74TH CONGRESS 1st Session SENATE { REPORT No. 478 OSAGE TRIBAL AND INDIVIDUAL AFFAIRS APRIL 11 (calendar day, APRIL 12), 1935.—Ordered to be printed Mr. THOMAS of Oklahoma, from the Committee on Indian Affairs, submitted the following REPORT [To accompany S. 2482.] The Committee on Indian Affairs, to whom was referred the bill (S. 2482) relating to the tribal and individual affairs of the Osage Indians of Oklahoma, having considered the same, report thereon with a recommendation that it do pass without amendment. Representatives of the Osage Tribe appeared before the committee and urged the passage of this bill. This bill was introduced at the request of the Secretary of the Interior, a copy of his communication dated March 29, 1935, proposing this legislation is appended hereto and made a part of this report. Copies of letters from the Osage Agency supporting this proposed legislation is also attached and made a part of this report: Hon. ELMER THOMAS, THE SECRETARY OF THE INTERIOR, Chairman Committee on Indian Affairs, United States Senate. MY DEAR MR. CHAIRMAN: There is transmitted a draft of a bill relating to the tribal and individual affairs of the Osage Indians. This has been agreed upon by the Osage Tribal Council. The first section of the draft provides: For the decrease in quarterly payments to those Indians with less than a $10,000 balance, and for the expenditure of additional funds from the accumulated surplus under rules and regulations to be prescribed by the Secretary. For payment of funds of minors to parents, legal guardians or persons, school or institution having actual custody of such minors, and for payment direct to minors when 18 years of age. For payment of rentals, income from adults' investments, and interest on deposits. There is attached a statement of accounts of restricted Osage Indians showing the number of accounts of various amounts as of this date compared with the accounts in 1932. It will be observed that out of a total of 917 accounts at this time, of which 80 are estates, there are 594 of $10,000 and less, of which 317 are $1,000 and less. These balances will be reduced by the quarterly payment recently made, because of the mandatory provision of the law providing that if the quarterly payment does not amount to $1,000 it must be supplemented from surplus funds. Unallotted Indians are paid $1,000 quarterly, if adults, as are allotted Indians; thus the balances of adult allotted and unallotted Indians are being exhausted with each quarterly payment. As an indication of the rapid exhaustion of the surplus funds of the Osage Indians, attention is called to the comparison between the present accounts and those of 3 years ago in the attached tabulation of accounts. The provision for the payment of funds of minors to parents, legal guardians, or persons or institutions having actual custody of such minors and for payment direct to minors when 18 years of age is necessary to take care of numerous instances where minors are not living with their parents, or where the parents are dead or incompetent. The existing law with regard to the handling of minors' quarterly allowances is unusually stringent and it is suggested that the proposed legislation covering this matter is in the interest of such minors. The income of many Osage minors is unusually small, and where they are not in the custody of the parent or parents, disbursement must be through a guardian under the present law. This, of course, causes additional expense. We also have in schools and institutions, minors whose parents cannot always be located and whose conduct at times does not warrant the receipt of their children's income, and some method of payment to such institutions should be devised. We also have minors 18 years of age or over, whose incomes are exceptionally small and who do not have parents and the expense of a guardian is prohibitive, and the foregoing provision if enacted will permit the payment direct to them in the discretion of the Secretary of the Interior. The concluding provision of this section provides for the payment of rentals, income from adults' investments, and interest on deposits in addition to the regular income, and broadens the present law to include in addition to regular payments interest on deposits. In other words, at the present time rentals and income from adults' investments are already paid to wards in addition to their regular payments. It is believed that it would not be improper to add thereto interest on deposits, since it seems to be the desire of practically all members of the tribe to be affected thereby. The second provision of the proposed bill amends section 1 of the act of Conress of February 27, 1925, to read as follows: "Hereafter, the Secretary of the Interior in his official capacity may invest the accumulated funds to the credit of restricted members of the Osage Tribe, after paying taxes of such members, in United States bonds or other bonds guaranteed by the United States Government as to principal and interest. "With the consent of adult Indians the Secretary of the Interior may purchase real estate and livestock, such expenditures and investments to be made under such rules and regulations as the Secretary may prescribe." The investments in real-estate loans, building and loan, and other securities have caused so much loss in both interest and principal that the Osage Indians through their council wish to have the present law amended so that future investments shall be confined to Government securities and purchase of real estate and livestock. At the present time the disbursing agent has about $4,000,000 which is not drawing any interest by reason of the fact that same cannot be invested in Government bonds without the consent of the Indians. If it were permissible for the Secretary of the Interior, who holds this money in his official capacity, to invest the same in his official capacity in Government bonds without the consent of the Indians, all such moneys would be drawing interest except such amount as the disbursing agent needs for his current checking account. The present investments under this law are comprised of $2,008,755.15 in building and loan stock and $713,053.89 in real-estate mortgages. Most of the real-estate loans have become delinquent. Many have had to be foreclosed, leaving the Indians with unprofitable real estate and deficiency judgments which are uncollectible. The building and loan associations stopped paying dividends several years ago and only a few have resumed recently the small dividend rate. Some of the associations will cause the Indians an ultimate large loss of their principal, together with many years loss of any revenue therefrom. Section 3 of the proposed bill is an amendment of Section 17 of the act of May 25, 1918 (40 Stat. L. 561-579), which provides for the change or designation of homestead allotments of Osage Indians to an equal area of unencumbered surplus lands, the proposed amendment extending the tax-exempt privilege to purchased and inherited lands. After April 8, 1931 only homesteads of Indians of one-half or more Indian blood are exempt from taxation. Our records show the following homesteads and acreage which will be exempt: Number Acreage Allotted Indians of one-half or more Indian blood. 369 59, 589. 12 Undivided interests in homesteads exempt from taxation, owned by unallotted heirs or devisees... Total. 445 66,933. 56 The increasing difficulty of individual Indians to meet the tax burden on their lands and property is indicated graphically in the rapid exhaustion of their surplus funds as shown by the tabulation of individual accounts attached hereto. There is great need of extending this privilege of tax exemption on homestead lands to purchased and inherited lands with valuable improvements because of the danger of such improved lands being sold for taxes. Out of the 1,470,000 acres in the original reservation, all of which was prorated among 2,229 allottees under the act of June 28, 1906 (34 Stat. 539), there remained restricted on October 15, 1933, only 436,000 acres, of which only the above small percentage is now tax exempt, and this is being gradually depleted by the death of Indians holding same. There are already a number of Indians of one-half or more Indian blood who are unable to pay taxes on highly improved, purchased, or inherited land, which under the existing law cannot be exchanged for their tax-exempt land. Many of the Indians are living on and making use of this purchased or inherited land as homes, who, if their funds are depleted, will lose these properties through inability to pay taxes. Section 4 of the proposed bill provides for the repeal of section 3 of the act of March 2, 1929, which has to do with the payment of funds to Indians of less than one-half blood and issuance of certificates of competency to this class of Indians within 10 years from the date of the act. The Osage census records of April 1, 1934, show a total of 3,560 persons, divided as follows: Mixed bloods-Male, 1,517; female, 1,434. Full bloods-Male, 304; female, 305. The line of demarcation is one-half blood. One thousand one hundred and sixty-three certificates of competency have been issued; two certificates were cancelled and twenty-nine have been revoked to date. Approximately threefourths of the Indians are restricted in whole or in part. Some of this number, those less than half blood, who were allotted, had restrictions as to lands removed by the act of March 3, 1921, but restrictions as to funds continue. Unallotted Indians are restricted as to lands and funds under section 5 of the act of March 2, 1929. Section 5 provides that no administrator or executor of an estate of an Osage Indian of half or more Indian blood, or who does not have a certificate of competency at date of death, shall be appointed except on the written application or approval of the Secretary of the Interior. This section, if enacted, will give the same departmental supervision over estates and in connection with the appointment of administrators and executors as now exists in guardianship proceedings by virtue of section 1 of the 1925 act. This amendment will give the Osages the right to enjoy the privileges of a closer supervision by the Department now enjoyed by other tribes. Section 6, if enacted, will withdraw the payment to Osage County, Okla., of the additional sum equal to 1 percent of the amount received from the Osage Tribe of Indians as royalty from the production of oil and gas, which has been in force and effect since the passage of section 5 of the act of March 3, 1921. To date more than $1,000,000 has been paid under section 5 of the act of March 3, 1921, and it is highly discriminatory against the Osages, since such payment is in addition to the gross production tax and is chargeable against a particular class of people as distinguished from the general public, and is not made by any other tribe of Indians in the United States. The proposed legislation is in lieu of H. R. 9115, which was introduced into the Seventy-third Congress but did not pass. It will be to the best interests of the members of this tribe, and it is, therefore, recommended that it be enacted. 8. Repts., 74-1, vol. 1-55 Under date of March 22 the Director of the Budget advised that, insofar as the financial program if the President is concerned, there is no objection to the proposed legislation. Sincerely yours, HAROLD L. ICKES, Comparison of accounts of restricted Osage Indians as of January 1932 and December SIR: There is submitted herewith final draft of proposed legislation for the Osage Indians as agreed upon by the Osage Tribal Council. The following is report on SECTION 1 The first section of the draft provides First. For the decrease in quarterly payments to those Indians with less than a $10,000 balance, and for the expenditure of additional funds from the accumulated surplus under rules and regulations to be prescribed by the Secretary. Second. For payment of funds of minors to parents, legal guardians or persons, school or institution having actual custody of such minors, and for payment direct to minors when 18 years of age. Third. For payment of rentals, income from adults' investments, and interest on deposits Attached is statement of accounts of restricted Osage Indians showing the number of accounts of various amounts as of this date compared with the accounts in 1932. It will be observed that out of a total of 917 accounts at this time, of which 80 are estates, there are 594 of $10,000 and less, of which 317 are $1,000 and less. These balances will be reduced by the quarterly payment being made this month, because of the mandatory provision of the law providing that if the quarterly payment does not amount to $1,000 it must be supplemented from surplus funds. Unallotted Indians are paid $1,000 quarterly, if adults, as are allotted Indians; thus the balances of adult allotted and unallotted Indians are being exhausted with each quarterly payment. As an indication of the rapid exhaustion of the surplus funds of the Osage Indians, attention is called to the comparison between the present accounts and those of 3 years ago in the attached tabulation of accounts. The provision for the payment of funds of minors to parents, legal guardians, or persons or institutions having actual custody of such minors and for payment direct to minors when 18 years of age, is to place back in the law with additional liberality the provisions of the 1921 act. The income of many Osage minors is unusually small, and where they are not in the custody of the parent or parents disbursement must be through a guardian under the present law. This, of course, causes additional expense. We also have in schools and institutions minors whose parents cannot always be located, and whose conduct at times does not warrant the receipt of their children's income, and some method of payment to such institutions should be devised. We also have minors 18 years of age or over, whose incomes are exceptionally small and who do not have parents and the expense of a guardian is prohibitive, and the foregoing provision, if enacted, will permit the payment direct to them in the discretion of the Secretary of the Interior. The concluding provision of this section provides for the payment of rentals, income from adults' investments and interest on deposits in addition to the regular income, and broadens the present law to include in addition to regular payments interest on deposits. In other words, at the present time rentals and income from adults, investments are already paid to wards in addition to their regular payments. It is believed that it would not be improper to add thereto interest on deposits, since it seems to be the desire of practically all members of the tribe to be affected thereby. Respectfully, The COMMISSIONER OF INDIAN AFFAIRS, C. L. ELLIS, Acting Superintendent. OSAGE INDIAN AGENCY, Pawhuska, Okla., December 24, 1934. Washington, D. C. SIR: This has reference to the proposed legislation for the Osage Indians, and there is attached a copy of the final draft as agreed upon by the Osage Tribal Council. SECTION 2 The second provision of the proposed bill amends section 1 of the act of Congress of February 27, 1925, to read as follows: "Hereafter, the Secretary of the Interior in his official capacity may invest the accumulated funds to the credit of restricted members of the Osage Tribe, after paying taxes of such members, in United States bonds or other bonds guaranteed by the United States Government as to principal and interest. With the consent of adult Indians the Secretary of the Interior may purchase real estate and livestock, such expenditures and investments to be made under such rules and regulations as the Secretary may prescribe." The investments in real-estate loans, building and loan and other securities have caused so much loss in both interest and principal that the Osage Indians through their council wish to have the present law amended so that future investments shall be confined to Government securities and purchase of real estate and livestock. At the present time the disbursing agent has about $4,000,000 which is not drawing any interest by reason of the fact that same cannot be invested in Government bonds without the consent of the Indians. It if were permissible for the Secretary of the Interior, who holds this money in his official capacity, to invest the same in his official capacity in Government bonds without the consent of the Indians, all such moneys would be drawing interest except such amount as the disbursing agent needs for his current checking account. The present investments under this law are comprised of $2,008,785.15 in building and loan stock and $713,053.89 in real-estate mortgages. Most of the real-estate loans have become delinquent. Many have had to be foreclosed, leaving the Indians with unprofitable real estate and deficiency judgments which are uncollectible. The building and loan associations stopped paying dividends several years ago and only a few have resumed recently the small dividend rate. Some of the associations will cause the Indians an ultimate large loss of their principal, together with many years loss of any revenue therefrom. Respectfully, The COMMISSIONER OF INDIAN AFFAIRS, C. L. ELLIS, Acting Superintendent. OSAGE INDIAN AGENCY, Pawhuska, Okla., December 26, 1934. Washington, D. C. SIR: This has reference to the proposed legislation for the Osage Indians. There is submitted herewith copy of draft of legislation as finally agreed upon by the Osage Tribal Council. |