representative, the adult members of the Agua Caliente Band of Indians shall designate one representative, and these two shall select a third who shall not be either an Indian of Agua Caliente Band nor an employee of the Interior Department. The three representatives so designated shall constitute a board of arbitration of which the third disinterested member shall act as chairman and a decision by a majority of said board on the price to be accepted for any of said lands offered for sale shall be final and binding on all parties in interest: Provided further, That should said band of Indians fail within thirty days after notice from the Secretary of the Interior to designate its representative on said board, then the Secretary of the Interior shall designate an adult member of said Agua Caliente Band to act as its representative on said board and such representative so designated shall have the same powers, duties, and functions herein provided for on said board as though selected in person by the adult members of said band.

SEC. 2. That when title to all of section 14, township 5 south, range 4 east, San Bernardino meridian, California, and such other tract or tracts of Indian- or non-Indian-owned lands, not exceeding twenty-five thousand acres, as may be designated by the Secretary of the Interior as necessary and desirable for nationalmonument purposes shall have vested in the United States, the President of the United States, in his discretion, is hereby authorized by proclamation to set aside and dedicate such area as the Palm Canyon National Monument.

SEC. 3. The Secretary of the Interior is hereby authorized and empowered, in his discretion, to do the following in order to acquire lands for the said monument: (a) To accept donations of privately owned lands;

(b) To accept donated funds for the purchase of Indian- and non-Indianowned lands, any purchases of Indian lands to be made in accordance with the provisions of section 1 relating to consent by the Indians.

(c) To accept relinquishments and conveyances to the United States of privately owned lands. Upon conveyance to the United States of a good and sufficient title to any such privately owned lands, the owners thereof, or their heirs, assigns, and successors, are hereby authorized under regulations to be promulgated by the said Secretary to select from the surveyed unappropriated and nonmineral public lands of the United States within the State of California, unreserved except by Executive Order Numbered 6910, of November 26, 1934, lands approximately equal in value to the lands conveyed by them to the United States. The selection of other lands taken in lieu of the lands conveyed to the United States may be of like character or quality, the value thereof to be determined by the said Secretary. Upon conveyance of satisfactory title to lands within the proposed monument or additions thereto to the United States, and the approval of exchanges, as herein provided for, the said Secretary is authorized to issue patents for the lieu lands so selected. The payment of fees or commissions incidental to such exchanges may, in the discretion of the said Secretary, be waived. In all selections of lieu lands made hereunder, notice to any interested party shall be by publication.

SEC. 4. That when satisfactory title to Indian and non-Indian lands as set forth in section 2 hereof shall have been vested in the United States, and prior to their establishment as a national monument, they shall be protected by the Secretary of the Interior, through the National Park Service, in accordance with the rules and regulations relating to national parks and monuments insofar as they are applicable thereto. The supervision, management, and control of the said monument, when established, shall be exercised by the Secretary of the Interior, through the National Park Service, as provided for in the Act of Congress entitled "An Act to establish a National Park Service, and for other purposes", approved August 25, 1916 (ch. 408, 39 Stat. 535; U. S. C., title 16, secs. 1 and 2), and Acts supplementary thereto or amendatory thereof: Provided, That the afore said monument shall not be established except in conformance with section 2 hereof unless and until the said Indian band is compensated for section 14 and any additional tribal lands included in the aforesaid monument, the price to be paid therefor to be determined by the said Secretary, with the approval and consent of the majority of the adult members of said band of Indians, when there shall have been donated sufficient funds to provide for the said Indians the compensation so determined.

SEC. 5. That in order to protect and maintain the natural scenic attractions of the aforesaid monument, when established, the National Park Service may build and maintain horse trails and provide for sanitation needs, but no roads shall be constructed or other form of permanent improvements made or permits or leases issued for the use of any lands if such use is inconsistent with the purposes of the aforesaid monument. The foregoing shall not be construed as prohibiting the National Park Service from erecting such buildings as may be necessary for proper administration of the aforesaid monument.

SEC. 6. The Federal Water Power Act of June 10, 1920 (41 Stat. 1063), as amended, shall not apply to this monument.

SEC. 7. The proceeds derived from the sale or sales and all other compensation for Indian lands herein provided for shall be deposited in the Treasury of the United States to the credit of the Agua Caliente Band of Indians and shall draw interest at the rate of 4 per centum per annum, the interest to be paid per capita to recognized members of the band in quarterly or monthly payments: Provided, That the Secretary of the Interior is authorized to pay individual Indians from the proceeds of sale the reasonable value of improvements constructed by or for them upon the lands sold: Provided, further, That immediately upon receipt of such proceeds, up to but not exceeding $100,000 shall be available for use, in the discretion of the Secretary of the Interior, in the building of homes, community building or buildings, and other improvements, and for general use in rehabilitating individual members of the band, reserving to individual adult Indians and heads of families affected, the right of approval of plans, costs, and location of their individual homes: And provided further, That the consent and approval of the majority of the adult members must be secured as to plans, costs, and location of tribal buildings and other improvements.

SEC. 8. That, upon the establishment of the Palm Canyon National Monument, the Secretary of the Interior is authorized, in his discretion, to fix and collect such fees for the use and enjoyment of the said monument as he may consider appropriate.

SEC. 9. Any Act or Acts, or portions thereof, inconsistent with the provisions of this Act are repealed to the extent of such inconsistency.

THE SECRETARY OF THE INTERIOR,

The SPEAKER OF THE HOUSE OF REPRESENTATIVES.

Washington, May 28, 1937.

MY DEAR MR. SPEAKER: I transmit herewith draft of a proposed bill to authorize the sale of part of the lands belonging to the Palm Springs or Agua Caliente Band of Mission Indians and for other purposes.

The Agua Caliente or Palm Springs Band of Indians consists of less than 50 persons, living on an unallotted reservation in southern California, in the desert at the foot of the San Jacinto Mountains. They make their home on a reservation of some 33,000 acres of desert land badly checkerboarded by interspersed railroad sections. In the past this band made a fair living through agriculture, which depended upon a water supply from the San Jacinto Mountains. Part of this water supply was lost to the band through lack of use of the Indians of the facilities provided and through failure on the part of the Interior Department many years ago to provide the necessary education and assistance to encourage the use of the facilities. On part of the private land with which the reservation is checkerboarded there developed Palm Springs, a most fashionable winter resort. The town of Palm Springs with its large winter population grew and expanded until the business district touched the northern part of a section belonging to the Palm Springs Band.

For a long time there has been friction between the Palm Springs Band of Indians and the residents and business interests of the town of Palm Springs. The band informally assigned to its various members the use and occupancy of certain lots on the northern part of the section which extends into the heart of the town of Palm Springs. On this land the Indian occupants erected ramshackle automobile camps and other structures which they rented and from which they derived a certain amount of revenue. However, the structures were of such character that the State Board of Health of California has been persistently demanding a clean-up, as the conditions menace the health of the community. For years this Department has attempted to devise ways and means of remedying this very unsatisfactory situation. Legislation, as embodied in S. 3268, was introduced during the Seventy-fourth Congress, which had for its purpose the long-term leasing of the Indian lands generally for resort development purposes. This bill was not enacted. During the past summer and fall continued thought has been given the matter and it has been concluded the only enduring remedy would be legislation authorizing the sale of the bulk of the Indian lands and depositing the proceeds from such sale to the credit of the band and to distribute regularly the interest accruals on the principal reserving, however, sufficient small tracts upon which to build homes and otherwise rehabilitate the Indians.

The draft of proposed bill herewith would authorize the Secretary of the Interior to sell at public auction or otherwise to the highest and best bidder such tribal

lands of the reservation as may be deemed advisable reserving certain water rights to be utilized in connection with the proposed home site and rehabilitation development. Such sale could be made only with the consent of the majority of the adult members of Agua Caliente Band. Buf if such consent were not given within a definite time, the Secretary might appoint a disinterested board of appraisers to determine the merits of the Indians' objections and the adequacy of the bid. He could proceed to complete the sale only in the event the board found the objections unreasonable and the bid adequate.

In addition, the draft proposes the establishment of a national monument embracing Palm Canyon and other lands both Indian and non-Indian.

Since the draft of proposed bill is generally self-explanatory, no attempt is made in this communication to enumerate and discuss its various provisions as it is believed this may well be done to better advantage through oral discussion before the proper committee to which the draft is referred for consideration.

I, therefore, recommend that the enclosed draft of proposed bill receive favorable consideration.

The Acting Director of the Bureau of the Budget has advised that there is no objection to the presentation of this report to the Congress.

Sincerely yours,

CHARLES WEST, Acting Secretary of the Interior.

The CHAIRMAN. Mr. Sheppard, do you want to make any statement before we call witnesses.

Mr. SHEPPARD. Not at this time, Mr. Chairman, but I would like to reserve my right to make a statement either at some time during the hearing or before the end of the hearing.

The CHAIRMAN. Mr. Commissioner (Commissioner Collier), do you want to make a statement at this time or do you want to make perhaps a short statement at this time and a longer statement later after we have heard the witnesses?

Commissioner COLLIER. I would like to make a short statement at this time giving the framework of this proposed legislation.

The CHAIRMAN. Commissioner Collier will be recognized for whatever time he desires to make a statement on the bill now before the committee.

Mr. Commissioner.

STATEMENT OF HON. JOHN COLLIER, COMMISSIONER OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR

Commissioner COLLIER. The reservation of the Agua Caliente Indians is located in California or the desert and it consists of alternate sections of land in a checkerboard arrangement whereby the alternate sections are owned by whites. The reservation contains a total of somewhat over 30,000 acres of land, most of which is desert land. The band of Agua Caliente Indians numbers 48 or 49 members. Within the last 25 or 30 years an important winter resort has developed at Palm Springs, utilizing the white-owned, non-Indian lands in the checkerboard part, with the Indian land in between. It is becoming the most expensive famous winter spot in southern California, or perhaps in the whole West.

This tourist use has created a value in the Indian lands far beyond the value as merely agricultural lands. All these lands are of nonmineral character.

The area of these lands is far in excess of the direct needs of the Indians for their own use. Under present conditions they cannot be sold nor can they be leased for a long term. In other words, they cannot be developed as real estate either on a lease basis or on a

sales basis. Hence there has been prepared this bill which authorizes the disposal to the highest bidder of such portions of the land as are tribal and as are not needed by the Indians for their own use and such lands as are not contained within the Canyons.

The land to be disposed of by the bill would be broken down into two groups. First the land out on the desert and back in the irrigated areas which is the flat lands against the mountains.

That land could be disposed of to private bidders after marking out portions for the Indians to keep for their own homes and farms. Then there are the canyon lands which would be disposed of to be made into a national monument under the jurisdiction of the National Park Service.

The bill has been discussed and variously modified. The Senate print, that is S. 2589, contains changes which are important.

One of the changes, the most important one, is that which creates a board of arbitration or a committee of arbitration.

That important change in the Senate bill is contained in this proviso:

Provided further, That said Secretary [of the Interior] shall not accept any bid unless the proposed sale and selling price are consented to by a majority of the adult members of the Agua Caliente Band—

Now comes the important part

and in the event a majority of the adult members of said band and the Secretary of the Interior are unable to agree on the price to be accepted for any of said land, the Secretary of the Interior shall designate one representative, the adult members of the Agua Caliente Band of Indians shall designate one representative, and these two shall select a third who shall not be either an Indian of Agua Caliente Band nor an employee of the Interior Department. The three representatives so designated shall constitute a board of arbitration of which the third disinterested member shall act as chairman and a decision by a majority of said Board on the price to be accepted for any of said lands offered for sale shall be final and binding on all parties in interest: Provided further, That should said band of Indians fail within 30 days after notice from the Secretary of the Interior to designate its representatives on said board, then the Secretary of the Interior shall designate an adult member of said Agua Caliente Band to act as its representative on said board and such representative so designated shall have the same powers, duties, and functions herein provided for on said board as though selected in person by the adult members of said band.

Mr. SHEPPARD. May I interrupt to ask you, Mr. Commissioner, if you are not referring now to Senate bill 2589?

Commissioner COLLIER. Yes; I am referring to the committee print of March 8, 1938, which was made merely as a matter of convenience for the Senate Committee.

The CHAIRMAN. Mr. Commissioner, do you yield at this point? Commissioner COLLIER. I yield, Mr. Chairman.

The CHAIRMAN. Since Commissioner Collier is going to discuss this Senate committee print I would like to ask that the committee print of S. 2589 be printed in the record following the House bill H. R. 7450. Is there any objection? Hearing none, the bill will be inserted in the

record.

(Committee print of S. 2589 was inserted in the committee hearing following H. R. 7450.)

The CHAIRMAN. You may proceed, Commissioner Collier.

Commissioner COLLIER. The Senate bill would then dispose of the Canyon land to the National Park Service for the establishment and maintenance of the scenic attraction of the previously mentioned

monument.

The Senate bill also provides that out of the proceeds of the sale not exceeding $100,000, instead of $50,000, shall be available for use, in the discretion of the Secretary of the Interior, in the building of homes, community building or buildings, and other improvements, and for general use in rehabilitating individual members of the band, reserving to individual adult Indians and heads of families affected, the right of approval of plans, costs, and location of their individual homes: And provided further, That the consent and approval of the majority of the adult members must be secured as to plans, costs, and location of tribal buildings and other improvements.

Mr. O'MALLEY. That is in the Senate bill?

Commissioner COLLIER. Yes, that is in the Senate bill, in section 7 found on page 8.

The CHAIRMAN. Mr. Commissioner, will you yield for a question? Commissioner COLLIER. Yes.

The CHAIRMAN. Can you say, Mr. Commissioner, that the Indian Bureau and the Secretary of the Interior are in favor of this committee print, S. 2589, and that it would be a satisfactory substitute for H. R. 7450?

Commissioner COLLIER. I discussed it with Secretary Ickes, specifically the important change, which is the substitution of this board of arbitrators for the board of appraisers provided for in H. R. 7450 wherein it provides:

But if within 60 days of the date of notice of the notification of the bid, the majority of the adult members of the band have failed or refused to consent to the proposed sale or selling price, the said Secretary may appoint a board of appraisers, to be composed of three disinterested persons, whose duty it shall be to hear and investigate the objections of the band, to determine their merit, and to ascertain the value of the land and the adequacy of the bid. If the board determines that the objections of the band are unreasonable or capricious and that the bid is adequate to cover the value of the land, then, and in that event only, the Secretary may, in his discretion, accept the bid and complete the sale.

In other words, Mr. Chairman, under H. R. 7450 the action of the board of appraisers was wholly a departmental affair while in the Senate bill it takes it without the department and makes it an arbitration. So, I asked Secretary Ickes if he was satisfied to change to this Senate phraseology, and to provide for a board of arbitration. He said he was.

The CHAIRMAN. In other words, S. 2589 would have the approval of the Secretary of the Interior?

Commissioner COLLIER. Yes, S. 2589 would have the approval of Secretary Ickes.

The CHAIRMAN. It will be noted in the report from Secretary Ickes that he recommends the legislation outlined in H. R. 7450. Now, Commissioner Collier tells us that Senate committee print S. 2589 would be satisfactory to the Secretary of the Interior.

Mr. SHEPPARD. Will the gentleman yield?

The CHAIRMAN. Will the Commissioner yield to Mr. Sheppard for a question?

Commissioner COLLIER. Yes, I yield to Mr. Sheppard.

Mr. SHEPPARD. I would like to ask at this point, Mr. Chairman, that we consider S. 2589, rather than considering H. R. 7450, in order to save time and in order that we may more effectively discuss this legislation.