The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-01-27

SIduUCuI VI IldC pdII VI WSOCCAll NAOh-
tana in which Flathead Lake now
sparkles like a gem. woul be irrepara-
bly, destroyed.
"The white settlers on the project
located on the Flathead Indian Reser-
' walton would gain no benefit from the
proposed private power development
but would suffer in that the commit
ments and policy of the Department
of the Interior towards them would be
ddiverted from the original purpose.
"And all this is to be accomplished
by legislative act in Washington with
out givinc the settlers on the irriga-
ton project, the farmers on the shore
of the lake whose property is men
aced by the raising of the levels of
the lake and the people of Montana
an opportunity to be heard. 1t is I'M
thinkable that the Senate will barter
away the heritage of the people if
the facts back of this provision are
made known and given the proper
consideration.
To the end that your committee be
placed in possession of these facts,
this communication is addressed to
you together with a request that you
grant a hearing to w. c. Mccormack,
Lieutenant Governor of the State of
Montana, and w. E. Jellison who are
sent here by citizens and organiZa-
lions In the State of Montana to pre-
sent other facts for your considera-
ton In connection with this matter.
The main facts in connection with
the matter are as follows. Follow
ing the Pinchot crusade for the con-
serVatlOn of natural resources of the
country the sites on the Flathead
River suitable for power development
were withdrawn from public entry.
Later the Flathead Indian Reserva-
ton, on which the power sites refer
red to and part of the proposed pro-
Ject are located, was thrown open to
public entrv by Act of Congress.
Settlers took up homesteads on the
reservation and a demand arose for
the creation of an irrigation district
close to the lake and the river on
which the sites are located. An an
preparation was made by Congress for
the building Of a system for the i'm
pounding of the waters of the Flat
head to be used for irrigation purpos-
es and the building of bitches and lat
erals for conveying the water to the
homesteads of the settlers. What has
come to be known as the Newell Tun-
mel was built near Poison at a cost to
the government of $101 900. The In
terror Department determined that a
further appropriation was necessary
Tor continuing the construction of tine
irrigation system on the Flathead In
dian reservation and Congress re-
sponded by appropriating $395,OO for
the furtherance of this purpose.
AT this time agents of the Montana
Power Company approached officers
and representatives of the Depart-
ment OF the Interior and stated that
they would, if given an opportunity
Dulld power plant, pay rental there
Tor to the settlers anu Indians, sup
ply some power and water to the per
sons on the reservation at a lowe
rate than they are now supplying tn
people of Montana if they were grant
ed permit to use the sites or givel
a lease, under the terms of the Gen
eral Lasinng Act of 1920, for a perio,
of 1lfty years.
On December Is, 1927, we find al
application for a preliminary permi
Tor the project referred to directed t.
the Fec al Power Commissions by IT,,
Rocky Mountain Power Company. On
investigation we find that this Rock
Mountain Power Company is q corpCr
alton which was incorporated in tn,
State of Delaware a short time befor
this application was presented to tn
Power Commission. Frank M. Kerr
who acted on it's behalf is a membe
OF Its bOarC Of directors besides be
ing Vice President and General Mana
ger of the Montana Power Company
The discovery by some public spir
tied citizens, that the granting O
this permit would constitute a virtua
option on the project led to protest
being filed which resulted in no &C
ton being taken on the application
Mr.. Kerr, representing the Montan
Power Company ard the Rocky Noun
tain Power Company, again pres ente
an application, drawn after he con
suited with Senators Walsh ar
Wheeler, the Secretary of the Inter-
or, the Commissioner of Indian Al
fairs, and sO-called representatives O
the Flathead Tribal Council and whit
farmers and settlers located on tn
reservation and close to the Lake
This application, which is the mot
waiting force back of this proposed er
actment, referred to by Mr.. Kerr a
a tentative agreement, is attached t
this communication as Exhibit No.
II is still the position of the Montan
Power Company with the exception q
a slight modification. The Montan
Power Company, through Mr.. Kerr
now express Themselves in favor @
giving all the rental to the Indians an
consider the contention of certain sc
called friends of the Indians, no,
in Washington, that the power site
referred to belong to the Indians a
a tribe and that the rental to be PAL
by the Montana Power Company sha
be deposited in the Treasury of til
United States to the credit of TIL
Flathead Indian Tribe and Shall dra,
interest at the rate of per cent pc
annum.
1t is needless to state that the Nor
tana Power Company is not concerne
as to the persons or interests who n
receive the benefits of the rentals S
long as the site is disposed of in
manner suitable to the interests {
the company named. 1t, therefor
follows that the present policy of til
Montana Power Company ,as state
by its chief representative and repro
duced in this proposed enactment, VII
That rentals from such licenses fl
use of Indian Lands shall be paid til
Indians of said reservation as a tribe
Is put forward with the intent