OPA

The Department of the Interior announced today that it has no objection to statutory postponement of the deadline for termination of Federal trust supervision over the property and affairs of the Menominee Indian Tribe of Wisconsin beyond the presently scheduled date of December 31, 1960.

In presenting its views on four pending congressional bills that affect the Menominee termination program, the Department recommended that they be combined into one and suggested important amendments in each. The bills are H. R. 11813, H. R. 11476, H. R. 10450, and H. R. 10451. They deal respectively with the terminal date, a proposed authorization for Federal loans to the Tribe after termination, Federal reimbursement to the Tribe for its termination expenditures, and tax exemption for stock certificates to be issued by a tribal corporation.

In commenting on the terminal date proposal, the Department emphasized its desire to do everything possible to assure the success of the Menominee termination program.

“If after considering all of the facts and after hearing from the Tribe and other interested parties Congress feels that a postponement is desirable,” the Department's report said, “then we would have no objection if Congress should fix a new termination date, which we feel should not be later than July 1, 1961. The date should not be left for determination by the Secretary, because experience clearly shows that without a firm statutory date the Tribe will in all probability not complete the actions necessary to put the termination plan into effect.”

With reference to the loan legislation, H. R. 11476, the Department recommended that it be given authority to make post-termination loans, if necessary, to a tribal corporation for the purpose of expanding and modernizing the Tribe's sawmill and other business operations. The Department's report, however, recommended substantial amendment of the pending bill to provide (1) that Federal loans could be made only if commercial credit is not available on reasonable terms, (2) that interest rates should be sufficient to cover the Government's cost of borrowing money plus the costs of administration, and (3) that after a loan has been made by the Department it could be transferred to another Federal agency or private credit agency for administration and collection.

Commenting on H. R. 10450, the Department pointed out that under present law Federal reimbursement of the Tribe's termination expenses is limited to cover all which were incurred before July 2, 1958 plus half of those incurred after that date, or $275,000, whichever is lesser. The Department advocated liberalizing this formula to provide for full reimbursement up to a maximum of $500,000.

In its comments on the documentary stamp tax, the Department stressed that under all the termination laws so far enacted by Congress the distribution of tribal assets to tribal members is made exempt from Federal and state income taxes. In the Menominee case, however, the situation is complicated because the Tribe plans to establish a corporation under State law and issue stock and debentures to the tribal members. Issuance of these certificates would be taxable under the Internal Revenue Code and the taxes might amount to as much as $165,000. In its report the Department expressed the opinion that Congress clearly intended to make the distribution of Menominee tribal assets tax-exempt and that the failure to mention documentary stamp taxes along with income taxes in the original termination law was inadvertent.

"Under the legislation we are recommending," the Department said, "the Government will have to reimburse the tribe for all termination expenses, including the documentary stamp tax if paid by the tribe. The choice, therefore, is either to exempt the tribe from payment of the documentary stamp tax, or to impose the tax and use Federal money to pay it. We urge that tax exemption be provided. “

To safeguard against a possible hiatus in the termination program, the Department recommended a provision authorizing the Secretary of the Interior to step in and act on behalf of the Tribe if the Tribe should fail to take all of the actions necessary to complete the termination plan before the scheduled date. Under present law, it was pointed out, the tribal corporation can be organized and tribal property transferred to it only after voting trustees have been selected or approved by the General Council of the Tribe. In view of the great difficulty that has been experienced in getting a quorum to attend the General council meetings, it is possible that these actions may be taken before the scheduled date. Under the Department's proposal the Secretary would have the authority under such circumstances to establish a tribal corporation and transfer the property to it after giving the Tribe 20 days' notice of intention.

Acting Secretary of the Interior Hatfield Chilson today expressed the Department’s opposition to the so-called “Four States" Indian bills.

He said the three identical bills, S.574, H. R. 3362 and H. R. 3634, would make the Federal Government financially responsible for a multitude of services which rightfully should be provided by the States.

Moreover, it would extend special Federal responsibility to include a great number of additional persons, some of them not even necessarily Indians, he said.

Enactment of the bills would burden the Federal Government with full cost for services to Indians in the four States singled out for preferential status-- Wisconsin, Minnesota, and North and South Dakota--the Acting Secretary pointed out in reports on the bills. The reports were sent to Senator James E. Murray, chairman of the Senate Interior Committee, and to Rep. Clair Engle, chairman of the House Interior Committee.

Mr. Chilson said there is "no sound basis for establishing for those four States rules that are different from the rules applicable to other States with Indian populations.”

Enactment of the bills would be "a complete reversal of the policy that has been in effect for many years," he said.

The bills would make the Federal Government responsible in the four States for paying the full costs, including administrative costs, of services which have been and are now being provided to Indians by both Federal and State Governments on a cost-sharing basis.

"With respect to the class of Indians who should be eligible to some, but not necessarily exclusive, Federal aid in the fields of Indian education, health, agricultural assistance, relief of distress and social welfare aid we believe that the class should be restricted in general to Indians who live on tax exempt land, which is the situation today," Acting Secretary Chilson said. "Indians who live elsewhere should participate in State programs on the same basis that non-Indians participate in them."

He said that for years Federal policy has been to encourage assimilation of Indians into state and community life in a manner permitting equal participation with others in community responsibility and services. A reversal of the policy would be most unfortunate, he added.

The bills would immediately set apart as a special racial class all those Indians who have made the successful transition into the main stream of American life, Acting Secretary Chilson declared. “A restriction of this nature is not imposed on any other group of citizens, and it is repugnant to the principles of democracy," he said.

He said the bills would designate as Indians many persons who have never been identified as Indians eligible for Federal services.

"For example, a roll for the distribution of a judgment of the Court of Claims or the Indian Claims Commission contains the names of persons who are listed, not as Indians, but merely as descendants of persons who were members of an Indian tribe 100 years ago.

"The tribe has long since ceased to exist, and the descendants of the tribal members have not been associated with or identified as Indians for nearly as long. They would, however, be designated as Indians for the purpose of these bills.

"Another example is the census records of Indian tribes which captain the names of many persons who are not tribal members but appear on the list because it is a census rather than a membership roll. Many of such persons are not even citizens of the United states but are in fact Indian nationals of Canada residing in the United States on the basis of a treaty of law affording freedom of entry into the United States. Under these bills these persons would be designated as Indians entitled to special Federal services."

The State has the basic constitutional responsibility for services furnished by a State to Indians residing on tax exempt land, he said. The tax exemption's effect upon the revenue of the State or local agency providing the service should be the primary factor in determining Federal contribution, he continued.

"The Federal Government should not pay the full cost of the State service merely because the service is for Indians, regardless of the source of revenue used by the State or local agency to provide the service," he said.

“Such action would transfer to the Federal Government responsibilities traditionally held by the States solely because of the ethnic origin of the particular citizens involved.

“In our opinion, Federal contributions to the cost of State services to State citizens should not be based upon the ethnic origin of the group, but should be based upon the peculiar circumstances that impose a hardship on the State--in this instance the residence of the group on tax exempt land.

“It should be recognized, however, that not all State revenue is derived from real estate taxes, and that the Indians are subject to the payment of all other forms of taxes.

"To the extent a State service is financed from such other tax revenues, there is no justification for requiring the Federal Government to pay the full cost of the service merely because the recipient of the service is a citizen of the United States of Indian ancestry."

Enactment of the bills would require great increases in annual appropriations and a large increase in administrative personnel, he concluded.

The Department of the Interior today announced tl1e award of a $120, 528.52 contract for the construction of irrigation and drainage facilities on the Cabazon Indian Reservation in Coachella Valley, Riverside County, California.

The contract covers the installation of 19,684 feet of irrigation pipe and related control structures as well as 12,953 feet of main drainage lines. This work is designed to provide for the irrigation and drainage of Indian lands within the Coachella Valley County Water District under terms of a 1958 agreement between the District and the Department of the Interior. The Cabazon Reservation has about 1,890 acres of Indian land to be benefited by the irrigation waters from the All-American Canal which flows through the District.

After construction, the works will be operated and maintained by the District. The successful low bidder has the Kimbo Company of Coachella, California. One higher bid of $122,079.33 was received.

Commissioner of Indian Affairs Glenn L. Emmons announced today that he has accepted “with regrets’ the resignation of William R. Olsen, effective May 12, as Area Director of the Interior Department’s Indian Bureau at Juneau, Alaska.

Mr. Olsen, who leaves the Bureau to enter private business, has been in charge of the Bureau’s Alaskan operations since February, 1954. He was born at Loring, Alaska, in 1920 and has spent his whole life in the Territory. Prior to his appointment as Area Director, he spent eight years in private law practice and served a six-month term as municipal judge of the city of Anchorage. During this same period from 1046 to 1954 he was also active at various times as president of the Anchorage Junior Chamber of Commerce, national director of the U.S. Junior Chamber of Commerce, chairman of the Anchorage chapter of the American Red Cross, and chairman of the World War II Alaska Veterans Board. He is himself a veteran of World War II having served in the army from 1940 to 1945.

No successor to Mr. Olsen as Area Director at Juneau has yet been named.

The Bureau of Indian Affairs announced plans today to change the assessments in the San Carlos Indian Reservation Irrigation Project in Arizona. The new proposal would comply with present policy that assessment rates should reflect the full cost of the work required.

For more than 10 years the annual basic assessment rate has been 50 cents an acre. It was only a token assessment. The project provides subsistence truck gardens and the Indians are unable to pay the full cost. The Federal Government paid most of the cost from appropriated funds.

The new basic assessment rate will be $14 an acre, which was the cost of maintaining the 365 acres of the project land under cultivation in 1956.

Under the proposed plan, the Indians would continue to pay only what they are able to pay. The Government would continue financing the deficit from appropriated funds and such Federal contributions would continue to be reimbursable as a lien against the Indian land. It is estimated that the Indians' payments and the Government contribution will continue on approximately the same ratio as in the past.

Interested parties are invited to submit their views in writing to the Area Director, Bureau of Indian Affairs, P. O. Box 7007, Phoenix, Arizona, within 30 days after publication of the notice of intention in the Federal Register.

Under Secretary of the Interior Hatfield Chilson today announced preliminary results of the Klamath Indian election in which members of the Oregon tribe were given the opportunity to remain in the tribal organization or withdraw and receive cash payment for their pr0portionate share of the tribal assets.

Of 2,133 members who received ballots in March, 1,649 or 77.3 percent have elected to withdraw and 74 or 3.5 percent have elected to remain. Ballots for 405 or 19 percent of the tribal members have not been received. Five ballots still remain to be validated.

Under the election regulations announced to the members in advance, failure to return a ballot by the deadline date of midnight April 21, is considered as a decision to remain in the tribal organization. However, the regulations also provide some leeway for validation of ballots received after the deadline if there are legitimate reasons for delay. A 30-day period after the deadline is provided for this purpose.

At the end of that period the management specialists; T. B. Watters and Dinsmore Taylor, will proceed to develop a plan for dividing the tribal property so that a sufficient portion may be sold to compensate the withdrawing members.

Under existing law, however, no actual sales of the tribal property may be made before the end of the present congressional session.

Award of an $85,400 contract for the improvement of the Heart Butte Short Cut Road on the Blackfeet Reservation at Browning, Montana, was announced today by the Department of the Interior.

The project covers the grading and graveling of 7.637 miles of road from the bridge over Two Medicine River to Badger Creek. It is the center section of a route known locally as the Heart Butte Short Cut Road. It is the main traffic route from the all-Indian community of Heart Butte to the agency and serves several public schools in the vicinity of Two Medicine River.

The successful bidder was Zook Bros. Construction Co. of Bigfork, Montana with the low bid of $85,400.23. Sixteen other bids were received; the high bid was $170, 339.06

A $500,971.45 contract has been awarded for grading, draining and bituminous paving of approximately 14.7 miles of the Mountain City Owyhee Mountain Home Road on the Duck Valley Indian Reservation, Elko County, Nevada, the Department of the Interior announced today.

It will be the first section of some 26 miles of the road to be improved.

The project will provide access for the reservation's Indian population to markets, stores, medical facilities and schools. It will replace a dangerously winding, rough, partially surfaced road frequently obstructed by snow in winter and by mud in the rainy season.

The Duffy Reed Construction Co., Twin Falls, Idaho, was awarded the contract. The firm's bid was the lowest of seven received. The others ranged from $538,383.25 to $660,245.20.

With the retirement of Kenneth A. Marmon as superintendent of the Seminole Indian Agency, Dania, Fla.; on May 31, Virgil N. Harrington will take over full responsibilities of the position, the Department of the Interior announced today.

Since last January Mr. Harrington has been sharing the responsibilities jointly with Mr. Marmon, who retires after 35 years of service with the Bureau of Indian Affairs.

Mr. Harrington has been with the Indian Bureau since November 1948, when he was appointed Soil Conservationist at the Pawnee Indian Agency, Pawnee, Oklahoma. In June 1955, he was promoted to Agency Land Operations Officer and transferred to the Consolidated Ute Agency, Ignacio, Colorado, where he served until the move to Seminole in January 1958.

Prior to his Bureau service Mr. Harrington was with the United States Naval Ordnance Depot, McAlester, Oklahoma. He majored in Agriculture at Oklahoma A&M from 1938 to 1942. He was born at Ward-Springs, Oklahoma, on September 5, 1919.

Mr. Marmon was appointed superintendent of the Seminole Agency, which was then located at Fort Myers, Florida, in 1942. He and Mrs. Marmon expect to live in Miami near their four grandchildren.

Award of a $414,700-contract for construction of a new school building at Fort Totten, near Devils Lake, North Dakota, was announced today by the Department of the Interior.

Roel Construction Company, Inc., of Fargo, North Dakota was awarded the job on the basis of its low bid. Ten higher bids were received by the Bureau of Indian Affairs ranging from $415,000 to $488,000.

Fort Totten School, operated by the Bureau of Indian Affairs, has a present enrollment of 116 boarding and 174 day pupils. The new structure will replace the old Army Post buildings, which have become obsolete.

Slated for construction are an 8-classroom school building, including a general shop room, a home economics room, a kitchen-dining multipurpose room, and an administration unit.