JULY 1959 KLAMATH TRIBUNE Page 3 Details of Remaining Area Agricultural Program Told; Hunting, Fishing Rights, Etc. Discussed Following is the third and final article in the series dealing with the remaining area and its man agement by the U. S. National Bank as trustee. This article deals with the farming and graz ing prospects of the area, hunting and fishing, water rights, and miscellaneous topics. The Managing Trustee is in tent, upon developing a progres sive program for the agricultural phases of the Management Trust. plan cannot be developed over flight hut does require the con- .''solidation of ideas proposed by experts in the particular fields." Thus William Hradshaw, U. S. Xat'l Hank trust officer in charge of remaining area management, summarizes farming alid grazing pnfspects on the area. A forward looking program is being sought which will realize maximum in come from agricultural resources. Determination of the exact pro gram to be followed will be made within the year. "Any program of improve ments will involve expenditure of funds from the earnings of the trust," Hradshaw points out. "Surveys and studies of the areas will have to be completed so we may ascertain whether or not such programs will be economical to complete. We have requested assistance in the preliminary sur vey of th area from the Soil Con servation Service. The recom mendations received will be studied and final determination made by the trustee, as to what program will be followed, during the balance of this calendar year." As of now it is expected that much of the development of the fanning and grazing resources will be in relation to facilities al ready available. "A great deal of the anticipated 'productivity of the area will de pend on what can actually be done O physically improve the existing cilities," Hradshaw explains. "The present facilities do require maintenance and improvement. The trustee believes this program to be all important. However, we also foresee substantial work in the form of reclamation and im provement of areas not presently useable which must be taken into consideration in the expenditure of funds on presently useable areas. Marsh and swamp areas may be drained and irrigation projects started. This is partic ularly true with the Agency Farm and the Three Creeks graz ing area. It may also apply to the Wocus Hay area." Jut what are the agricultural resources in the management area, presently useable or subject to development ? The Agency Farm, as a unit, is at present, the most important such resource. Hradshaw provides the following information con cerning it; "The Agency Farm consisting of approximately acres is considered as a moderate size cattle operation. The area encompasses lands suit able for pasture and hay produc tion. A large portion of the total acreage, however, is subject to uncontrolled flooding and, at the present, is not useable as produc tive 'land. The original appraised value of the farm including land, timber and improvements, was $-Y)4,270.(X) while the value of some 200 head of cattle was $28. 850.00. It has been the practice, in the past, to utilize the southern portion of the farm area for the Tribal Herd and to lease the area north and west of the farm build ings as pasture lands to other op erations in the area. The pasture areas and hay production of the southerly portion have apparently been sufficient to maintain the Tribal Herd of approximately 200 head of cattle on a year around basis. "Water for irrigation and farm use is available from Crooked Creek, Agency Canal, Fort Creek Canal, Crooked Creek Canal and Wood River. Uncontrolled water supplies from Wood River and apparent underground springs have resulted in substantial areas remaining in marsh lands not useable for pasture or other farm purposes." Also an important grazing area, whether actual or potential, is the Three Creeks area, consisting of .approximately 6,000 acres and located in the Xorth Klamath Marsh. "These lands are best suited for pasture and some hay produc tion," Hradshaw states. "As in the case of the Agency Farm, how ever, a substantial portion is sub ject to uncontrolled flooding by waters from the Williamson River, Three Creeks, Cole Creek and Mosquito Creek. Continued water on the land has converted areas of good grass into marsh and swamp, again reducing -the desirability of the area even at useable intervals. (The Irea has a rated seasonal capacity of MOO head of cattle in good years. Over the past 3 years, however, about half the area hasn't been used at all and the other half only on about a 50 or (lYo of capacity basis)." Still another area retained for remaining members, having both grazing and hunting potential, is Wocus Hav located in the south ern portion of Klamath Marsh. Approximately l.OM) acres in size this area has heretofore had very limited grazing use, the usage again depending, as in the Three Creeks area, on weather conditions and the w ater level. Its present ca pacities for hunting are also re garded as limited and this area is in a strictly developmental stage. Also entering the jnVture are the grazing-qualities of the forest areas. "Along with tlfe cutting of tim ber in the forested 'areas, there has been developed as secondary revenue substantial income from grazing rights and permits," Hradshaw relates. The forest unit s of the remain ing area have a rated seasonal carrying capacity of 35(X) sheep and 170 cattle. Further, they have been used at their rated capacity for a good manv years, under the permit system. lYrmits have been issud on a yearly basis, being bid upon by operators. Hunting and Fishing' "Fishing and hunting rights and privileges are, at this time, in a state of confusion. As to whether or not these rights may be converted to an income-producing program will depend a great deal upon the progress of the Reservation Terinination pro gram," Hradshaw reports. Attorneys fop the trustee have indicated that until withdrawing members are paid in full they re tain hunting and fishing rights on the reservation area, including the remaining area. It is there fore considered that any program undertaken now to issue pennies for hunting and fishing, deriving income therefrom for the reniain ees, would conflict with hunting and fishing rights of the with drawees. "Until there is a definite break, we won't try .to capitalize on hunting and fishing rights. They're just for the members to use," Hradshaw affairms. Hradshaw further advises that future development of an incoiue prodticing program through sale of hunting and fishing privileges will be subject to tribal approval, hunting and fishing rights of the members being of a personal na ture, secured by treaty. Policing of limiting and fishing, Hradshaw states, is presently a responsibil ity of the trustee. Mineral Resources In regard to possible mineral resources on the management unit and their development, Hrad shaw reports that his staff has taken full cognizance of Stanford Research Institute's mineral re sources survey conducted in 1 955. Considering its negative findings, he savs it is not now deemed rea sonable to expend funds on min eral research and development. Water Rights Concerning water rights, Hrad shaw first observes that these rights have primary value in re lation to the fanning and grazing resources. He points out that the Hut-can of Indian Affairs consid ers water rights on reservations supreme to Indians and their suc cessors in interest. He adds, how ever, that the State of Onigou has opined that it has jurisdiction over all water in the State in cluding that on reservations. "We are going ahead witli fil ing water rights with the State. The application is conditioned on the fact it does not detract from any previous rights the land mav have acquired." Taxations Two types of taxation are to be considered in relation to the management program. A prop erty tax will be imposed on real estate in the unit for the l95-r0 fiscal year. What this tax will amount to in total dollars is nut vet definite. The money now being distrib uted to individual beneficiaries as income will be subject to income tax regulations. However, it is loiescen that only a small amount of it will be reportable. Hradshaw explains that income derived from timber sales is subject to capital gains tax, but only in such amount as is in excess of the appraised value of the timber. It is anticipated that this amount in excess will be relatively small. Income from grazing leases will be reportable as straight income, subject to income tax, but such income will represent'.-! small per centage of the total. Proceeds from sale of cattle would again be capital gains matter, w ith pro ceeds in excess of the appraised worth of the cattle being report able. j As to exactlv how much will be reportable and in what category, Hradshaw states: "This is a mat ter we will have to compute. In dividuals will be advised at the end of the year how much they must report and in what cate gories." Ellen Cook (Con. from Pnge 2) right that you would think peo ple would want to hold." Kou Kllen enjoys hunting and fishing with her father, and as a remain ing member will continue to ex ercise these rights. I he special education program for Klamath Indians is a "wond erful op portunitv", according to Lou Kllen, but "It's a shame that so few are taking advantage of it." She feels that the credit for her attitude towards education and her determination to go to college belong to her parents.