Approximately $48,000 is available for the construction of a spillway and drainage ditch to control the level of Lake Andes, S. Dak. This is contingent upon securing satisfactory guarantees from the State for the payment of one-half the cost of construction.

On the Pine River project in Colorado considerable progress has been made in clarifying the situation in regard to the interlocking rights and operation of the canal system and contracts have been entered into with several of the water users and ditch companies covering the payment of operation and maintenance charges.

Some progress has been made in the pending suit to define the rights of the respective parties in and to the waters of Gila River. A conference between the representatives of the defendants of this suit and the Government, represented by officials of the Department of Justice and this department, was held in Phoenix during the month of January for the purpose of reducing the amount of work involved in adjudication of the case by entering into stipulations agreeing to certain facts. While the representatives of both sides were unable to reach an agreement as to the stipulations, nevertheless it is believed a better understanding of the claims of the respective parties now exists by reason of this conference.

The development contemplated by the Salt River Valley Water Users' Association, involving hydroelectric power and utilization of the flood waters of the Verde River, has not yet been carried out. Under this proposed development as provided for in an agreement of June 19, 1929, the Indians of the Salt River Reservation may receive an adequate water supply to the extent of 6,310 acres. They have the right also to participate in the power development upon payment of the pro rata share of its cost. It is to be hoped that this development will be carried out at an early date as these Indians are in need of more water for the irrigation of their lands.

The severe drought that has been in evidence for the past several years in the Southwest has brought home more forcibly the need for additional water for these Indians. An agreement was reached with the Salt River Valley Water Users' Association under date of June 18, 1929, authorizing the association to operate three wells within the right of way of the reservation, upon condition that 500 acrefeet of water would be furnished free of charge for use of the Indians. A controversy arose over the action of the city of Phoenix in emptying its sewage into the Salt River above the irrigation heading of the Maricopa Indians in that river. The matter became so acute that direction was issued by the Department of Justice to institute legal action for the abatement of the nuisance. At a conference held in Phoenix with the city officials an agreement was reached resulting in the abatement of the nuisance and avoidance of litigation.

The Flathead irrigation district, comprising within its confines approximately 50 per cent of the lands of the Flathead irrigation project, Montana, executed an agreement with the United States on February 27, 1929, which made available funds for much-needed construction work and paved the way for a better understanding between the district landowners and the Government and for better success of that part of the contract. The other two districts, the Mission Valley and Jocko districts, have not yet entered into an agreement, with the result that they do not receive the benefits

under the legislation, though it is probable they may do so in the immediate future.

A contract was entered into between the Government and the Middle Rio Grande conservancy district, a political subdivision of the State of New Mexico, which provides for the irrigation, reclamation, conservation, and flood-control works for approximately 132,000 acres of land within the Middle Rio Grande Valley, including six pueblos, namely, Cochiti, Santo Domingo, San Felipe, Santa Ana, Sandia, and Isleta. This contract was executed December 14, 1928. The district is to finance its share of the cost of the work from funds derived from the sale of bonds. It is understood that bonds to the extent of $2,000,000, bearing 51⁄2 per cent interest, were sold at 87.5 during June, 1929, and that there is an option held by a bond investment company on $2,500,000 more of these bonds. Under the contract the Pueblo Indian lands are to pay for the work done for their benefits at not to exceed the per-acre amount to be paid by white land owners under the district, and in no event shall the Indian lands pay in excess of $67.50 per acre. The payments for and on behalf of the Indian lands are to be made out of reimbursable appropriations.

The adjudication suit involving the water rights of the Walker River Indian Reservation is still pending. The master appointed by the court in the case has been taking testimony, but the United States deems it necessary to secure additional hydrographic data in connection with the alleged excessive losses in the Walker River beginning at a point before it enters the reservation.

Suits have been filed for the collection of delinquent construction and operation and maintenance assessments against private landowners who acquired former Indian allotments on the Crow and Blackfeet projects in Montana, the Wind River project in Wyoming, and the West Okanogan project in Washington.

A suit was filed in the State courts by one H. H. Francis against C. J. Moody, project engineer of the Flathead project, to quiet title in and to waters of certain creeks within the Flathead irrigation project. It is understood that the jurisdiction of the State court. will be brought into question with a view to dismissing the litigation.

The principles of the Winters case (207 U. S. 564) dealing with water rights of the Indians were applied in a recent case entitled United States ex. rel. re U. S. Attorney v. Hibner et al., reported. in 27 Fed. (2d) 909–912.

OIL AND GAS LEASING

Within the Navajo Treaty Reservation, Ariz., a test well on the Rattlesnake structure was completed to a depth of 6,765 feet. This well has been reported to have an average daily production of about 750 barrels of 38 Baumé gravity. There are now 25 producing oil wells in the Navajo fields, a number of which were considerably pinched during a part of the year. The total production therefrom has yielded to the Navajo Tribe $115,595 for the year.

Discovery of oil in the vicinity of the Mount Pleasant Indian School, Michigan, has been reported. The yield is said to be about 48° gravity. There are a number of Indian allotments remaining

under restriction in this vicinity, which possibly may be leased and developed into available oil-producing lands.

Within the Ute Reservation, N. Mex., there are several good gas wells which have been closed because there was no market for gas, but negotiations are now in progress with the Mesa Grande Gas Co. for construction of a pipe line in order to market the gas in the city of Durango, Colo.

Five oil wells within the Crow Reservation, Mont., and a number of wells within ceded lands of the Shoshone Reservation, Wyo., remain closed. The oil from these fields is heavy in its crude state and of low gravity, and there are no pipe lines to the fields which afford the necessary outlet to a market.

Production from the Osage Reservation, Okla., during the year amounted to 16,629,116 barrels of oil, from which, including certain deferred bonus payments, an income of $7,441,940 was derived. There has been a noticeable lessening of production and receipts. from Osage oil and gas leases for several years and it appears that the high point has been reached and that these leases are now on the decline. Two public-auction sales of oil leases were held at Osage during the year, at which leases on 47,434 acres were sold. A provision was inserted in the leases, enabling the Secretary in his discretion to impose restrictions upon oil production when deemed necessary as a conservation measure and in conformance with similar restrictions imposed upon other wells in Oklahoma by State authority or agreement with operators.

A provision in the act approved March 2, 1929 (45 Stat. L. 1478), extends the trust period on the Osage lands, moneys, and other restricted properties until January 1, 1959. This act also amends the act of March 3, 1921, so as to give the Secretary more discretion in determining the acreage of Osage lands to be offered for leasing annually and provides that not less than 25,000 acres shall be offered for oil and gas mining purposes during any one year. Under the act of March 3, 1921, it was necessary to offer approximately 100,000 acres each year.

There was an increase in production from restricted lands of members of the Five Civilized Tribes, Oklahoma, over the production of the prior year, the total for the year being 27,698,850 barrels. The total income from leases of the lands of these tribes was $5,636,919.

QUAPAW LEAD AND ZINC MINING LANDS

The lands of the Quapaw Reservation, Okla., are rich in deposits of lead and zinc. The lands lie in what is known as the Tri-State lead and zinc mining district. Mining was first conducted within the reservation in 1902, and since 1917 the production of zinc-lead ore has increased enormously. During the year the mines of these Indians under departmental supervision produced 24 per cent of the lead and 32 per cent of the zinc output from the Tri-State district, and about 3.9 per cent of the lead and 14.2 per cent of the zinc output from ore mined in the United States. At the close of the fiscal year, there were 50 departmental lead and zinc mining leases in force, embracing 6,284 acres; and 44 subleases in force, covering 2,294 acres. From these leases 186,423 tons of lead and zinc concentrates were sold during the year for $8,809,442 and the royalties received therefrom for the Indians amounted to $848,219.

FIVE CIVILIZED TRIBES IN OKLAHOMA

The unsold coal and asphalt mineral deposits belonging to the Choctaw and Chickasaw Nations are valued at $9,254,829, and the other unsold remaining property is valued at $225,092. The amounts to be collected from the purchasers of Choctaw and Chickasaw tribal property heretofore sold aggregate $869,656.

The present tribal property of the Creek Nation is valued at $92,050 and that of the Seminole Nation at $250,000.

In the Cherokee Nation there remain a few unsold tracts of tribal property.

The Cherokee, Creek, and Seminole tribal lands, with the exception of a few tracts above mentioned, have been allotted, sold, or otherwise disposed of as provided by law, and the tribal affairs, with the exception of pending suits in the United States Court of Claims, are practically completed and closed.

Before the Choctaw and Chickasaw tribal affairs can be closed the above-mentioned tribal property of said nations must be sold or otherwise disposed of as provided by law and funds derived therefrom and from collection of the sums due from prior purchasers must be distributed per capita to the enrolled Choctaw and Chickasaw Indians entitled to share in the tribal funds or be otherwise paid out as provided by law and the pending suits of said nations in the United States Court of Claims must be closed.

Under certain jurisdictional acts passed by Congress in 1924 the Cherokee, Creek, Choctaw, and Chickasaw Nations have filed a number of suits against the United States in the Court of Claims in which suits, pending before said court, are set forth the demands of said Indian nations against the United States aggregating many millions of dollars.

There are approximately 12,000 enrolled Indians of the restricted class in the Five Civilized Tribes, of whom approximately 9,000 are full-bloods. The department has supervision and control over the restricted allotted lands and funds of these Indians. The present restricted allotted lands aggregate 1,663,115 acres.

The cashier for the Five Civilized Tribes Agency handled, during the year, a total of $41,701,248, including receipts and disbursements of all classes of funds. Collections of tribal funds amounted to $240,398 and there were credited to the individual Indian accounts individual Indian moneys totaling $14,080,029. During the fiscal year there was disbursed from the restricted individual Indian moneys the aggregate sum of $4,869,281 for the maintenance of the restricted. Indians and for their farms, buildings, livestock, and equipment. The total amount expended from individual Indian accounts for permanent improvements, including farms purchased, amounted to $856,175, and the amount expended for livestock and farming improvements was $131,833. These expenditures for the benefit of the individual restricted Indians were made under supervision of the field force of the Five Civilized Tribes Agency.

The office is informed that there are many first-class farmers among the Indians of the Five Civilized Tribes and that commendable comparative progress has been made in the education and competency of the restricted Indians. It is reported that in many instances the Indian farmers have benefited by the demonstration and results of

superior methods employed by white farmers in their neighborhood and desire better homes and more modern farming equipment. It is also reported that many of the younger generation are filling clerical and mechanical positions in the cities and towns of Oklahoma in competition with their white neighbors.

PROBATE ATTORNEYS, FIVE CIVILIZED TRIBES

The beneficial work heretofore performed by the probate attorneys in eastern Oklahoma, formerly Indian Territory, has continued to yield good results to restricted Indians of the Five Civilized Tribes and Quapaw Agencies. These attorneys advise and assist the Indians who are in need of guidance in business or legal matters and who seek their aid in matters relative to guardianship, administration of estates, transactions of various kinds concerning their inherited and restricted property, and advise them regarding the conservation and use of their restricted lands and funds. The Indians consult these attorneys who examine witnesses, prepare cases for the courts, and conduct these cases to final conclusion. The attorneys prepare leases and other legal instruments for the Indians, examine the validity of legal instruments submitted to them, and aid in placing minors in schools.

The entire amount of money actually saved by these attorneys to the Indians during the year can not be definitely stated in dollars, but it is known to be considerable. In the report for the prior year statistics were given showing the number of cases handled, amounts of money involved, and other data, but this need not be repeated as the work which has been accomplished is comparable with that of the preceding year.

PUEBLO LANDS BOARD

Mention was made in the report for the preceding year of the status of the work of this board established by the act of June 7, 1924, to quiet title to Pueblo lands in New Mexico.

During the year reports were submitted upon the pueblos of Isleta, Picuris, and San Juan.

The act of March 4, 1929 (45 Stat. L. 1638), appropriated $47,132.90 for Picuris, $7,684.50 of which amount is made available for the purchase of 118.567 acres of land for the use and benefit of these Indians. The amount appropriated is to repay them for damages sustained by reason of loss of land and water rights.

The board found that the pueblo of Isleta had sustained damages of the character indicated amounting to $3,218.21, and that the San Juan pueblo had suffered losses amounting to $29,090.53. Payment of the amounts due these pueblos will await appropriations by Congress.

PURCHASE OF SUPPLIES

Concerning procurement of supplies for the schools, agencies, and hospitals, fancy merchandise is not purchased nor required, but standard grades believed to be in every way satisfactory are bought for the service, for the Indian boys and girls, and dependent adults. The quality of the food supplies in many lines is the same as of that bought for other governmental branches. Difficulty has been experienced,