has also been receiving attention, and satisfactory progress is being made along that line, with the result that a considerable area both within the Indian reservation and on lands in white ownership is being served with water for irrigation purposes. The total acreage that will be eventually served will be 50,000 acres of lands within the Gila River Indian Reservation and 50,000 acres under white ownership outside the Indian reservation. Attention has also been given to the matter of readjusting the Indian allotments in order that each allottee, as nearly as practicable, may have a tract of land susceptible of irrigation from the San Carlos project.

Under the industrial branch of the service some 40,000 acres of the Pima Indian lands, not heretofore cleared and cultivated by the Indians, are being subjugated and necessary distributing systems constructed. This is being done with reimbursable funds appropriated by Congress to be repaid by the allottees over a long term of years. This procedure has been found necessary because of the fact that the Indians themselves are not able, situated as they now are, to finance the special machinery and organization necessary for the economical prosecution of the work if the land is to be placed under cultivation within a reasonable time after the water is available.

Within the Salt River Indian Reservation in Arizona further consideration has been given the matter of entering into an agreement between the United States and the Verde River irrigation and power district, and an agreement covering that matter was executed as of date June 30, 1930, thereby resulting in an adjustment of the Verde River situation, which has been under negotiation for a number of years.

Within the Yakima Reservation in Washington the various units have been in successful operation, including the Wapato Pumping Unit No. 1 recently completed. With a view to obtaining data for more efficient operation of this project, a soil survey under the direction of an expert from the Department of Agriculture has been in progress during the present year and will probably be completed within a few weeks. There has also been an investigation and report made by engineers of the irrigation service pertaining to the water supply of the Klickitat River and its tributaries with a view to diverting ultimately a portion of the water from that system to the Ahtanum and Toppenish-Simco irrigation units.

Within the Lummi Indian Reservation, under the Tulalip Agency, in the State of Washington, benefits are being derived by Indian lands and lands in white ownership included under the Lummi diking project, completed during the year 1929 at a cost of approximately $67,700 and reclaiming 4,418 acres of excellent land. Attention is now being given to adjustment of the reimbursement of the

cost, which is to be apportioned on a per-acre basis to the lands benefited in proportion to the amount of benefit actually received.

During the year there has been brought to final conclusion the leasing of the Flathead Indian Power site No. 1 in Montana, one of the largest hydroelectric power sites in the country. License was granted by the Federal Power Commission to the Rocky Mountain Power Co. for the development of power site No. 1 within the Flathead Reservation and work has already been commenced on construction of a transmission line from Thompson Falls and of the first unit, which when completed will have an installation of 150,000 horsepower. The eventual complete development of the five sites will produce more than 200,000 horsepower. No license has yet been awarded for sites 2, 3, 4, and 5. The present development will be of importance in connection with the Flathead Indian irrigation project. The several units of the Flathead project have been in successful operation and the Flathead irrigation district has recently executed a contract, thereby acquiring the status of an independent irrigation district. Construction of the irrigation system on the Flathead project was carried on extensively, including the building of the Kickinghorse Reservoir and the raising of the Tabor Dam and canal construction. There have also been pending a number of suits, involving water rights on lands belonging to numerous individuals within the Flathead irrigation project, which matter has been receiving the attention of the supervising engineer and the irrigation district attorney, in cooperation with the United States district attorney, in support of the claims of the Government.

Irrigation operations of the Blackfeet and Fort Peck Indian irrigation projects, Montana, have been satisfactorily conducted, it having been definitely determined to continue the Little Porcupine and Big Porcupine divisions and not to exceed 4,000 acres under the west side canal of the Poplar River division of the Fort Peck project. As to the Blackfeet project, the supervising engineer reports encouraging indications of reviving interest on the part of the land owners in the use of the irrigation system and it is anticipated that an increased crop acreage will be irrigated under that project during the present season. The Fort Hall irrigation project in Idaho has been successfully operated, and legislation is now pending in Congress with a view to further development of the Michaud unit, involving about 30,000 acres of lands susceptible of irrigation. On the Pine River irrigation project, within the Southern Ute Indian Reservation in Colorado, suit is still pending for the purpose of adjudicating the waters of the Pine River and its tributaries. While this suit has been standing for a number of years, encouraging reports have been received from the field officials indicating that a final settlement may be expected within the near future. The irrigation project has been in operation with satisfactory results and progress has continued in adjustment of local controversies by the execution of agreements with certain water users and ditch companies involved in the project. Pursuant to the provisions of the contract entered into between the Government and the Middle Rio Grande conservancy district, a political subdivision of the State of New Mexico, an engineer of the Indian irrigation service has been detailed to have supervision over the affairs of that undertaking in which the numerous Indian pueblos are involved. Progress is being made in the matter of obtaining the

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necessary rights of way across the Indian lands for the construction works and a diligent effort has been put forth on the part of officials in the field to explain to the Indians the purpose of this project and the benefits their lands will derive therefrom, with the result that the opposition earlier manifested by the Indians appears to have been reconciled.

Within the Navajo Reservation in Arizona and New Mexico over 100 new spring wells and reservoirs were developed during the year as a part of a water supply for improving the grazing range of the 40,000 Navajos.

On the Walker River irrigation project, involving lands within the Walker River Indian Reservation in Nevada, suit is pending for the adjudication of the waters of the Walker River and its tributaries. The limited supply of water available for irrigating the Indian lands during the latter part of the growing season has resulted in the loss of crops in many instances. This condition has naturally resulted in a reduction of the area farmed and such will continue to be the case until some adjustment has been made in regard to the water supply. In the event the contentions of this service should be sustained in the case now in court there should be an adequate water supply from the normal flow of the river to successfully mature the crops. On the other hand, if the contention is not sustained in court, the alternative will be the construction of a storage dam for the purpose of impounding flood water with which to irrigate the reservation lands.

In connection with the Indian irrigation service there were established on July 1, 1929, three positions designated as irrigation district attorney. Irrigation district attorneys have accordingly been appointed and are now in service as follows: For irrigation district No. 1, with headquarters at Yakima, Wash.; for irrigation district No. 2, with headquarters at Blackfoot, Idaho; for irrigation district No. 3, with headquarters at Billings, Mont. The services of these attorneys will materially further the administration of irrigation affairs through their assistance in the conduct of the legal matters arising in their respective districts.

The gross amount appropriated for water development and irrigation purposes for 1930 was $1,299,954.41 and for 1931 an increase of $145,486.59 was obtained. Expenditures from public funds on some Indian irrigation projects are supplemented by collections principally from white water users.

LITIGATION

Favorable decrees have been rendered in the following suits brought by the United States on behalf of Indians:

U. S. v. Hunter (U. S. C. C. A., 8th Circuit, 615 Law), holding that homesteads of deceased Osages, where the allottees and heirs are of one-half, or more, Osage blood and none had a certificate of competency, are not taxable. This applies also to devisees where title passed after February 27, 1925. Suit is now pending in the United States District Court, Northern District, Oklahoma, to recover taxes illegally assessed and paid (Eq. 550).

United States v. Snook et al. (U. S. District Court, District of South Dakota, Western Division, Eq. 111), canceling a fee patent

issued for an Indian allotment during the trust period without application by or consent of the allottee and declaring tax assessments and tax deeds void. It is expected that this decision will, in most cases, cause the counties in various States to settle the matter of taxes in similar cases out of court where like patents have been canceled by the department under authority of the act of February 26, 1927 (44 Stat. 1247). More than 250 of such patents have been canceled, and other cases are under consideration.

In United States v. Kitty Jackson (U. S. Supreme Court), it was held that Indian homesteads on the public domain acquired under the act of July 4, 1884 (23 Stat. 76), held under 25-year trust patents, are Indian allotments within the meaning of the act of June 21, 1906 (34 Stat. 326), authorizing extension of the trust period by the President.

Suit has been brought by the United States against J. Z. Wright et al (U. S. District Court, District of North Carolina), to set aside and declare void taxes assessed for the year 1926 and thereafter on lands held in trust by the United States for the benefit of the Eastern Band of Cherokees. The case has been heard and is under advisement by the court.

In United States v. Miller Bros. et al. (U. S. District Court, Western District of Oklahoma), 21 Indian allotments, or the value thereof, were recovered by the decree, but notice of appeal was filed.

A case is now being prepared for the purpose of final settlement of the question whether land purchased by this department with Indian trust funds, conveyed with restrictions against alienation or encumbrance and taxable prior to purchase, is exempt from taxation thereafter as an instrumentality of the Government.

The view of the department that proceedings in condemnation of Indian restricted lands for public purposes must be in the Federal courts and the United States a party defendant has been upheld by such courts. (City of Takoma, Washington v. United States et al., U. S. District Court, Western District of Washington.)

Suit has been directed by the Attorney General on recommendation of the department to set aside taxes illegally assessed against personal property of Osage Indians and is being prepared by the United States attorney, northern district of Oklahoma.

Suit is pending against the State of Washington to clear title to unallotted tribal tide lands in the Lummi Reservation, Wash.

The work of preparing evidence for institution of suits (or settlements otherwise made) to recover lands assessed and sold for taxes contrary to law and the cancellation of patents in fee issued during the trust period and without application or consent of the Indians is still progressing, and many such patents in fee have recently been canceled under authority of the act of Rebruary 26, 1927. (44 Stat. 1247.)

OIL, GAS, AND COAL PRODUCTION

Oil is being produced in commercial quantities from restricted Indian lands in four States, namely, Oklahoma, New Mexico, Wyoming, and Michigan. Several wells capable of producing oil in paying quantities have also been completed on the Crow Reservation in Montana, but there are no transportation connections with the

conservation policy no tribal lands are being leased for oil and gas mining purposes except where required by law on the Osage Reservation or where it is necessary to lease the lands in order to protect the tribe against damage resulting from the drainage of their lands through wells on adjacent lands.

Approximately one-third of the segregated coal and asphalt area belonging to the Choctaw and Chickasaw Tribes in Oklahoma, which originally contained 441,107 acres, was leased for coal mining purposes under the act of June 28, 1898 (30 Stat. L. 495), and the act of March 4, 1912 (37 Stat. L. 1007). A number of these leases are still in force. All of them will have expired by September 25, 1932. Under existing law there is no authority to make new leases within this area.

Field engineering problems and conservation matters in connection with operations in the production of minerals, including oil and gas, on restricted Indian lands are under field engineers of the Geological Survey, except within the Osage Reservation where the Indian service has its own petroleum experts and inspectors.

By act of May 26, 1930 (Public No. 264, 71st Cong.), the Secretary of the Interior is authorized to offer, in his discretion, the remaining tribal lands of the Choctaw and Chickasaw Tribes in Oklahoma for lease for oil and gas mining purposes through public competitive bidding.

Some interest has been shown in acquiring rights for unit operation of leases on Indian lands in the interest of conservation and more economical development, and recently a form of lease was approved by the department for use under a unit plan of operation and royalty pooling agreement for the development of a structure on the Yakima Indian Reservation, Wash.

QUAPAW LEAD AND ZINC MINING LANDS

The lands of the Quapaw Indians in Oklahoma, rich in lead and zinc deposits, are within what is known as the Tri-State lead and zinc mining district.

During the year the mining industry in the district passed through a considerable period of depression, and many mines were shut down for temporary periods of time. Nevertheless, the mines on the restricted Quapaw lands under departmental supervision produced 35 per cent of the lead and 25 per cent of the zinc output of the Tri-State district, and 3.9 per cent of the lead and 14.2 per cent of the zinc output of ore mined in the United States last year.

There are 50 approved lead and zinc mining leases in force, embracing 6,244 acres, and 43 subleases in force, covering 2,214 acres thereof. From these leases 144,805 tons of lead and zinc concentrates

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