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COOPERATION WITH SCHOOL BOARD AT WORLEY, KOOTENAI COUNTY, IDAHO

AUGUST 2, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. O'CONNOR of Montana, from the Committee on Indian Affairs, submitted the following

REPORT

[To accompany H. R. 6701]

The Committee on Indian Affairs, to whom was referred the bill (H. R. 6701) to provide funds for cooperation with the school board at Worley, Idaho, in the construction of a public-school building to be available to Indian children in the town of Worley and county of Kootenai, Idaho, having considered the same, report thereon with a recommendation that it do pass with the following amendment:

On page 1, line 5, after the word "of" following the word "sum" strike "$101,000" and insert in lieu thereof "$30,000".

A similar bill (S. 2462) was introduced in the Senate during the Seventy-fourth Congress. Same was reported by the Senate Committee on Indian Affairs (Rept. 612) and was passed by the Senate. The following is taken from the Senate report of the Seventy-fourth Congress:

There are 151 white and 9 Indian children attending the public school at Worley, Idaho; 61 white and 3 Indian children are in high school, and 90 white and 5 Indian children are in the grades. There is overcrowding to the extent of 39 pupils. In addition, there are 40 children, 30 white and 10 Indian, who would enroll if facilities were available.

We are informed there is no discrimination against Indian children in this county. The school board and teachers are helpful and sympathetic toward the Indian children and regular attendance is required. The proportion of taxable and nontaxable land in this district is about equal. There is a bonded indebtedness of $16,000. There is a school-tax levy of 20 mills and in addition the district received during the fiscal year 1934 $500 tuition on account of pupils residing outside the district, and $720 tuition for Indian children.

The present school plant constructed in 1914, is a fire hazard, with a stove in each room, no running water for drinking, sanitary, or other protective purposes and is badly overcrowded. The cost of remodeling the present building would be exorbitant. If a new building is provided further consolidation of rural districts is anticipated with a consequent increase in attendance of both white and Indian children, including a number of Indian children now attending the DeSmet Mission School.

The need for a new public-school building is apparent.

Forty-six percent of the land in this school district is Indian land and therefore nontaxable. Under the Wheeler-Howard Indian Act this land will remain forever

off of the tax rolls and this cuts the revenue almost in half. Due to the fact that this large percentage of land has been nontaxable for many years the district is in no condition to build, or help toward building, a new school.

The Commissioner of Indian Affairs and the officials of the Bureau of Indian Affairs personally appeared before the committee and manifested their approval of this proposed legislation.

The Secretary of the Interior does not favor this bill. He states that the proportion of Indian children does not warrant construction on the basis of needs of the Indian children.

A communication addressed to the chairman, Committee on Indian Affairs, House of Representatives, relative to this proposed legislation is as follows:

Hon. WILL ROGERS,

DEPARTMENT OF THE INTERIOR,
Washington, June 17, 1937.

Chairman, Committee on Indian Affairs,

House of Representatives.

MY DEAR MR. CHAIRMAN: Further reference is made to your request for a report on H. R. 6701, to authorize an appropriation of $101,000 for cooperation with the public-school district at Worley, Idaho, in the construction of a publicschool building to be available for Indian children in the town of Worley and county of Kootenai, Idaho.

According to the last figures available the public school at Worley was attended by approximately 160 white and 9 Indian children. Of these about 65 white and 3 Indian children are in high school, and 95 white and 6 Indian children are in the grades. The school consists of three classrooms and one study hall for high-school students, and four classrooms for the grades. The last reports in our files showed overcrowding to the extent of 39 pupils, and that there were 40 additional children, 30 white and 10 Indians, who would enroll if facilities were available. Eight of the white children would be in high school. All of the additional Indian children would be in the grades.

There is no discrimination against Indian children in this county. The school board and teachers are reported as being helpful and sympathetic toward the Indian children, and the school officials have always cooperated to the fullest extent in securing regular attendance.

Taxable land in the district according to latest reports is valued at $283,505; nontaxable land is valued at $241,500; and the bonded indebtedness of the district amounted to $16,100. There was a school-tax levy of 22 mills distributed as follows: General fund, 15 mills; to retire bonded indebtedness, 6 mills; and gymnasium, 1 mill. In addition $405 was authorized during the fiscal year 1937 for tuition of 9 Indian children at 25 cents a day.

The present school plant is an old building constructed in 1914. It is reported to be a fire trap; is heated with stoves in each of the rooms; has no running water for drinking, sanitary, or other protective purposes; and is badly overcrowded. The school was constructed shortly after the townsite of Worley was laid out and in no way meets the needs of the present population of the district. The cost of remodeling the old building would be exorbitant and it should undoubtedly be replaced with a modern, fireproof building. If a new building is provided, it is reported there would doubtless be further consolidation of rural districts, which would increase the attendance of both white and Indian children beyond the numbers given, including a number of Indian children now attending the De Smet Mission School. Heretofore there has been no high school available for these children and few who have attended the mission school have continued in school through high school.

The need for a new public-school building in this district, chiefly for convenience of white children, is apparent. The present enrollment, however, of Indian children is 5% percent of the total enrollment. It would be approximately 9 percent, or slightly more, when the additional school facilities are constructed and Indian children of the vicinity now without suitable school facilities are enrolled. This proportion of Indian children, however, does not warrant new construction at Federal expense on the basis of needs of the Indian children. In view of the facts, I recommend that H. R. 6701 be not enacted. 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.

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AMENDING FEDERAL RESERVE ACT WITH RESPECT TO THE PAYMENT OF INTEREST ON DEMAND DEPOSITS OF CERTAIN PUBLIC FUNDS

AUGUST 2, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. STEAGALL, from the Committee on Banking and Currency, submitted the following

REPORT

[To accompany H. R. 7186]

The Committee on Banking and Currency, to whom was referred the bill (H. R. 7186) to amend section 19 of the Federal Reserve Act, as amended, with respect to the payment of interest on demand deposits of certain public funds, having considered the same, report the bill favorably to the House and recommend that the bill do pass.

Existing law prohibits the payment of interest by member banks on demand deposits, but by a proviso in the twelfth paragraph of section 19 of the Federal Reserve Act permits such payment of interest on demand deposits by member banks until August 23, 1937, in the cases of deposits of public funds made by or on behalf of any State, county, school district, or other subdivision or municipality, or to deposits of trust funds if the payment of interest with respect to such deposit of public funds or of trust funds is required by State law. The bill extends this permission until August 23, 1939.

In conformity with 2a of rule XIII of the House Rules, there is herewith printed paragraph 12 of section 19 of the Federal Reserve Act, as amended (U. S. C., 1934 edition, Supp. II, title 12, sec. 371a), expressly amended by the bill. The provisions of existing law proposed to be omitted are enclosed in black brackets; new matter is printed in italics; existing law in which no change is proposed is shown in roman, as follows:

No member bank shall, directly or indirectly, by any device whatsoever, pay any interest on any deposit which is payable on demand: Provided, That nothing herein contained shall be construed as prohibiting the payment of interest in accordance with the terms of any certificate of deposit or other contract entered into in good faith which is in force on the date on which the bank becomes subject to the provisions of this paragraph; but no such certificate of deposit or other

contract shall be renewed or extended unless it shall be modified to conform to this paragraph, and every member bank shall take such action as may be neces sary to conform to this paragraph as soon as possible consistently with its contractual obligations: Provided further, That this paragraph shall not apply to any deposit of such bank which is payable only at an office thereof located outside of the States of the United States and the District of Columbia: [Provided further, That until the expiration of two years after the date of enactment of the Banking Act of 1935 this paragraph shall not apply (1) to any deposit made by a savings bank as defined in section 12B of this Act, as amended, or by a mutual savings bank, or (2) to any deposit of public funds made by or on behalf of any State, county, school district, or other subdivision or municipality, or to any deposit of trust funds if the payment of interest with respect to such deposit of public funds or of trust funds is required by State law] Provided further, That until the expiration of two years after the enactment of the Banking Act of 1935 this paragraph shall not apply to any deposit made by a savings bank as defined in sec tion 12B of this Act, as amended, or by a mutual savings bank, or, until the expiration of four years after the enactment of the Banking Act of 1935, to any deposit of public funds made by or on behalf of any State, county, school district, or other subdivision or municipality, or to any deposit of trust funds if the payment of interest with respect to such deposit of public funds or of trust funds is required by State law. So much of existing law as requires the payment of interest with respect to any funds deposited by the United States, by any Territory, District, or possession thereof (including the Philippine Islands), or by any public instrumentality, agency, or officer of the foregoing, as is inconsistent with the provisions of this section as amended, is hereby repealed.

O

1st Session

No. 1427

COMPENSATION OF CHAR PEOPLE IN POSTAL SERVICE

AUGUST 2, 1937.-Committed to the Committee on the Whole House on the state of the Union and ordered to be printed

Mr. ROMJUE, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 7415]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 7415) to authorize payment of compensation to head charwomen, charwomen, and charmen of the custodial service of the Post Office Department, included in the Connery amendment to the Treasury and Post Office Appropriation Act (H. R. 4720) for the next fiscal year, and for other purposes, report the same back to the House with the following amendments, and, so amended, recommends that the bill do pass.

Strike out everything after the enacting clause and insert the following in lieu thereof:

That, notwithstanding any provision of the Classification Act of March 4, 1923, as amended, the rate of pay for charmen and charwomen in the custodial service of the Post Office Department shall be 55 cents per hour, and the rate of pay for head charmen and head charwomen shall be 60 cents per hour, effective upon the passage of this Act.

Amend the title so as to read:

A bill to increase the rates of pay for charmen and charwomen in the custodial service of the Post Office Department.

The legislation in the Treasury-Post Office Appropriation Act which provides funds to permit some increases in salaries of custodial employees under the Post Office Department was sponsored by the late Congressman Connery of Massachusetts by an amendment he offered to the bill when it was before the House. That amendment was approved by the House and by the Senate, but charmen and charwomen have been deprived of a pay increase thereunder because of the limitations placed upon their salaries by the Classification Act of 1923, as amended. These postal employees receive 50 cents an hour,

H. Repts., 75-1, vol. 340

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