Proceeds derived from any contract arrangement would be deposited in the Treasury to the credit of the appropriation from which the hospitalization or medical services are provided.

This bill was prompted by the critical situation existing at Winslow, Ariz., although similar circumstances prevail in many remote areas where the only hospital available is one operated by the Indian service. The town of Winslow is located in northern Arizona, adjacent to the Navajo Indian Reservation. Except for the Indian hospital, Winslow has only a small, private hospital which must close because of lack of funds. The town has endeavored to raise money to build its own hospital but has failed because of a sharp decline in population resulting from the closing of the railroad shops there.

The town's need for a general hospital is aggravated by the fact that Winslow is on a transcontinental highway on which numerous traffic accidents occur. A 50-bed hospital operated by the Indian service has had during the past year an average use of only 29 beds. Under existing regulations, the Indian hospital can accept emergency cases but must remove such patients as soon as they begin to recuper

ate.

This bill originally was introduced as H. R. 3635. Although the Department of the Interior favored the objectives of H. R. 3635, it felt that different language should be prepared. The language of H. R. 4815 has the approval of the Department and of the Bureau of the Budget.

Following are pertinent comments from the Department's report of April 29, 1949, on H. R. 3635.

avor the objective sought to be accomplished by H. R. 3635, but for the reasons hereinafter stated I believe that it should be accomplished in a somewhat different manner A substitute draft of the bill is attached and I recommend its enactment.

The Bureau of Indian Affairs operates 62 hospitals in the United States and 8 in Alaska. These hospitals are widely dispersed and, for the most part, are located in remote, sparsely settled areas. Many of these hospitals are the only facilities available in the communities in which they are located, which in some instances have a mixed Indian and non-Indian population. In these circumstances, it works a particularly great hardship on non-Indians who have to travel long distances to the nearest nongovernmental hospital. Many beds are often empty in the small Indian hospitals and because of the overhead and the staff required, the cost of operation to the Federal Government is very high. If the beds excess to the needs of the Indians could be occupied on a pay basis by non-Indians, it would reduce the net cost to the Government and make available a badly needed service to the non-Indian population On the other hand, in communities where the number of Indians requiring medical services is small, the administration of Indian hospitals by State, Territorial, or private agencies would also be a more economica method of satisfying Indian needs

One of the most serious problems in turnishing acceptable health services to the Indians is the difficulty of recruiting qualified physicians and nurses to work in the isolated and sparsely settled areas in which they often reside If the hospital served the entire community in such areas rather than only one segment of the community, physicians would have greater incentive to practice in these areas They would see a greater variety of patients and would have opportunity to increase their income through private practice while serving the Indians on a part-time basis under contracts made with this Department rather than as parttime employees of this Department

H. R. 3635 is in the form of a series of amendments to the Johnson-O'Malley Act of April 16, 1934 (48 Stat 596), as amended (25 U. S. C. 1946 ed., sec. 452-55). The purpose of this act was to secure certain social services for Indians from agencies outside this Department. The underlying purpose of H. R. 3635 is, on the other hand. to make available to non-Indians facilities of this Department designed originally for rendering services to Indians, and it is, moreover, much

more limited in scope, since it deals only with the rendering of medical services. This is the reason for this Department's belief that the objective of the bill could be accomplished better by means of independent legislation.

On June 1, 1949, Under Secretary of the Interior Chapman expressed his approval of H. R. 4815 in the following letter:

Mr. J. HARDIN PETERSON,

DEPARTMENT OF THE INTERIOR,

Chairman, Committee on Public Lands,

OFFICE OF THE SECRETARY,
Washington 25, D. C., June 1, 1949.

House of Representatives.

MY DEAR MR. PETERSON: At 9:30 a. m., May 24, 1949, the Bureau of Indian Affairs appeared before the Committee on Public Lands to offer a substitute to H. R. 3635. The proposed substitute was discussed aud cleared in the Bureau of Indian Affairs, Department of the Interior, Bureau of the Budget, and with Congressman Harold A. Patten of Arizona. H. R. 4815, the substitute bill introduced by Mr. Patten on May 23, 1949, is more specific and gives greater details as to the actual requirements to make the maximum use of Indian Service hospitals and facilities and provide better medical and hospital services to the Indians in remote

areas.

In addition, it also provides for the Secretary of the Interior to enter into contracts with physicians duly licensed by any State or Territory without requiring them to become part-time employees of the Federal Government; it better provides for the protection of the Indian patient in the hospital and other facility. it specifically sets out the general procedure for disposition of funds received from non-Indians who are hospitalized in Indian Service hospitals where beds are not being used for Indians. These changes embodied in the substitute bill are believed by all those consulted better to express the intent of the Department, Bureau of Indian Affairs, and Congressman Patten.

Sincerely yours,

OSCAR L. CHAPMAN, Under Secretary of the Interior.

The Committee on Public Lands unanimously recommend that H. R. 4815 be enacted.

AUTHORIZING A PROJECT FOR THE REHABILITATION OF CERTAIN WORKS OF THE FORT SUMNER IRRIGATION DISTRICT IN NEW MEXICO, AND FOR OTHER PURPOSES

JUNE 14, 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. MILES, from the Committee on Public Lands, submitted the

following

REPORT

[To accompany S. 276]

The Committee on Public Lands, to whom was referred the bill (S. 276) authorizing a project for the rehabilitation of certain works of the Fort Sumner irrigation district in New Mexico, and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

EXPLANATION OF THE BILL

This bill authorizes the Secretary of the Interior to rehabilitate, operate, and maintain, in accordance with the Federal reclamation laws, the irrigation system of the Fort Sumner irrigation district in New Mexico.

From

Approximately 6,500 acres of land lie within the Fort Sumner irrigation district, which was settled nearly 40 years ago by pioneers who organized the district through their own efforts and resources. time to time the district farmers have had to rehabilitate the dam on the Pecos River which diverts water for their irrigation purposes, but never have the residents been able to raise sufficient money to build the kind of diversion dam which would withstand the river's heavy seasonal floods

An acute emergency exists due to the fact that the dam has broken and has been repaired with an earthen fill. A big flood undoubtedly will cause the dam to go out completely, leaving the farmers without water. They have already lost some lands which cannot be irrigated at this time because of the impaired condition of the dam. Either the farmers in the district must be given immediate assistance by

outside rehabilitation of the dam, or the dam will be lost and the farms destroyed from lack of water.

The cost of rehabilitating the dam will be reimbursable to the Government and will be repaid in full by the residents of the district. This bill is identical to H. R. 3834 of the Eightieth Congress which passed the House on July 21, 1947. At hearings held at that time, representatives of the Bureau of Reclamation strongly urged the enactment of such legislation, stating that rehabilitation of the project is essential to the continuing function of this existing irrigation development in which the local residents have made such a splendid effort to maintain their project and to meet their financial obligations. S. 276 has the approval of the Department of the Interior. Pertinent comments from the Department's report to the Senate Committee on Interior and Insular Affairs are set forth below:

The purpose of S. 276 is to authorize, as a Federal reclamation project, the rehabilitation and reconstruction of the Fort Sumner irrigation district in New Mexico. This district contains about 8,000 acres of land held in about 137 ownerships. Of these 8,000 acres, 5,000 have been irrigated in recent years and about 6,500 would be irrigated if the plan contemplated by S. 276 were put into effect. Irrigation farming is thoroughly familiar to the residents of the area. It has been practiced there intermittently for more than 80 years and, in spite of difficulties arising out of repeated failures of an essential diversion dam continuously for the last 40 years.

While the Congress, in the Second Deficiency Appropriation Act, 1948, made available the sum of $60,000 "for the purpose of aiding and assisting the Fort Sumner irrigation district in New Mexico to protect its diversion dam and the existing works of said irrigation district from flood damage, in the event the Secretary of the Interior determines that flood damage is or appears to be imminent," the complete rehabilitation of the project will require much larger sums than this and a much broader authorization. The Bureau of Reclamation has estimated that, in terms of 1946 prices, the work necessary to accomplish the purposes of S. 276 could be done for approximately $1,800,000 This work includes the construction of a completely new concrete diversion dam. the rehabilitation and enlargement of the present canal system, the installation of an adequate pumping plant, and the rehabilitation and extension of the drainage system.

In terms of 1939-44 prices, the crops which are presently being raised in the project area yield a gross return of $46.25 per acre. Rehabilitation of the project providing for the cropping of 1,500 acres not recently under cultivation in the district and permitting changes in the acreage devoted to certain crops which local interests believe would occur if a firm supply of water were assured, would raise the average gross return for the total of 6.500 acres to $65.50. also on the basis of 1939-44 crop prices.

Annual operation and maintenance expenses are estimated at $3.30 per acre in terms of 1939-44 prices. Local interests have indicated a willingness to pay and the Bureau of Reclamation has found that they are able to pay, construction charges amounting to $4 per acre over and above operation and maintenance expenses. Since the project will embrace approximately 6.500 acres the annual repayment of construction charges will amount to $26,000

One important condition precedent to the undertaking which this bill proposes is an adjustment of the outstanding indebtedness of the Fort Sumner irrigation district. As of February 1, 1949, all of the district's outstanding bonds in the amount of $66,500 were held by the Reconstruction Finance Corporation I am advised that the district has recently applied to the Reconstruction Finance Corporation for permission to retire $13,000 of these bonds and has funds available for this purpose. I am also advised that the district expects to pay off the balance of the bonds within the next 3 or 4 years; that is, by the time construction of the project is completed if authorization to undertake this work and appropriations therefor are granted at this session of the Congress. S. 276 contains a provision which will make such an adjustment of the outstanding indebtedness as the Secretary of the Interior finds necessary in order to insure the financial success of the project, a condition precedent to undertaking the work which would be authorized by enactment of the bill.