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United States. Office of Indian Affairs / Annual report of the Commissioner of Indian Affairs, for the years 1921-1932
([1921-1932])

Report of the Commissioner of Indian Affairs to the Secretary of the Interior for the fiscal year ended June 2, 1921,   pp. [1]-69 ff. PDF (26.8 MB)


Page 16

COMMISSIONER OF INDIAN AFFAIRS. 
The restriction against alienation of the allotted lands of indi- 
vidual Indians was removed from 135,960.46 acres, involving 1,778 
applications for removal of restrictions. 
A Federal income tax of $514,386.25 was paid by 340 restricted 
Indians, as compared with $351,148.18 paid by 243 of this class in the 
preceding year. 
At the local, county, and district fairs last, year restricted In- 
dians won the following prizes: One hundred and thirty-six first, 
48 second, 6 third, and 1 fifth; at the Hughes County Free, Indian 
Fair they won 61 first and 37 second, and at the Oklahoma Free State 
Fair, held at Muskogee, they won 4 first, 4 second, 4 third, 1 fourth, 
and 1 fifth prizes. 
OIL AND GAS IN THE FIVE CIVILIZED TRIBEs.-The abrogation during 
the fiscal year 1920 of the 4,800:acre limitation in the Five Civilized 
Tribes permitted all lessees holding the maximum acreage to obtain 
other leases and tended to increase oil and gas activities during the 
first half of the fiscal year 1921, resulting in an increase in revenue 
to the Indians during this period. However, the recent drops in the 
price of oil resulted in general depression of the oil industry. On 
January 1, 1921, the price of mid-continent crude oil was $3.50 
per barrel and reductions were made until it had reached $1 per 
barrel. In February a number of pipe-line companies cut their 
runs 30 per cent, so that it was necessary to authorize the storage 
of oil taken from departmental oil and gas leases. The depression 
in the industrv and consequent suspension of new operations has 
naturally had its effect upon the income of the Indians derived 
from  payments of bonus, rents, and royalties the revenue from 
this source being* considerably reduced. Most of the pipe-line com- 
panies are now taking 100 per cent of the oil from leases to which 
their pipe lines are connected and the prospects are brighter for the 
coming year. 
On May 10, 1921, the Supreme Court of the State of Oklahoma, 
in the case of Winona Oil Co. v. Barnes, rendered an opinion which 
is to the effect that extensions of leases made by guardians of minors 
are invalid if made without competitive bidding. 
On May 10, 1921, the United States IDistrict Court for the Eastern 
District of Oklahoma, in the case of Pearl Chisholm et al. v. Creek 
and Indians Development Co., rendered a decision holding that the 
spouse must join with the allottee in the execution of leases and 
modifications thereof in cases where such inherited tribal or allotted 
lands constitute the family homestead. 
OIL AND GAS OUTSIDE THE FIVE CIVILIZED TRIBES 
AND OSAGE NATION. 
In February, 1921, oil was discovered by the Western States Oil 
& Land Co. in section 34, township 6 south, range 32 east, Crow 
Reservation, Mont., the well having a flow of approximately 200 
barrels of heavy black oil. The new strike caused considerable ex- 
citement and interest and stimulated oil and gas activities on the 
reservation. 
Under section 7 of the act of Congress approved June 4, 1920 (41 
Stat. L., 751-753), mining leases on lands of the Crow Indians re- 
quire the authorization of the tribal council, and on February 17, 
1921, the business committee of the Crow Tribe of Indians revoked 
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