofar as the Southern Ute Tribe of the Southern Ute Reservation is concerned. Similar legislation has been enacted in the past for specific tribes, such as the act of May 19, 1947 (61 Stat. 102), for the Shoshone and Arapahoe Tribes; the act of June 24, 1946 (60 Stat. 302), for the Confederated Salish and Kootenai Tribes; the act of June 7, 1944 (58 Stat. 271), for the Minnesota Chippewa Tribe; the act of April 19, 1950 (64 Stat. 44), for the Navaho and Hopi Tribes; the act of August 21, 1951 (65 Stat. 193), for the Ute Indian Tribe of the Uintah and Ouray Reservation, Utah; and the act of August 12, 1953 (Public Law 251, 83d Cong., 1st sess., 67 Stat. 540), for the Ute Mountain Tribe of the Ute Mountain Reservation.

In the interest of uniform legislation at least as to the Ute Indians, it is suggested that the bill be amended to conform to the last mentioned act which was amended to provide certain limited tax benefits and in other minor particulars. Such amendments would be as follows:

On page 2, line 3, after the colon insert the following:

"Provided further, That neither the transfer to the tribe of tribal funds, nor the distribution thereof to individual members of the tribe, as provided herein, from those funds consisting of compensation for lands acquired by the United States Government, shall be subject to Federal tax:"

On page 2, lines 3 and 4, delete the words "Provided further," and in lieu thereof insert the words "And provided further,".

On page 2, line 8, delete the colon and in lieu thereof insert a period.

On page 2, line 8, beginning with the word "And" delete the balance of the bill and in lieu thereof insert the following new section:

"SEC. 2. No part of the funds authorized to be expended or advanced pursuant to section 1 shall be paid or disbursed to or received by any agent or attorney on account of any contract for services rendered or to be rendered or expenses in the preparation of any suit against the United States."

The exemption from taxation which the first amendment accomplishes is probably declarative of existing law. The funds in question represent commutation into cash of capital assets originally held by the tribe. The Court of Claims judgment and the act of August 21, 1951 (65 Stat. 193), confirmed in the Indians their right to the funds arising out of acquisition of tribal lands by the United States years ago.

The permanent authorization in this bill will give the tribe greater control over, and more responsibility for, the use of its tribal funds, and is needed in order to make a constructive use of the judgment by the Court of Claims on July 13, 1950, in favor of the Ute Indians (117 Ct. Cls. 433). The share of the Southern Ute Tribe of the Southern Ute Reservation in that judgment is approximately $5,900,000, as determined by the act of August 21, 1951 (65 Stat. 193).

The tribe has prepared a rehabilitation program which includes a per capita payment limited to $1,000, and plans to develop its resources to raise the social and economic standards of the members of the tribe, and to make possible the early transfer to the Southern Ute Tribe of complete responsibility for the management of its tribal affairs. This program initiates the readjustment of the supervision by this Department of the affairs of the Southern Ute Tribe. As objectives in this program are achieved, this process will lead progressively toward the termination of the trust relationship between the Government and the tribe with respect to the tribe's property and the responsibility of the Government for furnishing special services to the Southern Ute Indians. This action is in accord with the wishes and ultimate capabilities of the Southern Ute Tribe and is in accord with the policy of this Department.

This program has been discussed in detail by the Southern Ute Indians with the staff of the Bureau of Indian Affairs of this Department. It represents a sound approach by the tribe in harmony with the policy of expediting the termination of Federal responsibility for the administration of the affairs of individual Indian tribes as rapidly as the circumstances of each tribe will permit and the transfer of complete control of tribal business affairs to the tribal organization. It also recognizes the responsibility of the individual Southern Ute Indian and the tribe to contribute a fair share of the cost of services. Changes in detail are contemplated as experience is gained to support such changes. It is not considered that it would be practicable to limit the use of the tribe's funds solely to the present program The tribe should have considerable flexibility in carrying out a program with such far-reaching effects, subject to the approval of the Commissioner of the Bureau of Indian Affairs and the Secretary of the Interior.

The Southern Ute Tribe, numbering some 540 people, reside on a reservation which is located in portions of the counties of Archuleta, La Plata, and Montezuma in southwestern Colorado. For many years these Indians have been substantial farmers along the Pine River, but the lack of capital has made it difficult for them to develop their farms to a standard which would provide them with an adequate farm income. Most of the adult members of the tribe speak, read, and write the English language, and many of them have had considerable experience in business dealings with their non-Indian neighbors. The Southern Ute Council is equipped to give the leadership which the tribe needs in this development. The Southern Ute recognize that they make up a portion of the peoples of the San Juan Basin in the State of Colorado. We believe that these Indians should be encouraged to improve their social and economic standards to a degree which will make possible at an early date their complete integration into the social, economic, and political life of this basin. These Indians recognize that their progress affects not only their own welfare, but that of all the peoples of the basin. The wise expenditure of these funds should enable them to accomplish these objectives.

The provisions for the secretarial review of their proposals should prevent the improvident use of these funds.

The Bureau of the Budget has advised me that there is no objection to the submission of this report to your committee.

Sincerely yours,

F. E. WORMSER,

Hon. HUGH BUTLER,

Assistant Secretary of the Interior.

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D. C., February 15, 1954.

Chairman, Committee on Interior and Insular Affairs,
United States Senate, Senate Office Building,

Washington, D. C.

MY DEAR MR. CHAIRMAN: This is in reply to your letter requesting the views of this office with respect to S. 2330, to provide for the use of the tribal funds of the Southern Ute Tribe of the Southern Ute Reservation, to authorize a per capita payment out of such funds, and for other purposes.

If enacted, S. 2330 would give the Southern Ute Tribe greater control over the use of its tribal funds including some $5,900,000 appropriated to the tribe as its share of the judgment awarded against the United States by the Court of Claims on July 13, 1950, in favor of the Ute Indians. Legislation pertaining to the use of similar funds has already been enacted for the Utes of the Uintah and Ouray Reservation (act of August 21, 1951; 65 Stat. 193) and for the Ute Mountain Tribe (act of August 12, 1953; Public Law 251, 83d Cong., 1st sess.).

It is understood that the Southern Ute Tribe has prepared, in conjunction with officials of the Department of the Interior, a plan of economic development and rehabilitation looking toward the eventual termination of Federal responsibilities over the tribe's affairs, and that this legislation will provide the financing necessary to put this plan into effect.

In a report he is making to your committee on this measure, the Secretary of the Interior is suggesting certain amendments designed to keep this bill consistent with the previous enactments mentioned above. This Bureau concurs in the recommendations contained in the Secretary's report, and would offer no objection to the enactment of S. 2330 if amended as suggested therein.

Sincerely yours,

ROWLAND HUGHES, Deputy Director.

83D CONGRESS 2d Session

SENATE

{

REPORT No. 1532

PERMITTING THE MINING, DEVELOPMENT, AND UTILIZATION OF THE MINERAL RESOURCES OF ALL PUBLIC LANDS WITHDRAWN OR RESERVED FOR POWER DEVELOPMENT

JUNE 8 (legislative day, MAY 13), 1954.-Ordered to be printed

Mr. BUTLER of Nebraska, from the Committee on Interior and Insular Affairs, submitted the following

REPORT

[To accompany H. R. 3915]

The Committee on Interior and Insular Affairs, to whom was referred the bill (H. R. 3915) to permit the mining, development, and utilization of the mineral resources of all public lands withdrawn or reserved for power development, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill, as amended, do pass.

Hearings were held by the House Interior Committee prior to passage of the measure on April 20, 1953, and further hearings were held by the Minerals and Fuels Subcommittee of the Senate Interior Committee this year. Amendments suggested by the Department of the Interior, approved by the Bureau of the Budget, were adopted for the purpose of protecting the interests of the Federal Government.

EXPLANATION OF THE BILL

H. R. 3915, as amended, would open more than 7 million acres of public lands in the West for mineral development under the mining laws. These lands presently are withdrawn or reserved for power development or power sites. A large proportion of these withdrawals, which have effectively shut off all development of mineral resources, date back to around 1910 In many instances the chances of utilization for power purposes are remote, at least for the present.

Included in the minerals the location and patenting of claims for which would be authorized by this measure on lands now withdrawn is uranium. Large deposits of uranium are believed to exist in several areas set aside for a power site, and in this connection, the committee calls attention to the favorable report of Chairman Lewis L. Strauss of the Atomic Energy Commission, which states, in part: