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system of rural credit. For the first time, it makes proper provision for the advanced education and training of Indians.

Eight of the 19 sections of the Indian Reorganization Act deal with “the land question.” Over the period from 1887 to 1934, Indian lands decreased from 138,000,000 acres to 52,000,000 acres. Half of that which remained in 1934 was almost valueless, semi-aird desert. The Indian Reorganization Act prohibits the further breaking up of Indian tribal lands into allotments in severalty, thus bringing to an end the policy which has been responsible for huge losses in Indian acreage as well as the Indians' non-use of their own lands through leasing system.

Coupled closely with the land sections is that which authorizes the establishment of a revolving loan fund of $10,000,000, of which, to date, Congress has authorized $3,480,000. The pending appropriation act for 1938 recommends an additional $1,730,000. Prior to the passage of the act, Indians were unable to secure credit through the pledging of their allotments on account of their trust status. The Government provided credit for Indians at a rate of less than $1 per capita per year.

ASSISTANCE OF BUREAU OF MINES TO MINERAL INDUSTRIES The forward-looking policy of the Bureau of Mines, aimed to aid adjustment of the mineral industries to changing conditions, has received the support of the Department and of Congress. Flush production, especially of gold, silver, copper, lead, and zinc, resulting from discovery and exploitation of rich deposits, is a thing of the past, and the increasing necessity of utilizing lower-grade ores compels technologic improvement and lower costs, which is one of the main objectives of the research work of the Bureau of Mines. More direct service than formerly is now given to small operators in testing their ores to determine suitable treatment processes.

The Bureau is conducting many technical studies in anticipation of low-cost power that soon will be available to many western mining areas as a byproduct of Government irrigation and flood-control projects. For example, it has undertaken the investigation of electrometallurgical processes for reduction of ores available within the power radius of the various projects. These include ores of manganese, chromium, magnesium, antimony, potash, tungsten, and various refractory materials hitherto not utilized. Equipment already available at the Bureau's Reno station was used for preliminary work pending completion of an electrometallurgical station at Boulder City, provided with large-scale equipment and cheap power from Boulder Dam. Promising results already have been obtained, particularly with reference to manganese, one of the more important strategic metals hitherto unavailable domestically, at a reasonable cost, in sufficient quantity to meet national requirements. Other domestically deficient strategic materials now being investigated by the Bureau include the ores of chromium, manganese, tungsten, and antimony, These studies may well stimulate expansion of the western mineral industries with resulting creation of employment and augmentation of the national wealth.

The Bureau's efforts in promoting health and safety of workers in the mineral industries is bringing about better working and living conditions, improved health standards and lower accident and injur costs. Enlightened operators are adopting the Bureau's recommends tions with excellent results. However, there is still a long road t travel in these regards.


Growth in all lines of national-park enterprise is indicated by study of the record. Public appreciation of these areas and the servic rendered therein is shown by the increase in travel from 7,676,49 visitors in 1935 to 9,929,432 in 1936. This increase brings withi i added responsibilities in the way of safeguarding the natural feature of the park areas while at the same time providing essential facilities fo use and enjoyment. Improvement of facilities for the visitors and o opportunities for recreational enjoyment was marked during the year although not commensurate with the increased use.

The Historic Sites Act of 1935, authorizing a nation-wide survey o historic sites, is of the utmost importance, since from it will result ai ultimate system of national historical areas. In the brief period since January 1, 1937, the National Park Service has been requested to study and make recommendations upon 16 bills for the establishmen of national historic sites. Unfortunately, prosecution of the survey is handicapped by lack of funds to secure the corps of professiona historians needed therefor, since only $24,000 was appropriated for that purpose.

Recently the National Park Service, under congressional authoriza tion, in cooperation with State and local authorities, has launched & Nation-wide study to determine the recreational needs of the people and to inventory existing and potential park and recreation areas as a basis for immediate and long-term recreational planning.

VALUE OF ALASKA TO UNITED STATES Alaska is a geographical empire, one-fifth of the area of the United States in size, sparsely populated, consisting largely of virgin territory awaiting development. Alaska has been of great benefit to the United States, despite the fact that since its purchase it has had little attention and until this administration has virtually been allowed to shift for itself.

Since our acquisition of Alaska, some 2 billion dollars worth of raw materials, chiefly minerals, sea products, and furs, have gone to enrich the national economy. Last year the fish and fish products, chiefly salmon, shipped to the United States total over 400,000,000 pounds, valued at nearly $52,000,000. Only a beginning has been made in the development and utilization of Alaska's natural resources. Alaska awaits an intelligently planned program. It has been calculated that a billion board-feet of lumber can be taken from Alaska annually without any depletion of its supply under our conservation policy which should be maintained. But no less important than the further development and extraction of material resources is the development of human resources and the need of adding to Alaska's population. Norway, Sweden, and Finland, lying between the fifty-fifth and seventieth parallels, precisely Alaska's latitudes, with an area four-fifths that of Alaska, have a population of nearly 13,000,000, enjoy a high degree of civilization and are economically self-sustaining. This figure contrasts with Alaska's present population of 60,000, or approximately 1 inhabitant for every 10 square miles.

The development of Alaska, through a carefully planned program, is our hope and objective. It is our last frontier, comprising a great region where opportunity awaits the coming of the pioneer. This administration has made a beginning by establishing a colony of farmers in the Matanuska Valley. Despite some unfavorable and undeserved publicity, the project will be successful. It is my belief, however, that by a proper development of Alaska's transportation facilities, a natural trend of colonists to Alaska may be furthered. Above all else, Alaska needs air fields. With its vast expanse of territory, aviation is the ideal method of communication. Despite the handicap of inadequate airfields, the per-capita use of the airplane in Alaska today is 70 times greater than in the United States proper. Additional roads are needed to open up new areas for settlement.

Finally, a great fourth industry is possible in Alaska, in addition to mining, fisheries, and fur raising the tourist business. It is an integral part of this administration's program to see that as large a share as possible of the American tourist dollar which leaves the mainland be expended under the American flag. In recent years, all available accommodations for tourists, both going to Alaska and in Alaska, have been overtaxed. What is needed are more shipping facilities and more accommodations for tourists. A hotel is badly wanted in Mount McKinley National Park along the Alaska Railroad. The Alaska Railroad, incidentally, furnishes an interesting example of successful Government operation. Built in 1922, its deficit in 1924 was $1,800,000. Last year it was in the black. While this year, owing chiefly to the maritime strike, the railroad will temporarily lapse into the red by a few thousand dollars, I feel confident that after allocations for capital expenditures that we are now asking from Congress have been granted, we may safely prophesy that within a year or two the railroad may be permanently self-sustaining.

The CHAIRMAN. If any members of the committee desire to ask the Secretary any questions, they may do so now. Do you have say questions, Mr. Scrugham?



On behalf of the committee, we request the Secretary of the Interior to have an appropriate investigation and recommendation made by the Interior Department as to the cost of complying with the request of the Secretary of War and the Secretary of the Navy, which I have just read to you in part.

Secretary ICKES. We will be very glad to do that.

NOTE.-The above requested statement has been submitted to the committee.) PERCENTAGE OF ADMINISTRATIVE EXPENSES SPENT IN THE DISTRICT OF


Mr FITZPATRICK. What percentage of all the money spent by your Department for administrative purposes is spent here in the District


Mr. BURLEW. I am getting that figure in connection with my timony. That same figure was requested when I testified here


Secretary ICKES. Mr. Burlew will supply that for you later. Mr. BURLEW. Yes; that was asked for when I appeared before, and I am getting it ready.

(NOTE.-The above requested statement will be found in Mr. Burlew's testimony on p. 55.)


Mr. FITZPATRICK. Would you also give us the percentage of employees coming under civil service, and the average salary of all of the employees in the Department?

Secretary ICKES. Approximately 50 percent of the employees come under civil service.

The following is a break-down showing the average salary in the Department of the Interior:

Number of full-time permanent positions, total salaries paid, and average salaries under the Department of the Interior, as of Feb. 26, 1937

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E. E. O.:

Number of positions.
Total salaries..
Average salary..
F. C. S.:


Emergency conservation, recreational demonstration, national parks work camps

378 $686, 260.00 $1,815. 50

22 $25, 320.00 $1, 150. 90

44 $141, 400.00 $3,213. 64


$24, 020. 00
$2,001. 66

14 $26, 880.00 $1,920. 00

470 $903, 880.00 $1,923. 15


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Number of positions..
Total salaries..
Average salary.

Total field:

Number of positions.
Total salaries..
Average salary.

Grand total:

Number of positions..
Total salaries..
Average salary.

Number of positions..
Total salaries..
Average salary...

$161, 120.00


$4,921, 420.00
$2, 212. 87


$8, 535, 920. 00
$1,704. 46


$13, 618, 460. 00
$1,860. 70


$14,522, 340.00
$1,864. 47

$3,090, 400.00

9, 232 $20, 021, 070. 00 $2, 168. 66

2,063 $2,688, 806. 00 $1,303. 35


$25, 800, 276. 00
$1,864. 18

$39, 177, 516.00
$1,796. 80

2, 632 $3,251, 520. 00 $1,235. 38

11.456 $24, 942, 490. 00 $2,177. 24

7,071 $11, 224, 726. 00 $1,587. 43

21, 159 $39, 418, 736. 00 $1,862.98


$53, 699, 856. 00 $1, 814. 61

NECESSITY OF COMPLETING GRAND COULEE DAM PROJECT Mr. LEAVY. Mr. Secretary, I want to ask you particularly in reference to Grand Coulee Dam. Now, there are three great western projects that are under way and not completed, at least two of which are long range in their nature; that is, the Grand Coulee project and the Central Valley project in California. The third one that I refer to is Boulder Dam, which is now rapidly nearing a stage of completion, at least to a point where it will begin to yield returns to the Government.

Unless further legislative action is taken by Congress, Grand Coulee has a $63,000,000 limit fixed upon it. In this budget you ask for $7,250,000, which will bring that sum up to $63,000,000 when that is spent under existing contract obligations. If nothing more is done you will have

there only a foundation for a giant dam, is that not right? Secretary Ickes. That is substantially correct. It will be more than a foundation, but it will be what we call a low dam.

Mr. LEAVY. Could it be utilized either for the generation of power or the reclamation of land?

Secretary Ickes. It would not be a good, efficient project. We need a high dam. In other words, to make a real project, to give both power and provide for the reclamation development that that section needs, and that is capable of being produced by a high dam.

Vr. LEAVY. Then, in order to get a high dam, is it not economically essential that the work continue without interruption on that project?

Secretary Ickes. I do not think there is any doubt of that. My own judgment is that the Government ought to provide by proper legislation for a high dam, proceed to finance it, so that it will be a continuing work until it is completed.

Mr. LEAVY. Did not the act of Congress request a high dam and 30 provide?

Secretary Ickes. I am not sure. I am not clear on that point, Mr. Congressman.

Mr. LEAVY. I think it did.

Secretary Ickes. If so, then that is covered. Then it would only be a matter of the necessary appropriations to keep the work going.

Mr. LEAVY. If you suspend that operation without carrying it to completion, Mr. Secretary, would it result in a great loss economically?

Secretary Ickes. I would think so. Mr. LEAVY. And is it your judgment that the project will be a self-liquidating project over a period of years?

Secretary IcKES. I have no doubt of that, and it will bring into cultivation virtually a new empire. There is in excess of 1,000,000 artes of land out there susceptible of being irrigated from Grand Coulee. That is tremendously fertile soil. The estimate is that 20 arres of land properly cultivated will support a family in comfort.

We are helping now in the drafting of a bill which will make it prissible to acquire that land without paying the excessive prices that we reually have to pay if we go through condemnation proceedings for a reclamation project. If that land can be bought at its fair and reasonable market value, and if water can be turned on it, it will profoundly affect the civilization and the economy of the Northwest, and, therefore, of the United States. I think we ought to develop that

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