wick, and Nova Scotia amounted in 1924, the year of most recent statistics, to 648,873,000 pounds, with a value to the fishermen of $985,160. The pollock fisheries in this same region during the same year amounted to 57,553,000 pounds, valued at $111,700. "Much evidence has already been secured to show that both of these fisheries may be practically ruined by the proposed power project, but because of conflicting opinion, the lack of conclusive evidence, and the magnitude of the financial interest involved, a thorough biological and oceanographic investigation in the interest of fishery conservation and development is deemed necessary.' It is respectfully recommended that you propose to Congress that legislation be passed to authorize the United States Government to take part in this investigation and appropriations be made to pay the American share of its cost. In this regard I may say that this matter is of a great deal of importance to the country as a whole but particularly so in the case of the State of Maine. Respectfully submitted. DEPARTMENT OF STATE, J. P. COTTON, Acting Secretary. Washington, February 1, 1930. DEFERRING COLLECTION OF CONSTRUCTION COSTS AGAINST INDIAN LANDS WITHIN IRRIGATION PROJECTS MARCH 26, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. LEAVITT, from the Committee on Indian Affairs, submitted the following REPORT [To accompany H. R. 5282] The Committee on Indian Affairs, to whom was referred the bil (H. R. 5282) authorizing the deferring of collection of construction costs against Indian lands within irrigation projects, and for other purposes, having considered the same, report thereon with a recommendation that it do pass without amendment. This bill is intended to meet a very difficult situation existing on Government irrigation projects in which lands in Indian ownership are involved. It provides for deferring the collection of construction costs on such Indian lands until the Indian title thereto has been extinguished, and that the proper charges shall then be assessed and collected in annual installments. This measure was under consideration in the Interior Department and the Budget for several months. The favorable report of the Secretary of the Interior, dated March 20, 1930, transmits two memoranda of the Commissioner of Indian Affairs. That of January 15, 1930, sets forth the general argument for the need of such legislation, and that of February 20, 1930, replies to several suggestions as to amendment. It would seem that the second memorandum may reply to questions which naturally arise, and the committee has reported the bill without amendment. This is a bill to meet a fundamental problem in Indian administration, and the enactment of such legislation is considered necessary. Hon. SCOTT LEAVITT, DEPARTMENT OF THE INTERIOR, Chairman Committee on Indian Affairs, House of Representatives. MY DEAR MR. CHAIRMAN: With further reference to your request of November 19, 1929, for a report on H. R. 5282, which would authorize the deferring of collection of construction costs against Indian lands within irrigation projects, I transmit herewith two memoranda from the Commissioner of Indian Affairs. After a review of the proposed measure, I agree with Commissioner Rhoads. Very truly yours, RAY LYMAN WILBUR, Secretary. DEPARTMENT OF THE INTERIOR, OFFICE OF INDIAN AFFAIRS, Memorandum for the Secretary. This is in reference to a communication of November 19, 1929, from the chairman Committee on Indian Affairs, House of Representatives, requesting report on H. R. 5282 (71st Cong., 1st sess.). This bill if enacted into law would defer the collection of all construction costs against any Indian lands within any Government irrigation project and prevent future assessments of construction charges against such Indian lands until the Indian title is extinguished. Upon the extinguishment of the Indian title in and to any irrigated lands under any such project the pro rata share of the total construction cost properly assessable against such lands would then be assessed and collected from the new owner of the land over a period of not less than 40 years. In pursuance to the act of February 14, 1920 (41 Stat. 408) regulations were promulgated on July 8, 1920, requiring each owner of irrigable land under any irrigation system constructed for the benefit of Indians under provisions of law requiring reimbursement of the cost of such system and to which water for irrigation purposes can be delivered, to pay on or before November 15, 1920, a sum equal to 5 per cent of the per acre cost, as of June 30, 1920, of the construction of the system under which such lands are situated; and on November 15 each year following the year 1920, until further notice, landowners were required to pay 5 per cent of the per acre construction cost as of June 30 of the current year. In most instances the Indians were and still are financially unable to pay these costs to the Government, with the result that each year since the promulgation of that order the assessments remained unpaid and continued to accrue against the land. Many of the Indians, while none of them have been forced to pay these charges, nevertheless feel by reason thereof that the value of their lands is depreciating by reason of the accruing of these charges, and some have indicated that they will not irrigate their lands because of such charges, and state that to so cultivate their lands they would become involved in the charges, whereas, as a matter of fact, under the law, they are involved anyway. Furthermore, by reason of these accruing charges as time goes on, greater difficulty is encountered in selling inherited Indian allotments, or allotments for the best interest of an old or indigent Indian where the proceeds derived from the sale of the land would be of much greater benefit to such Indian than to have him retain his allotment and derive no benefit therefrom owing to his infirm or destitute condition. There being no law for extending or deferring the payment of accrued charges, the purchasers of Indian irrigable allotments are required to pay the accrued charges at the time of the purchase of the land which usually amount to a considerable sum, depending on the construction cost of the particular project under which the land is situated. This sum in addition to the down payment for the land itself, usually being one-third of the appraised price, has deterred the sale of allotments, and has also resulted, it is believed, in a lesser price being received for such lands. With a view to reducing the amount of the accrued construction charges, the regulations of July 8, 1920, supra, were modified July 25, 1927, by distributing the unaccrued installments over a period of time so that 21⁄2 per cent of the total amount yet due shall be due and payable on November 15 of each year until further notice. At the time of the promulgation of this order there had accrued seven installments amounting to 35 per cent of the estimated cost of the particular projects. Since the adoption of the modified regulations, three additional installments have accrued amounting to 71⁄2 per cent, making a total of 421⁄2 per cent of the costs that have accrued against these lands, so that it will be seen that where a purchaser must pay this percentage of the total per acre cost of construction under the particular project at the time he acquires the land, he will naturally submit a lower bid on the land than he otherwise would if these charges did not begin to accrue until the time of the purchase and were then distributed over a period of not less than 40 years. There are some 200 projects on Indian reservations where some expenditure has been made, a great many of these projects being very small, the area running from 30 acres up to 124,500 acres. The total estimated area of all the projects is 1,361,768 acres, of which 750,116 acres are now under constructed works, of which latter area 361,708 acres were actually irrigated during the season of 1929. The estimated per acre cost of these projects, when completed, varies from $6 to $216, as will be noted from the attached miscellaneous irrigation data sheet for the fiscal year 1929. The highest per acre cost last cited is on the Tule River Reservation, in California, and the project consists of only 159 acres. The cost of this project is exorbitant and is not representative of most of the projects. Assuming the average per acre cost of most of the projects to be $50, the per acre amount of accrued charges would be $21.25. The proposed legislation would go a long way toward alleviating this situation, and it is believed we would be greatly aided in our efforts to keep the Indians upon the soil, and to use the water to irrigate their lands, while on the other hand it would not cancel any construction costs. It would, however, if enacted into law, permit the removal from our records of the assessments that have already accrued under existing law and prevent future assessments accruing against the land so long as the land remains in Indian ownership. This would facilitate our operations, and where it is advisable to sell an allotment for the benefit of an old or indigent Indian or for the benefit of the heirs where the Indian has died a better price will undoubtedly be received, as there will not be a number of construction installments accrued amounting to a considerable sum that would have to be paid in a lump sum by the purchaser at the time of the sale of the allotment to him. It would also facilitate the keeping of these accounts by reducing the amount of bookkeeping work now required in that they would not be set up until after the Indian title to the allotment became extinguished, at which time the person acquiring the land would begin to pay in annual installments the share of the cost properly assessable against the particular allotment of land involved. Legislation of this nature is desirable. Your attention, however, is invited to four letters dated December 11, 1929, approved by the Secretary on December 18, 1929, particularly the one dealing with irrigation upon Indian reservations that were addressed to the respective chairmen of the Senate and House Committees on Indian Affairs which should be considered in connection with this proposed legislation. Memorandum for the Secretary. C. J. RHOADS, Commissioner. DEPARTMENT OF THE INTERIOR, This is in reference to a communication by the Director of the Bureau of the Budget dated January 25, 1930, requesting our views and advice on suggestions therein contained relative to proposed modification of H. R. 5282 authorizing the deferring of collection of construction costs against Indian lands on Indian irrigation projects, and for other purposes. In our memorandum of January 15, 1930, addressed to you which was transmitted January 20 to the Director of the Budget, the desirability of the enactment of H. R. 5282 was pointed out. The first suggested amendment in Director Roop's letter is to have the legislation apply only to lands not leased to whites. This suggestion if incorporated as an amendment in the bill would undoubtedly deter the leasing of Indian irrigable allotments, thereby resulting to that extent in failure of its purpose. It is the practice under present regulations to require the superintendents, leasing irrigable lands to include a covenant in the lease requiring the lessee to pay the operation and maintenance assessments accruing during the lease period. Instructions also provide that wherever practicable the lessee shall also pay the construction installments falling due within the lease period. The superintendents and other officials have pointed out that the carrying out of this requirement in most instances would mean the land would not be leased. Therefore, to make this condition precedent to the leasing would undoubtedly, as above stated, result in further complications in the handling of this intricate matter, and the outcome would be an increase in the area of nonused irrigable Indian lands until the Indians themselves increase their cultivated areas. The amount of construction assessments collected from Indian trust lands, both leased and nonleased, has been comparatively small. We do not have a complete record of this in the Washington office, and it would take considerable time in the field to segregate the information on the various projects. On 16 of the largest projects representing a construction cost to date of $15,549,775.61, there has been collected on Indian trust lands $44,705. Of this sum $27,129 has been collected from the Colorado River pumping project in Arizona. This project consists of approximately 6,000 acres, where excellent use is being made of the available facilities. Deducting this $27,000 from the total construction collections from Indian irrigable lands of these projects, you have left approximately |