Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-12
LEASING Of INDIAN
LANDS BY FALL IS
DECLARED ILLEGAL
House Subcommittee Re.
ports Adversely Bill to Carry
Out Arrangement.

Resuming its hearing today while
lands committee heard a succession
OF witnesses in an effort TO delve
further into Albert e. Falls connec-
tons and associations during that
portion of his career which recently
has come SO prominently under public
scrutiny
Meanwhile, an Indian affairs SUBJ
committee of the House also took a
hand in the controversy revolving
ABOUT the former Interior Secretary's
leasing policies by questioning the
legality of his action in leasing I'M
allotted Indian lands for the mining
or coal and other minerals. The sub
committee reported adversely a bill
the leasing arrangement by alloting
royalties among the Indian bene-
ficiaries.
Legislation of 1920.
Under legislation enacted in Febru-
airy, 1920, provision was made for
mining and drilling operations on the
public domain. Mr.. Fall ruling that
the act applied to unalloted lands on
executive order Indian reserva.
tions. directed that applications 70,
permits be considered but stipulated
that funds received from leasing OF
the land be withheld pending Iegfs-
lative action as to their disposal.
In its report the subcommittee
pointed out that validity of the rul-
States courts by 'philanthropic per-
sons who have the welfare of the
Indians at heart"
Moreover" the report added, ain
ch L.
enacted with an amendment such as
has been proposed authorizing the
state of New Mexico to levy a pro-
duction tax on the amount realized
from the leases in question it would
be manifestly unconstitutional in ca
the courts should decide that the ex-
ecutlVe order Indian reservations
Were the property of the Indian tribes
and not part of the public domain"
Magee is Witness.
Much of the testimony before the
Senate committee today dealt with
financial transactions relating to an
Albuquerque, n. Mex. newspaper
once owned by Mr.. Fall.
One of the witnesses was Carl C..
Magee, who purchased the Albuuuer-
que Morning Journal from Fall in
1920 and sold it to Sidney NJ. We'll in
1879. IL was MdSee testimony some
weeks ago that first started the COM
mittee on its inquiry into Falls fin
ancial affairs.
Tells of Paper Sale.
Melvin a. Traylor, president of the
First Trust and Savings Bank of Chi
cago, testified at today's committee
session as to the financial arrange
ments under which Carl c. Magee
sold the Albuquerque, n. NJ, Morning
Journal to Sidney NJ. Well for 5000. 900
in May. 1922. This is the paper Albert
B. Fall, former Secretary of the In
terror, sold to Magee in 1920.
Mr.. Traylor said Well deposited the
agreement of sale with his bank on
May is, 1922. He added that then the
bank began to receive from banks
over the country bonds Of the New Mex
leo Industrial Company owing the Jour
nal and drafts in the sums specified
in the agreement. A draft for sci, $50,
with bonds attached. was received
from the First National Bank of
Tulsa. The Citizens Bank of AL
buquerque sent drafts with bonds
attached in total Of s5s,465.
The State National Bank Of Albu-
querque sent in drafts and bonds for
S21.369, and the First National Bank
of Albuquerque sent in draft and