mendations for further action. The investigation was completed in the field in September 1938.

SUMMARIZED HISTORY OF PROJECT

The Uintah and Ouray Indian Reservation was established in 1861 for the Uintah, Uncompahgre, and White River Bands of Ute Indians. The original area of the reservation was approximately 2,039,040 acres. Cessions were made to the United States at various times so that at present the reservation embraces but 366,000 acres or less than one-fifth of the original. Some 54,087 acres of Indian lands are included in the Uintah irrigation project; the remaining 312,000 acres are classified as grazing or range lands.

The irrigation project was authorized by the act of June 21, 1906 (34 Stat. 325 at 375), and as constructed contains 77,195 acres of which approximately 54,087 acres are in Indian ownership and 23,108 acres are former Indian lands now owned by non-Indians.

The construction cost to June 30, 1937, amounted to $1,068,556.10 and the operation and maintenance costs were $1,639,407.87. Tribal funds in the sum of $906,760.69 have been expended for construction, and $699,339.91 for operation and maintenance. The 23,108 acres of lands in non-Indian ownership received the benefits of tribal expenditures.

STATUS OF COSTS AGAINST NON-INDIAN LANDS

Construction costs.-There were carried on the project books unpaid construction assessments in the sum of $283,170.73; $273,474.64 of that amount appears to be legally uncollectible and the remaining $9,696.09 should probably not be collected on account of conditions which appear fully in the Economic Report. Operation and maintenance delinquencies.—The delinquent operation and maintenance charges against non-Indian lands carried on the project books September 30, 1937, amounted to $48,106.09. As to $28,875.37 of such charges, as pointed out in the Economic Report, the landowners cannot meet their current obligations and pay these delinquent charges. As also pointed out in the report $20,722.62 of this latter amount appears to have been legally uncollectible in any event.

The balance, or $19,230.72 of said delinquent operation and maintenance costs, was recommended for collection. The landowners will be allowed from 2 to 10 years in which to pay, depending upon the amount due in each individual case, but each such landowner will be required to sign an appropriate contract before he receives the advantage of the deferred-payment plan. In cases in which the balance due does not exceed the operation and maintenance charges for 1938, the landowner will be required to pay in full before the next irrigation season. Drainage costs.-Carried on the project books is the sum of $61,983.16, expended to construct drainage works. The drainage facilities have not been constructed for a sufficiently long period to demonstrate whether the lands can be reclaimed by that method. The benefits to date are not sufficient to enable the landowners to begin making payments. Collections on account of the drainage item should be deferred until December 1, 1943. By that date it is believed the value of the system can be appraised. If at that time repayment appears to be justified, the landowners will be required to commence making payments, but if the appraisal to be made at that time indicates that the landowners will not receive sufficient benefits from the system to justify repayment of its cost, then all or such part of the cost as appears justified should be canceled.

FUTURE PROGRAM REQUIRED

The study made clearly indicates the necessity for doing more than canceling the construction and operation and maintenance charges if the farmers on the project, both Indian and non-Indian, are to have a reasonably good chance to become self-sustaining. These studies show that neither class of project farmers can continue to operate under the methods that have prevailed in the past with likelihood of success.

The solution of these problems will require the expenditure of some money and wide administrative discretion to try some or all of the remedies suggested in the report. Definite recommendations in regard to necessary appropriations will be submitted in the regular manner through the Bureau of the Budget. It is believed that from the remedies suggested and treated in detail in the Economic Report, a program can be worked out by the Secretary of the Interior in cooperation with the landowners, which will place the project on a sound economic

basis and provide the opportunity for both the Indian and non-Indian farmers to become self-supporting. As the Indians on this reservation are now organized under the Indian Reorganization Act of June 18, 1934 (48 Stat. 984), they are in a position to assist materially in carrying out the plan proposed. It is also believed that the non-Indian landowners will cooperate with the Government in such an undertaking.

The economic features may be summarized as follows:

A soil survey of the project area indicated the feasibility of dividing the lands into six classes. As used here and in the studies, class 1 means good agricultural land; classes 2 to 6, lands of progressively less value for agriculture. With certain exceptions class 5 and class 6 lands should be excluded from the project. In analyzing the data it was deemed advisable to divide the project into the upper area (upstream lands) and the lower area (downstream lands) and consider the conditions peculiar to each. In the upper area, crop yields were found to be relatively high and livestock raising is common. In 1937 when approximately 80 percent of this area was irrigated, delinquent operation and maintenance assessments were relatively small as compared with the lower area where only 43 percent of the land was irrigated, and the crop yields were considerably lower and livestock raising was not common. In general, the lands in the lower area are less productive. Class 4 lands in the lower area are exceedingly poor, and the crop yields are low.

Lack of easily accessible markets adversely affects the returns from project lands. Of equal or perhaps greater importance in determining the amount of the farmers' income from their lands are the following: (a) Size of farm unit, (b) location and physical characteristics of the land, (c) climatic conditions, and (d) selection of crops. The small farms of 40 acres or less constitute 50 percent of the total number operated in 1937, and 75 percent of all delinquent operation and maintenance assessments existed against those farms. The study made, details of which are in the Economic Report, indicates that farms of less than 120 acres cannot be considered as a desirable economic unit for this project, yet it was found that 90 percent of the project farmers control and operate less than that amount of land. Gross returns on approximately 50,000 acres of project land irrigated in 1937 averaged slightly less than $8 per acre. This extremely low income per acre from crops is appalling when it is considered that 90 percent of all project farms average less than 120 acres and that 50 percent average 40 acres or less.

PLAN FOR REHABILITATION

It is believed that in addition to the debt adjustments heretofore discussed, the project irrigation system should be reconditioned and certain water rights transferred to better lands.

The plan developed in the economic report contemplates putting into effect some or all of the following features:

1. Improve the irrigation system by rehabilitating certain canals and structures at an estimated cost of $150,000.

2. As soon as feasible, turn over to the non-Indian water users the Gray Mountain, Pahcease, Myton townsite, Dry Gulch (Riverdell), and Ouray School Canals and appurtenant structures. To make that feasible, it is thought the landowners should form an irrigation district or districts and enter into an agreement whereby the Government would thereafter be relieved of all responsibility for these canals and structures. The proposal here would also call for the Indians, or the Government for them, to pay the proportionate share of the operation and maintenance costs for those canals on account of the Indian lands under the canals so long as the water rights were claimed for those lands, but with the understanding that these water rights would be transferred to other and more desirable lands as soon as possible. The Indian lands would not form a part of such irrigation district or districts, but any contract made with a district would provide for proper protection of the Indians' interest in the project works.

These canals and structures will not be rehabilitated until the landowners agree to take them over, since most of the area under these canals should be eliminated from the project. The project assets (the water rights) should be preserved by transferring those rights to more desirable lands. Water rights from Indianowned poor lands would be transferred to better lands in Indian ownership, and similar rights as to non-Indian lands would be transferred to more desirable nonIndian lands. If, however, the non-Indian landowners wish to continue the operation of these canals as they have indicated they do, then it is believed they should assume the sole responsibility for the operation and maintenance.

3. Water deliveries and operation and maintenance assessments should be discontinued in connection with class 5 and class 6 lands served by Jasper Pike, Lakefork, Uintah, Number One, Farm Creek, Whiterocks, Tabby White, Deep Creek, Bench, Daniels, Harmes, Colorado Park, Big Six, and Individual Indian Canals. This, of course, can be done only by agreement with the landowners. If they want water for this class of land they should be required to pay the regular cost. It is believed that the landowners will be willing to forego the use of water on these lands and transfer the rights to other and better lands.

4. Certain landowners under the Redcap, Henry Jim, Leland, Lakefork, and Bench Canals need temporary relief. Class 1, 2 and 3 lands should be assessed and pay the full operation and maintenance rate. A reasonable opportunity exists to reclaim the class 4 lands totaling 600 acres under these canals if properly handled. It is proposed that the landowners be required to pay 66 percent of the full per-acre rate and that the Government pay the remaining 34 percent of such cost for a period of 5 years during which the landowners would be required to carry out an approved soil rehabilitation program in exchange for the temporary subsidy.

Class 5 lands under these canals may by a similar program be converted into more acceptable classification so as to enable them to bear their share of the operation and maintenance costs. To do that, however, they must be furnished water for the next 5 years at a cost of not to exceed 10 cents per acre. These landowners need to be helped for that period in an endeavor to bring their land back to a productive status so that it can stand its share of the irrigation charges. There are approximately 520 acres of this land and it is proposed to require the landowners to carry out an approved soil rehabilitation program in exchange for the temporary subsidy. It is estimated that the cost to the Government of these two subsidies will not exceed $1,000 per year for 5 years.

Class 6 lands under these canals should be treated in the same manner as recommended for class 6 lands under other canals as set forth in No. 3 above. 5. In the past, $682.59 operation and maintenance assessments were erroneously made and collected against lands belonging to certain non-Indians, namely, C. T. Beggs, $95.96; W. Denins, $96.96; and P. Nutter, $474.63. These amounts should be refunded to the individuals named in the amounts specified. It is proposed to request an item for that purpose in the next budget.

6. Water rights for Indian lands should be transferred to better lands in all proper cases where better lands can be provided.

REIMBURSEMENT TO UTE TRIBAL FUND

Tribal funds totaling $1,606,100.60 have been expended for construction and operation and maintenance of this project to June 30, 1937. Of this amount, $323,066.42 represents expenditures made for the sole benefit of the 23,108 acres in non-Indian ownership and $159,726.39 represents construction expenditures benefiting an area of 9,212.82 acres of Indian land that is no longer susceptible of economic cultivation and which cannot feasibly be returned to reasonable productivity. Under the provisions of the act of August 1, 1914 (38 Stat. 583) the lands benefited were charged with this obligation on a per acre basis.

In addition to the above expenditures from tribal funds for construction and operation and maintenance of the irrigation project, approximately $83,000 was loaned to individual Indians during the period from May 15, 1917, to March 10, 1920. Of this amount $43,264.23 remains unpaid. Many of the original borrowers are now deceased and there is no possibility of making additional collections. Under the provisions of the act of June 28, 1938 (52 Stat. 1209), the question of reimbursing the tribe for the above expenditures from: tribal funds will probably be presented to the Court of Claims for determination, and therefore no recommendation appears necessary at this time concerning such reimbursement.

In view of the desperate economic situation on this project, as outlined above, appropriate legislation should be enacted to grant the Secretary of the Interior sufficient authority to work out a satisfactory program for this project in cooperation with both the Indian and non-Indian landowners.

O

JACQUES HAILPERN, MAX HAILPERN, AND SALLY HAILPERN ZAHARIA

APRIL 4, 1941.-Committed to the Committee of the Whole House and ordered to be printed

Mr. RAMSAY, from the Committee on Immigration and Naturalization, submitted the following

REPORT

[To accompany H. R. 1541]

The Committee on Immigration and Naturalization, to whom was referred the bill (H. R. 1541) for the relief of Jacques Hailpern, Max Hailpern, and Sally Hailpern Zaharia, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

PURPOSE OF THE BILL

The purpose of the bill is to record the lawful admission of the aliens for permanent residence as of December 23, 1939, the date on which they entered the United States as visitors and would deduct three numbers from the Rumanian quota of the first year that said quota is available.

GENERAL INFORMATION

According to the evidence presented to the committee these aliens entered the United States in 1939 on duly authorized visas as visitors. That Jacques Hailpern, Max Hailpern, and Sally Hailpern Zaharia, two brothers and the sister, are natives and citizens of Rumania, aged 57, 52, and 60 years, respectively.

The intention of the aliens was to visit the several countries until the political situation in their homeland became normal. That conditions became steadily worse in Europe and they found themselves unable to return to their country. Since their departure from home a political faction known as Iron Guards, favorable to Germany, had started to persecute and confiscate the property of wealthy Jews, to which class these aliens belong.

That for many years the business of these aliens had been in the grain-exporting business and they had established business relations