funds, lands, minerals, or timber of said Indians or band or bands thereof by the United States, or its officers or agents, * * *." [Italics supplied.] No objection is seen to the change as this language does not create any additional liability on the part of the United States but would merely permit the court to determine whether the United States is legally or equitably liable for waste or misappropriation of Indian property by its officers or agents.

Section 2 of the act of 1935 provides that suits may be filed within 5 years from the date of the act. Section 2 of H. R. 8502 would extend the time to 8 years, and would also permit the amendment of petitions to conform to the evidence at any time prior to argument of the case before the Court of Claims on its merits. I see no objection to these changes, particularly in the light of the opinion of the Supreme Court in United States v. Seminole Nation (299 U. S. 417).

Under section 3 of the act of 1935, contracts of these Indians with private attorneys to prosecute their tribal claims are to be approved by the Commissioner of Indian Affairs and the Secretary of the Interior, in accordance with existing law. Subsequent to the act of 1935, some of the bands of Chippewa Indians affected by the proposed litigation have adopted constitutions which have been approved by this Department. These constitutions specifically grant the power to employ attorneys, provided that the choice of attorneys and the fixing of fees must be approved by the Secretary of the Interior. H. R. 8502 would recognize the rights thus granted by providing that attorney contracts "on behalf of any tribe or band which has organized and adopted a constitution and bylaws pursuant to section 16 of the act of June 18, 1934 (48 Stat. 984), shall be executed and approved in conformity with the provisions of the constitution and bylaws of the tribe or band * * *" and that "contracts on behalf of any unorganized tribe or band shall be executed in conformity with the requirements of section 81, title 25, United States Code (Rev. Stat. sec. 2103)."

The act of 1935 provides that the fees of contract attorneys shall be on a quantum meruit basis not to exceed 5 percent of the amount of any recovery. The last sentence of section 3 of H. R. 8502 would raise the maximum to 10 percent. Ordinarily, I have no objection to 10 percent as a fair maximum, but I desire to call attention to the fact that contracts already made by some of the Chippewa Bands with attorneys under the act of 1935 provide for the 5 percent limitation on fees. The first sentence appearing in section 3 of H. R. 8502 provides that in no case shall the fee decreed by the Court of Claims be in excess of the amounts stipulated in the contracts, so that the 10-percent limitation in the last sentence of section 3 would not apply except to contracts which might be made in the future. In order that all contracts under the act might be uniform, I recommend that the following amendment be made to the present bill: Page 5, line 14 strike out "10" and insert in lieu thereof "5".

H. R. 8502 would eliminate section 4 of the act of 1935, regarding the disposition to be made of any money awarded to the Indians, and concerning the offsets of gratuities. It is believed that it would be well to retain section 4, particularly those provisions relating to the deposit and use of any money recovered. The proviso to section 4 of the act of 1935 is not essential as the offsetting of gratuities is already provided for in section 2 of the act of 1935 and in section 2 of H. R. 8502,

I recommend that H. R. 8502 be enacted. In reporting on S. 2060, a bill for the same purpose as H. R. 8502, the Acting Director of the Bureau of the Budget advised that there would be no objection to the presentation of our report to the committee "subject to any modifications you may desire to make therein upon consideration of the suggestions made by the Attorney General." The suggestions applicable to the present bill are

(a) The extension to 8 years of the 5-year statute of limitations is questioned because "The customary period of limitations fixed in most jurisdictional bills * * * is 5 years." The bill is a reenactment of the earlier bill and over 2 years have passed since the original act was passed. The 8-year period probably would be necessary to permit sufficient time to present the new cases.

*

(b) That the provision in lines 7-9, page 3, which would permit the amendment of petitions to conform to the evidence at any time prior to argument before the Court of Claims on the merits, "may possibly be construed to permit the bringing in of new claims after the expiration of the statute of limitations and thereby defeat its bar * *. Should any new claims develop under such circumstances, the Congress may by subsequent legislation permit their consideration by the court, if such action should appear merited." Tribal claims cannot always be definitely formulated until after the reports of the General Accounting Office and of this Department are filed, which sometimes occurs

several years after the date of filing of the original petition by the plaintiff tribe. The provision to allow amendment of petitions to conform to the evidence is for the purpose of permitting the adjudication of claims on their merits rather than dismissal solely on jurisdictional grounds.

Sincerely yours,

OSCAR L. CHAPMAN, Acting Secretary of the Interior.

In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, changes of the law made by the bill are shown as follows: Existing law proposed to be omitted is enclosed in black brackets; new matter is printed in italics; existing law in which no change is proposed is shown in roman.

That all claims of whatsoever nature which [the Chippewa Tribe or Bands of Indians of Wisconsin] any tribe or band of Chippewa Indians now residing in Wisconsin, or any tribe or band of Chippewa Indians heretofore a part of or affiliated with the Lake Superior Band of Chippewa Indians and now residing in Michigan or Minnesota, may have against the United States, which have not heretofore been determined by the Court of Claims [or the Supreme Court of the United States], may be submitted to the Court of Claims notwithstanding lapse of time or statutes of limitations with the right of appeal to the Supreme Court of the United States by either party, anything in the Judicial Code of the United States or amendments thereto to the contrary notwithstanding, for determination of the amount, if any, due said Indians from the United States under any treaties, agreements, Executive orders, or laws of Congress, or for the misappropriation or waste of any of the funds [or], lands, minerals, or timber of said Indians or band or bands thereof [,] by the United States, or its officers or agents, or for the failure of the United States to pay [said Indians] any money or deliver any other property due [;] said Indians; and jurisdiction is hereby conferred upon the Court of Claims, with the said right of either party to appeal, to hear and determine all legal and equitable claims, if any, of said Indians against the United States, and to enter judgment thereon.

SEC. 2. If any claim or claims be submitted to said courts, they shall settle the rights therein, both legal and equitable, of each and all of the parties thereto, notwithstanding lapse of time or statutes of limitations, and any payment which may have been made upon any claim so submitted shall not be pleaded as an estoppel, but may be pleaded as an offset in such suits or actions, and the United States shall be allowed credit for all sums heretofore paid or expended for the benefit of said Indians or any band thereof, including gratuities, and that laches shall not be pleaded as a defense thereto. The claim or claims of the [Chippewa Indians of Wisconsin] said Indians, or any band or bands thereof, may be presented separately or jointly by petition, subject, however, to amendment, to conform to the evidence at any time prior to argument before the Court of Claims of each such case on its merits, suit to be filed within [five] eight years after the passage of this Act; and such action shall make the petitioner or petitioners party plaintiff or plaintiffs and the United States party defendant, and any band or bands of said Indians or any other Indians or band of Indians the court may deem necessary to a final determination of such suit or suits may be joined therein as the court may order. Such petition, which shall be signed by the attorney or attorneys employed by said Indians or any bands thereof, [or by the State of Wisconsin in their behalf] shall set forth [all] the facts on which the claims for recovery are based and said petition shall be signed by the attorney or attorneys so employed, and no other verification shall be necessary. Official letters, papers, documents, and public records, or certified copies thereof, may be used in evidence, and the departments of the Government shall give to the attorney or attorneys of said Indians or bands thereof access to such treaties, papers, correspondence, or records as may be needed by the attorney or attorneys for said tribe or bands of Indians.

SEC. 3. Upon final determination of such suit, cause, or action, the Court of Claims shall decree such [fees] fee and necessary expenses as it shall find reasonable and proper to be paid to the attorney or attorneys employed therein by said tribe or bands of Indians under [contracts negotiated] contract executed and approved as [provided by existing law,] hereinafter provided, and in no case shall the fee decreed by said Court of Claims be in excess of the amounts stipulated in [the] said contracts [approved by the Commissioner of Indian Affairs and the Secretary of the Interior, and no]. Said contracts may be amended to conform to this Act. Such contract on behalf of any tribe or band which has organized and

adopted a constitution and bylaws pursuant to section 16 of the Act of June 18, 1934 (48 Stat. 984), shall be executed and approved in conformity with the provisions of the constitution and bylaws of the tribe or band. Contracts on behalf of any unorganized tribe or band shal be executed in conformity with the requirements of section 81, title 25, United States Code (Rev. Stat., sec. 2103). No attorney shall have [a] the right to represent the said Indians or any band thereof in any suit, cause, or action under the provisions of this Act until [said contract shall have been so approved:] he has been employed under a contract executed and approved as provided herein: Provided, That any attorney appearing for said Indians under any law of the State of Wisconsin authorizing him to prosecute such claims against the Federal Government shall not be required to file a contract of employment, and no compensation shall be allowed such attorney where he is [so] compensated by the State. [The] Said State shall be allowed out of any judgment recovered such necessary and proper expenses as the court may find to have been incurred by the attorney [so employed.] employed by said State. The fees decreed by the court to the attorney or attorneys [of record, except such as] employed by said Indians, except as shall be employed by the State, shall be paid out of any sum or sums recovered in such suits or actions, and no part of such fees shall be taken from any other money in the Treasury of the United States belonging to such tribe or bands of Indians in whose behalf the suit is brought: Provided further, That in no case shall the fees decreed by said court amount to more than [5] 10 per centum of the amount of the judgment recovered in such cause, to be paid only to contract attorneys. [, if employed. Should an attorney be employed by the State to assist in the prosecution of any suit filed hereunder the court shall determine the value of his services on a quantum meruit basis and such amount shall be withheld from the said 10 per centum and become available to said Indians as a part of said judgment.]

[SEC. 4. The net amount of any judgment recovered shall be placed in the Treasury of the United States to the credit of said Indians, and shall draw interest at the rate of 4 per centum per annum and shall be thereafter subject to appropriation by Congress for educational, health, industrial, and other purposes for the benefit of said Indians, including the purchase of lands and building of homes, and no part of said judgment shall be paid out in per capita payments to said Indians: Provided, That in making an award under this Act all gratuities paid said Indian tribe by the United States Government shall be offset against any judgment or award made to them.]

O

AMENDING THE NATIONAL DEFENSE ACT OF JUNE 3, 1916, AS AMENDED, BY REESTABLISHING THE REGULAR ARMY RESERVE

FEBRUARY 16, 1938.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. MAY, from the Committee on Military Affairs, submitted the following

REPORT

[To accompany H. R. 9359]

The Committee on Military Affairs, to whom was referred the bill (H. R. 9359) to amend the National Defense Act of June 3, 1916, as amended, by reestablishing the Regular Army Reserve, and for other purposes, having considered the same, submit the following report thereon with the recommendation that it do pass with the following amendments:

On page 2, line 2, after the word "person" strike out all language down to and including the word "Reserve," and insert in lieu thereof the following:

who has served in the Regular Army and who has been honorably discharged therefrom, and who is less than thirty-six years of age may, under regulations prescribed by the President, be enlisted in the Regular Army Reserve".

On page 3, line 1, after the word "receive" insert the following language: "a sum at the rate of".

On page 3, line 8, strike out the word "the" at the end of the line and insert in lieu thereof the word "an".

On page 3, line 9, strike out the comma and the word "if" after the word "emergency".

This measure proposes to reestablish the Regular Army Reserve, an element of the Army which was originally established under authority of section 2, act of August 24, 1912, and which was included in the National Defense Act, approved June 3, 1916.

Provision for this reserve was abolished after the World War when the National Defense Act was amended in 1920. At that time the authorized strength of the Regular Army was 280,000. There was also available in event of emergency a great reservoir of 4,000,000 trained war veterans. Under those conditions little need for the

Regular Army Reserve existed, and therefore section 30 of the National Defense Act was repealed.

Today the situation is entirely different. The potential Reserve of war veterans is no longer existent. Those men have passed the age when they could be used effectively. Moreover, the Regular Army itself is far short of the size authorized in 1920. Instead of 280,000 it has a strength of 165,000.

Limited to that strength, the Regular Army would, in emergency, encounter serious difficulty in carrying on its tasks. Its units are maintained in peacetime at a size below that necessary for active field service. For reasons of economy, some units, though needed for a balanced force in active operations, are entirely missing. During threatened or actual hostilities, units below strength would have to be filled up, and the missing elements created. Such a procedure would be time-consuming at a period when time is all-important. More serious even than this would be the result of weakening the Regular forces by the introduction of a great number of raw, untrained recruits just when the forces would be engaged in the most vital tasks of covering the mobilization of the Nation.

Either the Regular Army strength should be greatly increased, or a reserve should be provided for it. To be effective, the Reserve must have certain qualifications:

It must be available for active service in an emergency under the same conditions as the Regular Army.

Its members must have sufficient training, and must be in such physical condition that they can function in a tactical unit without delay for further training.

These qualifications are not possessed by any enlisted reserve forces now authorized. The existing Reserves are important elements in our scheme of national defense, but they cannot serve the purpose of a Regular Army Reserve.

This bill would permit the organization and maintenance of a reserve as a part of the Regular Army but available for use only in an emergency declared by the President. This reserve will be composed of former members of the Regular Army who have elected, on completion of their enlistments, to return to civil life. These young men, having had the Regular Army training will be eminently fitted for immediate reentry into the service if needed. During their service in the Reserve recall to active duty for training will not be necessary. Considering the normal separations from the service, based upon the present strength of the Regular Army, it is expected that approximately 18,000 men will enlist in this reserve force each year. In 4 years, therefore, a reserve will be built up of approximately 75,000 men. Having served in the Regular Army they will be able at a moment's notice to return and take their places alongside their former comrades, without any delay for individual training. The availability of this force of reservists will do much toward increasing the effectiveness of our Regular Army in an emergency.

The bill provides for a small retainer fee of $2 per month for each reservist, payable in quarterly installments. This fee shall become due and payable upon satisfactory report by the reservist of his home address to the prescribed military authorities. This retainer fee will serve to pay the reservist for the obligation he assumes; it will provide a sure and easy method of keeping a record of each man's address