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It does not appear that H. R. 562 would amend provisions of the Federal Trade Commission Act or any act or statute administered by this Commission, and the provisions of this bill would not affect the performance by this Commission of its duties. The proposed legislation, if enacted, would amend the Federal Food, Drug and Cosmetic Act and would be administered by the Food and Drug Administration. It is believed that this measure will contribute to a more orderly and exact relationship in export trade relations with foreign countries that have requirements and standards, particularly for drugs, which are different from the requirements and standards of this country. The Commission is, therefore, in favor of its enactment.

By direction of the Commission.
With kind personal regards, I am
Sincerely yours,

LOWELL B. MASON,
Acting Chairman.

APRIL 7, 1949.

N. B.: Pursuant to regulations, this report was submitted to the Bureau of the Budget on March 30, and on April 4, 1949, the Commission was informed by telephone that there would be no objection to the submission of the report to the committee LOWELL B. MASON, Acting Chairman.

CHANGES IN EXISTING LAW

In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as introduced, 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): FEDERAL FOOD, DRUG, AND COSMETIC ACT

SEC. 801.

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CHAPTER VIII-IMPORTS AND EXPORTS

(d) [A food, drug, device, or cosmetic intended for export shall not be deemed to be adulterated or misbranded under this Act if it (1) accords to the specifications of the foreign purchaser, (2) is not in conflict with the laws of the country to which it is intended for export, and (3) is labeled on the outside of the shipping package to show that it is intended for export. But if such article is sold or offered for sale in domestic commerce, this subsection shall not exempt it from any of the provisions of this Act.] No proceeding shall be instituted under section 302, 303, 01 304 based on an allegation that an article which has been produced for export is adulterated or misbran ed if

"(1) such article is labeled on the outside of the shipping package with the name and address of the foreign consignee or the words "For export";

"(2) such alleged adulteration or misbranding exists solely (A) by reason of the fact that such article is not labeled in the English lang ag. if it is labeled in the language of the country to which such article is intended for export, or (B) by reason of compliance with a requirement established by or pursuant to the law of such country, or (C) by reason of noncompliance with a quantitative requirement in any standard established or recognized by or under section 401, 501 (b). 506, or 507, if a different but corresponding requirement, with which such article complies, has been established or is recognized by or under the law of such country.

"(3) in cases referred to in subclause (B) or (C) of clause (2) of this subsection, the exporter, prior to the production of such article, obtains an authenticated copy of the currently applicable provisions of such law. or of such requirement, upon which the exporter relies; and

"(4) such exporter keeps such authenticated copy and makes it available for copying by any officer or employee of the agency on his request at any reasonable hour until three years after any export shipment is made to which such authenticated copy relates.

But if such article is sold or offered for sale in domestic commerce, this subsection shall not exempt it from any of the provisions of this Act.”

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1st Session

PROMOTING THE REHABILITATION OF THE SISSETON-WAHPETON
SIOUX TRIBE OF INDIANS AND BETTER UTILIZATION OF THE
RESOURCES OF THE SISSETON RESERVATION, 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. MORRIS, from the Committee on Public Lands, submitted the

following

REPORT

(To accompany H. R. 3765]

The Committee on Public Lands to whom was referred the bill (H. R. 3765) to promote the rehabilitation of the Sisseton-Wahpeton Sioux Tribe of Indians and better utilization of the resources of the Sisseton Reservation, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

Page 2, line 19: Following the comma after the word "appropriated", insert "as an addition to the sum authorized by the Act of June 18, 1934 (48 Stat. 986),".

Page 2, line 21: Strike out the figure "$500,000", and insert in lieu thereof the figure "$1,000,000".

Page 2, line 22: Strike out the word "such" and insert in lieu thereof the word "the".

Page 2, line 22: Following the word "regulations", insert the words "issued pursuant to that Act," and strike out the words "as he may prescribe,"

Page 3, line 7: Strike out the comma after the word "Act", and insert the words "and any other lands so acquired,".

Page 3, line 8: Strike out the words "and any other such lands,". Page 3, line 16: Following the comma after the word "released", insert the words "a patent in fee shall then be issued to the purchaser or his successors in interest,".

Page 3, line 18: Strike out the word "Not", and insert in lieu thereof the words "The Secretary of the Interior or his authorized representative may make grants, in total not".

Page 3, line 19: Strike out the words "may be used to make grants".

H. Repts., 81-1, vol. 4

-50

EXPLANATION OF THE BILL

The purpose of this bill is to assist the Sisseton-Wahpeton Sioux Tribe of Indians to become self-supporting and to provide a foundation upon which these Indians can engage in diversified economic activities.

The Sisseton-Wahpeton Indians are well-advanced culturally. They evolved the plan set forth in H. R. 3765 and it has the approval of the Bureau of Indian Affairs. Briefly, the plan provides that the tribe may acquire lands and then dispose of them to individual Indians on a long-term sales contract. The Federal Government would advance the money for purchasing the land and the Indians would repay the loan within 40 years.

The enactment of H. R. 3765 would permit the Secretary of the Interior to acquire for the tribe lands located within the Sisseton Indian Reservation. Title would be held in trust for the tribe. The present fractionated heirship method of distributing lands would be eliminated and the Indians would have an opportunity to acquire sufficient land with which to engage in farming.

The fractionated heirship method has resulted in the following inequitable distribution of land: 70 estates have 150 to 200 acres; 10 estates have 100 to 150 acres; 38 estates have 50 to 100 acres; 148 estates have 45 to 105 acres; 580 estates have 25 acres; and 246 estates have less than 10 acres. Each year the administrative problem becomes increasingly difficult. Probate fees often exceed the value of the land inherited by an individual Indian.

Approximately 400 families reside on the reservation. Substantially three-fourths of their annual income is derived from lease rentals and other unearned income. In 1944 (the last year on which figures are available) the total estimated income was $452,000. Approximately 100 families had incomes in excess of $1,500, and the remaining families had incomes of less than $500 annually.

This reservation is not affected by the Indian Reorganization Act since the Indians voted to exclude themselves from that act. For that reason none of the provisions respecting land purchase or use of the Reorganization Act apply.

H. R. 3765 offers the Sisseton-Wahpeton Tribe an opportunity to become self-supporting and remove themselves from Federal care. The Indians themselves desire to take such action and the Indian Bureau believes them to be capable of managing their own affairs.

Mr. T. N. Engdahl, the superintendent of the Sisseton Indian Reservation, has indicated that passage of this legislation will materially assist in the consolidation of heirship lands. He reports that in many instances land tracts are so broken up through inheritance proceedings that it is almost impossible for any one individual to make any constructive use of his share. Passage of H. R. 3765 will correct this situation by allowing the consolidation of lands in workable units which can be placed in the hands of individuals desiring to engage in agricultural activities.

Mr. Melvin Robertson, chairman of the Sisseton Tribal Council, and Mr. Abe Crawford, secretary of the same organization, testified that passage of this legislation will give members of their tribe an opportunity to become self-sufficient and self-supporting. Communications from individual members of the tribe, both on and off the res

ervation, indicate that H. R. 3765 has the wholehearted support of sincere and thinking Indians in the Sisseton area.

Passage of H. R. 3765 will bring about the eventual complete emancipation of the Sisseton-Wahpeton Tribes by allowing them to enter businesses of their own and assume their rightful place in a free society. Certain clarifying amendments have been made at the suggestion of the Department of the Interior. The initial loan of $500,000 has been increased to $1,000,000 inasmuch as the former figure is deemed inadequate for a land-purchase program.

Excerpts from the favorable report of the Department of Interior are as follows:

For the reasons given in the enclosed memorandum of information, I recommend the enactment of H. R. 3765 with the following amendments:

Sec. 3, line 19, after the comma following the word "appropriated" insert "as an addition to the sum authorized by the Act of June 18, 1934 (48 Stat. 986),”. Sec. 3, line 21, strike out $500,000 and insert "$1,000,000".

Sec. 3, line 22, strike out the word "such" and insert "the".

Sec. 3, line 22, after the word "regulations" insert "issued pursuant to that Act," and strike out the words "as he may prescribe.".

The amendments recommended in section 3 will permit appropriations made pursuant thereto to be handled and justified in conjunction with appropriations made under the authorization contained in the act of June 18, 1934 (48 Stat. 986). Although any appropriations made under the authorization in section 3 would be "earmarked" for loans to the Sisseton Tribe, the amendments will eliminate the necessity of establishing a separate loan fund on the books of the Treasury Department and the promulgation of special regulations, and will simplify the Department's accounting for the funds.

Sec. 4, line 7, strike out the comma after the word "Act" and insert "and any other lands".

Sec. 4, line 8, strike out the words "and any other such lands,".

Sec. 4, line 16, after the comina following the word "released" insert "a patent in fee shall then be issued to the purchaser or his successors in interest,". Sec. 5, line 18, strike out the word "Not" and insert "The Secretary of the Interior or his authorized representative may make grants, in total not". Sec. 5, line 19, strike the words "may be used to make grants".

MEMORANDUM OF INFORMATION

Relating to the proposed legislation which would promote the rehabilitation of the Sisseton-Wahpeton Tribe of Indians and better utilization of the resources of the Sisseton Reservation, and for other purposes.

The enrolled population of the Sisseton Reservation as of June 30, 1945, was 3,177, and 2,022 Indians resided on the reservation. In 1944, the total individual income was $452,000, of which $107,500 was earned and $344,500 unearned. The latter was derived mainly from lease rentals. The average income of 550 family groups on the reservation was $821, with 316 families having incomes of less than $500 annually; 83 had between $500 and $1,000; 49 between $1,000 and $1,500; 51 between $1,500 and $2,000; and 51 over $2,000.

The critical economic situation on this reservation is largely the result of past mistaken policies on the part of the Federal Government, over which the Indians had little control. Originally, the Sisseton Band was located in an area stretching from the junction of the Buffalo River with the Red River of the North, southward to the northern line of the State of Iowa. This area, by treaty in 1851, was reduced to an area stretching 10 miles on either side of the Minnesota River from Yellow Medicine River on the south, to Tchay-tam-bay River on the north. Better than half a million acres of this land was sold in 1858 at 30 cents an acre. In 1862, the Minnesota Massacre occurred, and because a few Sisseton Indians were involved, the entire band, numbering about 2,000, was forced to move westward and the United States abrogated its previous treaty commitments to the band. The treaty of February 19, 1867, restored the Sisseton Indians on a homeland at Lake Traverse, S. Dak., and Devils Lake, N. Dak., and, "in consideration of their destitution," Congress agreed "in its own discretion, from time to time,' to make such appropriations as might be deemed necessary to enable the Indians to return to the agricultural life which they had adopted prior to 1862. By 1872.

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