The excess of 1901 over 1900 is $1,123,287.30. The difference is accounted for as follows: The estimates for 1901 submitted to Congress were as follows: Current and contingent expenses Fulfilling treaty stipulations..... Miscellaneous supports, gratuities.. Support of schools. Miscellaneous. Total... $794, 200.00 2, 331, 369.52 679,000.00 89, 180.00 2,781, 577.00 125, 200.00 6, 800, 526.52 The excess of appropriations over estimates was $2,072,712.72. The following are the principal items not included in the estimates that go Suppressing the spread of smallpox in Indian Territory.. Payment to Indians, Fort Hall Reservation, and Apaches, Total.. EXPENDITURES. $524,000.00 67,000.00 50,000.00 171, 615. 44 12,039.35 676,000.00 1,500, 654. 79 The expenditures for the fiscal year ending June 30, 1900, were as The amount given above as being for the support of schools represents only the expenditures from funds appropriated gratuitously by Congress for that purpose. This does not, however, represent the full amount expended for Indian schools. A large number of schools are supported out of funds belonging to the Indians, and it is estimated that of the sums reported above, as expended under the head of fulfilling treaty stipulations and interest on trust funds, $600,000 was used for school purposes; so that it may safely be said that at least $3,330,000 were devoted to the cause of Indian education. Inquiry is sometimes made of the Office as to how much the Indians have cost the Government since its beginning. To such inquirers it will probably be of interest to know that, according to the Treasury compilation, the total expenditure on account of the Indian service from March 4, 1789, up to and including June 30, 1900, was $368,358,217.17. TRANSPORTATION OF SUPPLIES. For many years prior to the last fiscal year-in fact, since 1877Indian goods and supplies were transported by contract under the act of March 3, 1877 (19 Stat., 291), which provided that thereafter contracts for transportation involving an expenditure of more than $2,000 should be advertised and let to the lowest responsible bidder. The practice was, at the annual lettings which took place in the spring of each year, to invite bids for the transportation of Indian goods, from the places where they were bought and delivered, to their several points of destination, and to award contracts to the lowest bidders, as the law required. In every case the successful bidders were individuals who contracted under heavy bond to transport whatever goods might be turned over to them at a flat rate. In no instance did railroads or other common carriers compete for the business. The transportation of Indian goods and supplies was the subject of much discussion, both oral and written, for years, and elaborate reports were made thereon from time to time. Many acquainted with the system in vogue thought it the best, while other well-informed persons thought the Government could do better by shipping in the ordinary commercial way than by contract as it had been doing. In order that the matter might be tested, if such course were deemed advisable, Congress was asked to give the Department the option of shipping under contract or in open market. That body responded by inserting the following clause in the deficiency act of July 7, 1898: That from and after the passage of this act Indian goods and supplies shall be transported under contract as provided in the act of March 3, 1877, or in open market by common carriers, as the Secretary of the Interior in his discretion shall determine (30 Stats., 676). At the annual letting of contracts in Chicago in April, 1899, bids for transportation were received as usual; but after consultation with the Department it was finally concluded to take advantage of the discretion given by the act just quoted for the fiscal year 1900 at least. Consequently all bids for transportation were rejected and the authority of the Department requested to ship in open market by common carrier at tariff or better rates. This was readily granted and the office at once proceeded to carry out the new system. The machinery of the old system with comparatively few changes was applied to the new, and, notwithstanding the inexperience of the office, with comparatively little friction. The result of a year's experience of the new method is now before the office and may be said to be entirely satisfactory. Goods have been handled and transported at considerably less cost than before, and what is of much greater benefit to the Indians, time has been gained in the delivery of goods. Under the old system goods would not be delivered for six months after they were purchased, while under the present system no delay whatever has occurred. The accounts for last year's transportation are nearly all in and paid and the office is in a position to make a fair comparison. The accounts so far settled show that 13,973,645 pounds of freight were transported during the fiscal year ending June 30, 1900. Under the old system, at the rates offered by bidders in April, 1899, it would have cost to transport this.. Under the new system it has actually cost Apparent saving $182,025.39 135, 432. 91 46,592. 48 The old method had its advantages, one of which was the absolute responsibility of contractors. As they received goods so they had to deliver them. The Government was at no risk whatever for loss or shrinkage or breakage. All that had to be made good. Now, however, as the Government ships at owner's risk and does not insure, it runs the risk of losses. But one loss of any consequence happened last year. In November, 1899, the steamer Conestoga, of the Western States Line, sank at the mouth of the Chicago River laden with Indian goods valued at $7,646.24. Many of the goods were saved and forwarded to destination, but the remainder, valued at $3,937.37, were lost. Whether the loss will fall upon the carrier or the Government has not yet been determined. The matter is now before the proper officers of the Government for adjustment. The new method has added somewhat to the clerical work of the warehouses, while the settlement of transportation accounts under the new system necessitates an increased clerical force at the seat of Government. Making allowance, however, for all of this, for hauling from railroad stations, for occasional storage charges, and other similar expenses, which were heretofore borne by the contractors, the fact still remains that a material saving has been effected. A conservative estimate is that this saving will amount to 20 per cent. OBSTACLES TO SELF-SUPPORT. THE RATION SYSTEM. A matter that occupies the earnest attention of those who are engaged in Indian work and devoted to the cause of elevating the Indian race is the system that prevails and has prevailed for some time of issuing rations regularly to certain of the tribes. The ration system is the corollary of the reservation system. To confine a people upon reservations where the natural conditions are such that agriculture is more or less a failure and all other means of making a livelihood limited and uncertain, it follows inevitably that they must be fed wholly or in part from outside sources or drop out of existence. This is the situation of some of the Indian tribes to-day. It was not always so. Originally and until a comparatively recent period the red man was self-supporting. Leading somewhat of a nomadic life, he roamed with unrestricted freedom over the country in pursuit of game, which was plentiful, or located upon those spots fitted by nature to make his primitive agriculture productive. All this is changed. The advent of the white man was the beginning of the end. From east to west, from one place to another, like poor Jo in Bleak House, the Indian has been "movin' on" until he can go no further. Surrounded by whites, located upon unproductive reservations often in a rigorous climate, he awaits the destiny which under existing conditions he is powerless to avert. Of the causes that led to this or of the wisdom or unwisdom of the policy pursued it is not necessary now to speak. The purpose of this is to discuss the present and not to criticise the past. While much has been written about it, the extent of the ration system is probably not generally known. It may contribute to a better understanding of the subject to describe the situation just as it is. According to the most reliable information the Indian population of the United States is about 267,900. Of this number, about 45,270 receive a daily ration. It is not meant by this that rations are given out daily, but that they are issued periodically, generally twice a month, the quantity issued being based upon a certain daily allowance for each individual. Issues are made to the heads of families, each member of the family being counted, even to the smallest infant, except the children in boarding schools. These are not included in the number receiving daily rations given above. Except for the Sioux, who will be spoken of later, the kind and quantity of the subsistence issued is not fixed by treaty or agreement with the tribes, but is regulated by the Department according to the means and necessities of each tribe. The principal articles issued are beans, beef (or its equivalent in bacon), flour, coffee, and sugar. According to Department regulations, the following constitutes the ration of these articles: To 100 rations: 150 pounds net beef (or bacon in lieu). 3 pounds beans. 4 pounds coffee. 50 pounds flour. 7 pounds sugar. This, however, is the maximum allowance, which of late years has rarely or never been issued, the policy and practice of the office being to reduce rations as far as practicable. As has been said, the ration issued varies according to the tribe, and its value varies correspondingly. The following will show the tribes that are receiving daily rations and the per capita cost of the ration allowed to each for the current year: TABLE 2.-Tribes other than Sioux receiving rations, and cost of the ration. As the value of the full established ration at current prices is about $51, it will readily be seen to what extent the issue of rations has been reduced. Of the 45,270 receiving daily rations from the Government, 17,876, or nearly two-fifths, belong to the great Sioux Nation, known as the Sioux of different tribes, located in North and South Dakota. These Indians are not included in the foregoing list, as their case is different from the others in that the rations and the conditions under which they are to be given are specifically named in the agreement of 1876, ratified by the act of February 28, 1877. That agreement, in consideration of the cession of certain territory and rights, obligates the United States to provide the Indians with subsistence consisting of a ration for each individual of: 14 pounds of beef (or pound bacon in lieu thereof), pound corn; and |