was taken thereon by Congress. Believing that this is a highly important work and that the expenditure of their funds for its completion will result in much more benefit to the Indians than their use in any other way, I shall, at the beginning of the next session of Congress, renew that recommendation.

When the work is completed the Indians can be allotted their lands in severalty, and they will doubtless be willing to cede a considerable portion of their reservation.

Mr. Graves having been recently appointed an inspector, Mr. W. B. Hill has been placed in charge to continue the work under instructions of April 19 to his predecessor.

Fort Belknap Reservation, Mont.-June 7, 1898, the Department granted authority for the Fort Belknap agent to expend not exceeding $32,210 in the construction of a system of irrigation known as system No. 1 and in repairs to the Peoples Creek system. The Department also stated that it appeared that the extension of the Peoples Creek system, at an estimated cost of $2,970, was very much needed, and said that if work on the extension could be carried on while that on system No. 1 was in progress it might be included in the expenditure authorized. The Department also suggested the advisability of considering the agent's recommendation that another system (No. 2) be constructed immediately. After correspondence with Agent Hays the office recommended, July 27, 1898, that authority be granted for the construction of system No. 2 at a cost not to exceed $34,963, which authority was given September 12. These expenditures are all payable from funds belonging to the Indians.

Fort Peck Reservation, Mont.-In a report upon the Fort Peck Agency dated August 4, 1897, Inspector McConnell called attention to the absolute necessity for an extensive system of irrigation on this reservation if the Indians were ever to become self-supporting. As the Indians had no funds of their own the office recommended, December 8, 1897, that Congress be asked to appropriate the sum of $140,000 for the construction of a system of irrigation on the Fort Peck Reservation; but favorable action was not taken by Congress. It is represented that the Indians are desirous of ceding a portion of their reservation so as to obtain funds for irrigation, but it is doubtful if there is any existing authority of law for negotiating with them. The matter will be further considered with a view of obtaining such authority if it be deemed necessary and advisable.

Miscellaneous.-The bulk of the appropriation for irrigation for the fiscal year 1898 has been expended as follows:

It is believed that the appointment of an inspector "competent in the location, construction, and maintenance of irrigation works," which is provided for in the last Indian appropriation bill, will result in a much more intelligent and economical disbursement of irrigation funds than has hitherto been possible. I am also of the opinion that the Department is fortunate in securing for this position the services of an engineer so thoroughly competent, reliable, and honest as Mr. W. H. Graves, whose services as superintendent of the irrigation construction on the Crow Reservation for the last seven years have received the highest commendation.

LOGGING ON RESERVATIONS.

White Earth Agency, Minn.-From time to time under the act of February 16, 1889 (25 Stats., 673), authority has been granted by the President for the Indians of the White Earth and Red Lake diminished reservations to cut and sell dead timber standing or fallen on those reserves. In my last annual report a statement was made of the logging operations of the Indians during the season of 1896-97 under the authority granted by the President on September 24, 1896.

A clause in the Indian appropriation act of June 7, 1897 (30 Stats., 90), provides for the granting of authority by the Secretary of the Interior for the Indians in Minnesota to sell dead and down timber as follows, viz:

The Secretary of the Interior may, in his discretion, from year to year, under such regulations as he may prescribe, authorize the Indians residing on any Indian reservation in the State of Minnesota, whether the same has been allotted in severalty or is still unallotted, to fell, cut, remove, sell, or otherwise dispose of the dead timber, standing or fallen, on such reservation or any part thereof, for the sole benefit of such Indians; and he may also in like manner authorize the Chippewa Indians of Minnesota who have any interest or right in the proceeds derived from the sales of ceded Indian lands or the timber growing thereon, whereof the fee is still in the United States, to fell, cut, remove, sell, or otherwise dispose of the dead timber, standing or fallen, on such ceded land. But whenever there is reason to believe that such dead timber in either case has been killed, burned, girdled, or otherwise injured for the purpose of securing its sale under this act, then in that case such authority shall not be granted.

Under this provision the Commissioner of the General Land Office, who has control of the ceded Chippewa lands in Minnesota, prescribed certain regulations to govern the logging operations of the Indians on the ceded lands during the season of 1897-98, which were approved by the Department September 28, 1897. It is ascertained from communications received from the General Land Office, and the accounts of the United States Indian agent at the White Earth Agency for the fourth quarter, 1898, that timber to the value of $253,304 was cut and sold during the season. Of this amount 15 per cent was deducted for stumpage and for the purpose of paying certain expenses incident to the logging operations.

October 30, 1897, the Deparment granted authority under the abovequoted provision of law for the sale of dead timber on the diminished White Earth and Red Lake reservations, under regulations previously in force to govern the logging operations of those Indians. Under this authority the office approved twelve contracts for the sale of dead timber on the diminished White Earth Reservation aggregating 15,500,000 feet for $17,500, and three contracts for timber on the diminished Red Lake Reservation aggregating 4,500,000 feet for $22,500, aggregating $100,000 for the total amount of timber contracted for. It appears, however, from Agent Sutherland's accounts for the fourth quarter, 1898, that some of the Indians operating on the diminished reservations cut timber in excess of the amount called for by their contracts, so that the total value of all the timber cut on the two reservations was $110,596.32. Of this amount 10 per cent was deducted for stumpage charges and has been deposited in the Treasury as miscellaneous receipts, class three, for the benefit of the Chippewa Indians of Minnesota.

The whole amount thus deposited by the agent on account of timber operations on both ceded lands and diminished reservations was $46,246.38, and the total value of timber sold by the Chippewa Indians of Minnesota was $363,900.31.

La Pointe Agency, Wis.-The logging on the Lac du Flambeau Reservation by J. H. Cushway & Co., under the various authorities heretofore granted, has proceeded without incident of note.

Very little logging has been done on the Lac Courte d'Oreilles Reservation, nearly all the timber having been cut during the previous season. Such contracts as have been made between Mr. Turrish, the authorized purchaser on that reservation, and some of the allottees were for the purpose of gathering up the scattered timber remaining on only a very few allotments.

No change has occurred in logging matters on the Bad River Reservation, except so far as they have been affected by the relinquishment, by 24 allottees, of old allotments from which the timber had been burned and the making of new allotments to them, as authorized by Department letter of September 14, 1897. The list of new allotments was reported by Captain Scott, the acting agent, on December 31, 1897; was forwarded to the Department with the recommendation of this office on February 11, 1898, and was approved by the President February 23, 1898. The patents therefor were issued on June 13, 1898, and were transmitted to S. W. Campbell, the new agent at La Pointe Agency, for delivery to the allottees, with letter from this office dated August 5, 1898. 'Contracts were made by the allottees with Mr. Justus S. Stearns, the authorized purchaser of timber on the Bad River Reservation, for the sale of timber on these new allotments, and the Presi dent having, under date of April 29, 1898, authorized it, these contracts were approved by this office.

In my last annual report I made a statement of the steps taken looking to the sale by the Indian allottees of the Red Cliff Reservation of

the timber on their allotments, and quoted the regulations prescribed by the Secretary of the Interior to govern the sale under an authority granted by the President on July 28, 1897. Under those regulations Captain Scott advertised for bids for the purchase of the timber. In answer to this advertisement (which was inserted in several newspapers) four bids were received as follows, viz:

Frederick L. Gilbert (estimated on the quantity of timber of different kinds supposed to be on the allotments), $416,662; D. J. Arpin and William Scott, $266,447.50; Charles Crogster & Co., $262,300.37; O. A. Ritan, $224,300.

The prescribed regulations required that all timber cut upon the reservation should be sawed in a mill to be erected upon the reservation. In his bid Mr. Gilbert proposed a modification of those regulations to the extent of permitting the immediate removal from the reservation, for manufacture outside, of a considerable quantity of burnt timber which had been cut by the Indians during the logging season of 1896-97 and which was at the time in the lake at the mouth of the Red Cliff River. On his part he agreed to saw at the mill, before the expiration of three years, a like quantity of timber cut from lands outside the reserve. September 23, 1897, the Department accepted Mr. Gilbert's bid, and on the same date this office advised Captain Scott of its acceptance. Mr. Gilbert having filed a bond in the penal sum of $50,000, with the American Surety Company of New York as surety, which was approved by the Department October 21, 1897, he was permitted to proceed with the making of his contracts and the erection of his mill. It is understood that the mill has been erected and is now in working order. Seventy contracts for the sale of timber have been approved.

I should add that the regulations of July 29, 1897, overlooked the fact that a number of the allottees were minors, and consequently no provision was made for the sale of the timber on their allotments. In order to meet the situation the Department, June 13, 1898, modified these regulations by adding to paragraph 3 the following:

And provided, That where an allotment belongs to a minor the timber thereon may be sold as provided in these regulations under contract executed by the father of such minor, if he be alive, and in case he be dead then by his mother, and if both the father and mother of such minor be dead his timber may be sold under a contract executed by his legal guardian, if one has been appointed by the courts, and if no guardian has been appointed the Indian agent shall be authorized to make such contract: And provided further, That the proceeds of the sale of timber on allotments of minors shall be held by the agent, as other moneys received by him on account of the sale of timber on the Red Cliff allotments, to the credit of such minors, respectively, and shall not be subject to draft until said minors shall have reached the age of 21 years, respectively, except that the Commissioner of Indian Affairs shall have the power to authorize the use of such proceeds of the sale of the timber in special cases if, in his judgment, the facts and circumstances in such special cases warrant the same.

The agent shall keep, in a well-bound book to be provided for the purpose, separate accounts with each Indian minor for whom he may so receive funds, in which accounts he shall charge himself with all sums received, giving dates, from whom

received, amount received, and quantity of timber, and take credit upon proper vouchers for all authorized disbursements. And at the end of each quarter, with his regular quarterly cash accounts, but separately and disconnected therefrom, he shall render an account showing correctly and in detail these receipts and disbursements. And upon each transfer of the agency the outgoing agent shall pay over to his successor all such funds for which he may then be responsible, taking proper receipts therefor to be filed with his accounts. And his successor shall charge himself with the funds so received and account for the same as herein provided.

June 17, 1898, Captain Scott was informed of this amendment of the regulations and instructed to permit the making of contracts for the sale of the timber on the allotments of minors in accordance therewith.

Menomonee Reservation, Wis.—August 11, 1897, the Department, on recommendation of this office, granted authority for the agent of the Green Bay Agency, Wis., to employ Menomonee Indians to carry on logging operations on their reservation for the season of 1897-98, under the provisions of the act of June 12, 1890 (26 Stat. L., 146). They were to cut and bank on the rivers and tributaries of the reservation 16,000,000 feet of pine timber, or so much thereof as might be practi cable, under the rules and regulations that governed similar operations the previous year.

Acting under this authority, the Menomonee Indians, under the direction of Agent George, cut and banked 10,135,000 feet of logs on the Wolf River and tributaries and 5,865,000 feet of logs on the Oconto River, and on February 12, 1898, the agent was authorized to advertise the logs for sale. March 15, Agent George submitted an abstract of bids received, and March 21 they were submitted to the Department with the recommendation that the following be accepted: Bid of Stephen Radford, of Oshkosh, Wis., for 10,135,000 feet of logs on Wolf River and tributaries, at $12.03 per 1,000 feet, and bid of Perley, Lowe & Co., of Chicago, Ill., for 5,865,000 feet of logs on south branch of Oconto River, at $13.60 per 1,000 feet. The Department, March 23, 1898, accepted the above bids, and the sale of logs to them was confirmed. This average of $12.81 per 1,000 feet is an increase of $2.614 per 1,000 feet over that for the season of 1896–97.

The State of Wisconsin, April 13, 1898, attached all the logs cut and banked on the south branch of the Oconto River, claiming that of the 16,000,000 feet of logs cut on the reservation during the year a large amount had been cut from lands belonging to the State. Messrs. Perley, Lowe & Co. immediately furnished a bond of indemnity in the sum of $25,000, in order that they might not be embarrassed in disposing of the logs which they had bought. June 15, 1898, Mr. E. G. Mullen, chief inspector of State lands for Wisconsin, presented the claim of the State of Wisconsin for damages by reason of the cutting and removal of certain pine timber from the swamp lands within the limits of the Menomonee Indian Reservation, which were ceded to that State on November 13, 1865, Patent No. 8. This statement was transmitted to the Department June 16, 1898, and next day the Department directed