^°'^<^ .-^'' .^. >^ o. :• % A* .>^?,-:', % ,<''* -'j^fe'v ■^'■s. ,,v* .'•^^!?^', %. v\ ^\' t^o^ .0 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON INDIAN AFFAIRS OF THE ^. J^» ^f HOUSE OF REPRESENTATIVES ON H. R. 6444 DECEMBER 14, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 SUBCOMMITTEE MR. KONOP, Chairman MR. TILLMAN MR. DEMPSEY D. of D. JAN 13 1917 i [^ 4 PAYMEiNT OF INTEREST ON CHEROKEE JUDGMENT. Subcommittee of the Committee on Indian Affairs, House of Representatives, Thursday^ Decemher 11^^ 1916. The subcommittee this day met, Hon, Thomas F. Konop (chair- man) presiding. There were also present Hon. John N. Tilhnan and S. WaUace Dempsey. members of the subcommittee. (The bill under consideration is as follows:) [H. R. 6444, Sixty-fourth Congress, first session.] A BILL Providing for the payment of certain items of interest on the judgment of the Court of Claims of May eighteenth, nineteen hundred and five, in favor of the Chero- Ivees, and for otlier purposes. Be it enacted by the Senate and HouHe of Representatives of the United States of America in Congress ossenihled. That the general deficiency appro- priation act of June thirtieth, nineteen Imndred and six (Thirty-fourth Stat- utes at Large, page six hundred and si*cty-four ) , and the act of Congress of Mareli fourth, nineteen hundred and nine (Tliirty-fifth Statutes at Large, pages nine hundred and thirty-eight and nine hundred and thirty-nine), con- struing same, so far as the said acts provide for the payment of tlie judgment of tlie Court of Chiims of May eighteentli, nineteen hundred and five, and interest tliereon, in favor of tlie Cherolvee Nation and the Eastern Cherokees, be, and the same are liereby. so amended as to carry interest on tlie several funds arising from items one, two, three,' and four, resiiectively, of said judg- meiit, ;is folliiws. to wit : At five i)er centum per annum, being the nite of interest provided to be paid on said funds by the terms of the contract between the United States and the Cherokee Nation of December nineteenth, eighteen hundred and ninety-one, ratified Iiy act of Congress of JMarch third, eighteen hundred and ninety-three (Twenty-seventh Statutes at Large, page six hundred and forty, section ten), on which contract the said .iudgment of the Court of Claims was based, on the several respective amounts of said funds, the said amounts to be determined according to the decision of the Comptroller of the Treasury of .Tuly eleventh, nineteen hundred and six, relating thereto, from July second, nineteen hundred and six, to date of payment, and the date of payment is hereby declared to be the day when payment is ready to be made to the individual beneficiaries entitled to receive shares of said funds and warrants therefor actually issued : Provided, That if the whole or any part of any of the said funds shall have been heretofore, or shall be hereafter, paid out, no further interest shall be allowed or paid on any such part so paid out: Provided further. That interest shall be allowed and paid on the original principal sum of item four of said judgment from July first, eighteen hunch-ed and ninety-three, as provided in the contract of eighteen hundred and ninety- one, mentioned above, and in the decree of said Court of Claims of IMay eighteenth, nineteen hundred and five, hereinbefore referred to. Mr. KoNOP. We will firtt hear from Mr. Hastings. 8 4 PAYMENT OF INTEREST UN CHEROKEE JUDGMENT. STATEMENT OF HON. WILLIAM W. HASTINGS, A REPRESENT- ATIVE IN CONGRESS FROM THE STATE OF OKLAHOMA. Mr. Hastings. Mr. Chairman and gentlemen of the subconmiittee, I introduced the bill H. E. 6-1:4^ at the suggestion of Mr. Boudinot, who is present and desires to be heard. This bill is designed to correct the calculation of interest on a judg- ment rendered by the Supreme Court in what is known as the Eastern Cherokee case, which will be fully explained by Mr. Boudinot. Mr. KoNOP. Was it the Supreme Court? Mr. Hastings. Yes, sir. It went from the Court of Claims to the Supreme Court. I do not care to go into the merits of this case except to say that Mr. Boudinot has contended ever since this money Avas distributed, to me, to the departments, and in our conntrj^, that the interest ^vas erroneously calculated. I might say in his behalf that he has spent most of his life at w^ork in one way or the other on this case. The (lovernment of the United States appointed a commission in 1889 to negotiate an agreement with the Cherokee Tribe to secure what v.as known as the Cherokee Out- let, being (),000,000 acres of land, afterwards added to old Oklahoma. In the agreement that was made on December 19, 1891, there was a provision, which w^as a part of the consideration for the transfer of this land to the Government of the United States for an accounting of all back moneys due the Cherokees from the Government, and there was a proAision that if the Cherokees were not satisfied with this accounting, that they could go into the courts. The Government did appoint two accountants, Messrs. Slade and Bender. They ren- dered an account to the Cherokee Tribe, and the Cherokee Nation accepted it. The Government of the United States declined to pixy it. Afterwards an enabling act was passed allowing a suit to be brought in the Court of Claims. It was brought and afterwards appealed to the Supreme Court of the United States, and a judgment rendered on four items that will be explained more fully. This money was paid in part to the Cherokee Nation and in part to the nation for the benefit of the Eastern Cherokees in 1910. Mr. Boudinot has always contended that the interest on these items was not calculated in ac- cordance with the agreement or the decision of the court. Tie has spent more time in the origination of this case than anybody else in Oklahoma. I introduced this bill at his suggestion, and it was referred to the Committee on Indian Affairs, and the Committee on Indian Affairs referred it to the department for a report, and there is a report here among the files conceding that Mr. Boudinot is in part correct, and according to his calculation they concede that there is some $10,000 due. I want to make this preliminary statement to assure the com- mittee of the amount of work that Mr. Boudinot has done in this matter and to ask the committee that, if a favorable report is made upon this bill or any part of it, you will make some provision direct in the bill for the compensation of Mr. Boudinot. He has a contract with W. C. Rogers, the principal chief of the Cherokee Nation. Of the Eastern Cherokees, Avho were interested in this judgment, in 1910 there were more than 30,000. Perhaps nine-tenths of them reside in PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 5 Oklahoma. Some of them, reside in nearly every State of the Union. A great many of them are dead. It would be impossible for him to get contracts with these individual Indians. He is going to ask, if the committee finds any amount is due, that there be a separate re- port from the committee, asking that this amount conceded to be due be appropriated and the disi)uted amount referred to the Court of Claims to be litigated. If it is referred to the court there will have to be a jurisdictional act enabling them to go into court, and there ought to be some provision for representation before the court. 1 might add that this is the case that Senatoi- Owen represented in the Court of Claims and in the Supreme Court of the United States, and Mr. Boudinot assisted in getting up the evidence and the data, and that Senator Owen desires to come before the committee to make a statement as to Avhat connection Mr. Boudinot has had with this matter. I will say to you that I do not see how anyone who repre- sents them can be compensated unless you make some sort of a pro- vision in the bill for it. Mr. KoNOP. Was there any compensation paid to these attorneys in the prosecution of this case in the Supreme Court, and the Court of Claims? Mr. Hastings. There was 15 per cent paid. That was allowed by the Court of Claims on a very large sum. Mr. Boudinot has a con- tract with the principal chief of the Cherokee Nation, who represents, I should saj', nine-tenths of them who live in the Cherokee Nation, but there are some scattered all over the United States. An Eastern Cherokee is not necessarily a citizen of the present Cherokee Nation. Mr. KoNOP. Has this sum been paid to Senator Owen? Mr. Hastings. Fifteen per cent on the original amount that was paid to Senator Owen and his associates, but Mr. Boudinot contends that the interest on the items allowed w^as erroneously calculated, and it is to that one point alone that he claims that the interest was not calculated and the amount was not paid that the original agree- ment said should be paid and the court said should be paid. Mr. IvoNOP. Is it your contention if there should be an additional amount allowed for interest, as you claim, that 15 per cent of that amount should be paid to Mr. Boudinot? Mr. Boudinot. That is my contention. Mr. KoNOP. I haA'e a letter from the department with reference to these claims and also a letter to the Secretary of the Treasury froni the comptroller in Avhich he refers to the judgment of the Court of Claims rendered May 18, 1905, reported in 40 Court of Claims, 252. That makes no reference whatever to the case in the Supreme Court. This is the same case that Avas appealed to the Supreme Court ? • Mr. Hastings. Yes, sir ; and reported in volume 202 United States. 101. That is all I desire to say at this time. Mr. KoNOP. We will be glad to hear from you, Mr. Boudinot. STATEMENT OF MR. FRANK J. BOUDINOT. Mr. KoNOP. Before you begin. I do not think it will be necessary for you to make any statement as to the nuuits of the controversy that was adjudicated by the court. As I undersand it, this bill is supposed to correct items of interest which were ordered to be paid by the court? 6 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. Mr. Hastings. That is the point. Mr. KoNOP. Then there is no necessit}^ of going into the merits of the controversy involved in that litigation. Mr. BouDiNOT. This bill, I should like to say, is in the nature of a compromise. I have had this matter up before the Treasury De- partment and the Department of the Interior for a great many years. The claim of the Cherokee Nation is based on the agreement of 1ec()me effective, such sum so left in the Treasury of the United States shall bear interest at the rate of five per centum per annum. That stipulation is embodied as a part of subdivision 6 of the agreement. The agreement Avill be found printed in Senate Execu- tive Document No. 5G, Fifty-second Congress, first session. Mr. KoNOP. Is that a long document ? Mr. BouDiNOT. It includes not only the agreement, which is two or three pages, but includes all of the correspondence, the report of the commissioner who negotiated the agreement, and the reports of the Commissioner of Indian Affairs and the Assistant Attorney General. It contains about 25 pages. Mr. KoNOP. Is it obtainable now? Mr. BouDiNOT. Yes, sir ; it can be obtained in the Library and pos- sibly in the document room. Mr. KoNOP. And all we are concerned in is what you have just quoted ? Mr. BouDiNOT. Yes, sir; that is all. It is the sixth subdivision of article 2 of the agreement. That claim resulted from this judgment of the Court of Claims of May 18, 1905, referred to in the bill and in the Secretary's report. With these preliminary remarks, I will state just what this bill i^ro- poses to do and then the amount of the claim and the difference between the two. This bill proposes to pay interest on the amount that was actually appropriated to pay the judgment and placed in the hands of the Secretary of the Interior July 2, 1906, in trust for the Cherokees at 5 per cent interest per annum until paid. Mr. KoNOP. On July 2, 1906? Mr. BouDiNOT. Yes, sir. Mr. KoNOP. As I understand, the amount awarded was paid to the Secretary of the Interior July 2, 1906? Mr. BouDiNOT. Yes, sir. PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 7 Mr. KoNOP. And you want interest from July 2, 1906, to the time when the warrants were paid? Mr. BouDiNOT. Yes, sir. That is what the bill provides. . In round numbers, I will state for the information of the committee that, ac- cording to the best calculation I have been able to make, it will amount to date to about $825,000 for all of the items, items 1, 2, 3, and 4. Item 2, the item that belongs to the individuals called the Eastern Cherokees, amounts to about $800,000 up to now. Mr. KoNOP. Would you have any objection, Mr. Boudinot, to tak- ing up these items one after the other embraced in the judgment of the Court of Claims and explaining just what you claim on each item ? Mr. Boudinot. Item 1, appropriated on June 30, lOOO, and paid to the Secretary of the Interior July 2. 1006, amounted to $11,520.46. Mr. KoNOP. That was for principal and interest? Mr. Boudinot. Yes, sir. Mr. KoNOP. The sum was $2,125 ? , Mr. Boudinot. Yes, sir. ^Ir. KoNOP. With interest from February 27, 1819, to date of payment ? Mr. Boudinot. Yes, sir; and treating the date of the appropriation or the time it was paid to the trustee for the Cherokee Nation as the date of payment it amounted on that date to $11,520.46. It is the interest on that amount until the warrants were issued to pay it that we claim. Mr. KoNOP. The principal sum in item No. 1 is $2,125 ? Mr. Boudinot. Yes, sir. Mr. KoNOP. Together with interest from February 27, 1819, to July 2. 1906? Mr. Boudinot. Xot exactly. Mr. KoNOP. To the date of ])ayment? Mr. Boudinot. To May 14, 1906. Mr. KoNOP. To May 14, 1906? Mr. Boudinot. Yes, sir. Mr. KoNOP. You claim interest on this amorint of $11,520.46 from May 14, 1906, to when? Mr. Boudinot. From July 2, 1906. Mr. KoNOP. Until when? Mr. Boudinot. Until it is paid. Mr. KoNOP. xVll of it is not paid? Mr. Boudinot. I have a letter from the Commissioner of Indian Affairs about that. I do not know whether it has been paid or not, and neither do they. Mr. Hastings. A part has been paid. Mr. Boudinot. Probably it has been merged into the general funds of the Cherokee Nation since that date, but interest was not paid at all after May 14, 1906, on this item until May 26. 1910. Then the Secretary transferred this item to the school fund of the Chei-okoe Nation, which is an interesting-bearing fund under the general law. He was directed to put it to the credit of the school fund b>- the court at the time the decree was rendered. For some reason he did not do it; he held it there for four years. This bill simply pro- poses to pay the interest for the four years that he held it without interest. 8 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. Mr. KoNOP. He failed to put it in the school f unvision made in any agree- ment relating to interest, is there not some general law whereby the trust funds of the Indians bear interest? Mr. BouDiNOT. Yes, sir; at the rate of 5 per cent. 12 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. Mr. HxVSTiNGS. Five per cent, I think it is. Mr. BouDiNOT. Yes, sir. Mr. Hastings. That is the basis of his contention. All of these trust funds of the Cherokees, in whatever fund, bear interest at the rate of 5 per cent. ]\Ir. KoNOP. Under the general law ? Mr. Hastings. Yes, sir. Mr. KoNOP. Not under any agreement with the Cherokee Indians? Mr. BouoiNOT. No ; even if there had not been that treaty. Mr. KoNOP. If there was no treaty at all referring to interest, as a general proposition, these funds of the Indians that are in the hands of the Secretary of the Interior or in the Treasury of the United States bear interest at the rate of 5 per cent? Mr. BouDiNOT. Yes, sir; as a general proposition. As to items 1 and 4, that general law would undoubtedly apply, because they be- long to these two interest-bearing funds, the school fund and the national fund. Mr. Hastings. Did not this agreement that was the basis of this suit in 181)1. when the Cherokees sold this Outlet, provide that they should pay interest to the date that the mone}^ was credited to the various funds? Mr. BouDiNOT. Yes, sir; that is a special law. My position is that the special law applied to these particular funds and would supersede any general law. Mr. Hastings. And the general law also provided for it? Mr. BouDiNOT. Yes, sir ; as to items 1 and -1. Mr. KoNOP. Does not the Secretary of the Interior at the end of each year add to the trust-bearing funds of the Indians interest at 5 per cent, and in that way enhance the funds to the amount of the interest ? Mr. BouDiNOT. He should do it. Mr. Hastings. That is your contention? Mr. BouDiNOT. Yes, sir. Mr. KoNOP. Does he not do it? Mr. BouDiNOT. The reason stated in this letter to me is that these funds were not ])laced to the credit of this interest-bearing fund until May 26, 1910. Mr. Hastings. x\s I understand Mr. Boudinot's contention, it was the duty of the Secretary of the Interior to immediately place these several amounts to the credit of the various funds as he was directed to do, and that the funds should bear interest until he did do it. Mr. KoNOP. It would seem to me that the}' would hear interest whether credited to the fund or not credited to the fund. As a gen- eral proposition, if the Secretary of the Interior had on hand, say, a million dollars belonging to any tribe of Indians, whether or not he put it to the credit of the fund of those Indians, it Avould bear interest. Mr. Tillman. The Indians would not have possessi(m. Mr. KoNOP. It would be in the possession of a Government official. Mr. BoiDixoT. I Inne discussed that in a little memcrandu.m which I have prepared and which I will file with the committee. Mr. Koxop. Are these Indians on a reservation? Mr. BouDiNOT. No; we are a part of the State of Oklahoma now. Mr. KoNOP. You have all been allotted? PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 13 Mr. BouDiNOT. Yes, sir; all of ns. Mr. KoNOP. Do all of the Indians have patents in fee or trust patents to their estates? Mr. BouDiNOT. They haA'e actual deeds from the (xovernnient. INIr. KoNOP. All of them? Mr. BouDiNOT. Yes, sir. Mr. KoNOP. The,y are citizens of the State of Oklahoma, ]Mr. Hastings. Yes, sir. They were made citizens by the act of March 3, 1901, long before Oklahoma was admitted. So when Okla- homa came into the Union they were all citizens of the State of Okla- homa. Mr. KoNOP. Do the}' vote? Mr. BouDiNOT. Yes, sir. Mr. KoNOP. And they all take care of their own property? Mr. BouDiNOT. Yes, sir. A certain class, some full-blooded Indians are under supervision as to certain of their property. Mr. KoNOP. Under the guardianship of the Secretary? Mr. BouDiNOT. Yes, sir. Mr. Hastings. An Indian on the roll as a half blood is known as a restricted Indian, and the Secretary of the Interior assumes certain supervision over their land and over the money which he holds, not over the money which they themselves have. For instance, a half- blood Indian can not lease or otherwise dispose of or encumber his homestead, and the Secretary supervises the disbursement of any fund which the Secretary has to the credit of that particular Indian. That is the difference. ISIr. KoNOP. The Secretary in his letter of Xovember 18, 191G, to Mr. Bouclinot says: From the books of the Indian Office it appears that the snni of $4,972,992.04, appropriated liy the deticiency act approved .Inne 30, 1906 (34 Stats. L., 664), \Aiiich amount included $1,134,248.23 as principal and $3,838,743.81 as interest, was credited to tlie CIieroli;ee Nation on July 2, 1906, luider the title " Judg- ment, Court of Claims, Cherolcee Nation." It appears that there was also credited to the Cherokee Nation under said heading the sum of $161,324.94 by Treasury warrant No. 58, dated April 19, 1910, said amount being additional interest at 5 per cent per annum on $1,111,284.70, item No. 2 of the judgment of the Court of Claims of May 18, 1905, appropriated by the deficiency act of ]March 4, 1909 (35 Stats. L.. 938). (See Comptroller's decision of Apr. 2, 1910. ) From this it appears that interest has been added from July 2, 1906, to April 19, 1910 ? Mr. BouDiNOT. I will explain that. lender the act of JNIarch 4, 1909, and which is found in 35 Stats. L., 938, 939, at the request of the Court of Claims Congress provided that interest on item 2 should be carried up to such time as the roll of the beneficiaries entitled to receive the money should be approved by the Court of Claims. That date turned out to be March 15, 1910. Under that law the comptroller made a second decision which is dated April 2. 1910, rescinding the decision under which the amount had been paid in 1906, and then holding that the total sum to be paid the Chero- kees under the judgment with interest was $1,111,284.70, with in- terest from June 12, 1838, to March 15, 1910. That $161,000 in interest represents the difference between the kind of calculation the United States made finally and the kind that was made in 1906, when this large amount was paid to the Secretary. It is simply 14 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. a matter of bookkeeping and was based on the construction placed on the act of 1909 by the comptroller. Our contention is that by the act of 1909 item 2 being a concrete liquidated amount in the Treasury and known to be such'by Congress when they directed that interest on item 2 be carried up to this time Congress meant to pay interest on the fund in the Treasury. That is the $4,000,000 fund. That is what the bill provides for, ' The comptroller did not take that view of it. Mr. Hastings, And you ask to go to the court on that propo- sition ? ISIr. BorniNOT. On that proposition the Secretary has recommended that I go to court. Mr. ivoNOP. That is provided in the bill? Mr. Hastings. Yes, sir. Mr. BorniNOT. Not in this bill, but the Secretary advises it, Mr, Hastings. That is what I mean. Mr. Bofdinot. As to the interest since 1902 the Secretary has recommended that the matter be referred to the Court of Claims. ]\Ir. KoNOP, I am not clear on this item No. 2 from the statement in this letter. This part of the letter which states : From tlie hooks of the Indian Offiie it appear that the sum of .$4,972,992.04. appropriated hy t\v? deticieney ar-t approved .lune 80, 1906 (34 Stats. L., 604), A\-hich amount "included .$1,134,248.23 as in-incipal. and $3,838,743.81 as interest, was credited to the Cherokee Naticm on July 2. 1900, under tlte title " .Tudt:- ment, Court of Claims, Cherokee Nation." That is absolutely true? Mr. Boudinot. Yes, sir; that is correct. ■ Mr. Hon OP, He says further: It a]ipears that there was also credited to the Cherokee Nation under said heading the sum of $161,324.92 hy Treasury warrant No. .18, dated April 19. 1910, said amount hein.s additional interest :tt ."> per cent per annum on $1,111,284.70. Where do you get that $1,111,284.70? jNIr. BorniNOT. That is the original })rincipal. That is a nuitter of bookkeeping. They had this .'-tatement made and had the amount entered on their bocks and when they restated the interest they com- puted it on another basis in 1910 and that made that difference. Mr. KoNOP, I see what your contention is. They computed the interest on the original amount from June 12, 1838, until April 19. 1910? Mr. BouDiNOT, Yes, sir. Mr. KoNOP. That is where the additional $161,324,92 comes in? Mr, BouDiN'OT. Yes, sir. ]Mr. KoNOP. Your contention, however, is that the interest from July 2, 1906, should have been paid at 5 per cent on the sum of $4,972,992,04, which was the fund placed to the credit of the Cherokee Indians? Mr. BouDiNOT. That is my contention exactly. Mr. KoNOP. "V^Hiat is the diiference in the amount that you claim? Mr, BouDiNOT, The difference is $603,000, INIr, KoNOp. And what does your interest figure, eight hundred and 'some odd thousand dollars? Mr. BouDiNOT, Yes, sir, Mr, KoNOP, And they figure $161,000? PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. " 15 Mr, BouDiNOT. Yes, sir. Mr. Koxoi'. They figure on the original princii)al and you figure on tlie amount ^vhich was phiced to the credit of these Indians or July 2. V.)()V>( Mr. Boi DixoT. "^'es, sir. Mr. KoNoi'. Would this 1)111 as now written authorize the payment of interest on the sum credited to the Indians July 2, 1906? Mr. I>oui)iNOT. Yes, sir. It is also stated by the comptroller. Mr. TiLLTM.^x. What excuse did they give for figuring as they have and not taking your view? JSIr. BoiDixoT. It was only a difference of opinion as to the law. Mr. Tir.LMAx. Did they give you theii* reason for figuring that Avay ? Mr. BounixoT. They never have told me in writing or informally, or by word of mouth, that they did not believe that this interest should be paid. I have attempted to get their idea, just as you have asked me now. Mr. TiLLMAX. They give interest to the amount of $101,000 and no more? jNIr. BounixoT. Yes, sii-. Mr. Koxop. The way the court has item Xo. 2 is $1,111,284.70, with interest thereon at the rate of 5 per cent from June 12, 1838, to date of pavment. What do vcni consider the date of pavment? Mr". BouDixoT. July 2, 1906. INIr. Koxop. When the money was placed to the credit of the Cherokee Indians with the Secretary of the Interior? Mr. BouDixoT. Yes, sir. That was the date of i^ayment, and then the fund came under the operation of this other law. Mr. Koxop. The general law of 5 per cent interest? Mr. Boi'iuNOT. Yes, sir; authorizing the payment of 5 per cent interest. Mr. Koxop. Have there been [)er cai)ita ];ayments made to the Indians from this fund since? Mr. BouDixoT. In 1910, that is the date of this $003,000 balance, they paid $4,105,000 to the Cherokees, presunuibly the whole balance according to their way of calculating the interest. These amounts, items 1, 2, 3, and 4, every one of them were due, principals plus inter- est, under the agreement of 1891. ^larch 4. 189."). That has been found and stated positively and emi)hatically by the Court of Claims and on appeal by the Supreme Court of the United States in so many words. Tliose courts found that the money was a part of the purchase price of lands; that the United States got the lands and kept the money; that the money was due at the session of Congress which convened in December, 1894, and that session expired by limi- tation March 4, 189."). The money being due on that contract, the claim of the Cherokees, of which this bill is a compromise, was for the amounts, principals and interest, that were due March 4, 189."), Avith interest thereon at 5 per centum per annum until paid, under the clause in the agreement which I quoted awhile ago, which is a special law, even if we do not consider the general law. " So long as the money shall stay in the Treasury it shall bear intere.st at the rate of 5 per cent payable semiannually.'" That is in the sixth sub- division of the agreement. The difference between such interest and 16 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. tlitit proposed in the bill as to item 2 would be about $2,000,000. I have taken up that phase with the department and, as in this other case, they lune never by letter or in any other way given me any reason why that would not be correct interpretation of the agreement. Mr. Ko>;op. Let me ask you another question. When this money was credited to the Cherokee Nation on July 2, 1906, and placed in the hands of the Secretary of the Interior, I suppose that the Secre- tary of the Interior immediately proceeded to make a roll of these Indians and to make arrangements for the payment of this sum of money to the Indians, and I suppose that it took from July 2, 190(5, to March 15, 1910, to make the arrangements for the payment of this sum of more than four million dollars placed to the credit of the Indians by the Secretary of the Interior. Mr. BouDiNOT. Yes, sir; the Secretary of the Interior was directed to make this roll. Mr. KoNOP. Do you think the United States Government ought to pay interest when it is given possession of a sum of money to distribute among the Indians, and it starts to go to work to provide an agency for the distribution of this money and to make u]) the roll, that the United States ought to pay interest on the money until it is actually paid? Mr. BouDiNOT. If they contracted to do so, I think they should, especially in view of the fact that we paid all of the expenses. Mr. KoNOP. Where do you claim that they were under contract ? Mr. BouDiNOT. In the contract undei- which the money was due. " So long as the money remained in the Treasury of the United States after the agreement became effective, it shall bear interest at the rate of 5 per cent per annum, payable semiannually." Mr. Dempsey. And this provided for the purchase of the land? Mr. BouDiNOT. Yes. sir. The judgment was based upon the agree- ment for the amounts found due, in the account rendered thereunder by the United States. The main issue was whether the money found due in the account was only due under the old treaties and laws, as stated in the account, or clue and payable under the agreement of 1891. Mr. Koxop. Did not the process of the distribution of this money begin July 2, 190r3, when this money was put to the credit of the Secretary of the Interior; did they not begin to make a roll and to l^rovide agents for the distribution of the money ? Mr. BouDiNOT. Yes, sir. Mr. KoNOP. Suppose a court renders a judgment for $5,000 in favor, say, of some heirs. In an ordinary civil procedure the ad- ministrator or the executor, whatever he may be, immediately after the rendition of the judgment proceeds to make arrangements to pay the money, and it takes six months before he can settle u]) with the heirs — find out where they are. Do you think there should be an interest charge for the six months? Mr. BouDiNOT. I would not like to say positively as to that. Mr. Dempsev. I think the court would charge an executor interest. Mr. KoNOP. I do not think so. Mr. DE:\rpsEY. I will tell you Avhy I think an executor is bound to get interest where it is the custom to pay interest. I think that an executor can not sit down and say : " I may have to pay this money out to-morrow and so I will deposit it in a noninterest-bearing PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 17 account,"' when he can go to some bank, and that means any good bank, and they will make a contract and stamp his book to alloAv him interest, provided the money remains there a given time. If he actually does distribute the money in less than the stated time, of course he would not be charged with interest, because the bank would not pay him interest under the contract and therefore he has only done that Avhich a diligent representative should do, he has made an advantageous contract for the estate. He has the option of making either an advantageous or a disadvantageous contract. If he makes an advantageous contract, and it turns out that the money does remain there, then why should he not be charged with interest. That is only reasonable diligence. Mr. Tillman. I think there is a distinction between that and the Government. I do not think that the Government should be com- pelled to look for a place in order to get interest for the benefit of the Indians or others. Mr. De3ipsey. Is it not a fact that the Government does carry its funds in interest-bearing depositories throughout the United States, and you might find on investigation that these particular funds were in all human probability deposited at interest, and that interest was actually paid? Mr. Tillman, I do not think so. I think that he must rely upon his agreement. Mr. Dempsey. If you go into any city in the country, go right doAvn town here, 3^ou will find on their windows, on their bank books, and on their literature the statement, '' Government depository."' Mr. Tillman. I think that is a recent arrangement. I think the Government has been depositing money and charging no interest Avhatever to the banks to assist them over hard times. Mr, BouDiNOT, That was not the custom at the time that I am asking for interest here. I rely upon the agreement. Those ques- tions can probably be bcvst thrashed out before a court after all. Mr. Hastings has introduced this bill for me by way of a compromise. I have notified the Commissioner of Indian Affairs of my intention in this matter. That if they saw fit to settle these claims now on the basis provided in this bill we would acquit the United States of all future pa.yments on account of these claims. The error that is admitted l^y the comptroller and the Secretary in item -1 ought to be corrected. I would suggest and ask that you separate the two parts of the bill and introduce one bill and let it be an appropriation bill, as to items 1 and 4. The other one would be a different kind of a bill, one to confer jurisdiction. Mr. KoNOP. To confer jurisdiction on the court? Mr. BoroiNOT. Yes, sir. Mr. KoNOP. It looks to me that probably the Secretary of Interior with his Indian Bureau agents was about as diligent as they usually are in making up a roll and in paying out any money they may have. They took four years in this case. Mr. BouDiNOT. It was a difficult thing to do. There are other mat- ters that do not relate to this claim. In regard to item 1 and item 4 the Cherokee school fund and the national fund, both trust funds bearing interest at 5 per cent, is there 7.S11T— 16 2 18 PAYMEXT OF INTEREST ON CHEROKEE JUDGMENT. anything that you would like to ask about them? I want interest on both of those funds. Mr. KoNOP. And the correction made from 1903 to 1893? Mr. BouDiNOT. In item 4; yes, sir. Mr. KoNOP. Can you submit to the committee a draft of a bill?^ Mr. BouDiNOT. I have one. I have prepared a draft that I think would cover it. Mr. Hastin(;s. Mr. Boudinot has prepared two bills. Mr. Boudinot. That [exhibiting] is the bill for the appropriation. I thought I w^ould carry out in this bill for the appropriation as near as might be the exact figures of the amounts that will be appropriated under the bill or so much thereof as might be necessary. The. recom- mendation by the Secretary of the Interior is ii). general terms and just says interest from such a date to such a date. Congress might Avant to know how much that would amount to. and I have reduced it to figures. Mr. Dempsey. Would it not be advisable to keep just as near to the bill as proposed by the department as possible ? Mr. Hastings. We will see where it varies from that. I want him to read it for such criticism and suggestion as the committee may desire to make. He is going to separate it. so if you make an appro- priation you will have one bill for an appropriation and the other to refer to the court — ^to appropriate the amount that is conceded, as I understand it. Mr. Boudinot. This is the proposed bill : A BILL Providing for tlie payment of certain interest on tiie judgment of tlie Court of Claims of May eigtiteenth. nineteen hundred and five, in favor of the Cherol^ee Nation. and for other purposes. Be it enacted by the S!eiutte and House of Reijresentatives of the United k^tates of America in Coiurress asserubled. That the general deficiency appropri- ation act of June thirtieth, nineteen Imndred and six (Thirty-fourth Statutes at Large, page six liundred and sixty-four), and tlie act of Congress of March fourth, nineteen hundred and nine (Thirty-fifth Statutes at Large, pages nine hundred and thirty-eight and nine hundred and thirty-nine), construing same, so far lis the said acts ])rovide for the payment of the .iadgment of the Tourt of Claims of May eighteenth, nineteen hundred and five, in favor of the Chero- kee Nation, he, and the same herehy are. so amended as to allow interest to be paid as follows: At five per centum per unnum on the amount of the fund arising from item one of said judgment, as such amount was determined and paid to the Secretary of the Interior July second, nineteen hundred and six. to be by him credited to the principal of the Cherokee school fund ; that is to .say, on the sum of .$11,.520.46, from July second, nineteen hundred and six, up to and including May twenty-sixth, nineteen hundred and ten. and the smn of $2.14.^.67, or so nnich thereof as may be necessary, is hereby appropriated to pay the same; at five per centtnn per annum on the original principal sum of item four of said judgment, .$20.406.2.">, from .July first, eighteen hundred and ninety-three, \\]) to July first, nineteen hundred and three, and at five per centum i)er annum on the amount of the fund arising from said item four as hereby increased, said amount to be determined according to the decision f>f the (Comptroller of the Treasxiry .July eleventh, nineteen hundred and six, relating to said funds, from July second, nineteen hundred and six, to the date of the passage of this act ; and the sum of .$2.5,0()0. or so nutcb thereof as may be neces- sary to pay said interest i.s hereby appropriated, and the Secretary of the Ti-easury is hereby authorized and directed to pay the same to Frank J. Boudinot, attorney at law, for his services and expenses heretofore performed and incurred in l)ehalf of the Cherokee people. If you will just follow' the recommendation of the department — have you the letter from the department? PAYMENT OF INTEREST ON CHEROKEE JUEKJMENT. - 19 Mr. KoNOP. Yes. Mr. Dempsey. We will follow this [indicating]. Mr. KoNOP. That language, '- pay the sum " — you mentioned that this would be put into this school fund. Mr. BouDixoT. Yes; it would be put into the school fund. Mr. KoNOP. There was nothing for the Secretary of the Interior to do but to credit that money to the school fund. Mr. BouDixoT. Just transfer it from one pocket to another; but he did n«t do it until May 26, 1910. Mr. KoNOP. There was no necessity for going to any trouble in making up a roll with reference to this fund, was there? Mr. BouDiNOT. No, sir. The court directed the Secretary to place the fund on the proper books and credit the amount to the principal of the Cherokee school fund. Mr. Dempsey. Just how much was that? Mr. BouDiNOT. It was $11.5-20.46. The interest amounts to $2,115.67. Mr. KoNOP (reading from letter of comptroller) : Item 1. At 5 per cent on orisiniil principal from Feliruary 27, 1819, to Decem- ber 29, 1905, and at 4 per cent on original principal, plus amount of interest to December 29, 1905, from December 30, 1905, to :\Ia.v 14, 1906. Item 2. At 5 per cent on original principal from June 12, 1838, to March 15, 1910. Item 3. At 5 per cent on original iirincipal from .January 1, 1874, to Decem- ber 29, 1905, and at 4 per cent on original principal, plus amount of interest to December 29, 1905, from December 30, 1905, to May 14. 1906. Item 4. At 5 per cent on original principal from .July 1, 1903, to December 29, 1905, and at 4 per cent on original principal, plus amount of interest to Decem- ber 29, 1905, from Deceml)er 30. 1905, to May 14, 1906. Mr. KoNOP. That is — at least substantially — what is contained in the letter to the chairman of this committee, under date of June 29. 1916. from the Secretary of the Interior. Mr. BouDiNOT. Yes. " As to item 1. that $2,115.67, or so much thereof as may be necessary, is to be appropriated, if the committee agrees to pay the same. Then at 5 per cent per annum on the original principal of item 1 of said judgment, $20,406.25, from July 1, 1893. up to July 1, 1903, and at 5 per cent per annum on the amount of the fund arising from said item 4 as increased. Mr. KoNOP. You say " To pay the same." Pay it to whom ? Mr. BouDixoT. I was about to get to that. It is in the bill.^ The amount is to be determined according to the decision of the Comp- troller of the Treasury of July 11, 1906. relating to said funds, from July 2, 1906. to the date of the passage of this act. It also provides for 'the payment of $25,000. or so much thereof as may be necessary to pay that interest. Xow, to answer your question, it reads: To pay the same to Frank .J. Koudinot. attorney at law. for his services and expenses heretofoi-e performed and incurred in behalf of the Cherokee people. I want to submit certain resolutions passed by the Cherokees, and approved by the chief of the Cherokee Xation, about this, and also I desire to ask the committee to hear Senator Owen make a state- ment as to the merits of the proposition to pay that amount to me. Mr. Koxop. You want this interest paid to you, do you? Mr. BouDiKOT. That is, item 4, yes. Mr. Dempsey. What is the amount? 20 PAYMENT OF INTEREST ON CHEEOKEE JUDGMENT. Mr. BouDiNOT. The amount will j^robably be — it is difficult to get at it — about $10,911. It could possibly be tAventy-tAvo and some odd thousand dollars up to the date the money was in the Treasury. It is not there noAv. It could not be oAer $25,000. Mr. Tillman. And it could be someAA'here betAA'een the tAA'o sums mentioned by you, could it not ? Mr. BouDixoT. Yes. Mr. Dempsey. Depending upon the amounts? Mr. BouDiNOT. Yes. * Mr. Dempsey. This bill is not opposed by the department, is it? Mr. BouDiNOT. Xo. Mr. Dempsey. That item you are uoaa^ considering differs from the bill as proposed by the department as to the items for Avhich interest Avas reckoned and the rates at Avhich it shall be computed? Mr. BouDixET. Xo — not the rates. The only difference is that it proYides for interest from July, 1898, to July, 1903. And the amount of the fund as increased to be placed to the credit of the principal of the Cherokee school fund — the trust fund as of July 2, 1906, and in- terest paid to date. Mr. KoNOP. I can see Iioay items 1 and 4 AYill be all right. As ta items 2 and 3, you Avould w-ant them submitted to the Court of Claims. Mr. BouDiNOT, They should be submitted to the Court of Claims, I think, yes. Mr. KoNOP. For determination as to AAhether the interest should be computed on the principal to 1910 or on the amount of four million and some odd thousand dollars to July 2, 1906— to March 15, 1910. Mr. BouDiNOT. Or up until payment. Mr. KoNOP. Yes. Mr. BouDiNOT. I Avould AA'ant to ask the committee to make that bill so that the Cherokees might come into court and get all such interest as may be authorized by any law or contract on the par- ticular fund — only on that particular fund. Mr. KoNOP. Is item 3 in the same position as item 2 ? Mr. BouDiNOT. No, Mr. KoNOP. It is not ? Mr. BouDiNOT. No ; it is not. If I had more time I could sIioay that item 3 belonged to the Cherokee national school and orphan funds — all interest-bearing trust funds. That could be thrashed out in court. This item, being the proceeds of certain lands in southern Kansas, Avas due under the treaty of 1866. Mr. Koxop. TIaYe you prepared a bill for submittino- items 2 and 3 to the Court of Claims? Mr. BouDiNOT. I have. Mr. Hastings. Eead that to the committee. (The bill referred to was read to the committee, and appears in full at the close of Mr. Boudinot's remarks.) Mr. BouDiNOT. That differs in some respects, as the committee AA'ill see. from the bills proj^osed here. Mr. DE:NrpsEY. The important differences are that the fee shall be such as the court shall decide is reasonable, and shall not be in excess of the amount stipulated in the approved contract— shall not be more than 10 per cent ; whereas the bill provides for 15 per cent. Js that right? PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 21 Mr. BouDixoT. That is correct; yes. Mr. Dempsey. As I understand it, you Avill provide in your pro- posed bill for the payment of items 4 and 1 instead of referring one to the Court of Claims. Mr. Koxop. Items 2 and 3 are referred to the Court of Claims and 1 and -i are to be appropriated for directly and paid to you. Is that correct? ]Mr. BouDiNOT. Xot 1. but 4 — in compliance with the resolution I have here from the Cherokees appVoved by the principal chief of the Clierokee Nation. It relates solely to item 4. Mr. KoNOP. Have you a contract with the Cherokee Nation with reference to the prosecution of the proposed cases — items 2 and 3? ]Mr. BouDixoT. Yes; I have that. ]Mr. KoNOP. Now state to the repoiier what papers you want to have incorporated in the record and indicate to what items they refer. Mr. BouDixoT. Very well. Mr. Tillman. In the proposed draft of the bill to confer juris- diction upon the Court of Claims reference is made to items 2 and 3 of the judgment of the Court of Claims. ]Mr. BouDixoT. Yes ; that is what I want to go into the record first. It is a bill to confer jurisdiction upon the Court of Claims, with right of appeal to the Supreme Court of the United States, to hear, consider, and determine and enter final judgment on the claim of the Cherokee Nation against the United States for interest alleged to be owing and unpaid from the United States to the Cherokee Nation on the funds arising from the judgment of the Court of Claims of May IS. 1905, in favor of the Cherokee Nation, and for other purposes. Mr. KoNOP. To what items does that refer ( Mr. BouDiNOT. That refers to items 2 and 3 of the judgment. Mr. KoNOP. What is your next document? Mr. BouDixoT. The next document I desire to have inserted is a draft of a bill providing for the payment of certain interest on the judgment of the Court of Claims of May 18, 1905, in favor of the Cherokee Nation, and for other purposes. That refers to items 1 and 4 — of the judgment of the Court of Claims. Mr. Koxop. It provides for the payment of interest on items 1 and 4? Mr. BouDixoT. Yes. Mr. Koxop. What is your next paper which you desire inserted? Mr. BouDixoT. No. 3 is a contract between W. C. Rogers, of Skiatook. State of Oklahoma, principal chief of the Cherokee Na- tion, and Frank J. Boudinot. of Fort Gibson, State of Oklahoma, attorney at law. for the collection from the United States of certain monevs claimed to be due to the Cherokees on account of the funds arising fi-om items 1, 2. 3. and 4 of the judgment of the Court of Claims of May 18, 1905. Mr. Koxop. To what items does that refer? Mr. BouDixoT. That refers to all four items. Mr. Dempsey. It refers to all four of the items. Mr. BouDixoT. Yes. The next item is a resolution adopted by the Cherokees praying that certain moneys be appropriated by Congress for these purposes. 22 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. Mr. Hastings, That resolution Avas adopted by the Society of the Cherokees? Mr. BouDiNOT. Yes; and was approved by the principal chief of the Cherokees. The ne:jt document is a poAver of attorney from the principal chief of the Cherokee Nation to Frank J. Bondinot to re- ceive and receipt for any sum or sums of money that may be owing to the Cherokee Nation" from the ITnited States or that may here- after become due and payable to. said nation by appropriation act of Congress or otherwise on account of item 4. I would ask that this power of attorney and the contracts be copied and the originals re- turned to me. Mr. Tillman. Yes; that ought to be done. Mr. KoNOP. That will be all right. The reporter will do that. What is your next document, or have you any more? Mr. BouDTNOT. Yes; I have here a letter from the Assistant Com- missioner of Indian Affairs. Mr. E. B. Meritt, dated November 18, 1910, addressed to Frank J. Boudinet, attorney at law. Fort Gibson, Okla., in reference to certain items of Cherokee tribal funds, and especially as to the disposition of such funds. Mr. KoNOP. Is that all ? Mr. BouDiNOT. I believe that is all; yes. I have some printed pamphlets, one of Avhich I should like to submit, as it contains the views of Frank J. Boudinot on the merits of the claims. Mr. KoNOP. Are these pamphlets all the same? Mr. Boudinot. Yes. Mr. KoNOP. One of them may go into the record. Mr. Boudinot. Thank you. Mr. KoNOP. Mr. Reporter, you may also include a letter I have here Mr. Boudinot. Pardon me a moment, Mr. Chairman. I Avould like to state what this last document is. It is a memorial of the Cherokees in support of H. E. No. 6444, Sixty-fourth Congress, first session. Pardon my interruption. Mr. KoNOP. Certainly. This is a letter from the Secretary of the Interior to the chairman of the Committee on Indian Affairs, dated June 29, 1910; also a letter from the Comptroller of the Treasury to the Secretary of the Treasury, dated May 25, 1916. Mr. Boudinot. With reference to these two contracts and my connection Avith this matter. I had some feeling of diffidence in say- ing much about myself. For this reason I have asked the com- mittee to hear Senator OAven. Mr. KoNOP. We shall be very glad to hear from the Senator. a bill To confer jurisdiction upon the Court of Claims, with right of appeal to the Supreme Court of the ITnited States, to hear, consider, and determine, and render final judgment on the claim of the Cherokee Nation against the United States for interest alleged to be owing and unpaid from the United States to the Cherokee Nation on the funds ai'ising from the judgment of the Court of Claims of May eighteenth, nineteen hundred and five, in favor of the Cherokee Nation, and for other purposes. Be it eiKictcd by flic t^cnnte and House of Representatives of tite T'nited fe recovered for said Cherokee Nation. Tlie amounts recovered for said Cherokee Nation, if any. except the fee to said attorney, shall be disbursed under the supervision of the Secretary of the Interior to the parties entitled thereto in the manner pre- scribed by the Court of Claims. RESOLUTION NO. 1. ASKING THAT CERTAIN MONEY BE APPROPRIATED BY CONGRESS AND PAID TO ATTORNEY FRANK J. BOUDINOT. Wheeras pursuant to a iiroposition made to the board of trustees by Frank J. Boudinot. attorney, on the 5th day of January, 1915, to secure from the United States credits to the funds of the Cherokees on account of improper withholding of certain items of interest on certain .iudgnient funds and funds arising from the judgment of the Court of Claims of May IS, 1905, and reso- lutions of said board of trustees accepting said proposition, dated January 12. 1915. by the efforts of our said attorney, Frank J. Boudinot. a recommendation has been made to Congress by the Secretary of the Interior for the appro- priation of a sufficient sum to pav interest on item four of said judgment from July 1, 1893, to July 1, 1903; and Whereas accoridng to the statement of our said attoruey. he has, during the last seven years, expended out of his own funds many thousands of dollars necessarily while engaged in defending the interests of the Cherokees at Washington, D .C, and it is believed that it will be for the best interests of all Cherokees to devote the sum recommended for appropriation toward reimbursing our said attorney for his expenses, and to enable him to more expeditiously prosecute the claims of the Cherokees and defend their in- terests : Now, therefore, be it Resolved by the Advisoru Committee of Incorporated Keetoowah Society, That the Congress of the United States hereby is memorialized to promptly appropriate the interest which has been heretofore withheld on item four of the judgment of the Court of Claims of May 11, 1905, and to direct the proceeds of said appropriation to be disposed of as follows : First, to pay such sum as may be justly due our attorneys for making the collection of said money ; second, to pay the balance to our said attorney, Frank J. Boudinot. whicli payment shall be in full for his expenses and services heretofore in- curred and performed in behalf of the Cherokees, excepting only his expenses and services in connection with or growing out of the claim against the Uniteil 24 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. States for interest on the funds arising from items 1. 2. and 3 of said judgement of Mny IS, 190r.. Passed the advisoi\v committee by unanimous vote this 15th of August, 1916. R. R. Meigs, Chairman Advisory Committee. James W. .DrxcAX. Clerk Advisory Committee. Approved this August 15, 1916. Rich'd M. Wolf, Preside)! t. (Signed in Indian characters: Price Cochran, first vice president.) (Signed iu Indian characters: Bill Mankiller, second vice president.) Attest : [seal.] James W. Duncan, Secretary. Incorporated Keetoowah Society. Approved this November 20, 1916. W. C. Rogers, Principal Chief of the Cherokee Nation. f'oNTKACT i)y and between W. ('. Rogers, of Slciatoolv. State of Olvlahonia. prin- cipal chief ()f tlie Cherokee Nation, and Frank J. Rtmdinot of Fort Gil>son, State of Oklahoma, attorney at law. for the collection from the United States of <'ertain moneys claimed to he due the Cherokees on account of the funds arising from items 1. 2, 3, and 4 of tlie judgment of the Court of Claims of May IS, 1905. Know all men hy these presents. That this contract, made and entered into this the 20th day of November, 1916, is made l)y and between the Cherokee Nation, acting through its principal chief. W. C. Rogers, whose occupation is that of principal chief of the Cherokee Nation, and whose residence is in the town of Skiatook, in the State of Oklahoma, party of the first part, and Frank J. Boudinot, who.se occupation is that of attorney at law, and who.se residence is in the town of Fort Gibson, iu the State of Oklahoma, party of the second part. The purpose for which this contract is made is to secure the services of the party of tlie second part as attorney and counselor at law for the Cherokee Nation. The special thing to be done under this contract by the party of the second part is to represent said Nation as attorney before the authorities of the United States (iovernment (the connnittees of Congress, the executive depart- ments, and tiie courts) in the matter hereinafter mentioned — that is to say, in the prosecution of the claim of the Cherokee Nation against the United States which grew out of the agreement i)etween the Cherokee Nation and the United States for the purcha.se of what is known as the Cherokee Outlet, the judg- ment of the Court of (Uaims of May IS, 1905. on said agreement and acts of Congress, laws of the United States, applicable thereto. This contract is to run from the 20th day of Novemlter, 191(). until the 4th ♦lay of March. 1920: Provided, lion-erer. That if the cpiestions and matters in- volved shall be then pending in the courts or other tribunal for final determina- tion, then and in that event this contract sludl l)e and remain in full force and effect until final dett'rmination of the same. Tlie i-ate per centum of fee to lie paid to party of tlie .second part in full for liis services under this contract shall be fifteen per centum upon the amount collected, the disposition to be made of the money when collected under this contract shall be as i)rovi(led by existing law or as may be hereafter directed by Congress or by the coint having jurisdiction of same, except the fee above pro- vided ; the compensation aforesaid t(» be paid to the said party of the second part by the proper officers of the United States shall be deducted from the amount recovered, and by the said officers paid direct to the said party of the .second jiart. \o contingent matler or condition, except as herein .set forth, constitutes any l)art of this contract ; and by virtue of and under the authority of said Clierokee Nation, acting through its principal chief. W. C. Rogers, the party of the first part has employed, and by these presents doth employ, the party of the first part, to represent said f'lierokee Nation before the authorities of the United States Government (the committees of Congress, the executive departments, and the courts) in the city of Washington. District of Columbia, as iittorney of said PAYMENT OF IXTEREST OX CHEROKEE JUDGMENT. 25 nation in tlie prosecution to a Hnal determination and payment of tlie saiy this contract. Witness our hands and seals this the 20th day of November. 1916. ;ind exe- cuted in triplicate. > W. C. Rogers, Principal Chief of the Cherokee Nation, party of the finy the court, interest thereon, provided for in anotjier part of the agreement not in issue (authorized by law), followed as a matter of course. The United States appealed from the .ludginent of the Cotirt of Claims to the Supreme Court of the United States, and on Decenil)er 29. 1905. the attorneys for the Cherokees filed a certified transcript of said .iudgment with the Secretary of the Treasury. (H. Doc. No. 1418. 60th Cong.. 2d sess.. p. 7.) April 30, 1906, the Supreme Court, by Chief Justice Fuller, approved the opinion of the Court of Claims and affirmed the .iudgment in favor of the Cherokees. (202 U. S.. 101 et seq., pp. 120-123.) Both courts, the Supreme Court quoting the language used by the Court of Claims with approval, said : " In the opinion of the court this case is simply one to recover purchase money upon a contract of sale. Ordinarily in such a case the cession would 30 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. not be made, the deed WDuld not be delivered until the purchase money is paid or secured, or at least the amount be ascertained and liquidated. In this case both parties wanted to expedite the transaction. It was important for the United States that the cession of the territory should l»e made immediately; it was desirable for the Cherokee Nation that the purchase money should be paid soon. But nevertheless tlie Cherokee Nation had the right to innnediate payment, and the agreement intended to secure to them the next thing to it — the right to an early payment. The accounting was merely a means to an end. The end was the innnediate payment, as near as might be, of the whole consideration to be given for the cession of the Outlet. When the cession was made the purchase money was due ; the only thing remaining, which was the object of the accounting, was to ascertain the exact amount. This is not the case of a party prosecuting an indiquidated delit. but a case of sale and delivery and nonpayment of the purchase money for the thing sold and delivered. The United States were willing to pay; the Cherokee Nation wanted the payment made at the earliest possible day. * * * 'j'^p United States were to render their account ' without delay ' ; if the Cherokee Nation accepted it the amount was to be appropriated by Congress ; ' such appropriation to be made by Con- gress if then in session, and if not, then at the session immediately following such accounting.' * * * with the Nation's acceptance of the account (De- cember 1, 1894) the .session at which an appropriation should be made became fixed and certain. * * * Tlie Cherokee Nation has parted with the land * * * and the United States are placed in the position of liaving broken and evaded the letter and spirit of their agreement." (202 U. S., at pp. 120-123. ) The mandate of afhrmance of the iudgment of the C(nirt of Claims bv the Supreme Court was dated Mav 14, 1906. (H. Doc 1418, 60th Cong., 2d sess., pp. 9, 10, 11.) On May 28, 1906, the Court of Claims entered its final decree, and at the same time rendered final judgment in favor of the attorneys who had repre- sented the Cherokees in the litigation for their fees and expenses, basing same upon a cei'tain percentage of the gross sum named in the decree. (Id. pp. 4, 5.) June 30, 1906, by an item in the general deficiency appropriation act of that year, Congre.ss nppropriated the money to ])ay the said judgment, " with interest upon the several items of judgment at five per centum * * *." " Together witli such additional sum as may be necessary to pay interest as authorized by law." (34 Stat. L., at p. 664.) It seemed to the Cherokees that the transaction was now alwut closed — the long controversy finally at an end. Their contention that the amounts found due them in the account rendered by the United States in 1894 were not only justly f»wlng to them under the old treaties and law as stated therein, but were payable under and at the time provided for in the agreement of 1891-1893 — to wit, on or before the 4tli day of March, 1895 — had been exi)ressly sustained by the highest coiu't in the land. Congress had at last api)ropriate(l for them the nu)ney that should have been appropriated not later than ^March 4, 189."'». They believed, and hale and upon which the judgment was based. But it was not done, as we shall show. The material portion of the judgment in favor of the attorneys, referred to above, was as follows; " It is, therefore, this 2Sth day of iNEay. 1906. adjudged, ordered, and decreed that out of said sum named in item two of the decree payal)le to the Eastern Cherokees there shall first be deducted an amount ecpial to fifteen per centum thereof, principal and interest, as the compen.sation of said attorneys * * *. PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 31 " It is further ordered, adjudged, and decreed that the payment of the said fifteen per centum be made by the Secretary of tlie Treasury, as lierein directed, immediately upon the appropriation by ('ongress for tlie paymeiu of this .iudgment." The '"said sum named in item two of the decree" was, to wit: " Item 2. The sum of $1,111,284.70, with interest thereon at the rate of ."i jter cent from June 12, 1838, to date of payment." (40 Ct. CI., at pp. 303-364.) As before stated, the approi)riation to pay said .iudjiinent was made June 30, 1906. and on July 3, 1906. the attorneys presented their claims for fees to the Secretary of the Treasury, and also then airreed that, so far as their interest in the .iud?:ment was concerned, the "date of payment " should be the d.de of the appropriation, June 3<>, 1906. (H. Doc. 1418. OOtli ('ons.. 2d sess.. middle of p. 5.) In order to .segregate and apportion the amount due each attorney, according to the percentages fixed by the court, the Comptroller of the Treasury, on July 11. 1906, decided upon the following method to ascertain " the sum named in item two of the decree," upon which the la per cent should l)e computed as the com- pensation to be paid : " First, interest at the rate of 5 per cent should be computed on the principal sum from June 12, 1838, to December 29, 190.i, the date on which the transcrii)t of the .iudgment was filed with the Secretary of the Treasury ; second, the amount of such interest should be added to the principal and on this sum in- tere.st should be computed at 4 per cent from Deceml)er 30, 1905. to May 14. 1906, the latter date being the date on which the mandate of the Supreme Court of the United States was issued in this case : third, that no interest slundd be computed after this date." (H. Doc. 1418, 60th Cong., 2d sess.. pp. .5, 6. 7.) There was a judgment in favor of the attorneys in the original decree of May 18, 1905. as follows: " * * * so much of the amount shown in item numbered two (2) as tliis court hereafter by appropriate order or decree shall allow for counsel fees and expenses under the act of March 3, 1903. above referred to. shall be paid by the Secretary of the Treasury to the persons entitled to receive the same upon the making of an appropriation by Congress to pay this judgment. " The allowance of fees and expenses by this court under said act of March 3, 1903, is reserved until the coming in of tlie mandate of the Supreme Court of United States." (Id., p. 9.) As said above, a certified transcript of this judgment was filed with the Sec- retary of the Treasury on December 29. 1905. Therefore, the said attorneys were properly and justly given the benefit of the interest on tlieir judgment provided for by law. as follows : "And on judgments in favor of claimants which have been appealed by the United States and affirmed by the Supreme Court, interest, at the rate of four per centum per annum, shall be allowed and paid from the date of filing the transcript of judgment in the Treasury Department up to and including the date of the mandate of affirmance by the Supreme Court : provided, tliat in no case shall interest be allowed after the term of the Supreme Court at which said judgment was affirmed." (26 Stat. L.. at p. 537.) The accounting officers of the Treasury, unintentionally or inadvertently, perhaps, failed to distinguish between the " interest authorized by law " appli- cable to the judgment in favor of said attorneys and " interest authorized by law,", payable on the main judgment in favor of the Cherokees. under express provisions of tlie agreement of 1891-1893 and under laws of the Uniteil States requiring interest at 5 per cent on trust funds. The attorneys could only prop- erly receive 15 per cent on the sum named in the decree, for which they held a separate judgment, and, in addition, interest on their said judgment from the date of filing of their transcript in the Treasury Department up to the date of the mandate of the Supreme Court. Tliis sum was paid to them. The Cherokees should have been then paid the sums named in the decree. " together with such additional sum " as may have been necessary to pay interest according to the express terms of the contract upon which the judg- ment was based, or according to express provisions of law requiring interest on trust funds in the hands of the United States. This interest was not paid and has not been paid to this day. The settlement given to the Cherokees was the same as that on whicli the attorneys recei\ed their 15 per cent fees and did not include interest promised by the express terms of the contract of 1891-1893 and authorized by law. 32 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. The settlement was in July, 1906, and was as follows, to wit : Item 1 : Original principal sum $2,125.00 5 per cent interest from Feb. 27. 1819, to Dec. 29. 1905 9, 226. 28 Interest-bearing jutlgment 11, 351. 28 4 per cent interest to May 14. 1906 169. IS Total amount allowed and paid 11, 520. 46 Item 2: Original principal sum 1, 111, 284. 70 5 per cent interest from June 12, 1838, to Dec. 29, 1905 3, 753, 249. 90 Interest-bearing Judgment 4, 864, 534. 60 4 per cent interest to May 14, 1906 72, 501. 56 Total amount allowed and paid 4,937,036.16 Item 3: Original principal sum 432.28 5 per cent interest from Jan. 1. 1874. to Dec. 29. 1905 691. 46 Interest-bearing .iudgment .- 1, 123. 74 4 per cent interest to May 14, 1906 16. 75 Total amount allowed and paid 1,140.49 Item 4 : Original principal sum 20, 406. 25 5 per cent interest from July 1, 1903, to Dec. 29, 1905 2, 546. 58 Interest-bearing judgment 22, 952. 83 4 per cent interest to May 14, 1906 342. 09 Total amount allowed and paid 23,294.92 The aggregate amount of the four items, to wit, the sum of $4,972,992.04, was, on July 2, 1906, paid to the Secretary of the Interior in trust for the Cherokees. No interest whatever was allowed after ]\Iay 14, 1906. The date " 1903 " appear- ing in item 4 is an error ; it should be " 1893." There seems to be no objection offered to the correction of the eri-or and payment of interest on this original sum from July 1. 1893, instead of 1903. The fund arising from item 2 l)eing distributable per capita, it became neces- sary to identify the individuals who would be entitled to shares thereof. This task was not completed until INIarch 15. 1910, having been performed by and under the direction and approval of the Court of Claims. Inasmuch as, under the decision of the comptroller of July, 1906, this fund was not, and had not been, bearing interest since it was paid to the Secretary of the Interior on July 2, 1906, and since the Cherokees were clearly entitled to interest thereon until such time as it could be withdrawn from the Treasury and delivered to the in- dividuals having a right to receive it per capita, on March 4, 1909, Congress enacted the following item : ■' Tliat the general dehciency apjiropriation act of June thirtieth, nineteen hundred and six, so far as the same provides for the payment of item two of the judgment of the Court of Claims of INIay eighteenth, nineteen hundred and tive. in favor of the Eastern Cherokees, shall be so construed as to carry interest on said item two up to such time as the roll of the individual bene- ficiaries entitled to share in said judgment shall be finally approved by the Court of Claims, and for the payment of said interest a sufficient sum is hereby appropriated." (35 Stat. L., pp. 938-939.) The said roll was finally approved March 15, 1910. On April 2, 1910, the matter having again been referred to the comptroller, it was decided that the rotal amount to be paid to the Chei'okees on account of item 2 of said judg- ment, and the fund arising therefrom, would be the original principal sum due under the treaty of 1835. to wit, $1,111,284.70, with interest thereon at 5 per cent from June 12, 1838. to INIarch 15, 1910, as the " date of payment." It is conceded that under this method of settlement the money due luider the treaty of 1835 woidd he fully paid and that it has been paid. But the agreement of 1891-1893 created a new debt, to wit, interest at 5 per cent per annum on the liquidated amount of the said old debt from March 4, 1895. the date said money PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 33 was finallj' payable accordinc;- to express promise under said ai^reernent, so loni,' thereafter as tlie said aniomit sliould reiiiiun iu the Treasury of the TJnited States. This debt has uot been paid notwithstanding, as the Cherokees believe, Congress fully intended to appropriate the money in full by the items in the acts of June 30, 1906, and March 4, 1909, quoted above. • Even if there had been no express provision in the agreement of 1891-1893 for the payment of interest on " the money or any part of it " so long as any such part remained in the Treasury after March 4, 1895, quoted hereinbefore, the United States would still, nevertheless, have been liable to pay the Chero- Kees interest at 5 per cent per annum on the said funds due Mai'ch 4, 1895. under section 3659 of the Revised Statutes (1871), which rends as follows: •'All funds held in trust by the United States, and the annual interest ac- cruing thereon, when not otherwise required by treaty, shall be invested in stocks of the United States, bearing a rate of interest not less tlian five per centum per annum." Furthermore, this was not an ordinary debt of the United States. It was a trust account, a liquidated amount, in the hands of the United States as trustee, and it was unjustly, not to say wrongfully, withheld by the trustee, the United States. The bill H. R. No. 6444, Sixty-fourth Congress, first session, provides for the payment of interest only on the amount of money actually paid into the hands of the Secretary of the Interior, in trust for the Cherokees, .July 2, 1906, and does uot provide for the payment of the interest promised and contracted to be paid. This is a compromise proposition. In consideration of an immediate payment, by direct appropriation, thereby obviating the necessity of a long- drawn-out controversy, the Cherokees propose to accept the settlement made in July, 1906, with their attorneys, up to July 2, 1906, only, however, find to take in full payment of their claim the gross amount then actually paid to the Secretary of the Interior, in trust for them, with interest thereon at 5 per cent per annum from July 2, 1906, up to the date warrants shall be, or have been, actually issued to the individuals entitled to receive shares of said funds— and in addition the clerical error in the date when interest should be commenced on the original principal sum of item 4 to be corrected so that interest shall be allowed thereon from July 1, 1893, instead of July 1, 1903. This is the most that could reasonably be expected of the Cherokees. By this compromise settlement the Government is relieved of what the Cherokees hon- estly believe to be a debt to them of a very large siuu of money above the amount proposed to be accepted in full payment. We respectfully and humbly pray that the bill H. K. 6444 shall' be enacted into law. With sentiments of the highest consideration and respect, We remain your hiuuble servants, FkAXK J. BOUUINOT, Attorney (or (Uurokee Nation. DKPAKTiiENT OF IHK InTEJUOK, WdHhiitytoH, June 2U, I'JJti. My DEAJi Mk. SiEPitEAs : Reference is made to your letter of April 29, 1916, requesting a report on H. li. 6444, providing foi- the payment of certain items of interest of the iudgment of the Court of Claims of May 18, 1905, in favor of the Cherokee Indians. (40 Ct. Cls. 252.) It appears from the opinion of the Comptroller of the Treasury,' dated May 25, 1916, that interest was computed on the several items of the Judgment men- tioned in this bill as follows: " Item 1. At 5 jier cent on original iirincii)al from February 27, 1819, to De- cember 29, 1905, and at 4 per cent on original principal, phis :nnount of inter- est to Deceiuber 29, 1005, from Decpmhei- :'•), 1905, to INlay 14, 1906. " Item 2. At 5 i)er cent on original principal from June 12, 1838, to IMarch 15, 1910. "Item 3. At 5 per cent on original Drinciiml from Jammry 1. 1874. to De- cember 29, 1905, anrl at 4 per cent on original principal, plus amount of interest to Der-ember 29. ir05, from December .30. 1905 to :\ray 14. 1906. " Item 4. At 5 per cent on original jtrincinal from July 1.'1903. to December '^9 1905. nn'i nt 4 ner cent on ori"in:d TiriTicijvil. i>Ius amount of Interest to De- cember 29, 1905, from December 30, lOOf). to :\ray 14. 1906." 73117—16 3 34 PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. There Is inclosed a coiiy of the cuiiiiitroller's opinion, from winch you wili see lluit under existing law there is no authority for the computation of in- terest on the various items of this judgment on any other basis than as above indicated. The Comptroller of* the Treasury expresses the opinion that the failure to allow interest in item 4 from 1S93 instead of 1903, was no doubt due to a cleri- cal error in the wording of the coui't's decree, and that therefore there would appear to be merit in the provision of the proposed bill looking to the correc- tion of this error. As to the merits of the other provisions of the bill he does not care to expre.ss an opinion at this time. The matter of the computation of interest on these various items has been the sub.iect of coi-respondence between this department and various persons inter- ested in the Cherokee Indians. It has been contended that the interest was not computed in accordance with the orders of the court and the terms of the con- tract of December If), 1S91, between the United States and the Cherokee Nation, ratified by the an of INIarch 3. 1S93 (27 Stat. L., 612-640). The (piestion of wiiether the Cherokee Indians are entitled to interest from and aftei- July 2, 1006, ni)on items 1, 2, and 3, to the date of actual payment, is not one uiK>n wliich I am prepared to express an opinion. As to item 4, T am convinced that failure to allow inteivst from .July 1, 1893, was due to a clerical error in tlie wording of the cf>urt's decree and I have no objection to legislation authf>rizing the interest on said item at 5 per cent on the original principal from .Tul.v 1, 1893. to December 29, 1905. and at 4 per cent on the origin;'.! principal ])lus amount of interest to December 29. 1905, from December 30, 1905. .to May 14, 1906. I am not, however, in a i)osition to say whether they should have in- terest on th.e totnl of this item from .July 2. 1906. to the date of pnyment. In this connection I would have no objection to legislation providing for the adjudication by the Court of Claims of the question of whether the Cherokee Indians are entitled to interest from .July 2. 1906. to the dMte warrants were actually issued to the individual beneficiaries entitled thereto. I therefore recommend that the proposed bill be amended by striking there- from lines 1 to 25 on page 2 and lines 1 to 4 on page 3 and inserting in lieu thereof the following : " are hereby so amended as to allow interest to be paid at 5 per cent on the original principal sum of item 4 of said judgment from July 1. 1893. to December 29. 1905, and at 4 per cent on the original principal of said item plus amount of interest to December 29. 1905, from December 30, 1905, to May 14, 1906. Jurisdiction is hereby conferred upon the Court of Claims to hear and determine claims of the Cherokee Tribe of Indians to interest on the several funds arising frf)m items 1, 2, 3 and 4. respectively, honorable the Secretary ok the Treasury. Stu: I have .your letter of the 16th instant, requesting my views as to the merits of H. U. 6444, Sixty-fourth Congress, first session, being a bill providing for the payment of certain items of interest on the judgment of the Court of Claims of May IS. 1905, in favor of the Cherokee Indians (40 C. Cls., 252). and asking for my opinion as to whether said interest items could be paid under RD 1.48/^^ PAYMENT OF INTEREST ON CHEROKEE JUDGMENT. 35 existing law or whether additional legislation, such us the proposed bill, would be necessary to authorize payment. The items embraced in the judgment of the Court of Claims are as f(jllows: " Item 1. The sum of $2,125, with interest thereon at the rate of 5 per cent from February 27, 1S19, to date of payment. "Item 2. The 'sum of .'«1.111.2S4.70, with interest thereon at the rate of 5 per cent from June 12, 183S. to date of payment. " Item 3. The sum of $432.28. with interest thereon at the ijate of 5 per cent from January 1, 1874, to date of payment. " Item 4. Tlie sum of $20,406.35, v.-ith interest thereon from July 1, 1903, to date of payment." Tlie appropriation made in the act of June 30, 1906 (34 Stat., 664), for the payment of this judgment provin^ >r -^ ^ ^^ FLA. DOEBS BROS. v ^^ f ->* . . ] ^ c ° " " « ■*. '32084 -^Ao^ >^ o_ o V" T'^ ^0 ^