Under the plan, as corrected by the court, the bonds of the Choctaw & Memphis, maturing in 1949, remained undisturbed. Under the consummation order and final decree of December 30, 1947, the plan provisions were carried out, and the properties of the C., O. & G. were transferred to the reorganized Rock Island, and the mortgage of the C., O. & G. was satisfied, canceled and released.

The consummation order also authorized the reorganization managers to cause the dissolution of certain subsidiaries of the Rock Island, in accordance with applicable State laws, but such authorization did not include the C., O. & G. The records do not disclose the reasons why the C., O. & G. was not included with other subsidiaries which were to be dissolved in the consummation order. The C., O. & G. is located in Tennessee, Arkansas, and Oklahoma. The C., O. & G. has been making annual reports and paying franchise taxes in Arkansas, but not in the other two States. Under the Arkansas corporate franchise tax law, all corporations that have once been granted authority to do business in Arkansas are liable for franchise tax report and tax based thereon each year so long as the corporation retains such privilege or authority.

Such privilege or authority is considered as retained or enjoyed by the corporation until such privilege or authority granted by the State has been canceled by proper proceedings on the part of the State, or by expiration of time for which the privilege or authority was granted, or until the corporation has filed with the secretary of state, or such other department as originally issued the corporate charter or certificate of authority. the resolution of dissolution or withdrawal as contemplated by law.

Although it is apparent that the C., O. & G. has been divested of all of its assets and is no longer doing business in Arkansas, said corporation retains or enjoys the privilege or authority to do business in Arkansas, since no resolution of withdrawal, or other document authorizing the cancellation of its privilege or authority, has been officially filed with the secretary of state of Arkansas.

In view of the above, the Arkansas Public Service Commission will be legally bound to demand of the C., O. & G. a franchise-tax report and taxes based thereon each year until its privilege or authority has been canceled. On failure or refusal to file report and pay tax, the matter must be certified to the attorney general of the State, whose statutory duty it will then be to institute proceedings for collection of tax and cancellation of authority, all of which, in the instant case, would appear to be useless expense on the part of the State.

The C., O. & G. has, for the past 8 years (1940-47 inclusive), paid franchise taxes to the State of Arkansas. Since the C., O. & G. now has no money or other assets of any description, the State will be unable to collect any franchise taxes. This will in reality represent no loss to Arkansas because the franchise tax of the Rock Island will be proportionately larger than when there was a split between the two companies. There will be no real burden on anyone if the corporation is not dissolved, except that it would relieve the State of Arkansas to remove the C., O. & G. from its books as a delinquent corporation. Furthermore, the Federal Government has no interest in keeping alive the charter of a corporation no longer in business as a separate entity.

O

80TH CONGRESS 2d Session

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SENATE

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REPORT No. 1488

ENFORCEMENT OF PENAL LAWS OF THE STATES OF NORTH AND SOUTH DAKOTA ON THE STANDING ROCK INDIAN RESERVATION

JUNE 4 (legislative day, JUNE 1), 1948.-Ordered to be printed

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

REPORT

[To accompany S. 543)

The Committee on Interior and Insular Affairs, to whom was referred the bill (S. 543) to confer jurisdiction on the States of North Dakota and South Dakota over offenses committed by or against Indians on the Standing Rock Indian Reservation, having considered the same, report thereon with the recommendation that it do pass without amendment.

The Standing Rock Indian Reservation is situated in the States of North Dakota and South Dakota. If this bill is enacted these States will have jurisdiction over offenses committed by Indians on this

reservation.

This bill follows the language of the act of June 8, 1940 (54 Stat. 249), which conferred on the State of Kansas criminal jurisdiction over the four Indian reservations in that State. Reports received are to the effect that the act is working very satisfactorily in Kansas. The bill is also similar to the act of May 31, 1946 (60 Stat. 229), which conferred on the State of North Dakota criminal jurisdiction over the Devils Lake Indian Reservation. That act is also working satisfactorily. Furthermore, there has never been more than a nominal Federal appropriation for enforcement of liquor laws in addition to the so-called Indian courts. Although it may be argued that the so-called Indian judges should be continued, and that Indians should continue to be dealt with in accordance with Indian customs, nevertheless it must be recognized that in most, if not all, Indian communities, the Indians know what is and should be expected of them as to law observance. It would seem, therefore, that the time has come for Indians to be brought into conformity with the penal standards of the communities of which they form a part. This is all the more the case now because of the results increasingly in evidence

of the educational, health, and industrial work done by the Government for their benefit, and the fact that practically all of them by now understand and speak the English language.

As evidenced by a copy of a resolution, which is attached to the Secretary of the Interior's report on this bill, purported to have been adopted by a so-called business council consisting of 15 members of the Standing Rock Reservation, indicated that the resolution was adopted by the affirmation vote of 13 members, 2 negative votes. The resolution indicates that the meeting of the business council at which said resolution was adopted was requested by the Indian Office and your committee has no information as to what influence, if any, was exerted by the Indian Office officials, for or against such a resolution. Your committee is not persuaded or influenced by such a pro

cedure.

A copy of the Secretary of the Interior's report, dated June 10, 1947, is attached hereto and made a part of this report, as follows:

Hon. HUGH BUTLER,

THE SECRETARY OF THE INTERIOR,
Washington, June 10, 1947.

Chairman, Committee on Public Lands, United States Senate.

MY DEAR SENATOR BUTLER: This will refer to your request for a report on S. 543, a bill to confer jurisdiction on the States of North Dakota and South Dakota over offenses committed by or against Indians on the Standing Rock Indina Reservation.

I recommend enactment of this bill, provided that it is amended as suggested below.

A copy of the bill was sent to the superintendent of the Standing Rock Indian Agency with instructions to refer it to the Standing Rock Indian Tribal Council, to ascertain its views. On March 10, 1947, the tribal business council passed a resolution stating that it favors Senate bill 543 and respectfully urges its passage by the Congress of the United States. A copy of the resolution is enclosed.

While S. 543 is similar to legislation relating to the Indians in Kansas, which legislation was enacted with the approval of this Department (see act of June 8, 1940, 54 Stat. 249, 25 U. S. C., sec. 217a), there the transfer of jurisdiction was already an accomplished fact needing only legal ratification. Moreover, the situation at Standing Rock is peculiar in that the reservation lies within two States. For this reason, and since the proposed transfer of jurisdiction would vitally affect the lives and welfare of the entire membership of the tribe, it is my belief that the wishes of the tribal membership should be ascertained through a tribal referendum. I recommend, therefore, the addition of the following language:

"SEC. 2. This Act shall become effective thirty days after a tribal referendum, to be called by the Secretary of the Interior, in which two-thirds of the votes cast shall be in favor of the application of this Act to the reservation: Provided, That the total number of votes cast in the referendum shall be not less than 30 per centum of the total of the eligible Indian voters as established by the tribal census roll.'

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

Sincerely yours,

OSCAR L. CHAPMAN, Acting Secretary of the Interior.

RESOLUTION Of the Governing Body of tHE STANDING ROCK SIOUX
TRIBE, AN UNINCORPORATED TRIBE OF INDIANS

Whereas this tribe is an unincorporated tribe of Indians but has the privilege of making resolutions pertaining to the general welfare of the tribe; and

Whereas this council has been requested by the Indian Office to go on record by formal resolution concerning Senate bill 543 to confer jurisdiction on the States of North and South Dakota over offenses committed by or against Indians on the Standing Rock Reservation: Therefore be it

Resolved, That the Standing Rock Tribal Business Council in council assembled hereby reaffirm their previous stand that they favor Senate bill 543 and respectfully urge its passage by the Congress of the United States.

CERTIFICATION

I, the undersigned, as secretary of the Standing Rock Tribal Business Council of the Standing Rock Sioux Tribe, hereby certify that the tribal council is composed of 15 members, of whom 15, constituting a quorum, were present at a meeting thereof duly and regularly called, noticed, convened, and held on the 10th day of March 1947; that the foregoing resolution was duly adopted at such meeting by the affirmative vote of 13 members, 2 negative votes; and that said resolution has not been rescinded or amended in any way.

Dated this 10th day of March 1947.

JOHN GATES,

Secretary of the Standing Rock Tribal Business Council of the Standing Rock Sioux Tribe.