The San Francisco call., 1905-02-04
MOODY's COMMUNICATION.

In this communication Moody says.
BY your direction 1 submit statement of
what occurred in January, 1904, concerning
Your decision to permit the use OF the Interest
upon certain funds held in trust by the
United States for the purpose of sectarian
schools.
rhe question was raised whether certain
declaration of Congress in appropriating for
Indian day. and industrial scnools precluded
the use. Of the funds in question In that way,
and Mr.. Russell of this department. received
note from Secretary Hitchcock dated January
10, 1904, saying:
The President has requested me to inform
you that there will be meeting al the exec
utve office In the White House at p m on
Friday next tthe 22d) to confer with reference
10 certain Indian matters recently brought TO
your notice, at which meeting the president
requests your presence
The Attorney General (Mr Knox and Mr..
Russell. who had been considering the the euss.
present Secretaries Hitchcock. Cortelyou and
Wilson and Postmaster General Payne. On
was submitted in favor of the legality of the
use OF the funds and Secretary Hitchcock
Indian Affairs. Thereupon the question was
discussed at length and left for your determi-
nation.
Besides the memorandum referred to there
was a long one giving the reasons for the con-
ciusion reached by the Attorney General. the
substance of which Mr.. Russell stated.
The brief me emorandum which was left with
you foltowssias appears BY a copy re-
tained the Department of Justice :--
NOT CONTRARY TO LAW.
Partial list of Indian funds in the Treasury
in trust for particular tribes portion of the
interest on which funds may be used for edu
cational purposes by the Secretary Of the In
terror. under authority of the act Of April l.
1880. and other acts. without appropriation by
Congress-.
These. funds can be used for sectarian
schools but 1t would be well to do that ether
wise than under contracts.
''Mcnominee fund-Interest. $I651 per an
num-
"Osase fund-Interest. snss71 per annum.
Sioux fund-S3. 600 600; interest, $780, 600 per
annur1.
The. long memorandum 0wenty-three pages
Of f.typewritten manuscript discusses the ques-
ton substantially as follows:
1t explained the history of educational work
by the Government among the Indians before
1873, under an act of March 3. 1879 appropri-
atins $4,000 TO be permanent annual fund
without appropriation for the employment OF
teachers among the Indians.
II explained the beginning of the contract
system unde. President Grant. which had not
existed under the act of 1919. and began after
the act of 1870 apprcprlating $4,000 for the
suppe rt of Indian schools among Indian tribes
rot otherwise provided for, |. e.. among tribes
rot having treaties containing stipulations pro-
yidns funds for educational purposes.
TIE argument Of the memorandum briefly
was that notwithstanding the declaration of
Congressional intent, not to make appropria-
ton in the future o. public moneys of the
American people for sectartan institutions, the
previous laws giving the Secretary of the
Interior discretion to certain moneys OF
the Indians held in trust in any way that he
mig hit see fit including assistance to sectarian
schools were not repealed and consequently
his discretion remained.
This was the legal advice given to you as
to your authority to continue the use of in
trrest on certain Indian trust funds. 1t ap-
peared in the discussion that some of the
Indian tribes desired such use OF their own