farmers are being deceived by these tactics and by persons interested only in perpetuating their positions in the Government service and in Government subsidized cooperative organizations.

Mr. M. W. Thatcher, manager of the Farmers' Union Grain Terminal Association of St. Paul, Minn., reported to his stockholders at their last annual meeting in November 1939 that in the year preceding the meeting that the following number of cooperative associations had been organized, reorganized, or refinanced under this plan:

We hear that organizing activities are now going on at many locations in North Dakota, Minnesota, and South Dakota and speakers have been reported as having told their listeners that if they wanted advantage of this Government offer to refinance them in a new association, they would have to hurry for the loans would likely be stopped after this year.

The owners and operators of privately capitalized business in the Northwest cannot understand why a Government relief administration should be engaged in the task of loaning money to set up new lines of business that will only result in losses to already established businesses that have always provided their services to farmers at a reasonable cost. In any rural territory there is a maximum volume for any given business. If that field is already occupied by suitable business facilities, any addition thereto means that the new and old cannot successfully continue in the field. One or more must discontinue or all will eventually fail. Private business in our fields has proved in the past that it can be efficiently operated and provide services to its customers at a reasonable charge.

This matter was brought to the attention of Congress last year, and the House Appropriations Committee in reporting out House Joint Resolution 326, the annual appropriation bill providing funds for relief for the fiscal year 1940, contained the following clause:

"TITLE III. PROVISIONS COMMON TO ALL TITLES

"SEC. 301. No funds appropriated in this joint resolution, whether administered by the Federal Government or by the States or local government agencies from funds contributed in whole or in part by the Federal Government, shall be used by any Federal, State, or other agency to purchase, establish, or expand mills, factories, or plants which would manufacture or produce for sale articles, commodities, or products in competition with existing industries."

This provision of the act would and did prevent loans to manufacturing plants; however, it was not all-inclusive to prevent loans being made to establish new businesses in the store and service lines in the agricultural section of our country.

Mr. Youngdahl offered an amendment to this provision of title III that would have made the section apply to our interests and in the debate on the amendment the Congressional Record indicates that you, Mr. Woodrum, stated that the amendment offered was unnecessary, due to your opinion that the language of title III was sufficient to prevent loans from being made by the Farm Security Administration to set up new business where adequate businesses are now in existence. Despite your statement on the floor of the House, the Farm Security Administration has continued throughout 1939 and up to this time in 1940 to make loans to farmers for the purpose of establishing new cooperative associations at points where established businesses are in existence.

We pray you to place a restriction on the funds that may be provided to the Farm Security Administration or any other Federal agency for relief purposes that will prevent such agencies from making loans that can be used to establish new businesses at locations where existing businesses are now in existence. It is our opinion that the provision which was inserted in House Joint Resolution 326, the relief appropriation for the current fiscal year, is adequate if the following additions are made thereto:

Add the word "stores", in the sixth line after "factories".

Add the words "handle, process" in the seventh line after "manufacture". SEC.? 301. No funds appropriated in this joint resolution, whether administered by the Federal Government or by the States or local governmental agencies from funds contributed in whole or in part by the Federal Government shall be

used by any Federal, State, or other agency to purchase, establish, or expand mills, factories, stores, or plants which would manufacture, handle, process, or produce for sale articles, commodities, or products in competition with existing industries.

Very truly yours,

H. G. RUSSEL.

MONDAY, APRIL 15, 1940.

RELIEF FOR SIOUX INDIANS

STATEMENT OF HON. FRANCIS CASE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF SOUTH DAKOTA

Mr. CASE. Mr. Chairman, and gentlemen of the committee, this delegation appreciates the opportunity of appearing before this subcommittee of the Appropriations Committee handling the relief appropriation.

I would like to introduce the delegates, and have the names of all present appear in the record. The leaders will make statements to the committee.

Those here today are primarily Sioux Indians mostly from South Dakota.

There are present Mr. Frank Wilson, president of the Ogalala Council.

Chief American Horse, who is chief and head of the tribal council. Chief James Grass, Chief Daniel Blackhorn, Chief James Red Cloud.

Also with them is Richard Whalen who will act as interpreter, Matthew Eagle Heart, John Bad Heart Bull, secretary, and David Black Cat, a member of the Pine Ridge reservation; and, Mr. W. O. Roberts, superintendent of the Pine Ridge Reservation, and Mr. John Herrick, Assistant Commission of Indian Affairs, and Mr. D. C. Murphy, Director of the C. C. C. work in the Indian Office.

There are also present Major McGregor, former superintendent in the Indian Service and of the Pine Ridge Reservation, now retired; Congressman Usher L. Burdick, of North Dakota, and Congressman Karl Mundt, my colleague, from South Dakota.

The first statement will be made by Mr. Frank Wilson, president of the Ogalala Tribe Council.

STATEMENT OF FRANK WILSON, PRESIDENT, OGALALA TRIBAL COUNCIL

Mr. WILSON. Gentlemen, I want to thank you for the privilege of appearing before you in behalf of the tribe. I am sure that you had the situation of the Indians at heart when you took up this measure.

I understand the appropriation is to be $1,750,000. We need a home-building program on the reservation, home improvements, and domestic water; replacement cattle and irrigation, and on account of the severe droughts for the past 10 years and on account of the unknown and unforeseen elements ahead of us for the present season and the survey made by the State regarding the grasshopper situation it is evident that our tribe will have to look to Congress, to the Federal Government, for further aid in the coming year.

We do not wish to bring out any detailed reports regarding the needs of the people, but these major issues we want to put before you in behalf of our people.

I think something should be done for the Indians where they will not be left on a day to day, hand to mouth existence, but some necessary appropriation should be set aside that would rehabilitate them in the livestock business where this relief situation could be done away with entirely.

I thank you.

The CHAIRMAN. Any questions?

Mr. CASE. Possibly the members of the committee would like to interrogate Mr. Wilson as I think he can answer most of the questions. Technical questions as to the relief now available and similar statistical facts that you wish to develop, possibly, can be referred to the officials who are present.

Mr. WOODRUM. I will say, Mr. Case, we have had a very full statement from the Indian Bureau and the record is rather complete already.

Mr. CASE. There is one phase that I think has developed since that time. I understand that the W. P. A. reduction has been applied to the Indian country. I am not sure from the discussion I have had with the Indian Office whether that reduction had taken place at the time the matter was presented.

Mr. SNYDER. What reduction do you have reference to, Mr. Case? Mr. CASE. Of the number of Indians employed on the W. P. A. If they cannot be taken care of by the W. P. A., and are dropped it will result in a severe increase in the load that the Indian Office will have to take care of.

Mr. JOHNSON of West Virginia. Are any of your people suffering out there?

Mr. WILSON. I want to state this, that about 5 percent of the people out there are in gainful employment, and 95 percent are dependent on relief and must be supervised by some officer out there. I know that there are families there that are suffering but they have been cared for to the best they could be in light of the funds that are provided.

Mr. JOHNSON of West Virginia. Are any of them forced to eat dog meat?

Mr. WILSON. Well, I do not think anybody is forced to eat it.
Mr. JOHNSON of West Virginia. Do they do it?

Mr. WILSON. They do it, but they are not forced to.

Mr. JOHNSON of West Virginia. You mean they could get other food?

Mr. WILSON. Well, they might do it sometimes when it is hard to get other food.

Mr. JOHNSON of West Virginia. When you spoke about stock raising, what kind of stock did you have in mind that they are best qualified to take care of?

Mr. WILSON. Cattle and horses.

Mr. JOHNSON of West Virginia. What about sheep and goats? Mr. WILSON. They are not adapted to that; they have not adapted themselves to sheep raising and they do not care much about sheep meat or goats, and they prefer cattle and horses.

SUPPLEMENTARY STATEMENT BY MR. WILSON

To the APPROPRIATION COMMITTEE,

House of Representatives.

APRIL 15, 1940.

SIRS: At your invitation and suggestion during the hearing today before your honorable body, I, as the president, officially representing the Oglala Sioux Indians of Pine Ridge Indian Reservation, with a delegation before your committee, wish to make an outline of the funds which might be set aside for the benefit of our people, for rehabilitation purposes.

The need of home improvement, and new homes to be built, the domestic water improvement, irrigation construction wherever possible, to produce truck gardening, and to raise feeds for stock.

We Indians do not feel that the Federal Government owes us a living, however, since the entire country is being helped we would request that a careful consideration be extended in behalf of our Sioux over the entire State of South Dakota. whereby some measure of assistance which shall be of a lasting help for future generations, a long-range program to sustain a continued support of our people. That this be judiciously guided by such officials with respect to our needs and to do so impartially. That Government employees' immediate families or whites be permitted to draw salaries from the said appropriation for the benefit of the Indians. But it shall be supervised by the superintendent and others whom he may direct under his charge.

Thanking your committee for allowing our tribesmen to appear to present their free conception of the relief issue over the Pine Ridge Indian Reservation, I am, Sincerely,

FRANK G. WILSON,

President, Oglala Sioux Tribal Council.
JOHN BADHEART BULL,

Secretary of the Oglala Sioux Tribal Council.

STATEMENT OF CHIEF BEN AMERICAN HORSE

Mr. CASE. Chief Ben American Horse will speak through an interpreter, Mr. Richard Whalen.

(The following statement of Chief Ben American Horse was made. through interpreter Richard Whalen.)

Chief BEN AMERICAN HORSE. I want to thank the committee for the privilege of making this statement. The subject at this time seems to be relief. For the reason that we do not get enough relief funds out in our country our people are very hungry.

Previous to this time our people out there have had to take care of themselves, but now on account of the grasshoppers and on account of the drought it has made it very hard for us. If we are going to get any more relief, if we are going to get any help, and get the help that we are going to need, on account of the drought and the grasshoppers this assistance is necessarily going to have to continue.

And if there is going to be any appropriation we would prefer that it go through the hands of the superintendent of the Pine Ridge Reservation, otherwise there is going to be crooked work like you all know of. And I think you men know what I mean when I say that, too much for salaries of the folks who handle things and not to the Indians who need the things to eat.

I am glad to give you this statement and perhaps we will need a great deal of relief, but I hope that it will go through the right hands, and in the right way so we will get it.

I thank you.

Mr. JOHNSON of West Virginia. If the grasshopper situation is taken care of in a substantial way to what extent would that relieve your situation? If we make a pretty substantial appropriation to

meet the grasshopper trouble to what extent would that meet your difficulty?

Chief BEN AMERICAN HORSE. If you make a appropriation for grasshoppers maybe, it will not be possible for them to eat up all of our seed.

Mr. JOHNSON of West Virginia. You spoke of some crookedness. Can you give the name of anybody connected with the Indian Service that has not treated your people right?

Do you have the name of any people connected with the Government who have not treated your people right and proper?

Chief BEN AMERICAN HORSE. I can only give you the name of one farmer, by the name of Murdock.

Mr. CASE. Just one further question: Can you tell the committee about the handling of rations; how much is given in the way of rations to individual families?

Chief BEN AMERICAN HORSE. You want to know about relief or rations; what is the difference?

Mr. CASE. Well, suppose you comment briefly on rations.

Chief BEN AMERICAN HORSE. When the Government began handling rations, on a 2-month basis-certain parties would come in and ask to get rations for them, when others were not able to come, when there were the five names on the ticket.

There was a sack of flour, 24 pounds; coffee, 2 pounds; bacon, 8 pounds; 4 cans of tomatoes; 6 cans of milk; 3 cans of sardines; 4 pounds of beans.

A family of five received that much rations.
Mr. TABER. For how long?

Mr. WOODRUM. Covering what period?

Chief BEN AMERICAN HORSE. Two weeks.

WASHINGTON, D. C., April 15, 1940.

SUPPLEMENTAL STATEMENT OF CHIEF BEN AMERICAN HORSE

Relating to the relief question briefly heard in Congress Appropriation Committee. If any appropriation is passed it is my desire that the Superintendent W. O. Roberts of my reservation will be the sole manager. I do not want the present handling, or Frank Wilson, president, Ogalala Tribal Council, to have anything to do with it. My tribe are hungry and need every cent available. CHIEF BEN AMERICAN HORSE.

STATEMENT OF W. O. ROBERTS, SUPERINTENDENT, PINE RIDGE INDIAN RESERVATION

Mr. CASE. Mr. Roberts, do those who are employed get surplus commodities or rations or only those who are unemployed?

Mr. ROBERTS. Employed people do not receive either rations or surplus commodities.

Mr. CASE. What is the basis of the issuance of the rations?

Mr. ROBERTS. The list of rations is worked out on the basis of the total need of the family. I do not have an actual schedule with me, but I do remember that the ration list in flour for a month is 24 pounds for one person. If there were two adult persons it would be 48 pounds. Children in the teens are given special consideration in amount, with particular attention to those under 10 years old. But it happens frequently that a family will have two or three children in school and