their ignorance and inability to understand the language and laws of the white people, they are unprepared and unwilling to become citizens; that they cultivate the soil with the rudest implements, and that the product of their labor and of their flocks and herds affords them a scanty support, with no surplus for the payment of taxes.

In view of their statements a communication was addressed by me to the governor of New Mexico, requesting him to secure a suspension of action by the county authorities in the matter complained of until the subject could be laid before Congress, and the status of these Indians be defined. The governor immediately took measures to secure such a suspension.

The situation of these Pueblo Indians is anomalous and their condition is pitiable. They have been subject to the supervision and control of this Department as within the general policy established by the United States for the government of the Indian tribes, and Congress has acquiesced in this view by repeated legislation in their behalf; yet, the Supreme Court of the United States adjudges that they are not Indian tribes within the meaning of the intercourse act (U. S. v. Joseph, 4, Otto 614), and the laws of New Mexico regard them as citizens and tax them accordingly. If they were prepared for citizenship it would be far better to allow the laws of the Territory to take their course, but if the rights and privileges of citizenship are imposed upon them in their present condition, and their lands and other property made subject to taxation, it will not be long before many of them will be reduced to great wretchedness. It is necessary that Congress should by legis lation so define their status as to meet the exigencies of the case.

RETURN OF THE NEZ PERCÉ INDIANS.

The Nez Percé Indians belonging to Joseph's band, captured after the outbreak of 1877, numbered, when turned over by the military to the agents of this Department at Fort Leavenworth, Kans., in July, 1878, 410 men, women, and children. They were removed to the Indian Territory, where they were never satisfied, claiming that they were promised by the military authorities that they should go back to their former homes in Idaho. In 1883 this Department allowed James Reuben to take 33 of them, mostly widows and orphans, back to Idaho where their relatives were.

In May, 1885, the balance of those Indians remaining in the Indian Territory were, under authority granted in the Indian appropriation act of March 3, 1885, removed to the Northwest-92 adults and 26 children going to the Nez Percé agency in Idaho Territory, and 120 adults and 30 children going to the Colville Reservation in Washington Territory, where they elected to go to avoid trouble, and to escape trial on the indictments pending against some of them in the courts of Idaho. Every precaution possible was taken to avoid any disturbance conse

quent upon their return, and I am pleased to be able to report that no trouble whatever has grown out of the movement, except some complaints on the part of the Indians of insufficiency of food. This has been remedied so far as the appropriations and laws governing them would permit.

PIUTE INDIANS.

A number of Indians of this tribe are now scattered over the southeastern portion of Oregon and the north western part of Nevada, mainly in the vicinity of the military forts in that section of the country.

The Malheur Reservation, which was created for the Piute Indians and afterward abandoned by them, was restored to the public domain, and these Indians are now wandering about the country without a home, and many of them are in destitute circumstances.

The military officers stationed in the locality where these Indians are gathered generally report them as a kindly and peaceably disposed people, with little energy or disposition to work. They also reported that, in their opinion, they could be induced to go and reside upon some one of the established reservations near by if provision were made for their support thereon. They suggested the Pyramid Lake Reservation, in Northern Nevada, as the most suitable one for this purpose, and the one to which the Indians could be most easily induced to go.

These and other facts regarding these Indians were brought to the attention of Congress, which provided, in the act making appropriations for the Indian service, approved July 4, 1884, funds "for the gathering, care, and removal of the Winnemucca or Leggins band of Piutes and other unsettled Piutes to a suitable place on some existing reservation to be selected by the Secretary of the Interior."

Under and in pursuance of this provision of law an agent of the Department was sent among the Indians designated with instructions to use every effort to induce them to go and settle upon the Pyramid Lake Reservation, where they would be provided for; but he failed to accomplish their removal, the Indians being unwilling to go to that or any other existing reservation, even for the purpose of securing the muchneeded supplies of food, &c.

Some uneasiness has been manifested among both settlers and these Indians in Grant County, Oregon, during the past spring, and reports have been received through the War Department of the killing of one or more of the Indians by the whites, because of alleged depredations upon their horses and other stock. The trouble, however, appears to have been quieted by the military authorities without any more serious difficulties; but those authorities have reported that the state of affairs is certain to grow worse, and must finally culminate in open hostilities, unless a reservation is assigned to these Indians and they are placed on it.

As all of the most desirable agricultural and grazing land in that sec

tion of the country where they are now wandering about in idleness is fast being taken up, if it has not already been fully occupied by settlers under the land laws of the United States, it would be a difficult matter to secure sufficient unoccupied lands for the purposes of a reservation for these Indians.

An agent of this Department, recently sent among them to ascertain their condition, reports that they are in needy circumstances and require help; that after full and clear explanation on the subject they expressed willingness to take up homesteads on the public domain according to the provisions of law. An effort will be made to locate and settle them in this manner. An appropriation should be made in a sum sufficient to enable the Department to furnish them with implements of husbandry and other assistance which may be required to enable them to improve their homesteads.

If they neglect or refuse to settle upon homesteads, I see no other alternative but to remove them to some one of the existing reservations near to their present locality, where they can be better cared for and assisted to do something for themselves; and, if it should be found necessary, I think the military should be required to gather them together, escort them to and place them upon the reservation selected for their home, and to see that they remain there.

THE UMATILLA RESERVATION.

The act of March 3, 1885 (23 Stat, 340), providing for the allotment of lands in severalty to the Indians on the Umatilla Reservation in Oregon, and for the survey, appraisal, and public sale of the residue of the lands of the said reservation, &c., requires that the consent in writing of the male adult Indians shall be obtained before the act shall be executed in any part.

The matter has twice been brought to their attention and consideration, and fully explained to them, but they have so far withheld although they have not positively refused their consent. They do not seem to favor the provisions of the act.

Rev. L. L. Conrardy, who has labored among these Indians, suggests a plan by which he claims they can be soon civilized and made self supporting. He would select 10 or 15 young men, to each of whom should be allotted 80 acres of land, to be, under his direction, improved alike by them for individual occupancy, but all the work for the first year to be done in common, so that at the end of the year each young man will have an improved farm and an equal share of the produce, except a sufficient quantity of the grain and hay to be reserved for beginning work with another gang, which, at the end of the second year, would also be equipped for individual farming; this to be continued until all of the Indians shall be located upon and cultivating their individual allotments. This would require an expenditure of about $7,000 per annum for hire of farmers, purchase of teams and implements, building houses, &c.

The plan commends itself to my favor, and it is hoped that Congress will make some appropriation applicable to such purposes.

INDIAN TRUST FUNDS.

The amounts and condition of the trust funds of the several Indian tribes are fully shown in the tables and data on the subject accompany. ing the report of the Commissioner of Indian Affairs.

These "trust funds" are mainly on deposit in the Treasury, drawing interest semi-annually-interest being at the rates of 4 and 5 per cent. per annum-under the general law providing therefor of April 1, 1880 (21 Stat., 70) and other laws made and provided for special cases.

In former years, and prior to the law of April 1, 1880, the Indian trust funds were invested in the stocks and bonds of States, &c., and held by the Secretary of the Interior as trustee.

A portion of said funds remains so invested at the present time, amounting to $1,800,016.833.

The question as to the duty of the Treasurer of the United States regarding the collection of the overdue and unpaid principal and interest on some of these bonds was submitted by the Secretary of the Treasury to the Solicitor of that Department for opinion in May last.

The Solicitor held that the duties of the Treasurer under the act making him the custodian of the bonds "are ministerial simply:"

If the principal of the stock or bonds, or the interest on the same, falls due and is not paid on demand made by the Treasurer of the United States, that fact should be communicated by him to the trustee, the Secretary of the Interior. The duty of the Treasurer in this regard ends there. Whether or not suit should be brought or other proceedings taken to compel payment from the defaulting maker of the bonds or other securities rests with the Secretary of the Interior, the trustee.

The correspondence was then referred to this Department by the Treasurer, who requested instructions "if, in pursuance of this opinion, it is necessary to take any action in reference to the unpaid principal and interest of said bonds."

He was informed on August 7, 1885, that this matter had heretofore been considered by Congress, which had by act of March 2, 1867 (14 Stat., 497), required of the Attorney-General an opinion and report, inter alia, as to what proceedings should be taken for the security of the United States in respect to these non-paying stocks held in trust for certain Indian tribes; that the Attorney-General stated in his report (see House Ex. Doc. No. 59, Fortieth Congress, second session) as follows:

I am at a loss to suggest any specific measure for further security in respect to these bonds. But it may happen that the indebted States and corporations may offer propositions for compromise favorable to the bondholders, and Congress may deem it expedient to give the Secretary of the Interior or the Secretary of the Treasury authority to entertain and, in the exercise of a proper discretion, to agree to such propositions.

In view of the full consideration the subject had already received, and of the conclusion reached by the Attorney-General, I do not deem

it necessary or proper to make any further attempts, if indeed any proper proceedings could be instituted, for the collection of the unpaid. principal and interest of the bonds under consideration, until appropriate legislation therefor shall be enacted by Congress, and the Treasurer has been so advised.

Sums of money found by the Treasury due the States in default of payment of interest on bonds have been from time to time covered into the Treasury to reimburse the United States for moneys appropriated by reason of such default.

UNITED STATES INDIAN INSPECTORS.

Five Indian inspectors are authorized and allowed by law for the service. The limited appropriation of $6,000 made for the traveling expenses of inspectors was so nearly exhausted by the 1st of May last that it became necessary to gradually withdraw all of the inspectors from the field to avoid incurring any indebtedness beyond the sum appropriated; and this, too, at a time when excitement and threatened outbreaks among Indians are most likely to occur, and when the services of the inspectors should be free from embarrassments and hindrances. The average of $1,200 to each inspector for traveling expenses, incurred almost wholly in the sparsely settled portions of the country, where all the methods of travel are costly, is not sufficient for the service. The average should not be less than $1,600.

INDIAN SCHOOLS.

The annual report of the superintendent of Indian schools, herewith submitted, contains much information on the important subject of Indian education, and shows specially what is being done in this branch of the public service; the equipments and facilities provided for training and educating the Indian youth for usefulness, together with his suggestions and recommendations to meet the needs of the service under his superintendence.

The following is a brief recapitulation of the important statistics of the Indian schools.

Some delay has occurred in arranging the preliminaries necessary to the commencement of the work on the buildings for the two schools at Santa Fé, N. Mex., and Grand Junction, Colo., for which provision was