(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Hearing before the United States Commission on Civil Rights : hearing held in Window Rock, Arizona, October 22-24, 1973"

HEARING 

BEFORE THE 

UNITED STATES 
COMMISSION ON CIVIL RIGHTS 



UNIVERSITY 

DEFOSfT 



HEARING HELD 

IN 

WINDOW ROCK, ARIZONA 

October 22-24, 1973 

Volume II: Exhibits 



HEARING 

BEFORE THE 

UNITED STATES 
COMMISSION ON CIVIL RIGHTS 



HEARING HELD 

IN 

WINDOW ROCK, ARIZONA 

October 22-24, 1973 

Volume II: Exhibits 



Members of the Commission: 

Stephen Horn, Acting Chairman 
Frankie M. Freeman 
Maurice B. Mitchell 
Robert S. Rankin 
Manuel Ruiz, Jr. 

John A. BugGS, Staff Director 



CONTENTS 

Volume I: Testimony 

Sessions 

Page 

Monday, October 22, 1973. 9:20 a.m 1 

Monday, October 22, 1973, 1:30 p.m 32 

Tuesday, October 23, 1973, 9:15 a.m 119 

Tuesday, October 23, 1973, 2:40 p.m 189 

Wednesday, October 24, 1973, 10:00 a.m 288 

Wednesday, October 24, 1973, 2:20 p.m 333 

Statements 

Opening Statement, Acting Chairman Stephen Horn 1 

Statement of Rules, Commissioner Frankie M. Freeman 4 

Welcoming Statement for Governor Jack Williams of Arizona, presented 
by Mr. J. Ford Smith, Chairman, Arizona State Civil Rights 

Commission 7 

Welcoming Statement, Mrs. Juana Lyon, Arizona State Advisory 

Committee to the United States Commission on Civil Rights 9 

Closing Statement, Acting Chairman Stephen Horn 452 

Witnesses 

Overview 

Mr. Peter MacDonald, Chairman, Navajo Tribal Council 11 

Ms. Carol McCabe, staff member, United States Commission on Civil 
Rights 32 

Economic Development 

Community Panel: Mr. Harris Arthur, Shiprock, New Mexico; Mr. Keith 
Smith, Kayenta, Arizona, and Mr. Carl Todacheene, Shiprock, New 
Mexico 36 

Mr. Frank Hanagarne, Acting Director, Navajo Office of Program 

Development 55 

Mr. Paul Luke, Economic Development Administration, Phoenix, 
Arizona 63 

Dr. David Aberle, professor, University of British Columbia, and Mr. 
William Miller, Bureau of Indian Affairs, Washington, D.C 75 

Mr. Joseph R. Hardy, Director, Navajo Small Business Development 
Corporation, and Mr. Robert Salabye, Director, Dine Cooperative, Inc. 96 

Credit Availability Panel: Mr. Stanley Goldberg, District Director, Small 
Business Administration, Phoenix, Arizona; Mr. Roy Snell, Small 
Business Administration, Phoenix, Arizona, and Mr. Everett E. Wood, 
Bureau of Indian Affairs, Window Rock, Arizona 103 

Private Employment 

Mr. Leonard Arviso, Board Member; Mr. Thomas H. Brose, Director, and 
Mr. Kenneth White, Contract Compliance Officer, Office of Navajo 
Labor Relations 119 

Mr. Thomas G. Brandt, Property and Supply Officer, Navajo Area Office, 
Bureau of Indian Affairs, Gallup, New Mexico, and Mr. Robert A. 
Dudley, Acting Chief, Division of Facilities Engineering, Bureau of 
Indian Affairs, Albuquerque, New Mexico 143 

III 



Pagre 
Mr. C. W. Lacey, Construction Manager, Bechtel Power Corporation, Los 
Angeles, California, and Mr. Jack Pfister, Associate General Manager, 
Power, Salt River Project, Phoenix, Arizona 167 

Health Care 

Dr. George E. Bock, Medical Director, Navajo Area Indian Health 
Service; Mr. Gerald Conley, Hospital Administrative Officer, Shiprock 
Service Unit; Dr. Taylor McKenzie, Chief of Surgery and Service Unit 
Director, Shiprock Indian Hospital, and Miss Beverly Smith, Director 
of Nurses, Shiprock Indian Hospital 189 

Education 

Overview: Mr. Myron Jones, Director, Indian Education Training 211 

Community Panel, Gallup-McKinley County Public Schools: Ms. Marlene 
Hoskie and Mr. Robert Livingston, students, Gallup High School, and 
Ms. Shirley Martin, student, Navajo Community College 219 

Community Panel, Gallup-McKinley County Public Schools: Mrs. 
Christine Ashley, member. Parents Committee, Gallup Public Schools; 
Mrs. Donna Parra, teacher, Gallup High School, and Mr. Harry Yazzie, 
member. Investigatory Committee on Tohatchi High School 223 

Panel of Administrators, Gallup-McKinley County Public Schools: Mr. 
Abe Plummer, member. Board of Education, Gallup-McKinley County, 
and Mr. A. C. Woodburn, Superintendent of Schools, Gallup-McKinley 
County School District 229 

Community Panel, San Juan County Public Schools: Mr. Dan Benally, 
member. Policy Committee, San Juan County Schools; Ms. Arlene 
Dennison, teacher's aide. Bluff Elementary School, and Mr. Jack 
Hennessy, lay advocate, DNA Legal Services Program 239 

Panel of Administrators, San Juan County Public Schools: Mr. Tulley 
Lameman, member, San Juan County School Board, and Mr. Kenneth 
Maughan, Superintendent, San Juan School District 255 

Community Panel, Tuba City Public Schools: Miss Vanessa Brown, 
student. Tuba City High School; Mr. Charles Carter, teacher. Tuba City 
Public Schools, and Mrs. Marjorie Thomas, Director, Indian Cultural 
Curriculum Center, Tuba City Public Schools 267 

Panel of Administrators, Tuba City Public Schools: Mr. Frank Glotfelty, 
Superintendent of Schools, Tuba City School District No. 15, and Mr. 
George J. Outie, Clerk, Tuba City District School Board 276 

Community Panel, Kayenta School System: Mrs. Carol Big, employee, 
Kayenta Public Schools; Mr. Frank M. Donald, member, Kayenta 
Board of Education; Mrs. Mary Ann Navajo, Kayenta, Arizona, and Mr. 
Randolph Smith, student. Monument Valley High School 288 

Panel of Administrators, Kayenta Public Schools: Mr. Frank Isaac, 
Chairman, Kayenta School Board, District 27, and Mr. Kern Svertson, 
Superintendent, Kayenta School District 27 300 

Community Panel, Window Rock Public Schools: Mr. Darrell Arviso, 
student school board representative. Window Rock High School; Mr. 
Frank Carillo, student. Window Rock High School; Miss Verna Etsitty, 
student. Window Rock High School; Mrs. Alberta Tippeconnic, Fort 
Defiance, Arizona, and Mrs. Slinkey, Window Rock, Arizona 317 

Panel of Administrators, Window Rock Public Schools: Dr. Kenneth Ross, 
Superintendent of Schools, Window Rock School District No. 8, and Mr. 
Peterson Zah, President, Window Rock Board of Education 326 

Community Panel, Bureau of Indian Affairs Schools: Miss Mary Garcia, 
past president. Student Council, Fort Wingate High School; Mrs. Carol 
Howard, member. Advisory Board, Chuska-Tohatchi School, and Mr. 
Herman Norris, Education Coordinator, Navajo Tribe 334 

IV 



Page 

Panel on Contract Schools: Mr. John Barbone, member, Borrego Pass 
School Board; Mr. Dennis Maria, student, Ramah-Navajo High School; 
Miss Ruth Todacheeny, student. Rough Rock High School; Miss Stella 
Tsinajinnie, teacher, Rock Point School; and Miss Ethelou Yazzie, 
Director, Rough Rock Demonstration School 344 

Panel of Administrators, Bureau of Indian Affairs: Mr. Lowell Findley 
and Mrs. Faralie Spell, Division of Education, Bureauof Indian Affairs, 
Window Rock, Arizona, and Mr. Abraham I. Tucker, Acting Assistant 
Area Director, Education, Navajo Area Office, Bureau of Indian 
Affairs 351 

Bureau of Indian Affairs Overview: Mr. Anthony Lincoln, Window Rock 
Area Director, Bureau of Indian Affairs, and Mr. Barry Berkson, Office 
of the Solicitor, Department of Interior, Albuquerque, New Mexico 388 

Navajo Tribe Education Panel: Ms. Joy Hanley, Director of Elementary 
Education, Navajo Tribe, and Mr. Dillon Platero, Director, Division of 
Education, Navajo Tribe 417 

Open Session 

Ms. Lena Tsiosdia, Youth Director, Gallup Indian Community Center . 424 

Mr. Andrew Kelly, Sr., employee, Bureau of Indian Affairs 429 

Mr. Emmet Tso, member. Tuba City BIA School Board 432 

Mrs. Rebecca Dotson, Assistant Principal, Many Farms High School . . 434 

Ms. Faith Roessel, student, Chinle High School 435 

Mr. Glenn C. George, member, Navajo Tribal Council 438 

Ms. Marie Reyner, teacher, Chinle Public Schools 441 

Mr. Thomas Tippeconnic, Acting Natural Resources Manager, Fort 

Defiance Agency 444 

Mr. Stan Milford, supervisor, Guidance Department, Toyei Boarding 

School 446 

Mr. Maynard Stanley, Coordinator, American Indian Movement 448 



Volume II: Exhibits 

Exhibits Entered Into the Hearing Record 

1. Notice of Hearing 456 

2. Navajo Tribal Council Resolutions Delayed by the Bureau of Indian 
Affairs 457 

3. Statement by Peter MacDonald, Chairman, Navajo Tribal Council 479 

4. The Navajo JO Year Plan 49I 

5. "Demographic and Socioeconomic Characteristics of the Navajo," 
Staff Report, U.S. Commission on Civil Rights 538 

6. Treaty Between the United States of America and the Navajo Tribe, 
June 1, 1868 692 

7. Organization and Status of Navajo Chapters 695 

8. Excerpts, "Results of a Partnership Between the American Indian 
and the Economic Development Administration," U.S. Department 

of Commerce, August 1973 711 

9. "A Plan for Navajo Economic Development," by David F. Aberle, 

1969 718 

10. "Economic Development Through Small Business," by Robert E. 
Salabye, Oct. 22, 1973 772 

11. Statement by Joseph R. Hardy, Director, Navajo Small Business 
Development Corporation 776 

V 



Page 

12. Navajo Revolving Credit Program: Policy and Operation; Small 
Business Administration Aid to Navajo Tribe; Bureau of Indian 
Affairs Contracting Period Policy; Buy Indian Act Contractors; 
Laundry Contractor for Tuba City Boarding School 785 

13. "Guidelines for the Establishment of Navajo Manpower Utilization 
Requirements in Construction Activity," Office of Navajo Labor 
Relations; Labor Department Opinion on Use of Guidelines 799 

14. Paragraph 18, Salt River Lease 815 

15. Data on Placement of Navajo Manpower Program Trainees 816 

16. Letter to Labor Unions from Thomas H. Brose, Director, Office of 
Navajo Labor Relations, May 16, 1973 824 

17. Sample Payroll Sheet of Bureau of Indian Affairs Contractor 827 

18. Indian Employees of Navajo Area Office Contractors 833 

19. Indians Employed on Bureau of Indian Affairs School Construction 
Contracts On or Near Navajo Reservation 835 

20. Affirmative Action Provision, Bureau of Indian Affairs Construction 
Contracts for Work at Phoenix and Sherman Indian Schools 858 

21. Equal Opportunity Provision, Bureau of Indian Affairs Contract for 
Produce in Gallup, New Mexico, Area 878 

22. Memorandum from Acting Associate Solicitor, Department of Labor, 

to Director, Office of Federal Contract CompHance, Aug. 17, 1973 . . 882 

23. Annual Contracting Policy, Bureau of Indian Affairs 886 

24. Correspondence on Indian Preference Clause and Buy Indian Act in 
Bureau of Indian Affairs Construction Contracts 893 

25. Statement of Charles W. Lacey, Bechtel Power Corporation, Los 
Angeles 916 

26. Letter from Peter MacDonald, Chairman, Navajo Tribal Council, to 
William H. Brown, Chairman, Equal Employment Opportunity 
Commission, Nov. 29, 1971 925 

27. Proposed Bechtel-Navajo Employment Conciliation Agreement . . . 926 

28. Material on JOBS '70 and JOBS Entry Programs 936 

29. Memorandum on Union Hiring Hall Practices as Related to Arizona 
Right-To-Work Laws and Compatibility of Bechtel's International 
Union Agreements with a Direct Hire Policy 944 

30. Budget Information, Navajo Area Indian Health Service 962 

31. Indian Health Service Equipment Replacement Regulations 964 

32. Indian Health Service Family Planning Policy 972 

33. Material on Identification of American Indian Population by the 
Census Bureau and the Bureau of Indian Affairs; Indian Health 
Service Population Estimates for the Navajo Reservation 977 

34. National Indian Leadership Training Material on Johnson-O'Malley 

and Other Education Programs in Arizona and New Mexico 1007 

35. "No Navajo School Pact, Says BIA,"/r?de7jenrf€'nf (Gallup, N.M.), Aug. 

3, 1973 1056 

36. Public Law 84-959; Letter from Stephen Horn, President, California 
State University, Long Beach, to Senator James Abourezk, 
Chairman, Subcommittee on Indian Affairs, July 2, 1973 1058 

37. CTBA Comprehensive Tests of Basic Skills, Form Q, Level 2; ShoH 
Form Test of Academic Aptitude, Level 1 and Level 2 1062 

38. Financial and Ethnic Data, Gallup-McKinley County School District 1063 

39. Enrollment in Navajo and Zuni Language Classes, Gallup-McKinley 
County Schools 1091 

40. Resolutions of Navajo Nation Youth Committee Conference and of 
Red Rock, Crownpoint, Coyote Canyon, Chi-chil-tah, and Standing 

Rock Chapters 1092 

41. San Juan School District Dress Code 1103 

42. Ethnic Data, Students, San Juan County Schools 1106 

VI 



Page 

43. Correspondence on San Juan School Dress Code 1115 

44. Letter from Kenneth Maughan, Superintendent, San Juan School 
District, Feb. 7, 1974 1118 

45. Ethnic (Staff) and Financial Data, San Juan County Schools 1119 

46. Additional Statement of Marjorie Thomas, Director, Indian Cultural 
Curriculum Center, Tuba City Public Schools; Interview of J. Frank 
Glotfelty, Superintendent, Tuba City Public Schools 1138 

47. Tuba City High School Annotated Course Catalog 1164 

48. Ethnic and Financial Data, Tuba City Public Schools 1192 

49. Ethnic and Financial Data, Kayenta Public Schools 1209 

50. Ethnic and Financial Data, Window Rock School District No. 8 1210 

51. Statement by Rock Point Community School Board 1214 

52. Ethnic and Financial Data, Bureau of Indian Affairs Schools 1236 

53. Navajo Tribal Council Resolution on Community School Boards . . . i256 

54. Navajo Area Philosophy and Objectives of Education 1264 

55. Data on Training for Teacher Aides 1266 

56. Organizational Charts, Navajo Tribe and Bureau of Indian Affairs 
Navajo Area Office 1267 

57. Education Budget, Bureau of Indian Affairs Navajo Area Office . . i269 

58. Per Pupil Costs, Bureau of Indian Affairs and Contract Schools . . . i270 

59. Department of Labor Opinion on 25 U.S.C. Sec. 48 1271 

60. Budget, Bureau of Indian Affairs Navajo Area Office 1275 

61. "Strengthening Navajo Education," Division of Education, Navajo 
Tribe 1284 

62. Navajo Tribal Council Resolutions on Johnson-O'Malley Funds and 
Rock Point Community School Board 1336 

63. Resolution of the St. Michael Indian School Board 1340 

64. Speech by Peter MacDonald, Chairman, Navajo Tribal Council, May 

30, 1973 1342 

65. "Educational Programs for the Navajo Nation," Division of 
Education, Navajo Tribe 1353 

Additional Documents Entered Into the Hearing Record 

66. Supplemental Statement of Jack Hennessy, Lay Advocate, DNA 
Legal Services Program 1399 

67. Statements of Andrew Kelly, Sr., Employee, Bureau of Indian Affairs 1436 

68. Evaluation of Marie Reyner, Teacher, Chinle Public School 1440 

69. Statement of Annie Yazzie, Teacher, Tuba City, Arizona 1445 



VII 



Exhibit No. 1 

FEDERAL REGISTER, Vol. 38, No. 183 
Friday, September 21, 1973 

COMMISSION ON CIVIL RIGHTS 

ARIZONA 
Notice of Hearing. 

Notice Is hereby given, pursuant to the 
provisions of the Civil Rights Act of 1957, 
71 Stat. 634. as amended, that a public 
hearing of the U.S. Commission on Civil 
Rights will commence on October 22, 
1973, and that an executive session, if ap- 
propriate, will be convened on October 21, 
1973. to be held at the Navajo Civic Cen- 
ter, Window Rock, Arizona. 

The purpose of the hearing is to collect 
information concerning legal develop- 
ments constituting a denial of equal pro- 
tection of the laws under the Constitu- 
tion becaut^c of race, color, religion, sex, 
or national origin which affect educa- 
tional opportunities, or the provision of 
medical and welfare services, or employ- 
ment opportunities, or economic develop- 
ment for the Navajo Indians who reside 
on or near the Navajo Reservation in 
Arizona, New Mexico, or Utah; to ap- 
praise the laws and policie:^ of the Fed- 
eral Government with respect to denials 
of equal protection of the laws under the 
Constitution because of race, color, reli- 
gion, sex, or national origin as they affect 
the educational opportunities, or the pro- 
vision of medical and welfare services, or 
employment opportunities, or economic 
development for Navajo Indians, in the 
above areas, and to disseminate informa- 
tion with respect to denials of equal 
protection of the laws because of race, 
color, religion, sex, or national origin in 
the fields of education, medical and wel- 
fare services, employment, economic 
development, and related matters. 

Dated at Washington, D.C., Septem- 
ber 18, 1973. 

Stephe?. Horn, 
Acting Chairman. 
[FR Doc.73-20191 Piled 9-20-73;8:45 ami 



456 




457 
Exhibit No. 2 

THE NAVAJO TRIBE 

WINDOW ROCK, NAVAJO NATION, (ARIZONA) 86515 



August 23, 1974 



PETER MacOONALD 
CHAIRMAN, Navoje Tribal CoMieil 



WILSON C. SKBET 
VICE CHAIRMAN, Navajo Tribal CMnell 



Legal Department 



Hester Lewis 

Attorney 

1121 Vermont Avenue, N. W. 

Room 602 

Washington, D C. 

Dear Hester: 

Enclosed is a very brief compilation of the 
material for your transcript. 

At tab "A" is a copy of the Council resolution 
dealing with the Tribe's Exxon lease. This resolution, 
passed in January, has, of course, yet to be approved 
by the Bureau of Indian Affairs. 

At tab "B" are copies of three resolutions 
passed by the Tribal Council and approved by the Bureau 
of Indian Affairs only after deliberation for nine 
months or more. 

I trust this brief survey will be adequate 
for inclusion in the transcript. 

Sincerely, 



Steven J . Twist 



mcy 



P. S. 



You should note that the resolution authorizing 
the Chairman to execute the Exxon lease indicates 
"No BIA Action Required." However, the BIA must 
ultimately authorize the lease agreement and this 
they have, as yet, not done. 



458 

TAB A 



CJA-15-7it 

Class "C" Rbsoiution 
No BIA Action Required. 



RESOLUTION OF THE 
NAVAJO TRIBAL COUNCIL 

Authorizing the Chairman of the NavajcTribs.! Council tc Eye^ute 

V'ar icus Documents Gr?.nting Exxon Ccrpo- at ion the Right t o Prci; ~ 

pejt for and Mine Uranium , Ail Fisgior.sbl e Minerals, i.n z Oth-^r 

Minerals Associated Tnere^'ith en the Jȣ . va.-',o RfrSfervar ion 

WHEREAS: 

1. On August 30, 1973, the Navajo Tribal Council p's.i;sed 
Resolution CAU-47-73 which authorized and directed th*:; Chairman of 
the Navajo Tribal Council to enter into negotiations ard r^ach an 
agreement with a firm or firms for the purpose of profitable and 
satisfactory development of the uranium which may lie under th^^t 
portion of the Navajo Reservation known as the Northwest portion 
of the State of New Mexico,- and 

2. For the past four months, the Chairman of the Navajo 
Tribal Council and the Office of General Counsel have been nego- 
tiating with Exxon Corporation regarding the exploration for and 
mining of uranium on the Navajo Reservation, and 

3. On January 11, 1974, the Advisory Committee of the 
Navajo Tribal Council passed a resolution by a vote of 14-0 recom- 
mending that the Tribal Council authorize and direct the Chairman 
of the Navajo Tribal Council to execute the Uranium Mineral Pros- 
pecting Permit and Mining Lease Agreement (.together with exhibits 
thereto) attached hereto as Exhibit '1" for and on behalf of the 
Navajo Nation and to make such changes and additions as he deems 
necessary or appropriate to carry out the intent thereof. 

NOW THEREFORE BE IT RESOLVED THAT: 

1. The Chairman of the Navajo Tribal Council is hereby 
authorized and directed to execute the exclusive Uranium Mineral 
Prospecting Permit and Mining Lease Agreement (together with 
exhibits thereto) attached hereto as Exhibit "1' for and on behalf 
of the Navajo Nation. 

2. The Chairman of the Navajo Tribal Council, with the 
consent and approval of the Advisory Committee, is hereby authorized 
and directed to make such changes and additions in Exhibit "1" 
(together with thf evhibits thereto; i.£ he deems appropria';e to 
carry out the ir.te.it tn^iccl an3. to feiecute all other papers ana 



CJA-15-74 



459 

do all things necessary or appropriate to implement the agreements 
contained in Exhibit "1" and the exhibits thereto. 

CERTIFICATION 

I hereby certify that the foregoing resolution was duly 
considered by the Navajo Tribal Council at a duly called meeting 
at Window Rock, Navajo Nation (Arizona), at which a quorum was 
present and that same was passed by a vote of 46 in favor and 2 
opposed, this 24th day of January 1974. 




C 

Navajo" 



ribal Coundil 



460 



CAU-59-T3 

Class "B" Resclii-cioa 
Araa Apprcval Rsquirad. 

RESOLUTION OF THE Tribe passed 8/22/73 

NAVAJO TRIBAL COUNCIL ^'^ approved 6/24/74 

Authorizing t.he Investment Committee to 

Maintain an Investment Prosram rn 

Behalf ^i the Navajo Tribe 



WHEREAS: 



1. A short-term Investment program has proven 
highly successful In providing a satisfactory return on In- 
vested funds, and 

2. The Budget and Finance Committee of the Navajo 
Tribal Council has expressed the opinion by Resolution BFN-98-70 
that the short-term Investment program was In the best Interests 
of the Tribe and should be continued, and 

3. An Investment program will provide the necessary 
flexibility to enable the Navajo Tribe to have funds on hand and 
available for budget operations on short notice, and 

4. On December 3, 1970, pursuant to Navajo Tribal 
Council Resolution CD-71-70, the Treasurer of the Navajo Tribe 
was authorized to continue a short-term investment program with 
Merrill Lynch, Pierce Fenner and Smith, Inc., as principal 
broker, and 

5. On May 28, 1957, the Navajo Tribal Council, by 
Resolution Number CM-53-57, authorized the investment of 
Scholarship Funds, and 

6o On December 21, 1972, Spiegel and Stenson In- 
vestment Counsel, a partnership was retained through contrac- 
tual agreement with the Chairman of the Navajo Tribe to manage 
the Investment of funds of the Navajo Tribal Scholarship 
account pursuant to T, lOss 343 Navajo Tribal Code. 

NOW THEREFORE BE IT RESOLVED THAT: 

1. The Navajo Tribal Council authorizes the Invest- 
ment Committee to maintain an investment program on behalf of 
the Navajo Tribe in accordance with the attached Exhibit "A", 
plan of operation. 



461 



CnLJ-3^-73 



2. The Navajo Tribal Council approves the manage- 
ment of the Navajo Tribal Schclarshlp account by an Investment 
firm monitored by the Investment Committee as detailed in the 
Flan of Operation. 

CERTIFICATION 

I hereby certify that the foregoing resolution was 
duly considered by the Navajo Tribal Council at a duly called 
meeting at Window Rock, Navajo Nation (Arizona), at which a 
quorum was present and that same was passed by a vote of 37 in 
favor and opposed, this 22nd day of August, 1973. 




Nava 



ouncll 



462 



CftU-3Q-73 

EXHIBIT "A" 

PLAN OF OPERATION 

I. ESTABLISHMENT 

Navajo Tribal Council Resolution CAU-50-59 provided for 
the reorganization of the Executive Branch of the Navajo Tribe. 
Pursuant to the authority of this resolution, the Treasurer of 
the Navajo Tribe carried out a program of short-term invest- 
ments. Resolution Number CD-71-70 authorized the Treasurer of 
the Navajo Tribe to continue the Short-Term Investment Program, 
Investment of Scholarship Funds is authorized by Tribal Council 
Resolution Number CM-53-57 which was passed on May 28, 1957. 
A Tribal Investment Committee was established by a memorandum 
dated April 29, 1971, signed by the Chairman, Navajo Tribal 
Council . 

II. OBJECTIVE 

The objective of the Investment Committee Is to initiate 
and maintain a sound investment program on behalf of the Navajo 
Tribe, This includes activities necessary to conduct and 
direct investment transactions which will enable Tribal General 
Funds and Scholarship Funds to receive maximum rates of return 
and capital appreciation while maintaining safety of principle 
and liquidity within the framework of the "Prudent Man" on in- 
vestment program guidelines. 

III. ORGANIZATION 

The Investment Committee shall be comprised of the follow- 
ing Tribal representatives: 

The Controller 

The Auditor General 

The Director of the Office of Administration 

The Chairman of the Budget and Finance Committee 

The General Counsel (Ex Officio) 

The Chairman of the Navajo Tribal Council (Ex Officio) 

The Cashier (Fx Officio) - acts as recording secretary) 

The Controller shall serve as the Chairman of the Invest- 
ment Committee and the Chairman of the Budget and Finance Com- 
mittee shall serve as the Vice Chairman. Each representative 



463 



Ch)C -^''l~'/3 



shall have one voce, except for the ex officio representatives 
who shall have no vote, Three (3) voting representatives in 
attendance at each meeting shall constitute a quorum. No 
motion may carry with less than two (2) votes. Proxy vote by 
an absent voting member may be accepted at the discretion of 
the presiding chairman of the committeeo 



IV, 



POLICIES 



The Investment Committee shall implement and efficiently 
maintain the following policies: 

Ca) Tribal Scholarship Funds which have been en- 
trusted to in Investment counseling service 
shall be periodically reviewed and evaluated 
to insure funds are invested consistent with 
the objective at the Scholarship program. 

Cb) All monies accruing to the credit of the 
Navajo Tribe shall, to the maximum, be 
brought under the direct control of the 
Navajo Tribe. 

Cc) General Funds on hand not required for day-to- 
day expenditures of the Tribe may be invested 
for maximum return consistent with the objec- 
tives of the Plan of Operation. 

(d) Scholarship investment revenue received and on 
hand but not required for immediate disburse- 
ment shall be transferred to the Investment 
Counsel for reinvestment pursuant with existing 
contract . 

(e) Responsibility for the management of the Scholar- 
ship Fund investments remains with the Investment 
counseling service contracted to provide such 
services . 

(f) General Fund Investments shall be diversified to 
include common and preferred stock, commercial 
paper, governmental and industrial bonds, notes 
and debentures, certificates of deposit, fully 
collateralized mortgages, loan participation 
agreements (subject to approval of the Navajo 
Tribal Council), and other prudent investments. 
Commodity futures trading, short-selling of 
stock, dealing in letter stock, puts and calls, 
hedging, arbitrage and loans to Tribal affiliates 
is prohibited . 



(g) Purchase oi sale of General Fund short-term in- 
vestments, defined as those maturing in one year 



464 



Cf}0 ■3'f''^3 



or less, may be approved by the Controller 
for immediate action when recommended by the 
Investment Counsel, These transactions will 
be presented to the next tegular meeting of 
the Investment Committee for review and 
appr cval , 

(h) Purchase or sale of General Fund intermediate 
investments, defined as those maturing in 
more than one year but less than five years, 
will be approved in advance by the Investment 
Committee upon recommendation by the Invest- 
ment Counsel. Under unusual circumstances 
when immediate action is required to obtain 
maximum benefits by purchase or sale of inter- 
mediate Investments, the Controller may be 
authorized to approve the transaction. Any 
action approved by the Controller on inter- 
mediate Investments will be reported immedi- 
ately in writing to all members of the Invest- 
ment Committee, The committee members will be 
required to approve or disapprove the action 
In writing, A special meeting of the Invest- 
ment Committee may be called by the Committee 
Chairman or the Chairman, Navajo Tribal Council, 
by giving members written notice A8 hours in 
advance of the meeting time. 

(1) General Fund Long-Term investments, defined as 
those maturing after five years, will require 
the approval of the Investment Committee and 
the Chairman, Navajo Tribal Council. 

(]) All General Fund Investments shall be placed 

through a recognized broker, or in the case of 
the certificates of deposit, by the Controller 
unless otherwise approved by the Navajo Tribal 
Council. All investments shall be in the name 
of the Navajo Tribe. 

(k) A balanced portfolio shall be maintained, con- 
sistent with economic conditions, to Insure 
long-term growth, to balance inflationary 
trends and to provide maximum Income for re- 
investment of operating capital. 

V. AUTHORITY 

The Investment Committee shall have the authority to 
execute or approve Investment transactions in accord with 
established poli;ie3 and to 'the extent necessary to safe- 
guard. the investment funds of the Niavajo Tribe. It may make 



-3- 



465 



Cf}L ?7-7^ 



recommendations t3 ths Navajo Tribal Council to approve or 
terminate existing contracts with an established Investment 
Service for violating Tribal Investment policies. It may 
direct the purchase ot sale of any security or securities of 
any nature to attain the goals set by the Navajo Tribal 
Council. The committee will not Initiate or approve any 
transaction which violates tribal policy. In exercising this 
authority, the committee shall consider: 

(a) The forces of inflation which may reduce the 
value of Tribal Funds over a period of years. 

(b) The return to the Navajo Tribe of Interest, 
dividends, and capital gains, 

(c) The availability of funds, 

(d) The safety of funds invested. 

(e) Other factors consistent with sound invest- 
ment prac t ices , 

The Investment Counsel shall be bound by the decisions 
of the Investment Committee. Instructions to the Investment 
Counsel shall be written. In those instances where verbal 
approval of a transaction is required for Immediate action, 
confirmation of the action taken will be made by letter. 



VI, 



RESPONSIBILITIES 



The following responsibilities are assigned to executive 
officers and committee members to achieve the investment goals 
of the Navajo Tribe. 

Ca) Investment Committee - The Investment Committee shall 
be responsible for: 

1. The management of all General Fund investments 
and monitoring of all Scholarship fund invest- 
ments in such a manner as to attain the invest- 
ment of objectives set by the Navajo Tribal 
Council . 



2. Initiating, directing or approving all invest- 
ment activities in accordance with the estab- 
lished Plan of Operation. 

3. Conducting regularly scheduled quarterly 
meetings to assure an efficient program of 
continuing investment projects, 

4. The submission of quarterly performance reports, 
and any special reports requested, to the Chair- 
man, Navajo Tribal Council. 



466 



CfiU-^^l-^S 



(b) Controller - The Controller shall be responsible for; 

1. The maintenance of current records of all in- 
vestments initiated or approved by the Invest- 
ment Commit tee , 

2. Preparation of all quarterly and special reports 
as required by the Investment Committee or the 
Chairman, Navajo Tribal Council. 

3. Maintaining adequate controls to safeguard in- 
vestment assets of the Navajo Tribe, 

4. Initiating short-term investments to make maxi- 
mum use of General Funds as they become available 
and obtaining approval of the Investment Committee 
for these transactions. 

(c) Cashier - The Cashier shall be responsible for: 

1. Recording the minutes of all regular and special 
meetings of the Investment Committee. 

2. Maintaining a detail of all securities owned 
showing cost, interest rates, yield rate, 
maturity date and maturity value. 

3. Providing investment advice to the Investment 

Commit tee . 



-5- 



467 



Class "A" Resolution 
Washington Approval 
Required . 

CJN-56-72 



Tribe passed June 13, 1972 
BIA approved May 21, 1973 
RESOLUTION OF THE 
NAVAJO TRIBAL COUNCIL 

Establishing the Navajo Engineering and Construction 
Authority (NECA) and Adopting a Plan of Operation 

WHEREAS ; 

1. The operation and management of the Tribal Heavy 
Equipment Pool has been such as to result in inadequate service 
in the heavy equipment field and in serious financial loss to 
the Navajo Tribe, and 

2. The concept and purpose of a heavy equipment 
operation coincides with the basic policy of the Navajo Tribe 
to control its own affairs and it s own destiny, with a view 
towards developing the means by which increased financial bene- 
fits and training can result 'to the Navajo Nation, and 

3. It is, therefore, appropriate that a heavy con- 
struction operation be continued by the Navajo Tribe in the 
form of a Tribal enterprise capable of acquiring the services 
of persons having exceptional ability in the management of 
large-scale construction operations, and 

4. Such an enterprise directed by competent and ex- 
perienced management personnel will result in significant 
financial gain to the Navajo Tribe, and 

5. The Advisory Committee of the Navajo Tribal 
Council, by resolution passed May 10, 1972, recommended the 
establishment of such an enterprise and has further recommended 
the adoption of the attached Plan of Operation. 

NOW THEREFORE BE IT RESOLVED THAT: 

1. The Navajo Tribal Council hereby creates and 
establishes the Navajo Engineering and Construction Authority 
hereinafter called the "Authority," as a Tribal enterprise. 

2. The Plan of Operation attached hereto is hereby 
adopted and the Authority is hereby authorized and directed to 
conduct its operation In accordance therewith and with any ad- 
ditions or amendments thereof, as may be made by the Advisory 
Committee of the Navajo Tribal Council. 

3. The Advisory Committee of the Navajo Tribal 
Council is hereby authorized and directed to assume full 
authority over the Authority, and to make such additions to or 



468 



Cjf^-'^'L-7.:L 



amendments of the attached Plan of Operation as it shall deem 
appropriate . 

k. All Tribal property and equipment presently 
belonging to or used by the present Heavy Equipment Pool, 
including all Tribal interests in property and equipment, 
belong to or used by said Pool is hereby transferred to the 
Authority to be used or disposed of in accordance with the 
attached Plan of Operation as the Authority sees fit. All 
Tribal construction equipment and other related property which 
may subsequently be discovered or acquired by the Navajo Tribe 
by any means whatsoever, may be transferred to the Authority 
By the Chairman of the Navajo Tribal Council. 

5. The Authority shall not be responsible for the 
present obligations of the Heavy Equipment Pool and shall not 
benefit by any accounts receivable or other obligations owed 
to said Pool., but such Authority shall proceed on behalf of 
the Navajo Tribe to collect all Heavy Equipment Pool accounts 
receivable and deliver all proceeds therefrom to the Treasurer 
of the Navajo Tribe for deposit in the Tribe's general treasury, 

6. With the consent of the Advisory Committee of 
the Navajo Tribal Council and upon obtaining proper clearances 
through the Tribe's Real Property Management Department, the 
Authority shall establish offices and equipment and supply 
yards throughout the Reservation, and be authorized to mine, 
process and develop and sell all sand, granite, pumice building 
stone and other nonprecious minerals and building materials 
apon the Reservation. 

7. The Heavy Equipment Pool is hereby abolished 
and all relevant resolutions are hereby rescinded. 

CERTIFICATION 



I hereby certify that the foregoing resolution was 
duly considered by the Navajo Tribal Council at a duly called 
meeting at Window Rock, Navajo Nation (Arizona), at which a 
quorum was present and that same was passed by a vote of 44 In 
favor and opposed, this 13th day of June, 1972. 




uncll 



469 



OTA' -oY -^^-^ 

PLAN OF OPERATION OF THE 
NAVAJO ENGINEERING and CONSTRUCTION AUTHORITY 

ARTICLE I 

Sec. 1.0 Establishment 

There is hereby established an enterprise of the 
Navajo Tribe to be known as the Navajo Engineering and Construc- 
tion Authority CNECAi, hereafter called the "Authority." 

ARTICLE II 

Sec. 1.0 Place of Business 

The Authority's head office and principal place of 
business shall be in Ft. Defiance, Navajo Nation (Arizona), but 
other offices and places for conducting business, both within 
and without the Navajo Nation, may be established from time to 
time by the Board of Directors. 

ARTICLE III 

Sec. 1.0 Purpose and Powers 

The general nature of the business proposed to be 
transacted by the Authority is, and the purposes and powers of 
the Authority are; 

Sec. 1.1: To conduct and carry, or cause to be 
carried on a general Engineering and Heavy Construction busi- 
ness, and to carry on and conduct or cause to be carried on 
and conducted, the business of builders and contractors, in- 
cluding the designing, planning, erecting, equipping, construct- 
ing, enlarging, extending, maintaining, repairing, altering, 
rebuilding, improving, completing, renovating, remodeling or 
otherwise engaging in any work upon or connected with buildings, 
structures, roads, highways or their appurtenances, of every 
kind and description, either on property or interests in 
property, owned or acquired by this corporation, or as agent, 
contractor, or builders for others, and to mortgage, sell, 
lease, exchange, or otherwise dispose of any lands or Interests 
In lands, buildings or other structures or other property rights 
owned or held by the Authority. 

Sec, 1.2: To engage In a general sand and gravel 
bu8ln.ess and to act as major producer and supplier of sand and 
gravel and other construction materials for use on and off the 
Navajo Reservation. 

Sec. 1.3: To utilize all or any portion of Tribally 
owned, heavy construction equipment in a useful and profitable 
manne r . 



470 



c■J^ 'A- V'j. 

Sec. l.A: To utilize trained Navajo equipment 
operators and to develop and train more operators and to place 
them in employment and construction positions both within and 
without the Navajo Nation. 

Sec. 1.5; To coordinate and control the use of 
construction materials, equipment, and Navajo employees in 
private and federal construction programs both within and with- 
out the Navajo Nation and in such other areas as may be profit'- 
ably developed. 

Sec. 1.6: To assure full Navajo participation in 
Reservation construction and development programs. 

Sec. 1.7; To supply efficient Navajo owned contract- 
ing services that were formally supplied by of f -Reservation 
companies and by Government agencies. 

Sec. 1.8; To buy, sell and generally deal in any 
and all kinds of personal property, whether at wholesale or at 
retail, as principal, agent, factor or broker. 

Sec. 1.9: To acquire by purchase, permit, lease 
contract or otherwise, lands and iaterests in lands; to own, 
hold, improve, and develop any lands or interest so acquired. 




Sec. 1.11: To borrow money necessary and proper for 
its purposes and to issue the Authority's note or notes there- 
for in series or otherwise; to execute and issue bonds, deben- 
tures or other obligations in series or otherwise and to issue 
or cause to be Issued certificates and other negotiable or 
transferable instruments; to mortgage or pledge any or all of 
the assets of the Authority as security for the performance of 
the convenants of such notes, bonds, debentures, certificates 
or other instruments upon such terms and conditions as may be 
set out in the instrument or instruments mortgaging or pledging 
the same or in any deed, contract or instrument relating thereto, 

Sec. 1.12; To lend money, to purchase, acquire, own, 
hold, gutirantee, aeli, assign, transfer, mortgage, pledge, or 
otherwise dispose of aad deal In shares, bonds, notes, aebiii- 
tures or other securities or evidences of indebtejness of ar.y 
other person, corporation or association, w nether domastl; or 
foreign, and whether r.ow or hereafter orgav.ized or existing; 



471 



O'Jil -A- -'/J 



and while the holder thereof to exercise all the rights, powers 
and privileges of ownership, including the right to vote there- 
on, to the same extent as a natural person might or could do. 

Sec. 1.13: To enter into management agreements, 
joint ventures, limited partnerships and/or general partner- 
ship agreements with any corporation, association, syndicate, 
partnership, entity, person or governmental, municipal or 
public authority, domestic or foreign, in the carrying on of 
any business which the Authority is authorized to carry on, or 
any business or transaction deemed necessary, convenient, or 
incidental to carrying out the purposes of the Authority. 

Sec. I.IA: To enter into, make, perform and carry 
out contracts of any kind and every kind necessary, requisite 
or advantageous in respect to the business operations of this 
Authority with any tribe, band, group, government, state, 
county, municipality, person, firm, association, or corporation, 
domestic or foreign. 

Sec. 1.15: To act as trustee or in any fiduciary 
capacity; to become surety or guarantor for any person, firm. 
Authority, association or corporation wh£.tsoever Cregardless 
of the existence or nonexistence of any relationship or affili- 
ation of such other person, firm, association, authority or 
corporation with this Authority or of any business or other 
purpose or consideration for becoming such surety or guarantor); 
and to endorse commercial paper. 

Sec. 1.16: To promote or to aid in any manner, fi- 
nancially or otherwise, any person, corporation or association 
of which any shares, bonds, notes, debentures, or other securi- 
ties or evidences of indebtedness are held directly or indirectly 
by this Authority; and for this purpose to guarantee the con- 
tracts, dividends, shares, bonds, debentures, notes and other 
obligations of such persons, corporations or associations; and 
to do any other act or thing designed to protect, preserve, 
improve or enhance the value of such shares, bonds, notes, 
debentures or other securities or evidences of indebtedness. 



the 
of e 
part 
tion 
wise 

Cii) 
cm 

the 

or o 

disp 
righ 
mann 
exer 

mana 



good 
very 

the 
an 

CD 

by 
) In 
bond 
ther 
ose 
ts, 
er t 
else 
geme 



Sec. 1 
will, bu 

kind , w 

liabili 
d to acq 

by pure 
acquis It 

any oth 
s or oth 
wise ; to 
of the w 
and prop 
he whole 

all the 
n t of su 



.17 : 

sine 

ith 

ties 

uire 

base 

ion 

er m 

er e 

hoi 
hole 
er t y 

or 

pow 
ch b 



To ac 

ss , pro 

or with 

of any 

any bu 

of the 

of the 

anner , 

vidence 

d , main 

or any 

so acq 

any par 

ers nee 

us tn e s s 



quire , b 
per t y- r 1 
out unde 

per son , 
s iness a 

assets 
shares o 
and to p 
s or ind 
tain and 

part of 
uir ed , a 
t of any 
essary o 



y pure 
ghts , 
r t akin 

firm, 
sago 
thereo 
r any 
ay for 
eb tedn 

opera 

the g 
nd to 

busin 
r conv 



hase 
franc 
g eit 

asso 
ing c 
f who 
part 

the 
ess o 
te , o 
oodwi 
condu 
ess s 
enien 



or oth 
hises 
her wh 
ciatio 
oncern 
lly or 
thereo 
same 1 
f this 
r in a 
11, bu 
ct in 
o acqu 
t In a 



erwi 
and 
oily 
n or 

or 

in 
f , o 
n ca 

Aut 
ny m 
s ine 
any 
ired 
nd a 



se , 

assets 

or in 

cor pora- 
o ther- 
par t , 
r 

sh or in 
hor ity , 
anner 
ss , 

lawful 
; and to 
bout the 



472 



CjA-,6<^-/x 



Sec. 1.18: To do all and everything necessary, suit- 
able or proper for the accompllshnent of any of the purposes 
or attainment of any of the objects hereinbefore enumerated, 
either alone or in association with other authorities, corpora- 
tion, firms and individuals, as principal, agent, broker, con- 
tractor, trustee, partner or otherwise, and in general to 
engage in any and all lawful business that may be necessary or 
convenient in carrying on the business of said Authority and 
for the purposes pertaining thereto, and to do any and every 
other act or acts, thing or things, incidental to, growing out 
of, or connected with said business, or any part or parts thereof 

ARTICLE IV 

Sec. 1.0 Commencement, Duration 

The time of commencement of this Authority shall be 
the date on which the Navajo Tribal Council passes a resolution 
to that effect and the duration of the Authority shall be per- 
petual. 

ARTICLE V 

Sec, 1.0 Board of Dir ec t or s-^Number , Appointment, Term & Removal 

Sec. 1.1: The business and affairs of the Authority 
are to be conducted by a Board of Directors of nine (9) members 
including the Chairman of the Navajo Tribal Council who shall 
serve as voting ex officio member. The ex officio member shall 
not be an officer of the Board. 

Sec. 1.2: The presence of five members of the Board 
shall constitute a quorum for the transaction of any business. 
The act of the majority of the members present and voting at a 
meeting at which a quorum is present, shall be the act of the 
Board . 

Sec. 1.3; The Board of Directors shall be appointed 
by the Chairman of the Navajo Tribal Council with the consent 
of the Advisory Committee of the Navajo Tribal Council, for 
8tag.gered terms of one Cl) to four (4) years. 

Sec. 1.4: Vacancies on the Board of Directors may b" 
filled by the Chairman of the Navajo Tribal Council for the 
remainder of the term of the vacating member. 



Sec. 1.5: Any director may be removed by the Advi- 
sory Committee, Navajo Tribal Council, at any time with or 
without cause, and any officer elected or appointed by the Board 
of Directors may be removed by the Board of Directors at any 
time with or without cause, in each case in such majiner as shall 
be provided in the Bylaws of the Authority. 



473 

C-7hJ'SC- 12. 

Sec. 1.5: A President, Vice President, a Secretary 
and a Treasurer of the Board shall be elected annually by the 
Board of Directors. All such officers must be members of the 
Board of Directors, and such officers and directors shall hold 
office until their successors are elected and qualified. 

ARTICLE VI 

Sec. 1.0 Bylaws - Meetings, Compensation 

Sec. 1.1: The Board of Directors shall adopt Bylaws 
for the Authority and such Bylaws may be amended or repealed 
as provided therein. The Bylaws of the Authority shall provide 
among other things for the time and place of the annual meeting 
of the Board of Directors, the first of which shall be held in 
the year 1972, and of regular and special meetings of the Board, 
provided that such regular Board meetings shall not be held 
less frequently than once quarterly. 

Sec. 1.2: The Bylaws shall further provide for notice 
of meetings, waiver of notice, the compensation and/or reimburse- 
ment of members of the Board, the employment, compensation and 
reimbursement of all employees and officers of the Authority, 
and for all other matters necessary for the orderly and efficient 
operation and management of the affairs and dealings of the 
Authority . 

ARTICLE VII 

Sec. 1.0 Executive Committee 

Sec, 1.1: The Board of Directors may designate from 
Its number an executive committee which shall. In the intervals 
between meetings of the Board of Directors and to the extent 
provided by the Bylaws of the Authority, exercise the powers of 
the Board of Directors in the management of the affairs and 
business of the corporation insofar as such powers n«ry lawfully 
be delegated to a committee. 

ARTICLE VIII 

Sec, 1.0 Inspection of Books & Records, and Reports 

Sec. 1.1: The Authority shall open to the inspection 
of the Chairman of the Navajo Tribal Council or authorized 
representative, the accounts, books and papers of the Authority, 
or any of them, at all regular business hours. The accounts 
and records of the Authority shall be audited at the close of 
each fiscal year, and copies of the audit report shall be 
furnished to the Chairman of the Navajo Tribal Council, the 
Budget and Finance Committee of the Navajo Tribal Council and 
to such other person as the Chairman or the Advisory Committee, 
Navajo Tribal Council, shall direct. 



■5- 



474 



^.jA''S6-7^ 



Sec. 1.2: The Authority shall prepare and deliver 
to the Budget and Finance Committee of the Navajo Tribal 
Council, written monthly financial reports of the Authority, 
and shall prepare and deliver to the Advisory Committee of 
the Navajo Tribal Council, quarterly status reports of the 
Authority, and in addition shall prepare and deliver to the 
Navajo Tribal Council, annual financial and progress reports 
of the Authority. 

ARTICLE IX 

Sec. 1.0 Surplus Earnings 

Sec. 1.1: The Chairman of the Navajo Tribal Council 
with the consent of the Advisory Committee of the Navajo 
Tribal Council shall have power to fix from time to time the 
amount to be reserved out of the surplus of the Authority as 
working capital or for any other lawful purpose, and to deter- 
mine whether any, and if any, what part, of the surplus of the 
Authority shall be declared to revert to the General Treasury 
of the Navajo Tribe or to such other fund as the Advisory Com- 
mittee may determine. 

ARTICLE X 

Sec. 1.0 Indebtedness 



Sec. 1.1: The highest amount of Indebtedness or 
liability, direct or contingent, or which the Authority is at 
any time to subject itself, shall not exceed the sum of 
$2,500,000.00 or such other sum as the Advisory Committee may 
from time to time establish. 

ARTICLE XI 

Sec. 1.0 Private Property, Exempt 

Sec. 1.1: The private property of each and every 
officer and director of the Authority, real or personal, tan- 
gible, or Intangible, now owned or hereafter acquired by any 
of them, is and shall be forever exempt from all debts and 
obligations of the Authority of any kind whatsoever. 

ARTICLE XII 



Sec. 1.0 Conflicting Interest of Directors 

Sec. 1.1: In the absence of fraud, no contract or 
other transaction between the Authority and any other corpora- 
tion and no act of the Authority shall be in any way Invali- 
dated or otherwise affected by the fact that anyone or more of 
the directors of the corporation are pecuniarily or otherwise 
interested in, or are directors, officers or stockholders of 
such other corporation. Any director of the Authority, 



475 



CT/l'-S6-7^ 



individual 
may be a m 
otherwise 
Authority , 
a member a 
be disclos 
tors or a 
of the Aut 
hold er of 
be counted 
meeting of 
of which s 
may vote t 
with like 
of f icer or 
interested 
liable to 
him from o 
Author ity 
he or any 
c or pora t io 
shall have 



ly »or 
ember 
inter 

prov 
s sue 
ed or 
ma j or 
hor it 
such 

in d 

the 
hall 
her ea 
force 

s t oc 
In 
accou 
r thr 
aut ho 
f irm 
n of 

been 



any 
, may 
es ted 
ided 
h fir 

sha 1 
ity o 
y who 
o t her 
e term 
Board 
autho 
t to 

and 
khold 

the 
nt to 
ough 
r ized 
or as 
which 

inte 



f irm 
be a 
in , 
that 
m or 
1 hav 
f the 
is a 
corp 
ining 
of D 
r ize 
autho 
ef f ec 
er or 
absen 

the 

any s 

as a 

soc ia 

he i 

res t e 



or a 

par 
any 
the 
asso 
e be 

mem 
Iso 
or at 

the 
irec 
any 
r ize 
t as 

sue 
ce o 
Auth 
uch 
fore 
t ion 
s an 
d in 



ssoc 
ty t 
eont 
fact 
e ia t 
en k 
bers 
a di 
ion 

exi 
tors 
such 

any 

if 
hot 
f fr 
or it 
cont 
said 

of 

off 

any 



r ae t 

tha 
ion , 
nown 

the 
ree t 
or w 
s ten 

or 

con 

sue 
he w 
her 
aud , 
y f o 
r ac t 

by 
whie 
icer 

sue 



on o 
r ma 

or 
t he 

is 

to 
reof 
or , 
ho i 
ce o 
of a 
tr ac 
h eo 
ere 
cor p 

no 
r an 

or 
reas 
h he 
, di 
h eo 



f wh 
y be 
tran 

ind 
so i 
the 
; an 
off i 
s so 
f a 
ny c 
t or 
ntra 
not 
or at 
dire 
y pr 
tran 
on o 

is 
r ec t 
ntra 



ich any 

pecunia 
sac t ion 
ividuall 
ntereste 
Board of 
d any di 
eer or s 
interes 
quorum a 
ommi t tee 
transac 
ct or tr 
such dir 
ion or n 
e tor sha 
ofit rea 
sact ion 
f the fa 
a member 
or or St 
ct or tr 



dire 
r ily 
of t 
y or 
d sh 

Dir 
rect 
tock 
ted 
t an 

the 
tion 
ansa 
ec to 
o t s 
11 b 
lize 
of t 
ct t 
» or 
ockh 
ansa 



c tor 

or 
he 

as 
all 
ee- 
or 

may 

y 

re- 

and 
e t ion , 



d by 

he 

hat 

any 
older , 
c t ion , 



See. 1.2; Any contract, transaction or act of the 
Authority or of the Board of 'Directors or of any committee of 
the Board of Directors, which shall be ratified by a majority 
of a quorum of the Advisory Committee of the Navajo Tribal 
Council, at any annual meeting or any special meeting called 
for such purpose shall, insofar as permitted by law, be valid 
and as binding provided, however, that any failure of the Ad- 
visory Committee of the Navajo Tribal Council to approve or 
ratify such contract, transaction or act, when and if submitted, 
shall not be deemed in any way to invalidate the same or to 
deprive the Authority, its directors, officers or employees, 
of its or their right to proceed with such contract, transaction 
or act , 

ARTICLE XIII 



Sec. 1.0 Indemnification of Directors, Officers & Employees 



suit 
tor 

the 

the 

Auth 

fees 

with 

nee t 

as t 

eeed 

negl 



or 
or i 
Auth 
requ 
orit 
> ae 

the 
ion 
o wh 
ing 
igen 



Sec. 1 
proceed! 
nt es ta te 
or ity or 
est of t 
y agains 
tually a 
defense 
with any 
ich it s 
that su ; 
c e or mi 



.1: An 

ngs by 

, is or 

of any 

he Auth 

t the r 

nd nece 

of sue 

appea 1 

hall be 

h of f ic 

5conduc 



y pe 

reas 

was 

cor 

orit 
easo 
ssar 
h ac 
the 
adj 
= r > 
t in 



rson mad 
on of th 

a direc 
pora t Ion 
y , sha 11 
nable ex 
ily incu 
t ion , su 
r e in , ex 
udged in 
d irec tor 

the p.ir 



e a par 

e fact 

tor , of 

which 

be ind 

penses , 

rred by 

i t or p 

cep t in 

such a 

or emp 

f ormanc 



ty t 
that 
flee 
he s 

emn i 

Inc 

him 

r oce 

rel 

c t io 

loye 

e of 



o an 
he, 
r or 
erve 
f led 
ludi 

in 
edin 
a t io 
n , s 
e is 
his 



y action , 
his testa- 
employee of 
d as such at 

by the 
ng at torney ' s 
connect ion 
g , or in con- 
n to matters 
uit or pro- 
liable for 
duties . 



■7- 



476 



ACO-373-72 

Class "A" Resolution 
Washington Approval 
Required . 



RESOLUTION OF THE 

ADVISORY COMMITTEE OF THE 

NAVAJO TRIBAL COUNCIL 

Amending the Plan of Operation of the 
Navajo Engineering & Construction Authority 



WHEREAS: 



1. The Navajo Tribal Council, by Resolution 
CJN-56-72, established an enterprise known as the Navajo Engi- 
neering & Construction Authority (NECA) having general respon- 
sibility in areas of heavy construction on behalf of the 
rjavajo Nation, and 

2. The Plan of Operation as adopted must now be 
amended in several respects in order to facilitate close 
cooperation with the Bureau of Indian Affairs in heavy construc- 
tion matters so that at the earliest possible date the said 

NECA will have completely assumed all heavy construction projects 
within the scope of its operation, presently being performed bv 
the BIA or by outside companies under contract with the B'A, o'd 

3. The Navajo Tribal Council has authorized and 
directed the Advisory Committee of the Navajo Tribal Council 

to assume full responsibility and authority over the said Navajo 
Engineering & Construction Authority, including the power to 
amend its Plan of Operation, 

NOW THEREFORE BE IT RESOLVED THAT: 

1, The Advisory Committee of the Navajo Tribal 
Council hereby amends the Plan of Ope»-ation for the Navajo Engi- 
neering & Construction Authority (NECA) adopted by the Navajo 
Tribal Council through Resolution CJN-56-72 in the following 
manner : 

a. By inserting between the words "including" 
and "the" contained in the 5th line of Section 1.1 
of Article III of said Plan of Operation, the 
following words: "but not limited to," 

As amended, the said 5th line line shall read: 
"including but not limited to, the designing, 
planning, erecting, equipping, constructing, . " 

b, By inserting between the words "highways," 
and "or" contained in the 9th line of Section I 1 



477 



of Article III of said Plan of Operation, the 
following words and punctuation: "irrigation and 
water systems, airport facilities, dams, canals,..." 

c. By deleting Section 1.5 of Article III in 
its entirety and by inserting in lieu thereof the 
following provisions: 

Section 1.5: To coordinate and control the use of 
construction materials, equipment, and employees 
utilized or engaged by the Authority, in accordance 
with the general purposes and objectives of the 
Authori ty . 

d. By deleting in its entirety Section 1.1 of 
Article XII of said Plan of Operation and by 
inserting in lieu tnereof, the following section: 

Section 1.0 Conflicting Interest of Directors 

Sr tior .1: No contract or other transaction 
be. f- le Authority and any other corporation and 

no dCi, the Authority shall be in any way valid 
if anyonj or more of the directors of the Authority 
are pecuniarily or otherwise interested in, or are 
directors, officer'^ or stockholders of such other 
corporation. No director of the Authority 
individually or any firm or association of which any 
director may be a member, r.ay be a party to, or may 
be pecuniarily or otherwise interested in, any 
contract or transaction of the Authority. 

e By adding the following sentence to the end 
of Section 1.1 of Article V of said Plan of Opera- 
tion: "No person shall be eligible for membership 
on the Board of Directors if such person is or 
becomes pecuniarily or otherwise interested in, or 
is a director, officer, or stockholder of any other 
profit-making construction organization engaged in 
activities identical or similar to those which the 
Authority is authorized to perform. 

2. Except as amended by this resolution, the Plan of 
Operation for the Navajo Engineering & Construction Authority 
shall remain unchanged. 

CERTIFICATION 

I hereby certify that the foregoing resolution was 
duly considered by the Advisory Committee of the Navajo Tribal 
Council at a duly called meeting at Window Rock, Navajo Nation 



(Arizona) , at w'^.ich 
passed by a vote of 
of October, 1972. 



478 

quorum was present ond that same was 
in favor and opposed, this 13th day 



Chairman Pro Tempore 
Navajo Tribal Council 



479 

Exhibit No. 3 



SUPPLEMENTARY STATEMENT BY PETER MacDONALD 

CKAIPJ^IAN, NAVAJO TRIBAL COUNCIL 

SUBMITTED TO THE UNITED STATES 

CIVIL RIGHTS COMJIISSION AT 

WINDOW ROCK, NAVAJO NATION 



Introduction 



To the Navajo, and in particular to the Navajo 
residing upon the reservation, the notion of "Civil Rights" 
is one which is difficult to grasp, if not often meaningless. 
To be sure, the laws of the United States require that a 
Navajo child be permitted to enter public schools anywhere 
in the country, but of what value is this right to the 
Navajo child frozen to death running home from a Bureau 
of Indian Affairs Boarding School. To be sure, the civil 
rights lav/s require that any public carrier permit people 
to use its facilities v/ithout discrimination, but of what 
value is this right to the illiterate Navajo sheepherder 
driving his wagon in the midst of the Navajo Reservation who 
has never been more than 20 miles from his home. To be sure, 
the civil rights laws guarantee that the Navajo candidate for 
a high-level government job shall have the same rights as any 
other individual, but of what value is this right to the 
Navajo who has dropped out of school because of unresponsive 
teachers and irrelevant course material. To be sure, the voting 
rights act provide that the Navajo may not be disenfranchised 
by any government, but to the Navajo stranded on a muddy road 
25 or 30 miles from the nearest polling place, of what value 
is this right. To be sure, the Navajo, like all Americans, 
has the right to buy a home anywhere in the country and not be 
discriminated against in the purchase or sale of property, 
but of what value is this to the Navajo attempting to scratch 
out a meager living from his corn patch near his hogans in 



480 

a desolate area of the Navajo Reservation. To be sure, the 
rights guaranteed under the Constitution v;hich require that a 
defendant be notified of his right to counsel and h.is right to 
remain silent when arrested apply equally to the Navajo as to any 
other citizen, but of what value is this to the inebriated 
Navajo arrested in the border town who speaks no English, whose 
arresting officer speaks no Navajo and whose problem is further 
complicated by a basic antipathy on the part of the arresting 
officer speaks no Navajo and whose problem is further com- 
plicated by a basic antipathy on the part of the arresting 
officer and the population he represents. In short, civil 
rights mean one thing in the ghettos of Chicago, in the barrios 
in New York and Los Angeles and something entirely different 
on the windsv/ept plains and valleys of Northeast Arizona, 
Northwest Nev; Mexico and Southeast Utah. It is to these 
differences that I wish to address myself in these remarks. 

If there is anything which is clear in this 
somewhat muddled and misty world, it is that words on 
paper, verbal guarantees readily given mean nothing unless 
they are translated into action. The Navajo Indian faced 
with an empty stomach looks upon paper guarantees of rights 
to be both inedible and undigestible . All the great guaran- 
tees which form pait of what we like to think of as the Ameri- 
can way of life are meaningless unless the most fundamental 
guarantee, the right to life itself, is one which is respected 
and protected. 

The Navajo condemned to a continual battle against 
hunger, against death, and against that which would rob him 
of the very reason to live, takes small confort in civil 
rights as some inchoate idea, some "rights" to which he has 
legal recourse but no practical capacity to attain. 



481 

The Problems 

The Bureau of Indian Affairs has long been castigated 
for its failure to fulfill any role whatsoever. It has, 
rather than help the American Indian advance in his attempt 
for self-development, rather stood in the path of all pro- 
gress, stifled all initiative, and instead promoted a system 
in which the Bureau's self-interest has become the greatest 
good. 

This Commission has heard testimony by many 
individuals relating to the failure of the Bureau of Indian 
Affairs to provide necessary services. More than its failure 
to initiate new ideas, more than its failure to provide for 
employment and training of Navajos, it has failed as well to 
respond to initiatives taken by the Navajo Tribe. Tribal at- 
tempts to set up an engineering and construction authority 
have been frustrated by Bureau delay and unreasonable objec- 
tions. Attempts to set up an arts and crafts enterprise have 
similarly met with Bureau obstinacy. The Bureau acting within 
its so limited scope of experience (if inbreeding in govern- 
ment was ever a problem, it is surely one in the Bureau) , fails 
to support and approve efforts made by the Navajo Tribe which 

are outside the Bureau's own experience, and either delays 
the proposals until they are no longer viable, or alternatively 
raises objections which show not the unwisdom of the Navajo 
proposals, but the limits of the experience and wisdom of the 
Bureau itself. 

The Bureau is supposed to contract out for the 
provision of services and products with Navajo enterprises 
and individuals. The goal is to develop a self-sufficient 
economy on the Navajo Reservation and to encourage Navajos 



482 

to learn those skills which will enable them to become self- 
sufficient. But if there is anything that the Bureau is 
jealously protective of, it is maintaining the Indian in a 
subservient and subordinate role. While the Bureau can tell 
you that it has large numbers of Indian employees, those who 
actually make the decisions, those who determine the quality 
of life for the Navajo people come from places far from 
Navajo land. When one walks through the halls of the Area 
Office in Window Rock, one is struck not by Navajos running 
affairs but rather by the overwhelming presence of Navajo 
secretaries and the presence of non-Navajos in places of 
authority. 

But the Bureau is not alone in the creation of 
problems for the Navajo Indian. Education, long looked upon 
by the Navajo as the key to successful accoiranodation with the 
Anglo society (the Treaty of 1868 clearly show this) is an 
administrative nightmare on the Navajo Reservation. The 
Reservation being in three states has schools which are run 
by innumerable school districts under the jurisdiction of these 
three states. In addition, there are private schools run by 
churches and schools run by the Bureau of Indian Affairs. To 
achieve any kind of basic level of education shared by all Navajos 
wherever they reside on the reservation is impossible under 
these circumstances. The absolutely unenlightened Arizona 
state school establishment is matched by the more enlightened 
establishment of New Mexico. (The recent move by the Gallup- 
McKinley County School District to resegregate its schools, 
however, raises questions as to the good faith of Nev/ Mexico.) 
The Bureau schools have long been a chamber of horrors whose 
wrongdoings have been exposed by the Kennedy Subcommittees on 
Indian Education. The misappropriation of funds designed for the 



/ 



483 

use of Indian children are legion and have led to various actions 
being brought against school boards and school personnel. 
The basic and fundamental problem, however, is that the school 
system is so split up that the lines of authority run in so 
many different directions. The Navajo people cannot achieve 
any substantial measure of control over the education of 
their children. The needs of the student in Phoenix and 
Albuquerque differ greatly from the needs of the child in Smith 
Lake and Low Mountain. Yet, if the student from these areas 
attends a public school he will be subject not to an educa- 
tional system designed to meet his needs but rather one 
designed to meet the needs of Albuquerque or Phoenix. The 
local control so vaunted in Arizona is far more an illusion 
than a reality. Local control usually extends no further 

than the buildings in which the education is conducted and not 
to the quality or content of the education itself. 

The Bureau of Indian Affairs dn its schools is 
totally without adequate personnel. For the most part, (while 
there are some dedicated teachers who are exceptions) the 
teachers in Bureau of Indian Affairs schools are totally out 
of sympathy with their Indian pupils and would not be teaching 
in these schools were they able to obtain employment else- 
where. This hardly establishes a precondition necessary for 
the education of students whose problems are greater and not 
less than those of the students in Phoenix and Albuquerque. 

The mission schools present an additional problem. 
Unlike the other schools on the Reservation, there exists no 
real check over the quality of education. Moreover, since 
these schools have what is to them an overriding purpose 
that is the inculcation of a particular faith or way of life, the 



484 

traditional goals of education and the particular goals needed 
by Navajo students must come in poor seconds and thirds to the 
religious purpose of these schools. While it is true that 
there have been dedicated teachers within the religious schools, 
too often the primary purpose of these schools have been to 
convert Indians and not to educate them. 

While the right to vote is ostensibly guaranteed 
to the Navajo as it is to all Americans both by the United 
States Constitution as well as by the various voting rights 
acts, the actual right to vote and to hold office is practically 
denied by the operation of state laws. The states, and re- 
sidents of areas surrounding the Navajo Reservation fear 
that permitting Navajos to vote and encouraging them to 
exercise their Constitutional rights will jeopardize the 
long history of non-Indian control of areas in which the 
majority population is Navajo. This antipathy is reflected 
not only in the attitudes of the individuals, but in making 
it as difficult as possible for Navajos to use the franchise 
and to successfully run for office. Voting places are in- 
conveniently located; state and local officials are not 
fluent in Navajo, and in general local officials make every 
effort possible to discourage Navajos from running for office 
and from being able to exercise their Constitutional rights. 

Perhaps, one of the reasons that problems exist 
is because the civil rights laws were designed for urban 
areas in which the groups discriminated against would re- 
present the minority. In the case of the Navajos, they 
represent a majority in the area they occupy but are none- 
theless discriminated against. Consequently, the attempt to use 
civil rights laws and concepts which arose out of the urban 
ghetto are pecularly inappropriate when they are transported 



485 

to a rural poor area populated by people whose culture differs 
from that of the majority culture in a way far different of 
that of the Chicano or the Black. 

The Indian Civil Rights Act, though it had a noble 
goal, has proved in many respects to be a disaster to Indian 
Tribes in general and to the Navajo Tribe in particular. The 
Indian Civil Rights Act was ostensibly passed to ensure that the 
rights of all Americans would be the same without respect to race, 
color, origin or ethnic background. For the Indian, however, 
and for the Navajo in particular, concepts such as equal pro- 
tection and due process have meant different things over 
the years. Navajo people, in dealing with their tribal 
government, have not been discriminated against. The 
Navajo culture is a vibrant and successful one. We are told 
by sociologists and anthropologists that the greatest measure 
of the success of any culture is whether or not its population 
is increasing. By this measure the Navajo culture is and 
has been a successful one. To go from the 8,000 Navajos of 
1868 to the 140,000 Navajos of today, to have a rate of 
growth that is twice that of the Nation as a whole, indicates 
the success and vitality of the Navajo culture. Nonetheless, 
there are those v;ho would replace the Navajo traditional way 
of resolving disputes with the methods espoused by the Anglo 
culture — those m.ethods that have in so many respects failed 
for the larger society. The Indian Civil Rights Act while 
it seeks to provide freedom for the Indian, in reality provides 
bonds of a different nature. It is difficult for me to 
give you an accurate expression of the feelings of the Navajo 
people, but at best I could say this, your society has pro- 
duced the problems of Watergate, the corruption at the 



486 

highest levels of government, a basic inability to provide 
equal justice for all citizens and this with more lav;s and 
more guarantees and more commissions than one would ever dream 
could exist. The Navajo society existing long before the Civil 
Rights Act provided things such as equal rights for women, 
(long before the first suffragette ever marched.) The Navajo 

society gave more freedom of choice, more freedom of expression, 
more non-discrimination than the White society ever has given 
or ever can reasonably be expected to provide. Nonetheless, 
there is a deliberate attempt on the part of the White society 
to require the Navajo to live up to standards which the White 
society itself fails to meet. The Indian Civil Rights Act 
and the attempts to construe it according to Anglo standards 
represent not a bold step forward in equal rights for all 
Americans but an insidious attempt to destroy Indian culture 
and forcing assimilation. Termination may be dead in 
Washington but it is alive and well when the Indian is required 
to conform to those standards set by the White society based upon 
its conception of what the problems of the Indian people are. 

This leads into the whole question of laws and 
the Indian. On the one hand, misgoverned and misregulated by 
the Bureau of Indian Affairs which has an inflated concept 
of its own importance and authority, the Indian is subject to 
more harassment and more regulation than any other people in 
attempting to meet the needs of daily life. On the other 
hand, when it comes to treating Indian nations as separate 
self-governing bodies, the Indian suddenly disappears from 
the statute books. State and local governments are given 
exemptions by the Internal Revenue Code but Indian tribes 
are not. State governments participated in the Interstate 



487 

Highway Program though Indian governments, coupled with 
the problems of some of the worst roads in the United States 
did not. The sharing of Federal gas tax funds between 
states and the Federal Government for highway construction 

is a matter of course, yet such sharing docs not take place 
between Indian tribes and the Federal Government though the 
same tax is collected. The food stamp program, though 
desperately needed by Indian Tribes, is administered through 
the states and local units of government and not through 
the Indian Tribes. Consequently, the Indian Tribes and the 
Navajo Tribe in particular finds itself at the same time the 
product of laws which operate against its interest and at the 
same time eliminated from laws which might benefit it. As 
an indication as to how unfair the laws operate, a city can 
issue bonds to fill the stadium for football and have those 
bonds tax exempt under the United States Internal Revenue Code 
yet an Indian Tribe issuing bonds for health or sewage or similar 
purposes would find the bonds subject to tax. As you well 
know, the tax exemption for state and municipal bonds is a form 
of aid and relief given to local government. The Navajo Tribe, 
like other Indian Tribes, find that dogs and cats are considered 
charitable and worthy of exemption by the Internal Revenue 
laws but the needs and hopes of Indian people and Indian govern- 
ments are not. Surely this anomaly is basically wrong. 
Towards a Solution 
To begin with, the Bureau of Indian Affairs must 
recognize that its authority both as a matter of law and 
as a matter of right is extremely limited. It should only 
be in the position to approve or disapprove actions by 
Tribal Governments which relate to Indian Trust Land. The 
unwarranted assumption of pov;er to consider and approve or 



488 

disapprove all matters affecting the Indian Tribes and of 
vetoing tribal decisions must end. It must end because 
it treats the Indian people and their elected leaders as 
if they were children and it must end because the Bureau 
of Indian Affairs over the years has shown through its 
unwisdom and racist attitude that it is incapable of 
solving the problems of Indian people. I have previously 
proposed that area directors and agency superintendents 
be accountable to the constituencies that they are supposed 
to serve and that t':cy serve at the pleasure of the elected 
leaders of the Indian people. The Bureau of Indian Affairs 
must attempt to deal with its constituency and meet the 
needs of its constituency and not its ovm needs. The 
five year budget of the Bureau must end. Every time a pro- 
gram comes up for reviev;, it is faced with the inevitable 
response that the Bureau programs matters five years ahead 
and therefore things can only be scheduled so that perhaps 
five years from now something might be done. This nonsense 
must stop. The Bureau must be able to respond immediately 
and decisively to problems of Navajos as perceived by Navajos. 

Secondly, discrimination against Indians must 
cease. Indians and their values and judgments must be 
respected. It is nothing to respect decisions with which 
you agree or decisions made on matters that are of no 
moment. Decisions made by Indians concerning Indians with 
which the majority culture takes issue must nonetheless be 
respected. A fundamental respect for the capacity of the 
Navajo in particular and the Indians in general to understand 



489 

the limits of their ovm competence must be a part of any 
solution to the problems confronting the Indians. Of course, 
Navajos recognize that they need trained engineers, trained 
medical personnel, trained legal specialists, but the absolute 
arrogance of those who presume that Navajos must be under 
some form of guardianship or wardship simply because they lack 
sufficient numbers of individuals trained in these fields is an 
unjustified insult to the Navajo people. In this light, those 
who profit through the ignorance and lack of training of 
Navajos must provide training. Those businesses and 
corporations doing business on the Reservation must take 
affirmative action, not only to provide employment for Navajos 
but to provide training. We consider it a basic principle that 
every individual who is not a Navajo who works on the Reser- 
vation should look upon his prime mission as training someone 
to replace him. 

With respect to education, legislation is required 
which will provide that all schools on the Navajo Reservation 
are and shall be under the control, direction and authority 
of the Navajo Tribe, 

With respect to treating Indian Reservations as 
sovereign governments for the purpose of administration, 
existing federal laws which fail to take account of Indian 
Tribes must now be revised to include Indian Tribes along 
with state governments. 

Conclusi on 

What the Navajo people want and need is the right 
to live lives that are meaningful and full according to the 



490 

tenets of the Navajo culture. In order to achieve this end, 
we require first the respect of the Anglo culture and secondly, 
the putting of that respect into meaningful legislation and 
change of attitude so that the Navajo can achieve the 
self-determination which has been so long promised and so 
long withheld. 

We are not ready for the museum yet, and we want 
every opportunity to be ready for the next century. 



491 

Exhibit No. U 
PART I 

A 100- Year Deficit and the Needed Investment 
to Bring About Equal Navajo Opportunity 



.... what is rightfully ours, we must protect; what is 
rightfully due us, we must claim. 

What we depend on from others, we must replace 
with the labor of our own hands and the skills of our 
own people. 

What we do not have, we must bring into being. We 
must create for ourselves. 

Peter MacDouald 

^. \ : "■. 



Printed by McLeod Printing Co. 
Copyriglil © The N;iv;ijo Tribe 
June, 1972 



.J 



THE 
NAVAJO 




492 

FOREWORD 



THE 100 -YEAR DEFICIT 



By Peter MacDonald, Chairman 
Navajo Tribal Council 

For over a century the Navajos have been waiting for the fulfillment of 
promises made. On June 1, 1868, the Navajo Tribe and the United States 
Government entered into a treaty wherein the United States agreed to give 
aid to the Navajo people. Article VI of the Treaty included a pledge that 
"for every thirty children — a house shall be provided, and a competent 
teacher furnished --." Farms and implements and by inference irrigation 
water were to be provided Navajos who wished to farm. Schools, roads, and 
health care were promised. 

Shelter and employment opportunity have been promised by subse- 
quent white leaders and by acts of Congress. Expansions of these promises 
have been made continuously since that time; pledging to improve the 
education, the health, and the economy of the Navajo people. Although the 
Navajos have long since fulfilled their part of the treaty, the United States 
Government has repeatedly reneged on its oromises or only partially fulfilled 
them. 

It is not necessary to turn to the remote past for evidence of duplicity. 
Indians were assured in the early 1950's that no termination action would be 
taken without careful consultation. BIA Commissioner Glen L. Emmons, the 
father of termination, said repeatedly, "... I can and do pledge that each 
tribal group will be fully consulted by the Bureau of Indian Affairs before 
we take any final action recommending a termination program to the 
Congress." 

The promises were broken. The Indians were consulted infrequently, 
and when they were sought out they were coerced with threats to freeze 
claims awards, with promises of extra concessions and with a variety of 
high-pressure tactics which effectively precluded any meaningful Indian 
participation or opposition. Hearings on termination became a pro forma 
orchestration of decisions already made in Washington by non-Indians. 

More recent cause for the lack of Indian trust in Washington 
government occurred in 1966. The Indians were promised that they would 
be centrally involved in the creation of a master plan for Indians - the 



493 

Johnson Administration Indian Resources Development Bill - which was 
introduced in Congress a year later. The Interior Department wrote the Bill, 
and Indian support was viewed as crucial for its passage. Regional hearings 
were held in nine areas, with Indians participating and offering a total of 
1,950 recommendations. Press coverage was excellent. Only later did the 
Indians learn that the legislation had been drafted - before the hearings. The 
bill as drafted was called the Indian Omnibus Bill by its sponsors but, for 
cause, came to be known in Indian country as the Indian Ominous Bill. Few 
regretted the bill's failure. 

Another example, one of direct concern to the Navajos, was Public Law 
87-483. This law, recognized in Congressional hearings to be a fulfillment of 
treaty obligation, was designed to furnish water to 1 10,000 irrigable Navajo 
acres. Water was to reach the first 10,000 acres by 1970. Less than one third 
of the funds authorized by Congress were actually appropriated, and as time 
wore on Public Law 91-416 amended the time of deliven,- to 1975 at the 
earliest. Another example of a promise made and a promise broken. 

For too long the interests of the Navajo have been expendable or 
amendable in favor of other interests. This was stated clearly by President 
Nixon in 1970 when he spoke to Congress of the white man's "frequent 
aggression, broken agreements, intermittent remorse and prolonged failure." 

But the Navajo now has new hope. The President went on to state: "It 
is long past the time that the Indian policies of the Federal Government 
recognize and build upon the capacities and insights of the Indian people. 
Both as a matter of justice and as a matter of enlightened social policy, we 
must begin to act on the basis of what the Indian themselves have long been 
telling us. The time has come to break decisively with the past and to create 
the conditions for a new era in which the Indian future is determined by 
Indian Acts and Indian Decisions." 

In the following pages we compare the present level of development of 
the Navajo Nation with the rest of the United States. We have made 
preliminary estimates of the deficit and projections of both the amount of 
money and the time that will be required to eliminate it. The amount of 
money which will be required is large but tliis sum must overcome a deficit 
which has been accumulating for over 100 years. It must also be remembered 
that this sum will not only relieve the suffering, deprivation and neglect so 
long born by a proud people. It will also ^ave the tax payers many times this 
amount as the Navajo economy develops and wages and production replace 
public aid. Self-determination is the road to self-sufficiency, and we are on 
our way. 

In presenting this report I wish to acknowledge the help of those 
dedicated people who made it possible - my colleagues in the Navajo Tribal 
Council and Advisory Committee who provided wise advice and patient 



494 

counsel, the members of my staff who worked unselfishly and tirelessly in 
research and analysis, and most of all the Navajo people at the hogan level, 
who have in thousands of meetings and individual discussions made it clear 
to me that they are determined to move ahead - so that our children can 
have a better life. 



495 
TABLE OF CONTENTS 



Page 

SUMMARY 1 

SECTION I: Context for Development Design 7 

Historical Perspective 7 

Resources and Economic Base 9 

Costs and Benefits of the 7 en Year Plan 11 

SECTION II: Social Overhead Investment 13 

Education and Manpower Development 14 

Health 17 

Housing 20 

Roads and Other Transport Facilities 21 

Pubhc Utilities 21 

Public Services 22 

Parks and Recreation 23 

LandandWater Restoration and Conservation 24 

Research and Development 26 

SECTION III: Directly Productive Activities . 29 

A Savings and Credit Structure 30 

Small Business Development 31 

Larger Scale Industry 33 

Tourism and Outdoor Recreation 33 

Agriculture 34 



496 
LIST OF TABLES AIMD FIGURES 



Table Page 

1. Public Investment (Ten Year Totals) and Resulting 

Employment (Annual Averages) 5 

2. Population and Labor Force Characteristics: 

Navajo and U.S 10 

3. Education and Manpower Programs: Ten Year Costs and 

Annual Employment 16 

4. Health and Medical Care Indicators: Navajo and U.S. - 1970 ... 17 

5. Medical Care Programs: Ten Year Costs and 

Annual Employment 18 

6. Housing Programs: Ten Year Costs and 

Annual Employment 20 

7. Public Utilities: Ten Year Costs and 

Annual Employment 22 

8. Public Services: Ten Year Costs and 

Annual Employment 23 

9. Parks and Recreation: Ten Year Costs and 

Annual Employment 24 

10. Transforming Traditional Agriculture: Ten Year Costs and 

Annual Employment 26 

1 1. Retail Sales and Services: Navajo Area and New Mexico 32 

12. Tourism and Outdoor Recreation: Ten Year Costs and 

Annual Employment 34 

13. Required Public Funds and Additional Employment: 

Directly Productive Activities 35 



Figure 



1. Navajo Catch-up Requirements: Social Indicators 3 

2. Economic Development Plan: Changing Composition 

of the Navajo Economy 4 

3. The Widening Gap Between United States and 

Navajo Personal Income 8 



497 

4. Navajo and U.S. Population, by Age Groups 10 

5. Where the Navajo Dollar Goes 12 

6. Increasing Expenditures on Education Bring Increasing 

Educational Achievement 15 

7. Increasing Navajo Infant Chances for Survival 19 

8. Industrial Mix of U.S. and Navajo Economies 30 



498 

SUMMARY 



For over a hundred years the Federal Government has been 
underfunding its treaty obligations and other commitments to the Navajos. 
As a result of this underfunding. much of the Reser\'ation economy now 
operates at the level of bare subsistence. 

Roads are few and these few are substandard, housing is many years 
behind the times, education and health programs are minimal ... on every 
hand, Navajo country lacks the facilities and organization which sustain 
economic development. These deficiencies in social overhead capital have 
brought on even more marked deficiencies in industrial and commercial 
capital. 

Deficiencies in social and productive capital are in turn reflected in 
undeveloped human resources — in lagging educational levels, a high 
incidence of disease and malnutrition, and an emerging complex of human 
problems. Figure 1 sets out statistical indicators of the various deficiencies in 
Navajo circumstances. 

The Navajo people and their Tribal government have determined to 
reverse this long trend, and to seek go\ernment assistance for a Ten Year 
Plan to bring the Navajo up to an equal footing with the rest of the nation. 
Implementation of this plan will, indeed, require a substantial increase in 
public expenditures. The essential difference between this plan and previous 
"plans" and administered efforts does not lie in any proposed funding addi- 
tions, however, but in this Ten Year Plan's thrust toward development of 
Navajo self-sufficiency - toward substitution of Navajo production for public 
subsidy. The history of federal assistance for the Navajo makes it clear that if 
present programming concepts persist the Navajo may never escape dependen- 
cy. Only an adequately financed program, designed and implemented by Na- 
vajos, can break with the sorry record of our administered past and begin to 
forge ahead. 

The Ten Year Plan will be developed in two parts. Part 1, which is 
presented in this report, sets out the main features of the gap — the deficit — 
that separates the Navajo's economic and social circumstances from the 
circumstances of their fellow Americans. This part also indicates the 
magnitudes of the public investment that will be required to close the gap. 
Part II will elaborate a design for development - will specify goals and the 
steps we must take to achieve them. 

Table I summarizes the Part I report. Public funds of S4 billion over the 
next ten years will be required in order to make a substantial impact on the 
100-year deficit. Funding requirements are set out in two categories: 



499 

1. Social overlicad investment — the public funds required to cut back 
significantly the deficits in health, education and economic infrastructure 
which handicap Navajo development. Social overhead investment of S3. 8 
billion will be needed over the next ten years. These funds include — are not 
in addition to — present federal expenditures in Navajo country. Present 
expenditures projected at their existing level would total nearly SI. 9 billion 
after 10 years. Proposed public expenditures would thus be about double 
present funding levels. 

2. Investment in productive business enterprise. The planned public 
investment in social overhead capital is expected to generate complementary 
private investment in industrial and agricultural production and in 
commercial and service enterprise. If national ratios of capital investment to 
jobs ob fjin eo during the Ten Year Plan, public loan funds of S232 million 
will generate about twice as much investment by private capital — about S400 
million. For purposes of Part I of the Plan, however, the investments set out 
in Table I include only pubHc funds, i.e., the public funds required to 
generate an effective amount of private investment in productive business 
enterprise. More precise determination of private investment requirements 
will be a primary component of Part II of the Ten Year Plan. 

In summary, ten year requirements for public funds for social overhead 
facilities and services and for productive enterprise are projected as follows: 





Social Overhead Directly Produ( 




Capital Enterprise 




(Millions of dollars) 


Present funding level 


$1,900 $ 50 


Additional public funds 


1,900 180 


Total 


$3,800 $230 



Jobs and productive work were a primary gauge for determining the 
amount of the Ten Year Plan's investment requirements. About 25,000 men 
and women in the present labor force — more than 60% — are now 
effectively unemployed. They want work but are unable to find steady 
work. The proposed public and private investments will provide jobs or 
remunerative self employment for 46,000 Navajos — 26,000 in the public 
sector and 20,000 in the private sector. Development of a now lacking 
multiplier will raise this total by several thousand. By the conclusion of the 
Ten Year Plan, 90 to 95% of the anticipated Navajo labor force will be 
employed. Navajo unemployment will be down to national levels. 

The other primar>' gitage for determining Ten Year Plan investment 
requirements was the deficIFbetween the social overhead capital provided 
the Navajo and that afforded his fellow Americans. That is, the Plan will not 



500 

only provide jobs; it will also create the economic infrastructure upon which 
development of productive enterprise depends. 

The $3.8 billion in social overhead investment which we propose over 
the next ten years will provide the following capital assets, and result in an 
infrastructure capable of supporting a highly productive economy: 

$170 million worth of faciUties and equipment for education and 
vocational training, 

$50 million worth of inpatient and outpatient clinics and hospitals, 

$160 miUion worth of water, sanitary and electric utilities, 

20,000 new housing units, 

2500 miles of payed roads and streets and a somewhat greater 
mileage of graded, graveled roads, 

$■6 million worth of industrial and commercial and service 
businesses. 

Figure 1 

NAVAJO CATCH-UP 

REQUIREMENTS: 

SOCIAL INDICATORS 



The following indicators show how much must be done to give the Navajo people 
an even break in education, health and necessities of life, and in the opportunity to make 
their own way in tlie economic world. Better indicators could be devised if facts were 
available, but the indicators set out here are adequate for the task at hand — to show the 
gap which must be closed and to point to requirements for closing it.U ) 

Income 

per capita personal income, 
1970 (SA& BIA) 









. -J 


U.S. 


S3,921 




I 


Navajo 


S 900 . 



Employment 

percent of labor force with 
jobs, 1970 (MRP &NCC) 



Education 

average school years by 
adults, 1970 (SA & BIA) 




- 


"■ —' ~ '" 


^r* 
















i 












U.S. 


12 






Navajo 


5 



501 



Health 

infant survival ratio, 1970 
(reciprocal of infant 
mortality rates) (PHS) 









i 




U.S. 


2.1 










Navajo 


1.0 





Housing 

(jercent of homes with standard 
inside plumbing (SA & PHS) 



U.S. 


81.8% 




; 


i';_' : 




Navajo 


8.4% 





.^^J 



Transportation 

miles of surfaced roads per 
1,000 sq. mi. (SA & BIA) 



SW rural roads 154 



Navajo 



60 



Economic Development 

percent of labor force employed 
in manufacturing) (MRP & NCC) 





■ 










■ 


U.S. 


26 






trr. 




Navajo 


^ L 


_-.—-. J 



commercial and service businesses 
per 100,000 population (BBR & 
NCC) 



N.M. 



1500 



Navajo 220 



total farm output per farm 
(SA& BIA) 





" 








1 


U.S. 


314,620 






ETz:.: 




Navajo 


S 2,360 j^ 





(nSourccs for Figure 1: SA - Statistical Abstract of the United Stales, 1970, BIA - Navaj 
Area OfGcc, Bureau of Indian Affairs, MRP - Manpower Report of the l*residcnt, 1971, NCC 
Navajo Community College, PUS - Navajo Area Office, Public Health Service, BBR - Bureau 
Business Research, University of New Mexico 



Cost estimates set out in the Ten Year Plan are based on 1972 pric 
levels, and as time goes on these estimates will have to be increased as cos' 
escalate with inflationary trends in i\\^ nati.oj^ial economy. Another facte 
results in the Plan's estimated costs u n\I otlTi unS i^t^t he amounts which will t 
needed to give the Navajo people an even break. The Ten Year Plan goals fc 
1982 in Navajo education, health, etc., are based on United States averagi 
in 1972. Navajo circumstances will therefore continue to lag behind in 198; 
but we will be rapidly closing the gap that still exists. 



502 

As the Ten Year Plan becomes operational, we expect an increasing 
proportion of public expenditures for welfare services to be replaced by 
private Navajo earnings. Navajo savings and investment will increasingly 
supplement public investment. Increasing tax revenues from Navajo country 
will offset other public expenditures as economic development gains 
momentum. We calculate that the economic value of these benefits to 
American society will be three times greater than the costs which American 
society will have to incur in implementing the Ten Year Plan (a benefit/cost 
ratio of 6 to 1.9). The existing social deficits are very heavy, however, and a 
commitment to a full ten years of both substantial national investment and 
unremitting Navajo effort will be needed if we are to insure a significant 
"take off" in the Navajo economy. 



503 



Figure 2 

ECONOMIC DEVELOPMENT 

PLAN: CHANGING 

COMPOSITION OF THE 

NAVAJO ECONOMY 



70,000 — 



60,000 — 



50,000 



TOTAL LABOR 
FORCE 



x 



y 



40,000 



30,000 



20,000 



10,000 










/:- 






•^^ «:•:'• ':^•^VA^^?J,:^f^:;•^••'^^ vV \!^ adequate ■■:;niMco 



•.IE ^. 






,1 I I I I'l ! 



,I,IJJ 



11,1,1' 



:l:I:l!i'I:l'I:!;i'i|!;';i; :;i:''i^: 



I I.I 



11,1 



1 1 1,1 1 I.I 1. 1,1 

I : I ; I ; I ; 1 : • ; 1 1 1 I I I I I I I I I ; I 
.,,;iv,],i,,iiiiiiii II '" 

l,'.l,l M > I I I I I I I I i|l I I i|l I I 

1,1 V iji I I I ' I ' I I 'X' ' ' ' ' ' ' 

.:m I I I I I I I I I I 1,1 V i|' II i|i 

I il' ilili I I 1 I I I I I I 1,1 I I i|i|i 

Viv!v''i'!'!'i'!viV, , 

PUBLIC SECTOR I'I'I'I ' | '!'llll|l|! 

'l,l I I 1 I I I I I 

' ' '|i 'I'l' ' ' ' ' V V ' ' 
I'll I I I I I ill I I I I I I I 

I'l'i'i'iVi'i'i'i'i'i'i'i'iVi'i 

i:!:I:l:i:!il:I:i:liii!!i:':i:iii:i!l 



I I'l I I'i'i'i • I'll I'l 1 1 1 

r ' ' ' ' V ' ' ' ' ' ' 'i' 'i' 

' V V ' ' ' ' 'i' ' ' 'i' Vi 

I' V V ''V V V V V' 
'■ I I I 1 1 I I 1,1 I I 1,1 II V 

I'l ili'i I i'i|i|i|i'i|i!i|i;i|i;i 

1,1 I I I I I I lii.i'''-' 
' 'i' ' ' ' ' ' ' 

vMa<^. 

'!il!:il';i!!iii:l:l:l:l:!:!:::!'l:ir;:;:i:;:;:i:i::ii!i:i:iiiiiiiii:iii' 



1,1 1 
1,1 1 
III 
1,1 1 

'i' ' 
III 



1. 1 



i.ii'i I 

I,' ',' '.'|||'||. , 

1,1 1,1,1,1,1 I,' ',i,i,i,i,i;i 
1,1,111,1 1,1 1 • 1 1 1 1,1 



ii'i I'l I ii'i'i I ii'i I ri 11 ii 

■ I I I 1 II I I ii'i II I I I I I 

,1 I I I I I I I I I I I I I I I I I I 



I I rij I'l.i 



I'l, 



-LJ. 



V 1,1,1,1 l|l|l, I l|l|l 

I I'l I I I I I I I I I I I I I I I 



' ' ' 
' ' ' 
' ' ' 

' ' ' 

' ' ' 

III 
III 

III 
III 

III 
III 
'('i'l 



m 

I i;i'r 

'I i'l' 

I I i'l' 



I I 



504 



O w 



^^ 






































11 




















T3 


'^ 








































OJ 














































E 
























ri 


t--_ 


p 


r-_ 


00 






tt 







p^ 


p. 


1 




p 


vq. 






(N 


■=}■' 


ro 


"■ 






"^ 


C 


'J 
c 




'^ 


~ 






m 




<N 


w 












































c 











































*■ c 












C 




































U 11 









0. 


P 


p 







P 


P 






p. 


p. 


p 




p. 


P. 


S E 









0" 























0' 


0' 







0" 


Q 


•c — 






c 









































t/5 £ 






p 


P 


P 


p 


p. 

















p 







p 


P 


<2 o 






•^ 





ro 


^ 


00' 




vO 












0' 










r4 






Irt 












(N 








r^ 


r^ 










































si 












































































3 













































































■3 






























V 







































"o* 








'C 






























s 


















^ 




















a. 








« 






c 






D. 

C 

CO 

c 

3 








> 

C 


>. — 

■s; 3 
|1 


c 


3 




c 









B 


c 




00 
c 


c 


3 
■3 



C 


'■3 

CO 

c 




00 

c 


1 






c 


3 
C 


-3 


:^ 


^ 


'■J 


a! 


a: 
=a 

E 


^, 




u 

3 





E 





D. 
C 




E 
c 


•a 









:3 











LU 









U 


















"ra 


s 




Oi 


CO tu 


OC 


Z 


3 


s 


< 


Z 








H 








E 





















SO 


















(/I 








-J 






H 






< 






















































c ^^ 












































































E S 
a. u 































































































(^1 




r-T^ 


in 






'3; 






(^ 




lO 




P, 











0' 




r^ 


~ 






~ 




~ 


'— 




u-T 




"" 








Ul 































































































































^ 


















p 












p 









p 


p 


u ^ 









c 














^ 







Q 









Q 


0' 


E S 
■5; > 

















































0, 




p 


p. 











0^ 


P_ 




p 












P 




0' 




r-4 


f^J 






0" 




■^' 


n" 




!-■' 









0' 


00" 


> 










t^ 






t 




VO 


r- 




en 




(N 




•^r 


t-- 


c — 




<rt 




f 


(r\ 






r~ 














ly-i 






rn 




1 
































c 







D. 















c 










c 









E 
a. 




E 


S 


c 











a> 













u 




1- 




> 




n 


■c 












^ 








0) 

'J 

> 
















1 


C 

c 


E 

a. 






JO 

3 

a. 






•0 







1 




(2 








Q 
o3 




a. 













c 


D. 




5 






•0 




•0 




X 








> 




^ 


60 

c 






C 




t/3 




c 








-J 

< 

1 




3 
T3 
UJ 


Q 




I 


3 


X 





0: 


~ 




3 
;2 


3 

3 

Oh 








•a 

c 

:2 




(^ 



E - 



o — 



o ^ 






— "3 * ■— 



505 
SECTION I 

CONTEXT FOR DEVELOPMENT DESIGN 



HISTORICAL 
PERSPECTIVE 

After their return from Ft. Sumner, the Navajo quickly adapted to the 
economic potentials of the land restored to them. Sheep were the primary 
means of livelihood in this land, and Navajo flocks grew steadily to support 
the increasing Navajo population. Much of Navajoland is semiarid, and 
Navajo families were soon making use of all the land where pasture and 
water could be found. 

For a time the needs of the increasing population were met by enlarging 
the Navajo land area. Land acquisition was practically closed off by the early 
1900's, however, and the increasing population and increasing herds of 
hvestock brought heavier and heavier pressure on the fixed land base. The 
grazing crisis of the 1930's and the livestock reduction trauma finally left no 
way out except through creating a more diversified economic base. 

Navajo country had been isolated from the main economic currents of 
America. Traders had come as time went on, the railroads brought work for 
maintenance crews, and the federal work programs of the 1930's had a 
substantial impact on the Navajo economy. Then came World War II, and 
from that time on far-reaching changes have come thick and fast. 

The veterans returned, their war record renowned and their code talkers 
internationally famous; all of them with new technological knowledge and 
skills. The Tribal Government steadily assumed a much wider range of 
authority. In 1950 the U.S. Government recognized the shameful lack of 
schools for Navajo children and embarked on the Navajo-Hopi Rehabilitation 
program. Oil was discovered and the Tribe invested oil revenues in 
scholarships, in economic development, and in welfare services neglected by 
state and federal governments. In the 1960's the Tribe began to utiHze their 
economic base somewhat more fully and to seek protection for their 
resource rights. 

The Widening Gap — Although substantial gains have been made during 
recent times in Navajo health, education and welfare, the actual gap between 
Navajo incomes and general U.S. incomes is actually widening (Figure 3). 
Year by year the Navajo economy has fallen farther behind. The new Tribal 
government of 1971 thus found itself faced with a developing crisis. The Ten 
Year Plan is the basic step forward to meet this crisis. 



506 



Figure 3 
THE WIDENING GAP 
BETWEEN UNITED STATES 
AND NAVAJO PERSONAL 
INCOME (PER CAPITA) 



$2000 - 



$1000 -• 




1950 



4968- 4-&?0- ^"^ 



Source: Statistical Abstract of the U.S., B.I.A., and N.C.C. 

Notes: U.S. and Navajo income data are not strictly comparable, but the discrepancy 
understates the gap that actually exists; i.e., results from showing liighcr Navajo 
incomes than actually exist. Income data are in current dollars. 



507 



RESOURCES 

AND 

ECONOMIC 

BASE 



Land and Water - The Navajo land area encompasses some 25,000 
square miles. More than half of the land (559c) is classed as desert, but 
supports scattered herds of Uvestock. Nearly two-fifths (37%) of the land is 
classed as steppe, a semiarid land also used for grazing. About 8% of the land 
is forest and mountain country, used for lumber production and with 
attractive potentials for outdoor recreation. 

Because of the lagging development of other means of livelihood, 
Navajo rangeland for many years had to carry more livestock than it could 
actually support. As a result the land is badly eroded and has lost much of its 
natural grasses and shrubs. Restoration and conservation of the land is an 
essential for Navajo development. 

Navajo water rights must also be restored. The Navajo are legally 
entitled to the water they can use beneficially from the streams which fiow 
through or border the Reser^'ation. The Navajo use very little of this water, 
however, because the dams and irrigation projects which are necessary for 
water use have not been provided. At last, in 1962, the Navajo Irrigation 
Project was authorized by Congress, but only a trickle of funds have been 
provided to carry out the Congressional authorization. As a result of this and 
other failures, the Navajo are in danger of losing their rights to water. 

Recreation Resources — The Navajo Country, even the arid and rocky 
area, is spectacularly beautiful, and tourism and outdoor recreation have a 
considerable economic potential. Lake Powell, which fronts on a stretch of 
the northern border of Navajo country, may be the major tourist potential. 
There is, however, no highway whatever and very few roads of any kind on 
the Navajo side of Lake Powell. All roads which have been built thus far (and 
built with public money) lead to non-Indian retail markets, lodges, marinas 
and camping sites. The tourist dollar is forced to go where these roads lead. 

Energy Resources - Navajo energy resources — oil,, natural gas, coal, 
and uranium — are the major sources of Navajo Tribal income. Oil leases and 
royalty revenues have made it possible for the Navajo Tribe to pay the costs 
of its government and administration, of law and order in Navajo country, 
and of a good many work project and welfare costs, such as the cost of 
clothes for school children. Oil and gas reserves are, however, being depleted; 
and coal, the other major Navajo energy resource, cannot replace the oil and 
gas revenues. Coal reserves are nevertheless extensive, and are being utilized. 

Human Resources - The Navajo peoples' skills and capabilities are the 
essential resource upon which Navajo development depends. Navajo workers 



508 

have proved their capability whenever they have found work, but many lack 
skills and a considerable number have little or no knowledge of the Enghsh 
language. 

The Navajo labor force is estimated at slightly more than 40,000 men 
and women. Of these men and women, only 15,000 are employed with any 
regularity, and 5,000 of these are self-employed - are raising stock or 
making handicrafts, or usually both. There are, therefore, about 25,000 
Navajo men and women who need work and want to work, but who can find 
no work or only temporary jobs, often away from home. In addition, about 
2,000 young men and women grow up and enter the Navajo labor force each 
year. 

The Navajo are a young population — nearly half are 17 years of age or 
younger (Figure 4). This is 12 years younger than the median age of the 
United States population. One consequence is that a proportionately higher 
in estment in schooling is required for Navajo people. Another consequence 
is that proportionately fewer Navajos are in the labor force — are available 
for productive work. The average Navajo family size is 5.6, compared with 
3.6 for the United States as a whole. The larger family size has important 
implications for planning medical facilities, schools, nutritional programs and 
for family income generally. 

Table 2 compares certain Navajo labor force and population characteris- 
tics vnth those of the rest of the United States. 



Figure 4 

NAVAJO AND U.S. 

POPULATION, 

BY AGE GROUPS 

65 AND OVER 
34-64 

17-34 



■ ■«•"■• • • • i 
• • • • • 

I f<r n t t 1 



_ j ;:;:;:;xvx 



^ 



16 AND r 

UNDER 



50% 40 



-1 — r 

30 20 



10 C 






-r^"^ 



10 20 30 40 



50% 



NAVAJO 



U.S. 



Navajo 


AU U.S 


17 


29.5 


5.6 


3.6 


2.5 


1.1 


31 


40 


60 


6 



509 

Table 2 

POPULATION & LABOR FORCE CHARACTERISTICS: 

NAVAJO AND U.S. 



Median age 
Average family size 
Annual population growth rate 
Labor force as % of population 
Rate of unemployinent (%)* 

Sources: Navajo demographic data, BIA & PHS; Labor force and unemployment data, 
NCC; U.S. data. Statistical Abstract, 1970, and Manpower Report of the 
President, 1971. 

* The percentages are not strictly comparable. The U.S. rate includes only those actively 
seeking work. The Navajo rate includes all those wanting work and without regular work, 
even though they may not be actively seeking work because they know that there is no 
work to seek. 



Capital Reserves - Accumulated capital reserves derived from oil 
revenues now total about S50 million. Some of these funds are available for 
investment in economic development. The funds must be guarded carefully, 
however, against the time when oil depletion reduces Tribal income below 
the amount necessary to maintain essential services. 

COSTS 

AND BENEFITS 

OF THE 

TEN YEAR PLAN 

Direct Costs and Benefits - Costs of the Ten Year Plan are, in the first 
place, the additional public expenditures on social facilities and programs — 
on Social Overhead Capital. These costs - which amount to $1.9 billion - 
are set out in Section H. Not included in these costs is "private sector" 
investment — investment in productive enterprise. Both public and private 
components of this productive investment will be evaluated, as is other 
productive investment, on the basis of its profitability. 

The overall objective of the Ten Year Plan is substantial Navajo 
self-sufficiency, and social benefits should be measured in achievement of 
this goal. In this report employment is generally used as a proxy for self 
sufficiency. As the plan is implemented, therefore, the economic value of its 
benefits to society will be measured in increases in employment and 
earnings. Its public sector benefits will be measured primarily in decreases in 



510 

welfare payments on the one hand, and increases in tax payments on the 
other. Other useful measurements will also be carefully recorded and 
analyzed — educational achievement, improved health, and various indices of 
quality of hfe as well as of economic performance. 

Rather than attempt to estimate in Part I of the Ten Year Plan the 
economic (dollar) value of these potential benefits, however, this report 
simply notes a useful benefit-to-cost ratio which can be derived from 
presently obtainable facts and figures. 

Economic Loss through Underutilization of Manpower — Methods have 
been designed for estimating the loss to society — the goods and services that 
are foregone — because of poor utihzation of manpower resources.(2) The 
output of Navajo manpower is far less than it should be because of 
unemployment and also because manpower that is employed is so poorly 
equipped — works with so little capital equipment and technological 
know-how — that its productivity is low. 

One estimate^) placed the output of Indian manpower which was 
foregone in 1960 at SI billion. At the rate at which the loss in potential 
product has increased, the total loss would have amounted to $2 billion by 
1970. The Navajo proportion of total Indian manpower underutiUzation in 
1970 would thus amount to about $600 milhon a year, or S6 bilhon or more 
over the next ten years. 

The direct gains from economic development would, by the conclusion 
of the Ten Year Plan, have risen to a ratio of S6 billion in benefits to SI. 9 
bilhon in costs (incremental costs, or additional costs above existing 
expenditures). The major share of benefits will not be realized in the first ten 
years, but through accelerating Navajo production as time goes on. Not only 
direct gains but induced gains (the multiplier effect) should increase 
substantially as time goes on. 

Adding a Multiplier Effect to the Navajo Economy - The effects of 
increased investment normally include a multiplier reflecting additional 
income resulting from additional rounds of local expenditure of wages and 
other payments. In Navajo country, however, there is almost no multipHer. 
As illustrated in Figure 5, only 10% to 15% of the money made in the 
Reservation is spent within the borders of the Reservation. Very little 
Reservation production is sold, moreover, (for processing or for consump- 
tion) to people who live on the Reservation. 



(2)por an exposition of such a method, see "Developing Estimates of Economic 
Underemployment for the Rural L-ibor Force of Seven Southern States," by Thomas T. Williams and 
Robert Gh^ow, American Jimrnal of Agricultural Economics, Vol. 50, No. 4-5 (Nov. - Dec, 1968) 

(3)"Amcrican Indian Manpower: Costs of Underutilization" by Dennis J. O'Connor and 
Benjamin J. Taylor (paper presented at the 43rd, 1969, Annual Conference of the Western Economic 
Association). 



511 

The aim of the Ten Year Plan is to give the Navajo economy a 
multiplier approaching 1.5, which is only slightly less than the multipHer of 
the New Mexico economy. 

Figure 5 

WHERE THE 

NAVAJO 

DOLLAR GOES 




Source: Navajo Community College 



512 
SECTION II 

SOCIAL OVERHEAD INVESTlVlElXiT 



This section summarizes the investments required in roads, education, 
health, utilities, and the other socially provided facilities and organizations 
that serve the community. Housing which is presently needed by Navajo 
families is included in this section. Housing which will be needed by middle 
and higlier income families is included in Section IH - the private or 
production section. Because of general Navajo poverty incomes, most 
housing will be in the pubUc (social overhead) sector for some time to come. 

The social overhead categories which follow include only the most 
urgently needed public programs. Social services are a rapidly emerging 
sector of the national economy and a good many public facilities and 
services that have been thought of as amenities are increasingly seen as 
necessities. In Navajo country, moreover, economic development and 
resulting urbanizing trends will make it necessary to provide many public 
services that are not now found in Navajo country, or are performed by 
family and extended family members. As time goes on the costs of many of 
these pubhc services will of necessity be borne by community resources. 
Until community resources are more nearly adequate, however, federal 
government support for essential services and for various amenities will be 
needed in order to facilitate development. 

Costs estimates for the various following categories are the aggregate of 
the existing program expenditures, projected at a 2.5% per year growth rate, 
plus the additional program expenditures which are required to bring Navajo 
circumstances up within the range of present national circumstances. 
"Present national circumstances" is not an adequate criterion to use in 1972 
to establish goals for 1982. More exact and useful criteria than those used in 
Part I will be developed in Part II of the Ten Year Plan. 

Projections of existing program expenditures in this report have been 
based on average annual expenditures over the past five years, where data are 
available. To the extent that facts are available, existing program 
expenditures include all federal and state programs. 

Although cost estimates in this report provide for a constant rate of 
population growth, no provision is made for inflation. Costs are figured in 
1970 dollars, and the long term escalation of price levels will of course mean 
that the costs set out here will have to be revised upwards steadily as the Ten 
Year Plan goes on. 



513 

EDUCATION 

AND 

MANPOWER 

DEVELOPMENT 

Deficit - In the treaty of 1868, the U.S. Government agreed to provide 
the Navajo Indians with schools and a teacher for each thirty Navajo 
children. In 1950 the Government undertook its first substantial program to 
fulfill the treaty obligation. This program's expenditures were concerned 
with primary and secondary schools. As shown in Figure 6, these 
expendituresbrought about considerably better educational opportunities for 
Navajo children. Much remains to be done, however, for improved elementary 
and secondary education, and whole new efforts must be mounted in other 
educational fields. In recent years beginnings have been made in some of these 
other fields. Major deficits which are outstanding are as follows: 

1. Secondary Education. Boarding schools were acceptable as an 
interim solution to the education problem in the 19th century but with the 
modem means of transportation now available they are not acceptable. 
There are still far too many Navajo children taken away from their homes 
and parents for long periods and sent to off -reservation schools. Such actions 
are not welcome in any society and are totally alien to the close family 
traditions of the Navajo. With the construction of the roads and schools 
recommended by this Ten Year Plan it should no longer be necessary to 
separate famiUes. 

2. Higher Education. Deficiencies in higher education are illustrated by 
the fact that only 1% of the teachers of Navajo children are Navajos. This is 
the actual accomplishment of 35 years of a grandly announced and 
constantly reiterated program of the Federal government to educate Navajos 
so that Navajo teachers would teach Navajo children. It should be obvious that 
a wholly new education and degree-granting program is needed in Navajo 
country, together with considerably expanded programs for scholarships and 
career opportunities. The Ten Year Plan estimates which follow are designed 
to increase the 1% of teachers who are Navajo to at least 50% of the teachers 
of Navajo children. 

3. Adult Education. About one-half of Navajo adults over 25 years of 
age are illiterate in English - neither read nor write - and one-third of 
Navajo adults do not even speak English. 

4. Pre-school Education. This is recognized to be essential for Indian 
children. Present Headstart programs are funded uncertainly and reach only 
a portion of pre-school Navajo children. 

5. Technical and skill-training. There is no skill center and only 
minimally equipped technical, paraprofessional and skilled trades training 



514 

programs for Navajo Indians. 

6. Business training. Training in business management and aid to 
businessmen is essential if the Navajo are to develop their economy. 

7. Agricultural training. Here again almost no provision for Navajo 
Indians has been made by any Government agency or land grant university. 

8. Special education. Because of isolation, health and language and 
cultural factors, Navajo cliildren have especially urgent needs for special 
education programs. 

Investment Needed to Close the Gap - The Ten Year Plan funding 
requirements for more equitable Navajo educational opportunity are shown 
in Table 3. All federal, state and tribal programs are included. 



515 



Figure 6 navajo area education expenditures, b.i.a. (millions of $)• 

INCREASING 
EXPENDITURES ON 
EDUCATION BRING 



INCREASING 
EDUCATIONAL 
ACHIEVEMENT 



$50 — 




— 1500 9 



— 1000 H 






1950 1955 



• In current dollars 

Source: BIA & Navajo Community College 



15 



516 

Table 3 

EDUCATION AND MANPOWER PROGRAMS: 
TEN YEAR COSTS & ANNUAL EMPLOYMENT 



Educational 
Program 



Cost (10 

Construction & 
Equipment 



Yrs.) 



Employment 
(Average Per Year) 



Operation Construction Operation 



Pre-school 

Class and group 
Field & playground 
Life Enrichment 

Elementary & Secondary 

(2.5% growth per year) 

Higher Education 

Regular Programs* 
Career Programs 
Business Aids & Education 

Technical & Skill 

Skill Centers (institutional 

training) 

Work experience and job 

training 

Agricultural 
NllP 

Traditional 

Adult Education 

Community programs 
(including health) 
Educational TV &. radio 

Special Education 

Institutions 
Home programs 

TOTALS 



S 10.000.000 
2,000.000 
1,000,000 

120.000,000 

15,000.000 
1.000,000 



10,000,000 

5,000,000 
1,000,000 

1,000,000 
1,000,000 

1 ,000,000 



S 50,000,000 400 



630,000,000 

50,000,000 

20,000,000 

5,000,000 



600 



:oo 



100,000,000 200 

120,000,000 200 



400 

5,000 

500 

300 
200 



11,000,000 350 200 

(included under resources) 



50,000,000 500 



3,000,000 
2,000,000 



50 



800 



200 
100 



$168,000,000 $1,041,000,000 2,500 



7.700 



*lncluding scholarships 

Source: Navajo Tribal Education Office, BIA, 



and Navajo Community College 



517 

HEALTH 

Deficit - The health status of the Navajo is comparable to that of the 
general population of the U.S. 20 to 25 years ago, according to Public Health 
Service estimates. The consequences are not only felt in human sufferir-. 
but are serious handicaps to social and economic development. Table 4 
contains some of the available facts indicating the extent of the deficit in 
Navajo health and in Navajo health services and circumstances. 

Table 4 

HEALTH AND MEDICAL CARE IIMDICATORS: 

NAVAJO AND U.S. - 1970 

Navajo U.S. 

Infant death rate, per 1000 live births 42.3 20.7 

Incidence of certain infectious diseases, 
per 100,000 population 

Tuberculosis 

Rlieumatic fever 

Hepatitis 

Life expectancy at birth (years) 
Hospital beds per 1,000 population 
Physicians per 100,000 population 

Source: Navajo Area Office, U.S. Public Health Service 

Directly related to the liigh Navajo mortality and morbidty rates are 
lack of basic sanitary facilities, poor nutrition, the effects of poverty, 
cultural clash, geographic isolation, unemployment, and lack of education. 
These related factors are the subjects of other parts of this report. 

Investment Needed to Close the Gap — Health services to meet the 
needs of the Navajo people can be provided in three major categories: (1) 
Inpatient Services; (2) Outpatient Care Services (outpatient clinics, field 
health and homes services); and (3) "a vast expansion of preventive 
medicine, health education." including nutritional programs for young 
children and for mothers.(4) Needed Environmental Health Services (water, 
sewer, and waste disposal) are noted briefly in this section, but the costs of 
providing these services are included in the later "Utilities" section. 



270 


19 


90 


1.6 


1,120 


223 


63.2 


70.5 


4.4 


7.8 


92 


163 



(4)"A Hl;m for N;iv;ijo r.conomic Development." by David V. Abcrlc. Toward Lcouoinic 
Development for Native American Connntinilics, Joint Economie Conimittcc, Congress of the United 
States, Vol. l,p. 269. 



518 

Tabic 5 summarizes tlic costs involved in providing needed facilities, 
equipment, staff and other directly related requirements to bring Navajo 
inpatient and outpatient health ser\'ices up to more nearly the U.S. level. 
Figure 7 illustrates the effect that increasing federal programs for medical 
care have had in increasing Navajo infants' chances for survival. 

Table 5 

MEDICAL CARE PROGRAMS: 

TEN YEAR COSTS AND ANNUAL EMPLOYMENT 

Employment 
Cost (10 Years) (Average Per Year) 

Construction Operation 

Inpatient Services $46,000,000 5305,000,000 2,700 

Outpatient Services 4,700,000 66,000.000 589 

Totals $50,700,000 5371,000,000 3,289 
Source: Navajo Area Office, U.S. Public Health Service 



Health Education and Nutrition — Malnutrition among Navajo children 
has received national attention. Pilot projects have demonstrated that 
educational programs can effectively reduce malnutrition tlirough use of 
local Navajo teachers under expert guidance and through adequate food 
supplements. These programs can be combined with commimity educational 
programs which will accompany, and undergird, the whole development 
program. The costs of these educational programs are included under 
Education and Manpower Development, above. 

Environmental Health Services — Provision of elemental sanitation 
facilities for Navajo communities and homes is essential in tlie prevention of 
environmentally related diseases and is basic to the improvement of health. 
The lack of safe water supplies and waste disposal facilities is in large measure 
responsible for the high incidence of such preventable diseases as gastro- 
enteritis and amoebic and bacillary dysentery (more than 27 times higher 
than the rate in the general population). For Navajo infants who return to 
their home environment after hospital birth, and particularly for infants one 
month through eleven months of age, the death rate is about three times that 
of comparable age groups in the general population. 

These conditions are in large part associated with the lack of sanitation 
facilities in the Navajo home and extremely crowded living conditions. Costs 
of correcting these conditions are included in following subdivisions headed 
Utilities and Housing. 



519 



Figure 7 

INCREASING 

NAVAJO INFANT 

CHANCES FOR 

SURVIVAL 



$100 - 



$ 90 - 



$ 80 



$ 70 — 



$ 60 



$ 50— r. 



$ 40 



$ 30 




$ 10 -::::::*.' 



••i i:;::::::-; ;i ::;:::::"i: -i;i 



* In current dollars 

*• Reciprocal of inTant mortality rate per 1000 live births 

Source: Public Health Service, Navajo Area Office and N.C.C. 



19 



520 

HOUSING 

Deficit — Most Navajo people live in one-room log dwellings called 
hogans. Often these dwellings lack electricity, running water and sewage 
connections, and are heated by a fire built on the earthen floor or in a small 
wood burning stove. The U.S. population has one modern dwelling (with 
standard plumbing facihties) for each 3 people. The Navajo have only 1 
modern dwelling for each 20 people. 

Other housing deficiencies are of the same order of magnitude. Large 
families live in a house with but a single room, so that over-crowding by 
modern standards is the common lot. There are few glazed windows, if any 
at all, in order to keep out winter cold and summer heat. 

In order to provide Navajo people with modern housing, 19.281 new 
housing units are presently needed. Of the 6585 existing houses which have 
standard inside plumbing, 4,894 units now need repair and renovation. 

Investment Needed to Close the Gap - The estimated costs to provide 
Navajos who now lack modern housing with housing comparable to U.S. 
averages are shown in Table 6. The assumption is that a new, 2-bedroom 
house will cost $18,250 (the present average cost on the Navajo Reser^•ation) 
and that renovation and repair of presently existing housing will average 
$3,000 per unit. 

During the course of the next ten years, houses will be needed to 
accommodate the increased population and repairs and renovating will be 
needed for all standard housing. The costs of such additional housing and of 
repairs to new housing are not included in this report, on the basis that these 
costs will be assumed in the private sector. 

Table 6 
HOUSING PROGRAMS: TEN YEAR COSTS AND ANNUAL EMPLOYMENT 





Number 


Total Cost 


Average 

Emplo>ment 

(Per Year) 


New housing presently 
needed 


19,281 


$350,966,000 


1250 


New housing: streets 
& curbs 


19,281 


6,250,000 


230 


Present housing: 
renovation <t repair 


4,894 


14,682,000 


30 


TOTALS 




$371,898,000 


1510 



Source: Navajo Housing Authority 



521 



ROADS 

AMD OTHER 

TRANSPORT 

FACILITIES 



Deficit — Roads which have been built on the Navajo Reservation liave 
been built primarily to link the various government facilities - schools, 
hospitals, and government offices. Two cast-west and two north-south 
highways cross the Reservation. Only 1,370 miles of roads are paved. This is 
little more than one-third of the ratio of paved roads to square miles in rural 
areas of the states surrounding the Navajo Reservation. The BIA also 
maintains what are called "all weather roads" on the Reservation. These 
roads are indeed all weather, as long as it docs not rain or snow. Projections 
in this program are for roads that are actually "all weather" and for 
all-weather maintenance (also now generally lacking). 

There are no railroads crossing the Navajo Resenation and this makes 
an adequate highway system doubly necessary. Landing strips have been 
built here and there on the Reservation but must be vastly improved to ser\c 
modern air traffic needs. The failure of adequate transportation facilities is 
reflected in many deficiencies - boarding school rather than day school 
education for children, lack of medical care, liigh prices, and particularly the 
lack of industrial and commercial development. Some of the needed roads 
will be expensive to construct - those to the Navajo side of Lake Po\/ell for 
example. 

Investment Needed to Close the Gap — Road construction and 
maintenance needed to provide a transportation infrastructure for tlie 
Navajo equivalent to that in surrounding rural areas(5) would amount to 
over 2,140 miles of paved roads plus twice that amount of graded, graveled 
roads. Total costs of needed paved roads at an average cost of $200,000 per 
mile comes to S430 million. Additional needed mileage of graveled, graded 
roads would bring total costs of rural roads up to S600 million. Urbanizing 
communities will need another 400 miles of paved roads, costing another 
$80 million. 

An adequate system of road maintenance would add another $50 
million. As time goes on, an arrangement should be feasible to offset a good 
bit of road maintenance costs from Navajo payment of State gasoline taxes. 
However this may be arranged, total road costs for the ten-year period would 
come to $730 million. 

Needed airport facilities will add an additional $10 million, bringing the 
needed road and transportation total to S740 million, employing an average 
of 1,400 workmen a year in construction, maintenance and administration. 



522 



PUBLIC 
UTILITIES 



Deficit — Approximately 61% of Navajo homes are without electricity, 
and 80% are without water and sewer senicc. 

In off-reservation areas of the United States, 99% of the homes have 
electric service available and more than 90% have running water and sewer 
facilities. Due to the fact that more than half of Navajo Indian families have 
annual incomes of less than S3, 000, they will have to use kerosene lamps and 
to haul water for many miles unless utility expansion can be financed. 

With home improvement programs and planned housing expansion, the 
need for utility expansion and liome installation will become even greater. If 
the economy of the Navajo Reservation is to increase, industrial, commercial 
and tourism facilities must be expanded. As part of this expansion, support 
services and additional housing will be required to meet the needs of 
workmen and management personnel. Every expansion and improvement 
requires additional utility expansion of all types. 

Investment Needed to Close the Gap — Table 7 sets out the estimated 
costs and resulting employment for providing utility service to presently 
unserved homes. 



Table 7 
PUBLIC UTILITIES: TEN YEAR COSTS AND ANNUAL EMPLOYMENT 



Cost (10 Years) Employment (Average Per Year) 

Labor, Construction $ 65,000,000 850 

Material 84,825,000 

Machinery 9,425,000 

Operations 4,430,000 270 

TOTALS $163,680,000 1,120 

Source: Navajo Tribal Utility Authority 



(5)t1ic mileage of rur;il roads per 1000 square miles of land area in New Mexico, Arizona, and 
Ulah was used as a basis for comparison. Statistical Abstract of the U.S., 1971. Nav.ijo are;i^\\Vrc 
provided by B.I. A. 



523 



PUBLIC 
SERVICES 



Deficit - Public services provided by local governments in the rest of 
the United States inckide such functions as public safety, fire protection, law 
and order, environmental protection and various others. In Navajo country 
some of these scn'ices are provided by volunteer effort by Navajos. Other 
services are performed by various federal and Tribal offices. A good many of 
these public services are not found at all in Navajo country. These missing 
services must be provided and all semces must be upgraded in order for 
economic development to proceed. 

Investment Needed to Close the Gap — As economic development 
brings about changes in urban/rural living a multitude of new public services 
will be needed, including many of the amenities which are common in 
American communities but have never been provided in Navajo country. In 
addition, particular facilities and services (industrial parks, etc.) will be 
needed for economically productive endeavors. These major needed public 
services are set out in Table 8. 

Table 8 
PUBLIC SERVICES: 
TEN YEAR COSTS AND ANNUAL EMPLOYMENT 



Cost (10 year) Employment (average per year) 

Construction Operation 

Public Services 

(Police and fire protection, 

public welfare, general $146,900,000 100 1,500 

control and other) 

Social Amenities 
(100 parks & play- 
grounds, etc.) 20,000,000 100 100 

Industrial & Commercial 

Parks (20 such parks) 6,000,000 50 50 



TOTALS $172,900,000 250 1,650 



Source: Costs-based on per capita state and local expenditures for all services e.xccpt 
education, highways and health. Financing State and Local Governments, by James 
Maxwell, The Brookings Institution, 1965. Employment ratios, Manpower Report of the 
President, 1971. Dollar quantities in the Brookings' study have been converted to 1970 
dollar equivalents, but no increase has been estimated for additional services during the 
ensuing years. 



524 

PARKS 

AND 
RECREATION 

Deficit — Navajoland has a wealth of recreational potential and the 
human resources are readily available, but development of this potential is 
lacking, as is the specialized training of Navajos necessary for operation and 
maintenance. Accommodations, too, are totally inadequate to meet the 
needs of Navajos and of the touring public. 

Investment Needed to Qose the Gap - Development plans include 

areas and sites as follows: 

1 4 major recreation projects either in the planning stage or 
underway. 

18 Navajo Tribal Parks heretofore established or proposed. 
Development of these has been minimal. 

1 5 Navajo Parks and Monuments presently established in and 
around the Navajo Reservation. 

196 site locations within or near the five Navajo Agencies. 

Development of these areas and sites will vary considerably — from the 
setting of guide signs only to the construction of adequate access roads, 
motel and restaurant accommodations, trailer courts, campgrounds, rest 
stops and picnic areas, vistor and culture centers, racetrack and possibly 
additional airport facilities. 

In order to develop these recreational complexes, the Navajo Tribe 
expects to contract with the National Park Service for the most effective use 
of funds allocated for development of these facilities and the training o»" 
Navajo personnel. Income derived from these projects will be deposited to 
the Navajo Tribe's account for further expansion and development. Wlien 
sufficient Navajo personnel have been trained to operate the facilities, the 
National Park Service will turn over operation and maintenance to the 
Navajo Tribe. Table 9 summarizes the estimated Parks and Recreation 
expenditures and employment during the Ten Year Plan. 



525 

Table 9 

PARKS AND RECREATION: 

TEN YEAR COSTS AND ANNUAL EMPLOYMENT 





Cost (10 years) 


Emp 


loymcn 


t (average per yea 




Construction 


Operation 


Construct! 


on Operation 


Present program 












continuance 


- 


$ 5,000,000 




- 


100 


New Programs 












Major projects 


S 56,900,000 


8,534,000 




350 


2,500 


Navajo Tribal Parks 


51,400,000 


7,710,000 




300 


1,900 


National Parks &. 












Monuments 


(NPS) 


(NPS) 




- 


- 


Historical & Scenic 












places 


5,000,000 


750,000 




50 


300 


Interpretive material 


1,500,000 
$114,800,000 


225,000 
$22,219,000 




700 




TOTALS 


4,800 



Source: Navajo Tribal Parks and Recreation Division 

LAND 

AND WATER 

RESTORATION 

AND 

CONSERVATION 

Deficit - Because of lack of dams, canals and irrigations systems, the 
Navajo have never been able to make use of their rights to the water wliich 
flows through their land. The Navajo Indian Irrigation Project is lagging far 
behind its scheduled construction, and otlier reclamation projects for 
Navajos are pitifully few and inadequate. These deficiencies and othcjs 
brought about juessures on the land which resulted in the erosion crisis of 
the 1930's. The land was never restored after this crisis. Government 
programs have touched only a few small areas in the most favorable 
locations. 



Investment Needed to Close the Gap — In order to make optimum use 
of Navajo land and water resources, much more must be foimd out about 
their quantity and quality, and a massive campaign must be set in motion to 
conserve those that are being lost and to utilize all of them in ways that 
bring most benefit to Navajo people. 



526 

Navajo Indian Irrigation Project. Completion of the Navajo Indian 
Irrigation Project has top Navajo Tribal priority. Funds were promised for 
this Project when the Navajo permitted diversion of San Juan River basin 
water to the Rio Grande. The water is now going to the Rio Grande, but the 
Navajo Project has lagged intolerably. Estimates are that SI 70 million (at 
present prices) will be needed simply to complete the basic canals and 
related facilities. If the Project is to be completed by 1986, about $150 
miUion will be needed during the Ten Year Plan; i.e., through 1982. 

Transforming Traditional Agriculture. The second need is for a program 
to upgrade the productivity and incomes of those several thousand Navajo 
families engaged primarily in traditional hvestock and farming operations. 
The low productivity of traditional agriculture is primarily the result of 
minimal investment in capital goods and in human resource development. 

Transforming traditional agriculture requires patient, persistent effort, 
involving demonstration to many stockmen and farmers of the means of 
increasing their incomes through better technology and better livestock and 
farming practices. The essential means seems to include withdrawal in 
accordance with community planning of a sequence of grazing on selected 
pasture areas while new grass and cover crops are grown. This would imply 
not only investment in pasture improvement and stock upgrading, but also 
feed for stock kept off the accustomed (and only) range. 

Costs of conservation and restoration of Navajo soil and water resources 
other than the Navajo Indian Irrigation Project are set forth in Table 10. 
These costs were calculated on the basis of the present cost of pilot reseeding 
projects which are being carried on by Tribal and federal agencies. Because 
of stock care, v/ater and other problems, it is likely that only one-third of 
the total land acreage which needs restoration can be usefully attended in 
the course of the next ten years. Minimum attention can be given the other 
areas, and needed reservoirs, tanks, etc., can be built. 

In addition to administrative and technical staff, approximately 5,000 
Navajo families would be involved in the work of transforming Navajo 
agriculture to modern productivity. Their work would be combined with 
training and work experience and the total costs are included in the Public 
Sector (i.e., in tliis Section) regardless of whether these costs take the form 
of investment in human or in natural resource development. Total 
employment is included in the private sector since these families will be 
making their own way as time goes on. 



527 

Table 10 
TRAIMSFORMIIMG TRADITIONAL AGRICULTURE: 
TEN YEAR COSTS AND ANNUAL EMPLOYMENT 





Cost (10 Years) 


Employment 
(average per year) 


Navajo Indian Irrigation Project: 






Project construction tlirougli 1982 


$150,000,000 


500 


Traditional agriculture area 




500 (stafO 


Reseeding, fencing, etc. 


150,000,000 




Wells, stock tanks, etc. 


20,000,000 




Reservoirs, runoff controls, 




(5,000 families 


irrigation systems 


100,000.000 


included in Private 


Income maintenance, stock 




Sector tables and 


feed, etc., during soil 




totals) 


restoration 


100,000,000 




TOTALS 


$520,000,000 


1,000 



Source: Navajo Tribal Water Resources Ofilce and BIA 



RESEARCH 

AND 

DEVELOPMENT 

Deficit - In spite of thousands of studies about Navajos, many essential 
facts needed for economic development are not known. Information tliat 
must be found out about Navajo resources - water, soils, minerals, etc. - is 
noted in foregoing sections. We do not know, moreover, many things that we 
need to know about adapting animals and plants to meet the semiarid Navajo 
conditions. Economic and social data are even scarcer and less reliable. In 
writing this brief summary, for example, many obviously needed facts 
simply could not be found - the extent of Navajo capital investment in 
agriculture, for example, or the supply of skilled Navajo constaiction 
workers. Moreover, the scattered data which have been compiled are not 
available in any one place, and essential facts are not kept up to date in 
useful trend series. 

What certainly is not needed is more studies about Navajos. What 
certainly is needed is research by Navajos, for Navajo use. 

Investment Needed to Close the Gap — Investment in Research and 
Development (R&D) runs at about 5% to 6% of GNP in a number of major 
industrial countries. This sum gives a guideline for estimating needed N.ivajo 
R&D investment. Navajo R&D need not concern major national problems 



528 

(defense), but will have to involve more than the usual amount of 
demonstration projects and more community development research, i.e., 
research geared to social programs. The following major areas are noted here, 
although further expenditure breakdown would be premature. 

Health, including a substantial mental health component. 

Economic development incentives and community organization, in- 
cluding business structure adaptation to Navajo social forms. 

Resource inventories and utilization methods — including conscr\'ation 
and restoration of land, plant and animal life and water resources. 

For purposes of this report, an R & D component of public funds is 
provided for at the rate of 1% of total public expenditure. Tliis percentage is 
roughly one half of the non-miUtary and non-space percentage of R & D 
expenditure to U.S. Gross National Product. The resulting expenditure 
would amount to $40 million, with ^mpioyematoestimated at an annual 
average of 1 00. ^^-j^^^.^^^.^^vx^^ ] 



SECTIOr^ Ml 

DIRECTLY PRODUCTEVE ACTIVITIES 



The investments in natural and human resource development which are 
summarized above in Section II will, if properly designed, generate an 
accelerating output by directly productive activities - manufacturing, 
mining, more productive agriculture, service businesses, commercial estab- 
lishments and the rest of the generally private sector operations that keep 
the American Economy going. The greater part of investment in these 
enterprises will be private, but substantial public support will be needed. 
This section siunmarizes the public investment which will be required. The 
whole experience of Indian areas, and in fact of all lagging economic areas, 
makes it clear that Indian businesses will have to be encouraged and aided if 
they are to have a chance to survive. 

The proportion of pubUc funds to total required capital (public plus 
private capital) varies with the type of enterprise. Capital requirements for 
industries such as electric power production are very liigh, but private 
sources can be expected to provide practically all of the needed capital. 
Service businesses, on the other hand, require much less capital but in the 
early "tagcs of Indian community development most of this capital will have 
to come from public sources. This section therefore presents capital 



529 

requirements in broad categories according to the proportion of needed 
public funds. Mobilization of private capital will increasingly be the key to 
development, however, and first attention in this section is devoted to 
providing a credit structure which will mobilize savings and channel them 
into productive investment. 

A basic and perhaps heroic assumption in the estimates that follow is 
that Navajo society can absorb (put to efficient use) the amounts of capital 
needed to provide the specified employment. The social overhead 
expenditures detailed in Section II, above, should warrant the basic 
assumption in every major employment area but two — in commercial and 
service businesses and in traditional agriculture. Because of the slowness of 
change in these sectors, no change is projected for employment m traditional 
agriculture, and only two thirds of the ideally potential expansion is 
projected for commercial and service businesses. 

Figure 8 illustrates the disproportionate reliance of the Navajo 
economy on government services and traditional agriculture, in contrast with 
the dominance of productive activities in the U.S. economy. The Ten Year 
Plan will significantly increase the share of productive activities in the Navajo 
economy. 



530 



50' 



40 — 



%m 



30 — ; 






H 20 — 

Z 
LU 

o 

a. 



^OH 



Figure 8 

INDUSTRIAL MIX 

OF U.S. AND 

NAVAJO ECONOMIES 



M 






m 







^^?^'' 









t -■/<-■ 






,» ^- ■. w • • • 
u-\-i J • • • 

>c..-'!» » . ( 



U.S. NAVAJO 



^^:^':U, 









• • • I 
• • • 

• • • 



• • • 
- • - 

• • • 

• • • 

• • • 

• • • < 

• • • 

• • • < 

• • • 



• • • 

» • • I 

• • • 






• '/^'..k • • < 






CIS (0 



O 

z 

ii 

< s 



< P 9 t 

H- < K -J 

OC O o p 

? Z ^ 5 

Z g w _| 

< 5 2 CD 
OC O O 3 
K O O Q. 



$ -• 


h- 


5^ < 


Z 


p z 


UJ 


D 1- 


S 
z 
oc 


oc < 


> 


o cc 


O 


< H 


o 



Source: U.S. data - Manpower Report of the President, 1971; 

Navajo data - "Manpov/cr planning for Navajo Employment," by Philip Reno, 
New Mexico Business, Nov-Dec, 1970. 



531 

A SAVINGS 
AND CREDIT 
STRUCTURE 

Adequate credit, properly supervised and coordinated with training and 
education, has often been judged to be the essential element in successful 
economic development programs in emerging countries. Various special 
circumstances confront development of a Navajo credit structure. Most 
Navajo incomes are barely enough to meet subsistence needs. Navajo savings 
are consequently low. Incomes of employed Navajos are rising, however, and 
economic development will provide more savings. There are only five 
commercial banks on the Navajo Reservation, and none of these is focused 
on support of local business development. 

The difficulty which Indians have in obtaining credit for businesses has 
been noted in practically every study of constraints on Indian economic 
development. In consequence of these constraints, special credit institutions 
are needed in Indian countr>'. Special institutions do exist - SBA, EDA, and 
the Tribal Revolving Loan fund - but these institutions have only a fraction 
of the loan capital needed to meet current requests and are not structured to 
render the required services. These institutions must be adequately 
capitalized, and new and different credit forms and institutions must be 
created if Navajo business is to have a chance to develop. 

Recommendations for new credit forms for Indians generally have 
included the following suggestions:(6) 

1. An appropriation of additional funds for Tribal Revolving Loan 
Funds. 

2. Establishment of a loan guaranty fund. 

3. Authorization of interest subsidies on guaranteed loans. 

4. Authorization for sale of existing revolving fund loans to 
financial institutions, thereby increasing the amount of funds 
available for loan. 

5. Authorization for the Tribes to issue bonds exempt from 
federal income tax for purposes related to the governmental 
affairs or operations of the Tribe. 

6. Establishment of Tribal banks and development corporations to 
administer the above and other credit. 



(o)"lndians' Problems in Acquiring Development Capital" Report to the Four Comers Regional 
Commission by New Mexico State University Agricultural Lxpcriment Station. 

"Toward a I undamental I'ro^am for the Training, Employment and Economic Equality of 
the American Indian," by Herbert i;. Strincr, Upjohn Institute. 



532 

Estimates of public loan funds needed for Navajo development of 
particular sectors are included in the following pages. Estimates of revolving 
fund and credit guaranty needs are therefore not included (to avoid double 
counting) in total capital needs set out in Table 13 at the conclusion of this 
section. 

Additional forms of public support for business operations in 
developing areas include tax advantages and allowances, perference in 
government contracts and purchases, and various other forms. Each of these 
forms needs to be explored in providing adequate support for Navajo Indian 
business development. 

SMALL 

BUSINESS 

DEVELOPMENT 

Manufacturing, Processing and Transportation — Certain productive 
enterprises can be planned to provide inputs for the various social overhead 
investment programs summarized in Section IL Construction is the major 
industrial sector involved in the projected social expenditures, and needed 
inputs can be estimated precisely enough to plan production of these inputs. 
A considerable amount of cabinets and furniture will be needed, for 
example, and a certain amount of concrete and concrete products. 
Production of these items will require publicly-funded capital investment in 
buildings and equipment and operating capital. 

Capital will be required for other production for local consumption, 
and for transportation and trucking businesses to serve the local market. The 
amount of needed capital can be estimated on the basis of regional or 
national product-to-population ratios. Ratios of local production that are 
higher than national ratios can be obtained by "import substitution" policies 
in Navajo country, but the estimates in this report simply reflect regional or 
national ratios. The total public investment needed to support 2,400 
employees in manufacturing, processing and transport is estimated at $24 
million. Private funds of almost S30 million will be generated by the public 
commitment. 

Commercial and Service Businesses - Retail business activity depends 
on disposable incomes as well as numbers of people, and also on factors such 
as transportation and peoples' wants and needs. National income levels are 
far higher and consumption patterns far different from those of the Navajo. 
More comparable estimates can be derived by use of New Mexico rather than 
U.S. ratios, and this is the basis for the following estimates of Navajo retail 
and service business potential and capital requirements. 



533 

Because of the lag in Navajo incomes and because of social and cultural 
factors constraining small business development, the goal set for the Ten 
Year Plan is achievement of two-thirds of the New Mexico level of 
commercial and service businesses. It is hoped that tlirough the impetus 
given the Navajo economy by the Ten Year Plan the gap can be wholly 
closed witliin one generation. 



Table 11 
RETAIL SALES AND SERVICES: NAVAJO AREA AND NEW MEXICO 

New Mexico Navajo 

Present To Be Developed 

Number of establishments 

per 100,000 people 936 200 424 

Number of employees per 

100,000 people 7,000 1,200 3,500 

Average annual sales per 
establishment 

Retail trade $145,000) S70,000 

Selected Services $61,000) 

Source: Bureau of Business Research, University of New Mexico, and Navajo Community 
College 



On the basis of national averages of capital to sales (SI of capital to S3 
1/2 of sales), initial capital investment of S30 million is needed in order to 
bring Navajo retail and service business activity up to two thirds of 1967 
New Mexico averages. A continuing stream of savings and investment will be 
required. A decreasing proportion of this stream of funds will be required 
from public funds. For purposes of estimating a total ten-year public fund 
requirements for retail sales and service businesses, it is simply assumed that 
continuing capital requirements will be met from private sources, but that 
the total of initial capital ($30 million) will have to be provided by public 
loan funds. 



534 

LARGER 

SCALE 

INDUSTRY 

The major manufacturing plant in Navajo country is the Fairchild 
Semiconductor facihty at Sliiprock, New Mexico. Two additional facilities of 
this size, or a number of smaller ones, would bring the ratio of Navajo 
employment in manufacturing up to the New Mexico proportion of 
manufacturing employment to total labor force. Tribal and Federal funds 
amounting to S6.7 million have gone into programs to aid the Fairchild 
plant's establishment and operation. Funds of double this sum are projected 
in Table 13 for development of additional plants of about twice the total 
employment capacity of tlie Fairchild plant. 

Present and planned processing of Navajo resources includes large scale 
coal gasification and production of electric power. Funds should be 
obtainable from private sources. Funding for development of Navajo timber 
resources is projected in Table 13 at the rate of development which obtained 
over the last ten years. 

The Navajo Tribe, itself, is not unfamiliar with large scale industry. It 
owns and operates one of the largest saw mills in the United States, 
employing over 500 Navajos. The Navajo Tribal Utility Authority serves the 
entire reservation with electricity, gas, water and sewage disposal. It is 
Tribally owned and employs over 600 Navajos. The newly established Navajo 
Agriculture Products Industries will, when the Navajo Irrigation Project is 
completed, be one of the major agri-business enterprises in the Southwest. 

More complete and profitable utilization of the Navajo mineral and fuel 
resources is currently being planned. Several private firms are well along in 
planning large scale coal gasification plants and electric power generating 
plants. The present and future plans for development of these resources will 
involve the Tribe and the Navajo people in a much more profitable way than 
has been the practice of the past. 

It is anticipated that most of the funding for the planning and 
construction of plants using the mineral and fuel resources of the Navajo 
Reservation will come from private sources. Some initial financing might be 
required for investigations, pilot plants, feasibility studies, etc. Such public 
funds as can now be foreseen are included in Table 13. More complete 
forecasts will result from the research for Part II of The Navajo Ten Year 
Plan. 



535 

TOURISM 

AND OUTDOOR 

RECREATION 

As noted above under "Social Overhead Investment, Parks and 
Recreation," Navajo country contains the greatest abundance of historical, 
cultural and natural resources under the collective ownership of an Indian 
Tribe in the United States. Lodges and motels, campgrounds, etc., will be 
needed in order to develop the economic opportunities presented by these 
resources. Capital requirements for these facilities are set forth in Table II. 
These initial investments would require 20% of Tribal and 80% of public 
funding, if past funding ratios for this type of Tribal enterprises continue in 
the future. 

Navajo arts and crafts — rugs, silverwork and the rest — arc world 
famous. If properly developed, sales of these items could provide much 
better incomes for Navajo people. Underdevelopment of this resource at 
present is a consequence of lack of capital for effective outlet development, 
for inventory build up and for adequate promotion. 

Estimated capital needed for tliis and other tourism and related 
development is included in Table 12. Many of the 5,000 or more Navajos 
who are presently engaged in arts and crafts production make much less than 
adequate incomes. The goal of this Plan's investment is not to increase the 
number employed but rather to increase the incomes of those engaged in this 
work. 



Table 12 

TOURISM & OUTDOOR RECREATION: 
TEN YEAR COSTS AND ANNUAL EMPLOYMENT 

Public funds Cost (10 Years) Employment (average per year) 

Construction Operation Construction Operation 

Tourism facilities $22,960,000 53,443,000 280 952 

Arts and crafts 2,000,000 8,000,000 (5,000 presently employed. 



mostly part time) 



Source: Navajo Program Development Office 



536 

AGRICULTURE 

Agriculture — stock raising and small farms — has traditionally been the 
source of Navajo livelihood. Today these agricultural activities engage some 
v/orking time and effort by nearly one-third of all Navajo families, and 
contribute a major source of livelihood for a good many of these famihes. 
With only a few exceptions, these agricultural incomes provide only bare 
subsistence. A primary effort must clearly be devoted to developing Navajo 
agricultural productivity and income. This will be done in two major ways 
and ,vill involve investment programs as follows: 

1. Navajo Indian Irrigation Project - The major hope for agricultural 
development rests with the Navajo Indian Irrigation Project, which will bring 
1 10,000 acres into irrigated agricultural production. In addition to the basic 
water diversion system, funds will be needed to build farm roads, water 
systems, and community services. These costs are included in the foregoing 
Social Overhead section (Section II). 

To provide direct, productive means for realizing the Project's 
agricultural potential, capital investment will be needed in farm structures 
(living quarters, barns, corrals, etc.) in equipment, livestock, other capital 
goods, and in working capital in reasonably equivalent amounts to general 
requirements in America. Since the Navajo have little or no savings to invest 
in agricultural enterprise, new credit forms and a substantial amount of 
"seed money" public investment will be needed in equipment, facilities and 
agricultural technology. 

The amount of such capital investment needed for Irrigation Project 
Operations has been estimated at over S50 million, C) or about $30 million 
during the years from 1976 — 1981 (years included in the Ten Year Plan). 
This sum accords with the investment required for a productive farm and 
stock business of family size in the United States (wliich varies from 
$120,000 to $200,000). This rate of capital needs would aggregate 
approximately $33 million by 1981 . In addition, crop production credit will 
be necessary. An initial public commitment of $10 million may be adequate. 

Processing and service businesses (including feed lot and livestock 
operations) will require initial capital outlays of another $30 million, more 
or less, by 1981. As time goes on, an increasing proportion of capital for 
these enterprises will come from private sources, but at the outset the 
regional ratio of public loan funds (40% public/60% private) can be 
anticipated in order to develop the Navajo share of enterprise. 



' ')"I'rojfctcd croppini; piittt-m';, livestock enterprises, processing activities, capit;il require- 
ments, employment, income, and traiMin(? needs for alternative farm ort-.ani^ational structures for the 
Navajo Indian Irrigation Project," Department of Apricultural Ixonomics and Agricultural Uusincss, 
New Mexico State University, June 1971. 



537 

2. Transforming Traditional Agriculture — More than 5,000 Navajos 
who are now engaged in traditional agriculture and stock raising will not be 
reached through the developments set out above. These Navajos will, 
however, share in projects for restoring the Navajo land and water resources 
and in transforming traditional agriculture to more productive operations. 
The major capital costs in achieving this transformation are included in the 
Social Overhead Section II, above. Private sector investment (individual and 
family investment) should be supported by public investment in the early 
stages of development. A public share of $50 million should initiate a 
production credit system capable of maintaining its operations. 

Table 13 
REQUIRED PUBLIC FUNDS AND ADDITIONAL EMPLOYMENT: 
DIRECTLY PRODUCTIVE ACTIVITIES 



Sector 

Small Business 

Manufacturing, Processing, 
Transportation and Construction 
Retail Trade and Selected Services 

Larger-scale Industry 

Footloose industry 

Resource utilization 

Navajo Forest Products Industries 

Tourism and Outdoor Recreation 

Motels, Resorts and Directly 
related enterprises 
Arts and Crafts 



Agriculture 

Navajo Indian Irrigation Project (to 1981) 



Required Employment per year 

Public Funds* Additional Present Total 



24,000,000 
30,000,000 


2,000 
3,500 


200 
1,200 


2,200 
4,700 


8,000,000 


300 


1,000 
700 
500 


^000- 
800 


26,000,000 
10,000,000 


1,000 200 1,200 
(additional income for 
those now employed) 



Completion of Project canals, etc. 
Farm development 
Processing and Service development 
Crop Production 

Transforming Traditional Agriculture 
Production Credit 

TOTALS 



(Under Social Overhead, Section II) 
30,000,000 1,000 

30,000,000 1,000 

10,000,000 (above) 

(Under social overhead) 
50,000,000 



5,000 



1,000 
1,000 



5,000 



$232,000,000 11,800 



8,800 20,600 



*Public funds needed to generate and support private investments. As noted in the text, 
private funds in varying proportions arc expected to carry most of tiie investment in 
productive activities. In some cases practically the total investment will come from private 
sources; in every case a major share will be private investment. At this stage of planning, 
it is not possible to estimate with any reliaoility the private capital which will be 
forthcoming. 



538 
Exhibit No. 5 



DEMOGRAPHIC AND SOCIO-ECONOMIC CHARACTERISTICS 
OF THE NAVAJO 



Staff Report 

Office of General Counsel 

U. S. Commission on Civil Rights 

October 1973 



539 

TABLE OF CONTENTS 



Demographic Statistics 

The Reservation 

History 

Legal Status 

Structure of the Navajo Govertunent 

Education 

Federal Aid Programs 



Employment, 



Economic Development 

Land and Water ^^ 

Industrial Development 57 

Barriers to Economic Development 



Page 

1 
3 



4 
12 



23 
27 



48 



55 



66 



Appendices 

1. Treaty between the U.S. and the Navajo Tribe 

of Indians A- 1 

2. Map - Public School Districts A-4 

3. Reservation Manpower Analysis A-5 

4. Highlights of Navajo Employer Demand Survey. A-26 

5. Federal Programs A-2? 

6. Navajo Tribe Economic Development Policy 
Concerning Private Capital Investment in 
Navajoland A-42 

7. Water Rights A-47 

8. Statistical Tables A-55 



540 

DEMOGRAPHIC STATISTICS 



In 1970, the Bureau of the Census reported a total Navajo population 
1/ 
of 96,743. The Bureau of Indian Affairs, using tribal rolls, estimates 

a nuich higher f igure--136,685--with some 128,123 Navajos living on or 

2/ 
adjacent to the reservation. 

The Navajo live primarily in the three States in which the reserva- 
tion lies: Arizona, 73,657 (57.57,); New Mexico, 50,069 (397.); Utah, 
4,398 (3.470. 

Most of the tribe is young: about 76.97. of the Navajo are under 
25. Females outnumber males by more than 1,300, according to the B1A-- 
or by 2,600 in the Census report. The median household size is 5.1. 

There are no birthrate statistics available for the Navajo as a 
tribe; however, the figure given for all Indians in the six counties in 

which the Navajo live is 41.8 live births per 1,000 population --or 

7./ 
2.4 times the national average of 17.3. 



V Bureau of the Census, 1970 Census of Population: American Indians , 
Table 11 at 146 (1970) (hereinafter cited as Census ). 

2./ BIA, Office of Reservation Programs, 1971 (hereinafter citied as BIA) , 
See n.J.75 at 49 on Census-BIA discrepancies. Census figures are used in 
this report where others are less detailed and overall conclusions are 
unaffected by gross figures, 

3/ BIA 

4/ Census. PC (2)-F. 

5/ Apache, Coconino and Navajo Counties, Arizona; McKinley and San Juan 
Counties, New Mexico; and San Juan County, Utah. 

_6/ U.S. Dep't of Health, Education and Welfare (hereinafter cited as 
DHEW), Indian Health Service, unpublished data. 

]_/ Ld. provisional figure for 1971. 



541 



Again, in general, rather than tribal terms, the Indian's life 
expectancy is 64, as opposed to 70 years for the general population. 



°l DHB';, Indian Health Service, HiRhliRhts of the Indian Health Program , 
5 (1971). 



542 



THE RESERVATION 

The Navajo Reservation Is the largest in the United States. The 
Tribe also owns other lands, as described in the chart below. 

LANDS OCCUPIED BY NAVAJO INDIANS 



Trust Lands 

Tribal 
Individual 
U.S. Government 
Total 

_9/ 
Navajo Band Lands 

Alamo Navajo 
Tribal 
Individual 
Government 
Total 



Canonclto Navajo 
Tribal 
Individual 
Government 
Total 

Ramah Navajo 
Tribal 
Individual 
Government 
Total 



On Reservation (acres) 



12,448,993.33 
83,543.82 

6.40 

12,532,543.55 



Off Reservation 



765,887.46 

606,404.21 

324.304.02 

1,696,595.69 



43,334.77 
19,774.06 



63,108.83 



68,143.79 

8,629.05 

40.00 

76,812.84 



85,960.62 

47,632.78 

13,402.29 

146,995.69 



SOURCE: Survey by BIA Office of Trust Services (June 30, 1973), 



9/ Non-contiguous lands in New Mexico owned by Navajos who participate 

in the tribal government, but whose lands are considered distinct from 
the main body of tribal land. 



543 



HISTORY 

According to Navajo mythology, the people, or Dineh , as the Navajo 
call themselves, came to this earth after having to escape from four 
underworlds. In the present world the Holy Ones created four mountains 

known today as Sierra Blanca Peak, Mount Taylor, San Francisco Mountain, 

10_/ 

and Mount Hesperus. The land between these four mountains is the 

area the Navajo calls home. 

Leighton and Kluckhohn say that the Navajo descended from bands 

of hunters and gatherers and intermarried with the Pueblo Indians, 

11/ 
adopting much from their customs and cultures. 

Apparently, the Navajo's most important adoptions from the Pueblo 

111 
were agriculture and the crafts of pottery and weaving. 

It was from the Spanish, who first came to the Navajo territory 

in the 1530' s, that the Navajo learned the arts of horse riding and 

U/ 
stock raising. Spanish attempts to subdue and enslave the Navajo 

were singularly unsuccessful, in fact, the would be conquerors were 



10 / Martin A. Link, Navajo: A Century of Progress 1868-1968 , Introduction 
(1968), (hereinafter cited as Link). 

1_1/ D. Leighton & C. Kluckhohn, Children of the People , 234 (1969). 

12 / John Upton Terrell, The Navajo , 15-16 (1970) (hereinafter cited 
as Terrell); Link, Introduction. 

13/ Terrell at 17-51. 



544 



subject to raids by these Indians, who had learned to use the horse 

well for quick striking and mobility. So frequent and harsh were 

these attacks that the Spanish were forced to retreat from the Navajo 
14/ 

area in 1680. Although the Spanish returned and enslaved many 
Navajo, neither they nor their Mexican successors were able to conquer 

HI 

them. 

But "the people" were to fall victim to another culture. By virture 
of its victory over Mexico in 1848, the United States acquired the 
land where the Navajo lived. 

In 1850, a treaty between the United States and the Navajo provided 

that the tribe be placed under "execlusive control of the U. S," and 

that the Navajo be subject to the same laws as all other Indian tribes 

16/ 
under U.S. control. 

This treaty, however, did not insure peace between the Indians 

and Anglos. Anglos treated the Navajo no better than the Spanish 

and Mexicans had. Navajos were enslaved, raped, and even scalped 

Ri 

by the "new" white man. The period between the American takeover 
and the Civil War can be characterized as one of chaos and treachery, 



14/ Terrell at 35-60. 

1_5/ Id. at 49-77. 

16 / Treaty between the United States of America and the Navajo Tribe 
of Indians 1850, 9 Stat. 974. 

17/ Terrell at 80-82. 



545 



of broken promises, hostile actions, and atrocities by Anglo renegades, 

soldiers, and settlers on one hand, and of savage revenge by Navajo 

28/ 
raiders on the other. 

Raiding of white settler's camps to steal livestock and other 

settlers' possessions had made some Navajos rich, and therefore the 

poorer in their tribe wanted to gain by the same method. In fact, 

raiding was a part of Navajo life, something they had practiced against 

11/ 
other tribes long before the white man came. 

On the other hand, the government from the very start vowed to 
protect the settlers and townspeople and their possessions. The 
clash between the two cultures was irreconcilable. 

The response to this clash by the American government was to 
attempt to rid the Navajo territory of the Navajos. A plan was 
conceived during the Civil War to round up these "savages" and relocate 
them to the east in a barren area called Bosque Rodondo, in what is 
now eastern New Mexico. But before this was accomplished the Navajo 
had to be literally starved into surrender. Under the leadership of 
Kit Carson thousands of U.S. troops roamed the Navajo county destroying 
everything the Navajo could use; every field, storehouse and hut was 

n/ 

burned. 



JJ/ Terrell at 79-155. 

_19/ Id. at 80. 

20/ Id. at 82. 

21/ Id. at 157-165. 



546 



Terrell described the plight of the Navajo in the Winter of 

1863-1864: 

No one understood better than the Navajos themselves 
how desperate their situation was. Carson's 
holocaust had destroyed the greater part of their 
stores. There would be no opportunity to plant 
crops in the coining spring. Starvation rode with 
the soldiers against them, and it was an enemy 
far more formidable than the guns. . . 22 / 

Although it took up to four years before the last Navajo holdouts 

were forced to surrender, by the fall of 1864 more than 8,000 Navajos 

had been detained at Bosque Redondo, having made the trip by foot, 

suffering from disease and starvation. Many died en route, some shot 

by the souldiers. Others fell victim to slavers with the full complicity 

23/ 
of the U.S. officials. 

At the forty square mile reservation conditions were desparate: 

...Navajos lived in holes in the ground sheltered 
only by pieces of discarded army tents, cowhides, 
and brush. Many were dying of malnutrition, many 
were almost naked, and most of them were barefoot. 
They were suffering from pneumonia, tuberculosis 
and venereal diseases. 24 / 

So awful is the memory of this forced march across 300 miles of 

rugged land that even today the Navajo bitterly refer to it as "The 

25/ 
Long Walk." 



22^/ Terrell at 165-68. 

23/ Id. at 168-174. 

24/ Id. at 174. 

25/ Link, Introduction. 



547 



Numerous attempts were made to establish farming at the Bosque 

Redondo, but each failed due to the harsh conditions of the land, 
26_/ 

droughts and pests. 

The relocation effort was a catastrophe for the Navajo; 2,000 
died there in four years. By 1868 even the U.S. government could 
see it was a failure, so they signed a new treaty with the Navajo 
allowing them to return to their homeland. 

The treaty with the Navajo Indians of June 1, 1868 (see Appendix at 

A-1) provided for a 3.5 million acre reservation, but this was only one- 

27/ 
fifth of the land that the Navajo had previously needed to survive. 

Although the tribal leaders were glad to sign in order to return 
to their home, only part of their home was theirs. now. This was 
not the only or most Ignominious section of the treaty. 

Article III provided for a grant of land of up to 160 acres to 
any Indian family willing to farm it, but generous as this provision 
might seem, it was modeled after an eastern white concept of Homestead 
Law, and did not fit the communal tradition nor the economic realities 
of the arid southwest. 



26/ Link at 1. 

27 / Treaty between the United States of America and the Navajo Tribe 
of Indians, concluded June 1, 1868, 15 Stat. 667, Art. II; 
Terrell at 197-198. 

2?/ 15 Stat. 667, Art. Ill; Terrell at 198. 



548 



Still worse was the provision that every Navajo child between 

the ages of six and 16 must attend a school offering "an English 

education." This provision would lead to many abuses in the 

future by the U.S. government (see section on Navajo Education 

29/ 
below) . 

Other sections of the treaty provided for supplies to be 
given to the Navajo by the government, and for punishment of 
those who violated the peace between the U.S. and the Navajo; 
but the treaty is most important now because it set the basis 
for U.S. control of the Navajo's destiny and placed the tribe in 
a position of Inferiority and dependency that continues today. 

So restricted was the land to which the Navajo returned In 1868 

that by 1878 the U.S. had to restore to the growing Indian population 

more far and grazeland. Additional lands were returned to the Navajo 
30/ 

in 1880, 1883 and 188A. 

By 1883 the impoverished Navajo had regained some economic strength. 
The tribe numbered 19,000 and owned 35,000 horses, 200,000 goats, 

21/ 

and over one million sheep. 

But Navajo farmers and herders were seen as unwelcome "intruders" 
by greedy railroaders, prospectors, and settlers, and the Indian often 



29/ 15 Stat. 667, Art. VI; Terrell at 199-200. 
_30/ Link at 11. 
31/ Id. 



549 



10 



suffered violence and loss of his land and livestock at the hands of 

32/ 
lawless whites. 

In the early 1900' s, President Theodore Roosevelt granted up to 

4,056,000 acres to the Navajo In an effort to put a buffer between 

white settlers and Indian farmers. But many portions of this land 

were lost In 1911 when President Howard Taft restored to Federal 

control parts of the Roosevelt grants east of the original reservation 

33/ 
which had not already been alloted to individual Navajos. 

The U.S. granted the Navajo an additional 1,079,000 acres between 

1918 and 1934. The Navajo purchased 250,000 additional acres with 

money earned from mineral royalties. Today, the Navajo reservation 

34/ 
contains about 14 million acres, but about a fifth of this is 

useless for farming and grazing and another 48 percent is rated only 

35/ 
poor to fair for such uses. 

Today the Navajo tribe is governed by its tribal council and the BIA 

(see section on legal status of the Navajo below). Many of the problems that 

have beset the tribe since the onslaught of white settlers continue 

today. Although there are no more wars, the price of peace has often 

been a harsh one for the Navajo. About a fifth of the tribe, once 



32/ Link at 25; Terrell at 249-50. 

33/ Terrell at 250-251. 

34/ See Table 1 at A-57. 

35/ Terrell at 251-53. 



550 

11 

independent economically, Is unemployed, and the median annual income 

26/ 
of working age Navajos in 1970 was less than $2,600 (see section 

on the Navajo economy for more details). 

The Navajos today recognizes the need for better education, especially 

37/ 
higher education, if they are to prosper in a world dominated by Anglos. 

The single most unchangeable fact about Navajo life is that 

the Navajo is no longer independent but lives now in a world dominated 

by whites in which the Navajo is but a small minority. This has been 

a basic fact of life for the past 100 years. Because it has meant 

the loss of the Navajo's independence, which they had managed to keep, 

albeit with much difficulty, even through the era of Spanish and 

Mexican settlement, it has caused a basic change in the Navajo way 

of life. Tlie Navajo must depend on assistance from the white man in 

order to survive. 



36 / Census , Table 13 at 166 (figures for Navajos 16 years of age 
and older) . 

37/ Terrell at 288-289; Link at 55. 



551 

12 

LEGAL STATUS OF THE NAVAJO TRIBE 

First, it should be stated that the Navajo, like most reservation 
Indians in the United States, is a unique legal entity. While they 
are citizens of the United States, the Navajos are not generally 
subject to the jurisdiction of State governments. 

This was made clear by the United States Supreme Court in Williams 

V. Lee which ruled that a non-Indian, who operated a store under federal 

license on the Navajo reservation, and sued a Navajo for debts, could 

not bring the action in a State court. The court based its decision 

on past cases which held that the States had no jurisdiction, even in 

criminal matters, over Indians living on reservations or non-Indians 

39/ 
conducting business with federal permission on reservations. The 

court explained: 

Originally the Indian tribes were separate 
nations within what is now the United States. 
Through conquest and treaties they were in- 
duced to give up complete independence and 
the right to go to war in exchange for federal 
protection, aid, and grants of land. 40 / 

Without commenting on the inequities of that bargain for the Indian, 

the court built upon the above assumption the concept that only where 

Congress grants the States power over the Indians, may they exercise it, 

and that when Congress had wished the States to have such power, it had 

_4y 

expressly granted it. 



38/ Williams v. Lee, 358 U.S. 217 (1959), 
39/ Id. at 218-220. 



40 / Id . at 218; see also Kent Gilbreath, Red Capitalism: An Analysis o f 
the Navajo Economy , 32 (1973). 

41/ Williams v. Lee, supra at 220-21. 



552 

13 

The court then stated that In the Treaty of 1868 the Navajo agreed 

to keep peace with the United States and in return for this promise the 

U. S. had set apart a reservation for the Navajo. 

Implicit in these treaty terms . . . was the 
understanding that the internal affairs of the 
Indians remained exclusively within the juris- 
diction of whatever tribal government existed. 
Since then. Congress and the Bureau of Indian 
Affairs have assisted in strengthening the Navajo 
tribal government and its courts . . . Today 
the Navajo Courts of Indian Offenses exercise 
broad criminal and civil jurisdiction which 
covers suits by outsiders against Indian defen- 
dants. No Federal act has given State courts 
jurisdiction over such controversies. j]j 

Noting that Congress had given the States power to assume judicial 

jurisdiction over the Indian tribes within their boundaries by amending 

their State constitutions (67 Stat. 590), the court pointed out that 

absent such amendment, a State had no jurisdiction over Indians within 
43/ 

its boundaries. 

The Supreme Court reaffirmed its position as to the legal status of 

the Navajo tribe six years later in the case of Warren Trading Post v. 

4y 
Tax Comm . 

Congress has repealed the act allowing States to assume jurisdiction 

over Indians by amending their constitutions, and replaced It with Title 

IV of the 1968 Civil Rights Act, 25 U.S.C. § 1321-1326, which allows 

States to assume civil and criminal jurisdiction over Indians only with 

the express consent of a majority of Indians voting in a special election. 



U^ Id. at 221-222. 

43/ Id. at 111-llZ (Note 10), 

44/ 380 U.S. 685 (1965). 



553 

14 

The Supreme Court ruled that by virtue of this 1968 Act, State 

control of Indian judicial matters could only be assumed after approval 

by a majority vote of all Indians within the affected area, not by a 

45/ 
vote of a tribal council. 

Thus, the legal status of the Navajo tribe is one of partial 

sovereignty. The States can have judicial control over Navajos living 

on the reservation only if a majority of those living on that part of 

the reservation within the State which seeks judicial control, approve. 

But the Federal government, especially the Secretary of Interior and the 

BIA, retains control over the judicial affairs of the Navajo if the States 

46_/ 
lack consent to exercise it. 

Furthermore, Federal law gives the Secretary of Interior and the 

Commissioner of Indian Affairs broad powers over "all Indian affairs 

47_/ 
and of all matters arising out of Indian relations." For instance, 

the Secretary and Commissioner must approve all tribal contracts. 

_49/ 
These laws have been upheld by the Federal courts. 

Using these broad authorities, the Bureau of Indian Affairs (BIA) 

has promulgated extensive rules on how the Indian tribes may govern 



45/ Kennerly v. The District Court of Montana, 400 U.S. 423, 428-29 
(1971). 

_46/ See 25 U.S.C. §2, and see Navajo Tribal Code (N.T.C.) S 1, 1969 as 
amended; incorporates 25 C.F.R. § 11 with approval by the Secretary of 
Interior as required by law. 

47/ 25 U.S.C. § 2. 

48/ 25 U.S.C. S 81. 

49^ Udall V. Littell, 366 F.2d 668 (D.C. Cir. 1966); cert, denied 385 
U.S. 1007, rehearioR denied 386 U.S. 939. 



554 

15 

50/ 
themselves. Followtng these guidelines the Navajo tribe has passed 

an extensive code outlining its electoral process and the powers and 

duties of its legislative, executive, judicial, and administrative 

branches of government. Most of these codes require the approval of 

51/ 
the Secretary, Commissioner, or the BIA. 

Thus, while the Navajo tribe may be free from the cloak of State 

regulation, broad Federal laws and administrative codes keep it under 

the watchful eye of Washington. However, due to the general deference 

of the Secretary and the BIA to decisions of the tribal council, some 

52/ 

autonomy has been given to the Navajo in internal affairs. 

STRUCTURE OF THE NAVAJO GOVERNMENT : 

Up to the time when the U. S. took over the Southwest there was no 

unified political structure with one leader among the Navajo. The only 

organization was of family or bands of people whose leaders , called 

naat' aanii ("speech makers"), were chosen by the decision of the group 

53/ 
or clan and would be removed by the same process. 

In fact, it was not until 1923 that the Navajo had its first formal 

government, the tribal council, composed of six delegates, created in part 

so that oil companies would have some legitimate representatives of the 

Navajos through whom they could lease reservation lands on which oil had 

been discovered. This was necessary because the 1868 Treaty provided that 



50/ See 25 C.F.R. § 52. 

51,/ See generally N.T.C., esp. Titles 2, 7, 11, and 17. 

52/ Terrell at 283. 

53/ Terrell at 279. 



555 

16 

no part of the Navajo reservation could be ceded without the consent 

54/ 
of three- fourths of the tribe. 

The council selected a chairman and vice chairman outside the 

council membership. Also formed from those not on the council were 

the Navajo community chapters, made up of people in local areas 

throughout the reservation who met to discuss cotcmon local problems. 

55/ 
In 1970, over a hundred such chapters existed. 

The American imposed democratic system was far from perfect, 

however. For one thing, the council had no real governing power over 

the local bands and families, and few Navajos understood what it was 

supposed to do since a centralized governing body was a concept alien 

16/ 
to their tradition. 

Reorganized in 1938, the Navajo government has expanded its 

representation and broadened its powers. The legislative powers 

still derive from the tribal council, (hereinafter referred to as "the 

council") but that council is now made up of 74 delegates instead of 

six. Every member of the council must be a member of the Navajo tribe 

57/ 
and over 30. The delegates are forbidden to hold other employment 

which creates a conflict of interest, and are subject to removal by a 

two-thirds vote of the council or by petition of 50 percent of the 



^/ Terrell at 279-80. 

_55/ Id. at 281. 

_5^ Id. at 281-82. 

^1 2 N.T.C. §§ 101, 102. 



556 

17 

58/ 
voters in his or her precinct. Each delegate is elected from his or 

59/ 

her district and serves a four year term. 

The council meets four times a year, with its agenda set largely by 

the chairman of the council and the BIA Area Director (again evidence of 

60/ 
the Federal supervision of Indian affairs). 

The chief executive of the tribe is the chairman of the tribal 

council (hereinafter referred to as "the chairman") who is elected to 

a four year term. There is no limit on the number of terms he/she may 

serve. Second in power is the vice chairman of the Navajo tribe (herein- 

61/ 
after referred to as "the vice chairman"). The chairman and vice 

chairman must each be 35 years old and a permanent residents on Navajo lands, 

a high school graduate, have previous tribal government experience, and 

62/ 
not be a felon. 

The chairman may yield the chair to the vice chairman in order to 
take part in council meetings, but most importantly he/she has responsi- 
bility for "directing and supervising the personnel and executive business 

63/ 
staff of the tribe" and over the various council committees. The 

chairman selects from the council membership the members of various 

council committees such as those on education, health, judiciary, law 



58/ 2 N.T.C. §§ 103, 105 and 11 N.T.C. §§ 211, 212. 

£9/ 2 N.T.C. S 104. 

^/ 2 N.T.C. §8 162-63. 

61/ 2 N.T.C. §§ 281-82 and 11 N.T.C. § 3. 

^/ 11 N.T.C. § 4a and 2 N.T.C. S 283. 

63/ 2 N.T.C. §§ 284, 903. 



557 

18 

6A/ 
and order, trading, and welfare. He does not appoint the advisory 

committee which has Important duties of overseeing tribal business 
and financial affairs. 

The chairman and vice chairman, along with the advisory committee 
which they chair, head up a sophisticated executive structure which in- 
cludes the tribe's legal office, the executive secretary, the office of 
the comptroller, employment and personnel department, vital statistics 
department, community development department, health, education and 
welfare department, police department, probation and parole department, 

division of agricultural and livestock development, mining department, 

65/ 
and others. 

As mentioned above, the Navajo Tribe has its own court system under the 

guidelines of Title 25 of the Code of Federal Regulations, Chapter 11. 

66/ 
The system consists of a Tribal Court and a Court of Appeals. The 

chairman appoints the seven judges who preside at the Tribal Court, 

with the approval of the council, for a two year probationary period, 

after which the chairman may nominate the probationary judge to be a 



6A/ 2 N.T.C. §§ 341, 802. The Advisory Committee is composed of 18 
members selected by the Council by secret ballot from a list of Council 
members nominated by the Council manbers. The Chairman heads this com- 
mittee which has many executive responsibilities including the power to 
approve contracts made by the Chairman and to lease tribal land for 
farming and authority to make rules and regulations concerning commerce 
and trade, agriculture, education, health and welfare, highways, mining, 
public parks and monuments, wildlife, and other areas. See 2 N.T.C. 
§§ 341-49; 3 N.T.C. § 1; 5 N.T.C. § 2; 10 N.T.C. § 3; 13 N.T.C. §§ 1, 4; 
14 N.T.C. S 1; 18 N.T.C. § 1; 19 N.T.C. §§ 2, 3, 101; 22 N.T.C. § 1. 

65_/ 2 N.T.C. §§ 4, 903-1273. 

66/ 7 N.T.C. § 101. 



558 

19 

67/ 
permanenc judge, with "the advice and consent" of the council. 

Permanent judges may serve until they are 70. 

The tribal courts have original jurisdiction over all violations 
69/ 
of the Law and Order Code, all civil actions in which the defendant 

is an Indian living in Navajo territory, domestic relations of Navajos, 

probate of Navajo property, and all other matters that formerly were 

70/ 
handled by the abolished Court of Indian Offenses. 

The Court of Appeals consists of a Chief Justice of the Navajo 

tribe (hereinafter referred to as "the Chief Justice") and two tribal 

court judges who are appointed to hear particular cases as requested 

by the Chief Justice. The Chief Justice also serves a two year pro- 

bationary term before becoming permanent. The Court of Appeals has 

jurisdiction over all tribal court final judgments except those criminal 

cases where the defendant is sentenced to 15 days imprisonment or labor 

_72/ 

and/or fined less than $26.00, in which case there is no appeal. 

The courts have the authority to make their own rules of pleading, 

211 
practice, and procedure. 

The Navajo Tribe has an extensive code covering not just the 

the structure of government, but also matters of importance to the 



_67/ 7 N.T.C. S 131a. 

b^ 7 N.T.C. 132. 

_69/ 7 N.T.C. § 133a, also see 17 N.T.C. § 1 et seq. 

70/ 7 N.T.C. S 133b-e. 

jy 7 N.T.C. § 171. 

j;2/ 7 N.T.C. § 172. 

73/ 7 N.T.C. § 301. 



559 

20 

Indian's daily life such as agriculture, ceremonies, commerce 

and trade, estates, domestic relations, elections, education, 

74/ 
labor law, law and order, water, etc. 

Perhaps the part of the code most Important to the Navajo's 

destiny is the one providing for the election of the tribal leader- 

75/ 
ship hy the tribal members. The whole process of tribal elections 

is supervised by the Board of Elections Supervisors (hereinafter 

referred to as "the Board"), made up of a maximum of six members 

76/ 
appointed by the chairman with the approval of the Tribal Council. 

The Board appoints registrars, election judges to sit at each polling 

B 

place, and poll clerks. However, the most important duty of the Board 

is to finalize the results of tribal elections based on the 

ballots and official counts submitted by the election judges from each 

_78/ 
polling area. 

All Navajos on the BIA agency census roll who are 21 years of age 

111 
and older may vote. They must register to vote at least 30 days prior 

to an election and are dropped from the rolls if they fail to vote in two 

consecutive elections. Any person not permitted to register can appeal 

80/ 
to the Board whose decision is final. 



1^1 See N.T.C. generally . 

2£/ 11 N.T.C. § 1 et seq. 

1^1 11 N.T.C. §§ 51-58. 

I2_l 11 N.T.C. § 58a. 

78/ 11 N.T.C. i§ 20 and 51. 



]2J 11 N.T.C. § 6; Note: The passage of the 26th Amendment to the U.S. 
Constitution may affect this provision. 

80/ 11 N.T.C. S 7, 8. 



560 

21 

Caadldates for chairman are nominated at a central nominat- 

lag coHventioo (hereinafter referred to as "the convention") 

81/ 
atteaied hy delegates elected by each of 7A election communities. 

Each election coMBunity also selects up to three candidates for, and 

later elects one to serve as, council representative from that 

82/ 
CMoniaity. 

The two ooaineee for chairman who get the highest number of 

votes at the convention are the candidates for chairman. Each 

candidate then chooses a running mate for vice chairman; these 

83/ 
two slates appear on the ballot. 

Perhaps the most novel aspect of Navajo tribal elections 

is that the picture of each candidate for chairman, vice chairman, 

and delegate to the council appears on the ballot alongside his 

8A/ 
name. This is done because many of the electorate cannot read. 

The time, place, and-manner of voting is strictly governed by 

Navajo law, and criminal penalties are provided against bribery, 

85/ 
intimidation, and other irregularities. 



81/ 11 N.T.C. §§9-14. 

82/ 11 N.T.C. § 9a. 

83/ 11 N.T.C. §§12, 13. 

8A/ 11 N.T.C. §15a. 

15/ 11 N.T.C. §§15-18, 241-247. 



561 

22 

The Code also provides for extensive rules governing 
86/ 
special elections, and Federal and State elections in New 

87/ 88/ 

tfexlco and Arizona. 

In conclusion, perhaps the most important thing to note, 
however, is that the Navajo government structure Is one based on 
the white man's experience, not that of the Navajo, and many, if 
not a majority of the tribe probably still look upon their govern- 
ment as somewhat alien to their way of life. 



86/ 11 N.T.C. §§131-138. 
%]_! 11 N.T.C. §§601-869. 
88/ 11 N.T.C. §§1001-1318. 



562 

23 

EDUCATION 

The history of the white man's program of education for the Navajo 
Is not a pleasant one, especially for the alleged beneficiaries of this 
program, the Indian children. 

To be sure, Navajo parents teach their children many things, such 
as household and farm skills, manners, sex education, morals, etc., as 
the Navajo undoubtedly has done for centuries, but this type of educa- 
tion is the informal kind, usually taught through the use of story 

telling, setting examples, use of ceremonies, and punishment of the 

89/ 
wrongdoer. 

But the kind of formal schoolroom education with textbooks, 

structured courses and grades was virtually unknown to the Navajo before 

1868. In that year the United States signed a treaty with the Navajo 

which provided in part: 

In order to insure the civilization of the Indians 
entering into this treaty, the necessity of educa- 
tion is admitted, especially of such of them as may 
be settled on said agricultural parts of this 
reservation, and they therefore pledge themselves 
to compel their children, male and female, between 
the ages of six and sixteen years, to attend school; 
and it is hereby made the duty of the agent for said 
Indians to see that this stipulation is strictly 
complied with; and the United States agrees that, 
for every thirty children between said ages who can 
be induced to or compelled to attend school, a house 
shall be provided, and a teacher competent to teach 
the elementary branches of an English education shall 
be furnished, who will reside among said Indians, and 
faithfully discharge his or her duties as teacher. 90/ 



89 / Leighton at Chapter 2. 

2^1 Treaty with the Navajo Indians, June 1, 1868, 15 Stat. 667, Article VI. 



563 

24 

This article became the blueprint for the American program for educating 
the Navajo. 

But the program was not readily accepted by the Navajo. Teachers 
were sent and schoolhouses built by the government but the children were 
reluctant to attend, and when the government sent police literally to 
round up truant students, their parents often hid them. Those un- 
fortunate enough to be caught and sent away to boarding schools were 
often beaten and even shackled when, homesick, they would attempt to 
run away, or when they failed to do assigned chores or otherwise violated 
school rules. 

The U. S. Government saw nothing abhorrent in its policy of forced 

attendance; after all, the Treaty did say that one teacher would be sent 

for every thirty Navajo children who could be "induced or compelled to 

attend school." But to the Indian parents the idea of having their 

children taken and kept from them for weeks or months at a time was 

unthinkable, and they became even more resistant to the white man's 

91/ 
education. 

The situation improved somewhat with the establishment of day schools 
in the 1930 's. Parent and child both preferred this system to the board- 
ing schools because at least the child was home at night and the parents 

92/ 
could keep track of his/her welfare and health on a day to day basis. 



91/ For a good summary of early white schools for the Navajo, see 
Terrell at 231-39; see also Gilbreath at 107-08, and Leighton at 64. 

92/ Terrell at 234-40. 



564 

25 

The Navajo can accept this day school method of white man's education, 

but not the boarding school. Even with modern day improvements in 

93/ 
facilities and more enlightened discipline, the regimented dormitory 

li£e of boarding schools is alien to the Navajo idea of freedom, and 

94/ 
keeps the child from learning the Navajo culture and religion. 

Yet, despite the Navajos' bad experience with the boarding school 

method, 49 out of the 60 institutions operated by the BIA are boarding 

schools. As for the few day schools that the BIA does operate, none 

has more than six grades, and most go to the fourth grade or below. Many 

boarding schools, by contrast, have eight regular grades plus kindergarten, 

and there are four boarding schools which offer only the high school 

95^/ 
grades, 9-12. 

BIA statistics show 22,094 Navajo students (including pre-kindergarten) 

enrolled in BIA schools in 1972. Only 3,284 of those students were in 

high school; the rest were below the ninth grade. Six hundred nine 

Navajos graduated from BIA high school this year; another 1,000 completed 
9b_/ 

eighth grade. 

If these attendance and completion figures are unimpressive in the 
higher grades of BIA schools, the public schools have not done much 
better. Perhaps because there was never any forced attendance at public 
schools, many Navajo parents simply did not make their children go to 
school. A reason often given for this non-attendance was that formal 



^3 / For a report which found modern day boarding schools little improved, 
see Center for Law and Education, Harvard University, No, 7, Inequality in 
Education , issue devoted to Indian Education. 

^/ Id. and Leighton at 64-69. 

95/ BIA, Statistics Concerning Indian Education, fiscal year 1972, Table 
Tat II (hereinafter cited as BIA Statistics ). 
96/ Tahip n at A-71. 



565 

26 

education could give no satisfactory answer to the Navajos' question, 
"What good is it?" By the 1940' s, however, many Navajos had learned 
that illiteracy was a bar to economic mobility, that to be in the 
running for economic opportunities it would be necessary "to become 

211 

skilled in the language and ways of the larger society." And so 
the Navajo began to attend school in greater numbers. 

Figures for total school enrollment on the reservation in 1972 show 

28/ 

that 52,647 of the 57,144 Navajo children between 5 and 18 years were 

in school. Students enrolled in public schools run by the States of 

Arizona, New Mexico and Utah numbered 28,535; 2,820 were enrolled in 

other schools; the rest attended BIA shools, as noted above. There 

were 854 Navajo students over 18 attending BIA schools and 869 in 

_99/ 
public schools. On a state by state breakdown, 31,811 Navajo 

students between 5 and 18 were enrolled in Federal, State and private 

100/ 101/ 

schools in Arizona; 22,539 in New Mexico; and 2,794 in Utah. 

Census figures reflecting educational levels attained by the Navajo 

population as a whole are as follows. Of the 5,734 male Navajos 25 to 

34 years old, only 1,466 had completed high school and only 606 had 

attended any colllege. Among 6,230 Navajo women of this same age 

group only 1,380 had completed high school and 467 had done at least 

102/ 
some college work. 



_22/ Gilbreath at 108, 109. 



98 / Contrast the figure with the 1970 Census figure for Navajo tribe 
total school enrollment (ages 3-34) of 37,266. Table 16 at A-72. The 
dlsoarltv remains unexplained. 

19/ Table 18 at A-74. 

100 / Navajos under jurisdiction of Zuni Agency included with Navajos 
of New Mexico. 

101/ Table 18 at A-74. 



566 

27 

This disparity in numbers of students entering school, and those 

finishing even the eighth grade is obvious. The drop-off in attendance 

after elementary school is dramatic and emphasizes the waste from an 

education system which has not done its job. 

The percentage of Indians who drop out of schools 
is twice that for all other children. Among the 
Indian population, fully two-thirds of the adults 
have not gone beyond elementary school, and one- 
quarter of Indian adults are functionally illiterate — 
they can't read street signs or newspapers. The 
educational system has failed Indians. The Federal 
Government's obligation to support Indian education 
has not been fulfilled. 103 / 

From these figures, it can be seen that today's program for education 
of the Navajos involves substantial numbers of children. Thus, the 
methods which the Federal Government utilizes to fulfill its obligation 
to educate these children will surely affect the future of the tribe. 
Federal Aid Programs 

The public schools which 28,535 Navajo students attend are entitled 
to receive aid from the Federal Government under a variety of laws 
intended to give the Indian child an equal opportunity to learn. 

Indian children qualify school districts for Federal money under the 
Impact-jAid legislation because their parents live and/or work on Federal 
property. There are two Impact Aid laws: P.L. 815 provides school construc- 
tion funds; P.L. 87A provides operational funds to assist local schools over- 
burdened with children of Federal employees, or with children residing on 

104 / 
tax free Federal land within the school district. 

Although Indian reservations have always been considered Federal 
land, the Impact Aid legislation originally passed in 1950 was not 



103/ NAACP Legal Defense and Education Fund, Inc., An Even Chan ce at 2 
U971) (hereinafter cited as An Even Chance ) . 

lOA/ 20 U.S. C. §631, et seq. (1950); 20 U.S. C. §§236-241 (1950). 



567 

28 

extended to cover school districts which Included the Navajo and other 

105 / 
Indian reservations until 1958. 

The funding for such programs Is based on the "local contribution rate" 

(derived from average expenditures per child in comparable school districts) 

multiplied by the average number of eligible children in daily 

106 / 
attendance. School districts receive 100 percent of the local 

contribution rate for each child whose parents both live and work on 

Federal property located within that district. Since most Navajo pupils' 

parents both live and work on the reservation, whicn is Federal property, 

school districts with Navajo children quality for full compensation 

for the expense of each child from the reservation. And if the parents 

only live on reservation property within the school district, but do 

not work there, the district is still entitled to one half the local 

contribution rate for those parents' children. For any school distriCi. 

to receive funding under the Impact Aid program, (the lesser of) 400 

students, or 3 percent of the average daily attendance, must be 

107 / 
eligible. 

Furthermore, the Commissioner of Education may increase the funding 

for a school district making a reasonable effort to get adequate funding 

through tax revenue and other sources, if he/she determines that (1) the 

amount for which the district is eligible under the above formula would 



105/ P.L. 85-620 (1958) amending 20 U.S.C. § 238 (1950). M. Yudof, 
"Federal Funds for Public Schools," In Inequality in Education 
at 20. 

106/ 20 U.S.C. §238. 
107/ Id. 



568 

29 

be insufficient to provide the quality of education that a comparable 

district is able to provide and (2) at least 50 percent of the district's 

children live on Federal property. 

As an adjunct to Impact Aid funds for educational programming, schools 

which Indians attend are also eligible to receive P.L. 815 construction 

money to help local districts build the facilities required to handle 

increases in their enrollment of children living on tax-exempt Federal 

property (including Indians). But in recent years there has been a 

108 / 
freeze on such funds. 

There are practically no restrictions on how 874 Impact Aid 
dollars are spent. The Commissioner of Education has no power to 
demand that the money granted be spent on special programs or curriculum 
changes to benefit the Indians, and the State agencies are bypassed 
because the money goes directly to the school 'districts. 

With the individual districts in control of how the money is spent, 
there can be a vast difference in how the Impact Aid funds are disbursed. 
As mentioned above there is no requirement that the district report how 
it spends the money; nor is the district required to show that Indians 

have received a fair share of the aid (or, conversely, that the Indian 

110 / 
has not been cheated in the allocation of State and local resources). 

What makes this situation so inequitable is that the Indian child often 

brings in more Impact money than do children of non-Indian Federal employees 



108/ An Even Chance at 6. 

109 / Inequality in Education at 21. 

110/ An Even Chance at 6-7. 



569 

30 

and much more aid on a per pupil basis than other children in the school 
district who receive only State and local monies. In the Gallup-McKinley 
County School District, Indian children, mostly Navajo, qualify the district 
for $306.70 per student in Impact money (one-half the national average cost 
per pupil) whereas the children of BIA and Public Health Service employees 

who work on the reservation but do not live there bring In half that amount, 

$153.35. And local taxes for nonfederally connected children only bring in 

111 / 
$1.?7.nn per child. But the 3a"ie In'^lan child who qualifies a school for 

Impact Aid may benefit the least from it. 

The NAACP Legal Defense and Education Fund found that in 1970 the 

Gallup-McKinley District received about $1.3 million in Impact Aid, plus 

over $500,000 each from both Title I and Johnson-O'Malley funds. In all, 

112 / 
40 percent of the district's budget came from Federal sources. 

Yet, in that district the schools with the greatest concentracrion 

of Indian students had the worst facilities and were the most overcrowded. 

A small town (Thoreau) high school had 3 times its capacity enrollment, 

buildings so dilapidated that snow seeped in, and not even enough space 

for a decent laboratory or library. This school with over 66 percent 

Indian enrollment contrasted sharply with Indian Hills Elementary School, 

located in the city of Gallup, which had less than 33 percent Indian 

students as well as less than full capacity enrollment. Indian Hills 

had a split level, carpeted music room, a carpeted library, and well 

113 / 
equipped, uncrowded facilities, including closed circuit TV» 

111 / Id. at 8. 

112 / Id. 

113/ Id. at 7, 8. 



570 

31 

The New Mexico State Department of Education's response to these 

charges claimed only that the average class sizes are "approximately 

equal" Ijut gave no numbers and did not mention the overcrowding at Thoreau. 

Nor did the Department refute the charges of inequality in facilities or 

114 / 
physical structures. From its silence it might be inferred that the 

Department found nothing in its investigation to contradict the findings 

of overcrowding and inferior facilities at Thoreau, 

Anotner Federal program which aids Indian children .iLLenaing State 

schools is the Title I program for economically and educationally de- 

115 / 
prlved students. This aid is allocated to State agencies which in 

116 / 
turn fund progreims proposed by local school districts for poor children. 

Eligibility for payments under Title I for each district is based 

117 / 
on the number of children whose family income is below the poverty level 

($4,000 per year for fiscal year 1973). To determine the amount of 

Title I Aid, the number of eligible children Is multiplied by half the 

118 / 
(greater of the) State, or national, per-pupil expenditure. Special 

grants are also available for urban and rural schools serving areas with 

119 / 
the highest concentrations of children from low income families. 



_11A/ New Mexico State Department of Education, Response to an Even 
Chance at 3-4 and 9-12 (February 1971) (hereinafter referred to as 
Response ) . 

H5/ 20 U.S.C. 241a (1965) amending 20 U.S.C. 241 (1950). 

ij^/ An Even Chance at 29, and 20 U.S.C. § 241g. 

HZ./ 20 U.S.C. S 241c(c) (1970). 

ii£/ 20 U.S.C. § 241c(a)(2). Note : Aid to Dependent Children payments 
are not counted as income. 

ill/ 20 U.S.C. § 241d-ll, 241d-12 (1970). 
120 / Census , Table 14 at 176. 

J^/ Note : Census statistics give total Navajo population as 96,743; 
the Navajo tribe gives a figure of 120,000, 



571 

32 

the poverty level, any public school with Navajos attending, especially 
those with a high concentration of Navajos would qualify for Title I 
assistance . 

The Federal Government does not mandate or structure the programs 
funded by Title I; that is the responsibility of the local schools. 
But the Office of Education of the Department of Health, Education, and 
Welfare does set guidelines. Participating schools must submit a pro- 
gram description and budget; the number of eligible children and those 
actually participating, by school and grade; identification of the 

eligible students' needs, and provisions made to evaluate the effective- 
122 / 

ness of the programs. 



122/ An Even Chance at 28. 



572 

33 

Before a local district can receive Title 1 aid it must have 

its application approved by the State Department of Education or an 

equivalent. That approval is not to be given until the State 

determines: that the payments will be used only for programs to 

benefit eligible children; that the Federal money will be used only 

as an addition to regular State funded programs (not as a substitute 

for the latter); and that the funded schools will make annual reports 

123./ 
to the State on the conditions and results of the programs. 

In turn, the State must assure the Commissioner of Education 

that the local programs are being run according to the guidelines 

stated above and that proper fiscal and accounting controls over 

the funds are in use. The State must also advise the Commissioner 

124 / 
on the effectiveness of the programs. 

Despite these controls the NAACP Legal Defense Fund found that 

Title I money was being misspent. In Grants, New Mexico, southeast 

of the Navajo reservation, the school district officials said that 

they were spending Title I funds on health and physical education 

programs designed to meet the needs of the entire student body 

125/ 
"because of limited funds in the general program .^ This is in 



123 / 20 U.S.C. 8 241e. 
124 / 20 U.S.C. § 241f. 
125/ An Even Chance at 31. 



573 

34 
direct contradiction of Title I's purpose--not to benefit the entire 

school population, but to meet "the special educational needs of 

126 / 
educationally deprived children." 

By its public announcement discontinuing the use of Title I 

funds for physical education programs in Grants, the Mew ^fexico 

State Department of Education tacitly admitted the misuse of such 

127 / 
funds. But the facts speak for themselves. That district in 

New Mexico had over 1,000 Indian students, nearly one quarter of its 

128 / 
total students (4,711) in 1972; it received $190,495.00 In 

129/ 
Title I funds. This could have provided $190 per Indian student. 

Since the funds were used to pay for school-wide programs, as noted 

above, it is more likely that Title I money provided $38 worth of 

physical education programming for each student in the Grants 

district. The Indian students, by any measurement, got less than 

their share. Misuse of any part of the Title I money Is a 

130 / 
violation of Federal law. 



126/ 20 U.S.C. I 241a. 



127 / New Mexico State Department of Education, Response to An Even 
Chance , Supplement 1 at 2 (August 1971) (hereinafter referred to as 
Supplement ) . 

128/ New Mexico State Department of Education, Annual Report on Public 
School Contracts , JOM at 20 (1971-72) (hereinafter referred to as 
New Mexico JOM ) . 

129 / New Mexico State Department of Education, Fiscal Year 1972 Funds 
at 2 (1973) (hereinafter referred to as New Mexico Fiscal Funds ). 

130/ 20 U.S.C. § 241. 



574 

35 

The Gallup-McKinley School District in New Mexico equipped its 

audiovisual center, available to all schools on a free loan basis, 

131 / 
out of Title I funds. The New Mexico Department of Education 

designated that center "to provide vicarious experiences" for 

Spanish and Indian students on the justification that some of the 

Title 1 money was given under the Migrant Education Program. The 

Department also stated that all but a few of the film distributions 

went either to Title I eligible schools or migrant children (even 

though these children were not in eligible schools). At the same 

time the Department admits that the films are available to all 

132 / 
schools in the district. 

Another violation of Title I guidelines found by the Fund was 

the use of such money to finance programs already provided for by 

133./ 
State funds. This is forbidden by the authorizing statute. In 

the Grants District, Title I funds paid for counseling services in 

eligible schools, while State funds financed the same services 

in schools ineligible for Title I funds, and in the Kirtland District 

physical education programs in eligible schools were paid for with 

Title I money while State funds paid for the same program in 



131 / An Even Chance at 33. 

132 / Response at 32. 

133/ 20 U.S.C. § 241e (a)(3). 



575 

36 

134/ 
Ineligible schools. New Mexico has recommended that these 

1.35/ 
practices be discontinued as violations of Title I guidelines. 

Since a total of $1,979,595 was allocated and spent under the 

Title I program in fiscal 1972 by New Mexico School districts in 

136 / 
and around the Navajo reservation, any misuse of funds involves 

'arge amounts of money--money which can and should be expended to 

iiq>rove the instruction given to Navajo children. 

In addition to Impact Aid and Title I money, public school 

districts can also receive aid for Indian students through the 6IA 

under the Johnson-O'Malley Act of 1934 (hereinafter referred to as 

137/ 
JOM) . In 12 lines of text this Act authorizes the Secretary of 

Interior to contract with any State or its political subdivision 

or agency for the ''education, medical attention, agricultural 

assistance, and social welfare, including relief of distress of 

138/ 
Indians ." 

The BIA regulations, governing the distribution of JOM funds, 
specify that to be eligible the contracting State (or school district) 
must submit a distribution plan and budget and must agree 
that It will continue to pro vide education and financial 

134 / An Even Chance at 35-36. 

j.35 / Supplement at 32. 36-37. 

136 / New Mexico Fiscal Funds , at 1, 2. 

137 / 25 U.S.C. 8 452. 

138/ Id. 



576 

37 

aid from all sources on the same basis as that for 

all other schools. Indians must be provided with "adequate 

139 / 
standards of educational service." JOM is not based on the 

needs of the individual Indian student but on the need of the contract- 
ing State for funds to provide an adequate education for Indians who attend 
its schools. This figure is arrived at after consideration of all 

other available aid and after there is evidence of a reasonable 

140 / 
tax effort on the part of the school district. The funds are 

141 / 
distributed "without reflection on the status of Indian children." 

According to the Federal regulations, the BIA administers the 

program to" accommodate unmet financial needs of school districts 

related to the presence of large blocks of nontaxable Indian-owned 

property in the district and relatively large numbers of Indian 

142 / 
children. . .which local funds are inadequate to meet." Thus, 

the purpose of the BIA regulations is similar to that of the 

Impact Aid program. The Federal aid is used to pay States to educate 

Indian children whose presence in public schools would otherwise 

create a financial burden, because those students reside In areas 

outside the reach of State and local tax revenues. 



139 / 25 C.F.R. § 33.5(e). 

140 / 25 C.F.R. e 33.4(b) and An Even Chance at 13. 

141/ 25 C.F.R. § 33.4(b). 

142 / Id . (Emphasis added). 



577 

38 

In fact, prior to 1958 when Impact Aid became available for 

Indian children, JOM was the basic source of Federal aid to districts 

serving Indian children. In 1958 Congress declared Impact Aid to be 

"in lieu of taxes" for operating expenses so that JOM could be 

freed to support special programs for Indian children. JOM is to be 

used for general operating expenses only when a district's need is 

so extraordinary that Impact Aid and other funding sources are 

inadequate, i.e., when a district is in such financial straits 

that schools will be forced to close unless JOM dollars are made 

available. Basing their justification on the "extraordinary need" 

rationale, many districts continue to use JOM for operating expenses, 

143 / 
to the detriment of special Indian needs. 

In practice the funds appropriated under the Johnson-O'Malley 

Act have been used to help States educate federally recognized Indian 

children living on or near a reservation. The money is generally 

split between "extraordinary" support funds and special programs to 

144/ 
benefit Indian students. But the funds are not evenly split. 

In fact, many districts receive no aid earmarked for special programs. 

For instance, in fiscal 1972 in the three Arizona counties over 

which the Navajo reservation extends, Apache, Coconino, and Navajo, 

no money was appropriated for special programs. 



143 / An Even Chance at 13. 
144/ Id. at 15. 



578 

39 

But all three counties received money for their teacher retirement 

145 / 
funds. New Mexico, on the other hand, did receive considerable 

JOM money for special programs and has proposed that two additional 

146/ 
language programs be financed with these funds. 

In a recent case the Federal district court for New Mexico 

praised the funding of "English as a second language" programs as 

"the kind of program for which Title I and Johnson-O'Malley money 

147 / 
should be used." However in the same case the court found many 

violations of the Title I and JOM laws and regulations, as charged 

by the plaintiffs who were mainly parents of Navajo school children. 

The court found that the Gallup-McKinley County School District was 

spending a disproportionate amount of local bond money for physical 

in^jrovements In Gallup schools which are predominantly non- Indian, 

while not spending enough on outlying schools in McKinley County 

148 / 
which are predominantly Indian. The district had also misused 

the JOM and Title I funds in other areas: the school nurse program; 

student counselors; administrative aid personnel; and the audio- 



145 / Arizona Department of Education, Division of Indian Education, 
Annual Report to the Bureau of Indian Affairs at 5 (1972) 
(hereinafter referred to as Arizona Annual Report ). 

146/ New Mexico State Department of Education, Annual Report to the 
Bureau of Indian Affairs (1972) (hereinafter referred to as New 
Mexico Annual Report ) . 

147/ Natonabah v. Board of Education of the Gallup-McKinley County 
School District, 355 F.Supp. 716 (D.C. N.M. 1973) at 728. 

148/ Natonabah at 720-723. 



579 

40 

149 / 
vlsxial programs. The court ordered the district to submit to 

150/ 
the court a plan for correction of these violations. 

Perhaps some of the abuses in the use of Indian education funds 

found by the court will be avoided in the administration of the 

newest federal program to aid Indian students, the Indian Education 

Act of 1972 (Title IV of the Education Amendments of 1972, known in 

151/ 
its drafting stages as the Kennedy-Mondale bill). Title IV 

provides Federal aid directly to local school districts and to tribal 

educational institutions for the purpose of meeting the "special 

educational needs" of Indian children and adults, and for the 

152/ 
training of teachers to aid in Indian education. But unlike 

the programs discussed above, this act makes specific provisions 

for Indian community participation in the planning, operation, and 

evaluation of Title IV funded programs. It also sets up a separate 

division within the Office of Education to supervise this and other 

Indian education programs with the aid of an advisory council made 

153 / 
up of Indians from across the nation. 

The Consnlssioner of Education is authorized by Title IV to 

determine the amount of money to which an applicant school district 



XA9 / Natonabah at 727-728. 

150 / Id/ at 725. 

151 / P.L. 92-318, 20 U.S.C. §§ 241aa-ff, 880b-3a, 887c, 1119a, 1121a, 
and 1221f-h (1972). 

152/ Id. 

153/ 20 U.S.C. §§ 1221f,g. 



580 

41 

Is entitled, based on the number of Indian children attending 

schools in that district. That number is multiplied by the average 

per pupil expenditure (the sum of all expenditures by local schools 

In the State, plus any State aid payments to those local schools) to 

154/ 
determine the amount of Title IV aid for any district. 

In order to qualify for aid, a local district is required to 

have at least 10 Indian students or half its student body composed 

of Indians; since the minimum requirement does not apply to Alaska, 

California, or Oklahoma or to districts on or near Indian reserva- 

i. 155 / 

tions , most of the schools which Indians attend can probably 

qualify. By special provision. Title IV funds are also 

available for "schools on or near reservations which are not local 

156/ 
education agencies" . 

Title IV money for improving the education of Indian children is 

supposed to be spent on two types of projects: one for planning and develop- 
ing new educational programs to meet Indian students' special needs, 
and the other for establishing and maintaining permanent programs 

for Indian education including the acquisition of equipment and 

157 / 
facilities . 



154/ 20 U.S.C. i 241bb. 

155 / 20 U.S.C. § 241bb(a)(2)(B). 

156 / 20 U.S.C. i 241bb(b) Note : "Local educational agency" is defined 
to include schools run by non-profit tribal organizations at 20 U.S.C. 
■ 880b-3a(a). 

157/ 20 U.S.C. § 241cc. 



581 

42 

An application for Title IV funds must: assure the Commissioner 

that the applicant will supervise its programs; outline the program 

content; and if for use in planning, must show the funds are needed 

because of the innovative nature of the project or because of the 

159/ 
lack of local planning funds. The local district must also 

evaluate its programs annually, set up controls to ensure that 

Title IV grants are not used to supplant available local and State 

funds, and provide for accounting and fiscal controls over 

159/ 
expenditures . 

These controls are similar to those written into the Title I, 

Iiq>act Aid, and JOM statues and regulations. Fiscal and accounting 

controls, however, are new. But the most significant difference 

between Title IV and other Indijin e^ducation legislation is that 

Title IV requires that local programs be developed in open consultation 

with the parents and teachers of the children eligible for Title IV 

assistance. A committee selected by the community, of which half 

must be parents of participating students, has absolute authority to 

approve or disapprove the local program. In theory, then the 

program is subject to considerable local control. Perhaps if this 



158/ 20 U.S.C. § 241dd(a)(l)-(3). 
159/ 20 U.S.C. § 241dd(a)(4)-(6), 



582 

43 

proAd.sion is vigorously enforced by the Connnissioner the Indian 

communities, which are supposed to benefit from Title IV aid, will 

be able to avoid some of the misuse of funds that was found in "the 

Natonabah decision. 

Another provision of the act aims directly at avoiding the 

substitution of Federal funds for State aid. No payment may be 

made to districts whose State aid has been decreased in the past 

two fiscal years, nor to districts whose eligibility for State aid 

160/ 
was determined after adding in that district's Title IV allocation, 

(the latter technique would increase Federal aid to the district and 

have the effect of decreasing the need for aid from the State). 

Part B of the Indian Education Act provides for the establishment 

of pilot programs to improve education for Indian school children, 

including projects to train teachers in the skills needed to meet 

161/ 
the special needs of these students. As with the other sections 

of the act, the Commissioner may not approve any money 

under Part B unless he is satisfied that the parents, teachers, 

and other representatives of the community have had final approval 

of the program and will have adequate opportunity to participate in 

162 / 
its operation and evaluation. 



160 / 20 U.S.C. § 241ee. 
161 / 20 U.S.C. S 887c. 
162/ 20 U.S.C. § 887c(f). 



583 

44 

The Census data cited above indicated that the Navajo adult 

has a low educational achievement level, as measured by the number 

of grades completed. Of those 25 years or older less than 19 

163 / 
percent had completed high school in 1970. Yet prior to 1972 

not one of the Federal aid to Indian education programs specifically 

included funds for adult education. 

Fortunately, Part C of tne Indian Education Act recognizes the 

need. It provides funds for testing the viability of literacy 

programs and high school equivalency teaching methods presently 

164/ 
in use. Part C also provides money to assess the extent of 

adult illiteracy and the lack of high school education in the Indian 

165/ 
community. Again the act provides that no money may be spent 

under this section unless the Commissioner is satisfied that 

adequate community participation did and will take place in the 

166 / 
operation of these adult education programs. 

Besides requiring Indian participation in the projects at the 

local level, Title IV is innovative in providing for Indian 

participation at the top level within the Office of Education. An 



163 / Census Table II at 146. 

164/ 20 U.S.C. § 1211a. 

165 / 20 U.S.C. § 1211a(a)(4). 

166/ 20 U.S.C. § 1211a(c). 



584 

45 

Office of Indian Education is established to administer the act. 

This office will be headed by a Deputy Commissioner of Education, 

selected from a list of names submitted by the National Advisory 

167 / 
Council of Indian Education, and appointed by the Commissioner 

of Education. 

The Council, created by this legislation, consists of 15 

Presidential appointees who must be Indian or Alaskan natives, 

168 / 
and representative of the entire Native American community. 

The Council has responsibility for advising the Commissioner on the 

administration of Title IV programs, including the establishment of 

regulations; review of funding; evaluation of all Indian Education 

169 / 
projects; and submission of annual reports to Congress. 

Whether the Commissioner lives up to his/her responsibility to 

assure that the Indian community has a genuine role In formulating, 

supervising, and evaluating Title IV programs at the local levels; 

whether the President appoints members to the Council on Indian 

Education who are genuinely concerned with the educational needs 

of their people--the answers to these two questions will, to a great 

extent, determine whether the community control provisions of this 

act will prevent abuses that have occurred in the Title I, JOM, 

and Impact Aid programs. No funds were appropriated for Title IV 



167 / 20 U.S.C. I 1221f. 
168 / 20 U.S.C. S 122Ig. 
169/ Id. 



585 

46 

In FY 73. 17.5 million was appropriated for FY 74 but it will be 

at least a year before any useful assessment can be made of 

Title IV' s effectiveness. 

The Gallup-McKinley school district's budget request for Title 

IV Assistance this fiscal year reflects some of the improvements 

the Indian Education Act was designed to bring about. The 

budget requests $5,000 for an Indian Parent Committee, but does 

not specify the duties and powers of the committee, or how members 

are chosen. Although this request is less specific than might be 

desired to give full effect to Title IV, nevertheless the underlying 

intent has been observed--the committee does exist, and it does 

possess, by statute, an absolute authority to approve whatever 

UQJ 
program is finally submitted by its district. 

The Gallup-McKinley proposal contains some proposals which reflect 

the purpose of Title IV: bilingual-bicultural programming; American 

Indian studies; and home/school liaison counseling. Other items may 

reflect the old problem of use of Federal funds for projects which 

benefit the population generally, rather than the Indian students 

specifically, such as the requests for bus stop shelters and library 

material centers. Although there may be no intent to violate 



170/ 20 U.S. C. §241dd(b)(2)(B). 



586 

47 

the purpose of the Act by spending Title IV funds on non-Indian 
students, the budget should be examined carefully by the Office 
of Education to ensure that all this money is, in fact, spent only 
for the Indian students of Gallup-McKinley School District. 

While the district court found that many of the Gallup-McKinley 
violations of Title I, JOM, and Impact Aid may not have been 

intentional, they nevertheless were found to be significant enough 

171 / 
to warrant court action. This decision may signal a new step forward 

in Federal judicial supervision of programs paid for by Federal 

taxpayers and designed to benefit Indian school children, but which 

heretofore have avoided public scrutiny. 

Perhaps this judicial interest will encourage vigilance on the 

part of the BIA, the Office of Education, and other Federal agencies 

charged with supervising the welfare of Indian school children. A 

quarter of a century later, it is well documented that Federal funds 

for Indian Education have been disastrously misused; only if these 

funds are properly spent can there be any hope that the dismal 

failure of Federal and local schools to educate Indian children will 

be remedied. 



171 / See Natonabah generally. 



587 

48 
EMPLOYMENT 

A substantial number of laws have been passed at the Federal and 
State levels, dealing with the economic and social problems of the 
Navajo population. A direct result of these laws has been the implemen- 
tation of programs developed to serve and improve the economic, social, 
and political status of the Navajo Indian, as well as members of other 
tribal groups. Despite these attempts, the Indian still maintains the 
poorest economic position in relation to all other minorities. The 
unemployment rate, in particular, compared with national averages, 
reveals an acute problem. 

The national economy has recently faced many serious problems, 

and the results have adversely affected most Americans. The national 

172 / 
unemployment rate, for the year 1972, was 5.67o. But bleak as 

the national situation may seem, the Navajo population has far less 

chance of being employed than other Americans. Department of 

173 / 
Interior (BIA) Indian employment statistics for 1973 show the 

following contrast. Thirty-five percent of the Navajos are unemployed. 

This percentage translates to 16,567 unemployed out of a total labor 

force (16 and over) of 47,317. An additional 9,845 members were 

only temporarily employed. The combined figures equal a staggering 

174/ 
56% representing those Navajos who work either part-time or not at all. 



172 / Bureau of Labor Statistics 
173 / See Table 20 at A-76. 
174/ Id. 



588 

49 

BIA officials at Window Rock offer another interpretation of these 

figures. They agree that 16,567 are unemployed but they clarify 

this figure by indicating that of those 30,750 Navajos classified 

as employed, only 20,905 are permanently employed--9,845 work only 

on a part-time basis and most of these Indians work at traditional 

crafts (rugweaving, silversmithing) because they are unable to find 

permanent employment. 

While sources may vary in their statistics on the problem, the 

conclusions are undisputed. In every survey, the Navaios' share of 

175 / 
available employment is far less than an equal or proportionate one. 

A comprehensive employment survey of the Navajos was done in 
176 / 
1969. This Navajo Manpower Survey conducted by various State 

and Federal agencies, in cooperation with the Navajo Tribe estimated 



175 / Census Bureau figures vary greatly from those of the BIA and the 
Navajo Tribe. The Census report on American Indians, 1970 (Table 13 
at 166) estimates the Navajo civilian work force at 18,361, with an 
unemployment rate of 11.37o. This figure is still considerably greater 
than the general unemployment rates resported by the three States in 
which the reservation lies: Arizona (preliminary figures, June 1973) 
4.2% (based on applications for employment at the State employment 
agency); New Mexico 7.4%; Utah 6.0% (SOURCE: U.S. Department of Labor). 
One of the major reasons for differences between Census and BIA figures 
is that census data are based on self-identification, whereas statistics 
from other sources are frequently based on tribal enrollment. Persons 
whose names appear on tribal rolls may classify themselves as some race 
other than Indian, such as white or Negro, in the Census. Another 
major reason is that in the Census, about 207. of the Indian population 
did not report any tribal affiliation. 

176 / Navajo Manpower Survey . (Navajo Tribe, Indian Health Service, 
Bureau of Indian Affairs, Arizona St^te Employment Service, Office of 
Navajo Economic Opportunity, 1969.) 



589 

50 

that In 1969 32,350 persons were employed, (15,750 men and 16,000 

women) of whom 23% were engaged in traditional pursuits such as 

sheepherding, rugweaving, and silversmithing. The study further 

indicated that of this total, some 24% were classified as essentially 

unskilled, 8.8% were classified as skilled, and 3.7 as semiskilled. 

177/ 
These figures account for 60%, of the employed Navajos. 

At the time of the survey, 37.3% of the total Labor Force 

178 / 
was employed, while 62.7% were non-employed. The definition 

of "employed" used in this study is identical to the national 

definition, making valid any further comparisons ot the Navajo 

with national statistics. In 1969, 37.5% of the employed Navajos 

179 / 
were working for the Federal Government. Government employment on 

the reservation is mainly provided by the Bureau of Indian Affairs 

and the Indian Health Service. For example, combined BIA salaried 

and hourly employees totaled 5,172 persons, as of June 1972; of 

180 / 
these 3,470 were Indian -- 1,600 male and 1,870 females. An 

additional 28.3% in 1969 were engaged in the services sector, 

comprised to a great extent of administrative employment for the 



177 / 30% were engaged in professional, clerical, service, and fanning 
occupations. The remaining 10% were not reported. 

178 / Navajo Manpower Survey at 20. 

179/ Id. at 35. 

180/ See Table 25 at A-81. 



590 

51 

tribe. Some states and local governmental units also maintain 
reservation operations, but the numbers employed are very small. 

These figures indicate that in combination 65.87o of those 
Navajos employed on the reservation work for Government. Therefore, 
the area's economy is heavily dependent upon Federal funding to 
sustain that employment. 

Agricultural employment plays a large role in the Navajo 

economy. Most of the farm labor performed by Navajos is migratory. 

Considering the employment situation on the reservation, it is 

perhaps not surprising that many Navajos leave the reservation 

each summer and fall to find work. Because of the seasonal 

nature of the work these men and women are unemployed a good 

part of the year and even when they are employed the living 

181 / 
coi.ditions they face are especially severe. Not by any ot:andara 

can the migrant laborer be considered remuneratively employed. 
Another factor that contributes substantially to the un- 
employment rate, is the conduct of industry in the private 
sector. Tne great majority of private employment on the Navajo 
reservation is through companies which contract with the Navajo 
tribe to perform a variety of services for the development of the 

reservation. These contracts cover a wide range of activities 

182/ 
from generating power to building railroads. 



181 / Navaio Times . May 17, 1973. BI 

182 / Department of Interior, Office of Equal Opportunity, Special 

Investigation Report: Navajo Project, Page, Arizona, Jan, 10-21, 1972, 



591 

52 

The Navajo Preference Clause, which is included in the enabling 

agreements before the Navajos enter into a contract with private 

industry, requires all unskilled labor to be drawn from "local 

Navajos" available, conditioned only on their ability to meet 

183 / 

the general employment qualifications of the contractors. 

Also, Navajos are to be employed in all craft and other skilled 

jobs for which they can qualify on a "local" and then on a "non- 
184/ 
local" basis. 

Traditional union hiring hall requirements, and the consequent 

severe underutilization of qualified Navajo manpower add to the 

185 / 
problem in the private sector. A problem with unions involves 

referral policies which give preference to present or former union 

members, the vast majority of whom are male Caucasions. This 

186/- 
policy has caused Indians to be the last to be referred. 

Few attempts, if any, have been made to circuinvent these practices 

in order to reach the unemployed Navajos, many of whom are qualified 

to fill all unskilled and some skilled jobs. 



183 / Id. at 4. 

184/ Id. 

185 / Id. at 3-5. 

186/ Id. at 4. 



592 

53 

The Navajo reservation is remote from non-reservation 

population centers; reservation residents, therefore, have little 

meaningful interaction with the majority population. Most BIA 

surveys show, as one might expect, that due to cultural biases 

and anticipated discrimination, a majority of Navajos indicate 

186a / 
resistance to relocation off-reservation for employment. Thus, a 

program directed to encouraging and aiding the out-migration of 
trainable Navajos to areas within the United States where employ- 
ment opportunities do exist would have limited applicability. 
Also from a practical standpoint - the concept of a reservation 
would have little meaning, if its inhabitants had to leave in 
order to obtain employment. 

A number of reasons can be cited for the Navajos' massive 
unemployment problems. In contrast to the U.S. as a whole, the 
Navajo area is essentially an underdeveloped area. It is isolated 
from the growth and prosperity of the "mainstream" U.S. The 
social and economic isolation experienced by large segments of 
other minority and ethnic groups is compounded for the Navajo by 
the geographic isolation of his reservation. The problems of the 
Navajo have been compounded by the traditional neglect of Indian 
problems by State and Federal agencies empowered to aid Indians, 
the lack of heavy industry or other large employers in the region, 
and the societal and cultural pressures emanating from within as 
well as from outside the confines of the reservation. 



186a / National Manpower Survey . 



593 

54 

The solution Co the underutillzatlon of Navajo manpower 
must then lie in the development of a local economy strong enough 
to absorb those willing and able to work. This is a massive task 
but It is not an impossible one. 



594 

55 

ECONOMIC DEVELOPMENT 

The bleak employment picture described in the preceding 

section, is reflected in the economic condition of individual 

Navajos, While there have been some gains in other areas, the 

economic gap between the Navajos and the rest of the U.S. population 

187/ 
is growing. From a difference of $2,710 in 1970, the gap between 

U.S. and Navajo per capita income stretched to $3,021 in 1972. 

Per capita income of the Navajo still remains at less than 

188/ 
$1,000. 

189 / 
Referring to this problem as a "developing crisis," the tribe 

adopted a Ten Year Plan to move its economy forward at a remedial 

pace. The tribe faces :-;a:iy physical, fiscal and policy problems 

in undertaking this development. 

Land and Water 

More than half (557o) of the 25,000 square miles of Navajo 

land area is classified as desert which supports scattered herds 

190 / 
of livestock. Nearly two-fifths (37%) is steppe, a semi-arid 

land also used for grazing, and about 87o is forest and mountain 



187 / Navajo Ten Year Plan. 

188/ Idj. at 8. See Table 3 at A-59. 

189/ Navajo Ten Year Plan. 

190/ Id. at 9. 



595 



country, used for lumber production and with attractive potential 

191 / 
for outdoor recreation. 

The tribe's development plans call for restoration and con- 
servation of rangelands badly eroded by overuse in the support of 
livestock. Priority is also given to perfecting Navajo water, 
rights. The Navajo are legally entitled to the water they can use 

beneficially from the streams which flow through or border the 

192 / 
reservation. Because of a lack of dams, canals ^nd irrigation 

systems, the tribe has never been able to make full use of these 

193 / 
waters. 

In 1962, Congress authorized the Navajo Irrigation Project, 

194 / 
but funding has been grossly inadequate. '^° complete the project 

by 1986, |;he Ten Year Plan estimates the need for $150 million in 

195 / 
funding through 1982. Its completion would bring 110,000 

acres into irrigated agricultural production. 



56 



191 / Navajo Ten Year Flan. 

192 / Id . (See appendix 7 at A-47 for a discussion of legal problems 
Involved in the water rights issue.) 

-193 / Id. at 24. 

194 / Id. at 25. 

195 / Id. at 34. 



596 



57 



Nearly one- third of all Navajo families spend some time in 

Stock raising and small fanns, but with only a few exceptions, 

196 / 
these agricultural incomes provide only bare subsistence. The 

Ten Year Plan recognizes that the planned water diversion system 

will not be adequate in itself for developing the tribe's 

agricultural economy. To realize the Irrigation Project's 

potential, capital investment will also be needed in farm structures, 

equipment, livestock, other capital goods and in working capital 

197 / 
reasonably equivalent to general requirements in the U.S. 

Since the Navajo have little or no savings to invest in agricultural 

enterprise, new credit forms and a substantial amount of "seed 

money" public investment will be needed in equipment, facilities 

198 / 
and agii cultural technology. 

Industrial Development 

1. Energy resources: 

Navajo energy resources -- oil, natural gas, coal and uranium 
-- are the major sources of Navajo Tribal Income. Oil leases and 
royalty revenues have made it possible for the Navajo Tribe to 
meet expenses ranging from government to clothes for school children. 



196/ Navajo Ten Year Plan. 
197 / Id. 
198/ Id. 



597 

58 

These funds, however, have not been sufficient for capital 

development. To the extent that revenues from non- replaceable 

resources must be utilized to meet welfare needs, they are, in 

effect, being depleted without generating present or future income. 

Oil and ^as reserves are being depleted; and- cdal, the other 

major Navajo energy resource, cannot replace oil and gas revenues. 

199 / 
Coal reserves are nevertheless extensive, and are being utilized. 

Plans are nearing completion for seven coal gasification plants, 

each costing $400 million, to be located on the eastern edge of 

200/ 
the reservation. El Paso Natural Gas Company has proposed 

201 / 
three of the plants. Texas Eastern Transmission Corporation 

and Pacific Lighting .Service Company of Los Angeles want to 

202 / 
build and operate the other four. 

The gasification plants will , if approved, create jobs for 21,000 

persons during a three-year construction period and will produce a 

permanent total payroll of $10 to $12 million for 750 



199/ Id. at 9. 

2007 Business Weejc . May 18, 1973 at 104 

201 / Id. 

202/ Id. 



598 

59 

employees. In addition, the tribe will receive a share of the 

204 / 
gas for leasing the sites. 

There has been some opposition inside and outside the tribe 

to the strip mining operations which would supply the gasification 

plants. Critics say the .lafid will never be reclalmable for any 

other use and therefore the tribe is not receiving adequate comDensation 

205 / 
for that or for the coal mined and the water used. Replying to 

charges, the Peabody Coal Company says the royalty rate paid to the 

tribe is "very high," amounting "to nearly 10 percent of the price 

206 / 
of the coal." 

2. Timber 

The 472,716 acres of commercial timber located on the reservation 
207/ 
are another profitable asset. The tribe operates one of the 

largest saw mills in the U.S., employing some 500 Navajos, with a 

208 / 
payroll of nearly $2 million. Members of the tribe are stock- 

209 / 
holders by virtue of their tribal membership. 



203 / Prior experience in energy development has not always meant 
that Navajos would get a substantial portion of the jobs created. 
For example, only approximately 8% of the construction crews 
which built the Four Corners Facility were Navajo. 

204 / Business Week, May 18, 1973 at 104. 

205 / See Redhouse. Navajo Coal Royalties Too Low? The Navajo 
Times, January 4, 1973, at A-4; Id. March 10, 1973; and Id. 
April 12, 1972, 

206/ The Navajo Times, February 22, 1973, at A-5. 

207/ Navajo Forest Products Industries, Navajo Pine Progress, May, 
1970 (hereinafter cited a£ NFPI Report) . 

208 / Id. 

209/ Id. 



599 



60 



Quoting a total sales value of $7,770,468 an Increase of 

$2,134,641 over the previous year, the May 1970 Report of the 

Navajo Forest Products Industries shows a net profit (for the 

combined enterprises) of $1,913,419 with capital assets figured 

210 / 
at $16,999,882. In operation since November 1958, the various 

facilities produce sucti products as Navaj--' Pine lumber (the -primary 

end product), pulp cnips for paper, mulch and landscaping bark 

211 / 
and a variety of related products. 

3. Large Scale Industry 

The Quarterly Report of the Navajo Office of Program Develop- 
ment describes the first quarter of 1973 as seeing "the most con- 
certed and productive effort on behalf of the Navajo Tribe to con- 

212 / 
tact and attract industry" of any time in the tribe's history. 

So far, however, only minor successes have been achieved in 
attracting large scale industry. 



210 / NFPI Report 
211/ Id. 



212 / Quarterly Report - January, February, March 1973, at 1 
(hereinafter cited as Quarterly Report). 



600 



Falrchild Semiconductor, manufacturer of electronic devices, 

transistors and integrated circuits, is the first tenant to 

occupy one of the 13 sites in the 50-acre Shiprock Industrial 

2iy 
Park, one of three such parks on tribal lands. Fairchild 

employs 760 Navajos out of 950 employees in a 33,600 square 

2lV 
foot 'facility leased to the company By. the tribe: 

Three enterprises -- Window Rock, Grace-Davidson Chemical 

Division, the Navajo Block Company, and the Eastern Navajo Prefab 

Homes Company -- are presently located in the 50-acre Church 

215/ 
Rock Industrial Park site just northeast of Gallup. 



213/ New Business and Industrial Opportunity in Navajoland 
(the Navajo Tribe, Window Rock), 



2W Id. 
215/ Id. 



61 



601 

62 

4. Small Businesses. 

The most common type of business on the Reservation Is the general 

merchandise store, know as a trading post. It Is also considered 

the "llfeblood" of the Navajo business community because of the credit 

2.16/ 
system it supports. Approximately 80 percent of this key sector of 

217 / 
the Navajo economy is controlled by non-Navajos, and a recent Federal 

218/ 
Trade Commission investigation showed it to be rife with abuses. 

Some traders, according to the FTC report, intercepted welfare and social 

security checks, forcing the recipients to sign the checks over to 

pay for debts: 

Often the customer is not even shown the 
amount of the check... If the Navajo insists 
on obtaining his check, he may be confronted 
with threats of withdrawn credit. 219 / 

Gasoline service stations are the second most common retail 

businesses and have the greatest absolute number of Navajo 

220/ 
entrepreneurs. One of the main reasons for this is the low amount of 

starting capital necessary. There is also a tribal regulation which 

221 / 
limits ownership of gas stations to Navajos. 

In all, only 33 percent of retail establishments on the -Reservation 
222 / 
are Nava jo-owned. Many problems stem from the basic scarcity of retail 

establishments in proportion to the Reservation population- While 

there are 171 retail establishments on the Reservation, the surrounding 



2^16 / K. Gilbreath, Red Capitalism, An Analysis of the Navajo Economy, 11 

(1973) (hereinafter cited as Red Capitalism). 
217 / Id. at 14. 
218 / See Federal Trade Commission Los Angeles Regional Report, The Trading 

Post System on the Navajo Reservation (June 1973). 
219 / Id. at 36. 
220 / Red Capitalism at 14. 
221 / Id. 
222/ Id. at 15. 



602 

63 

counties of McKinley, San Juan, Coconino and Navajo have two to three 

times as many retail establishments -- although the Reservation has two 

223 / 
and one-half times as many people as the largest county (Coconino). 

There are obvious disadvantages and even hardships in this situation -- 

not. the least of which are high prices -due to a lack of competition among 

retailers. 

There is only one wholesale business on the Reservation — a Navajo- 

224/ 
owned lumber and construction materials business. 

In the area of service establishments, the Navajo entrepreneur is 

proportionately more common than in the retail sector. Fifty percent of the 

225/ 
Reservations service establishments are owned by Navajos. 

One relatively new type of business on the fieservation is the 

trailer court and the facility for camper trailers. Of the six 

226 / 
establishments of this type, five are owned by Navajos. 

While there is an obvious pocenclal for further development of the 
Reservations small business sector, it is also certain that even In 
Navajo hands, this sector alone could not substantially change the 
economic realities that presently face the tribe as it strives toward 
economic self-determination. 

Slightly larger businesses, owned by the tribe, constitute an intermediary 
step between the small business sector and Industry. 



22 3 / Red Capitalism at 20. 

224/ Id. at 15. 

225/ Id. 

226/ Id. 



603 

64 

One such recent developnnent is Navajo Optics, which produces 200 

pairs of glasses a day at its Window Rock plant. Another, United 

Electric Co., with 75 employees, has an order for 10,000 electric 

227 / 
heating panels from the Navajo Tribal Housing Authority. 

5. Traditional Crafts 

The Arts and Crafts Guilds have experienced a modest degree 
of success but have never been able to set up the sort of reservation- 
wide crafts development program which could begin to return to the 

Navajo people the economic benefits the industry is capable of 

228 / 
producing. A major need is to by-pass middlemen such as 

traders who offer only a pittance for items sold to tourists at much 

higher prices. 

Recently non-Indians have begun to mass-produce Navajo-type rugs 

and silver crafted jewlry. The practice poses a threat to the market 

value of Indian cratts as consumers begin to doubt the authenticity 

229 / 
of arts and crafts. 

6. Tourism 

Much of the Navajo reservation, even the arid and rocky area, 

is spectacularly beautiful and tourism and outdoor recreation could 



221/ Business Week . May 19, 1973 at 104. 

228 / Annual Report of the Navajo Nation, January 1973 at 3 (hereinafter 
cited as Navajo Annual Report). 

229/ Id. at 2. 



604 



65 



have considerable economic potential. Lake Powell, which fronts 

on a stretch of the northern border of Navajo country, is viewed by 

230 / 
the tribe as a major potential tourist attraction. At present, 

however, there is no highway and very few roads on the Navajo side 

231/ 
of Lake Powell. All roads which have been built so far (and 

built with public money) lead to non-Indian retail markets, lodges, 

232./ 
marinas and camping sites. 

A final engineering report has been prepared for the $18 million 

233./ 
Padre Point development on Lake Powell. The tribe also has 

tentative plans for more than a dozen other major recreation pro- 

234 / 
jects. Initial investments would require 20 percent of tribal 

and 80 percent of public funding, if past funding ratios for this 

235_/ 
type of tribal enterprise continue to hold true. Therefore, 

236 / 
while there is an abundance of planning in this area, develop- 
ment of the Reservation's toutism potential is overwhelmingly 
dependent on public funding. 



230 / Navajo Ten Year Plan at 9. 

231/ Id. 

232./ Id. 

232_/ Business Week . May 19, 1973 at 104. 

234/ Navajo Ten Year Plan at 23. 

233/ Id. at 33. 

236/ See Navajo Ten Year Plan, at 22-23, 32-33. 



605 

66 

7. Navajo Tribal Utility Authority. 

Under the general management of a Navajo, the NTUA provides a broad 

range of services to the Reservation. At present, however, approximately 

61 percent of Navajo homes are without electricity, and 80 percent are 

237/ 
without water and sewer service. In off-reservation areas of the 

US 99 percent of the homes have electric service available and more 

238 / 
than 90 percent have running water and sewer facilities. 

Barriers to Economic Development 

1. Capital/Credit 

The availability of investment capital is as vital to economic 
development in Navajoland as it is in any developing nation. Accord- 
ing to tribal figures, accumulated capital reserves derived from 

239 / 
oil revenues now total about $50 million. Few of these funds 

are available for investment in economic development, but must 

be carefully guarded against the time when oil depletion reduces 

tribal income below the amount necessary to maintain essential 

240/ 
services. 



237 / Navajo Ten Year Plan at 21. 

238 / Id. 

239 / Navajo Ten Year Plan at 11. 

240/ Id. 



606 

67 

The difficulty which Indians have in obtaining credit for businesses 

has been noted in practically every study on Indian economic develop- 

241 / 
ment. Special institutions do exist--SBA, EDA and the Tribal 

Revolving Loan Funds, for example--but these institutions have only 

a fraction of the loan capital needed to meet current requests and 

242 / 
are not structured to render the required services. 

The development of franchise businesses on the reservation could 
help Navajos obtain financial capital and important managerial training. 

2. The Process 

Starting a business on the Navajo reservation involves endurance; 
the process is time-consuming and seems designed to confuse, if not 
discourage, the prospective entrepreneur. 

All business activity on the reservation involves a contract 

between the owner and the Navajo tribe. All such contracts, involving 

either Indian lands or tribal funds, must be approved by the Secretary 

243 / 
of the Interior. In the early 1950' s by delegation from the 

244/ 
Secretary, authority to approve such contracts was given to BIA 

Area Directors who now sign off on virtually all business leases. 



241 / Navajo Ten Year Plan at 31. 

242 / Id. 

243/ 25 U.S.C. § 81 (1958), as amended. 



244 / Pursuant to 1950 Reorg . Plan No. 3 § 1,2 (May 24, 1950) See note 
under 25 U.S.C. §81. 



607 

68 

Those new businesses which do not require the use of reservation 
land but involve the use of tribal monies, need BIA approval; however, 
the process is not nearly so complicated as that required for businesses 
which need tribal land on which to operate. 

Land on the Navajo reservation is not individually owned, nor 

does the tribe actually own it. Navajo land is held in trust by 

the Federal Government for the tribe which exercises control over 

use-rights to the land but cannot sell it under this arrangement. 

245 / 
Reservation land can only be leased from the tribe with the approval 

of the BIA. The process is arduous. An individual or company must 

present his/her site request to the appropriate BIA Area agency (there 

are 5 agencies on the Navajo reservation) and at the same time get 

approval for the use of that site from the local chapter in which 

his site is located. This is because most land is already held 

247 / 
through inherited use-right by Navajo families and it is up to that 

local family with the approval of the chapter to allow transfer of the 

use-right to land. The request is next submitted to the Tribal Council 

for approval, and finally to the BIA Real Property Management branch 

where the lease is drawn on terms deemed fair to the tribe. All of 



245 / Red Capitalism at 40, 41. 
246 / Id. at 43. 
247/ Id. at 40. 



608 

69 

this may take up to 5 years or more to complete, with a request often 

248/ 
being sent back and forth for further information. 

Acquisition of the lease is not the end of the process for the 

eager entrepreneur. He/She must also get a trader's license from the 

tribe and file a performance bond guaranteeing payment of rent on the 

249 / 
lease. 

There are, in addition, a number of other arrangements to be made 

in connection with starting a business, many of which will also require 

tribal approval, either by the Tribal Council or its Advisory Council. 

The Chairman of the Navajo Tribal Council has recently made a 

250 / 
statement describing the relationship, as he understands it, 

between resolutions passed by the Council and BIA' s decision as to 

which of these resolutions require BIA approval. The relationship is 

by no means clear. Copies of all resolutions are sent to the BIA 

office where they are separated into 3 categories and stamped "A'', 

"B", or "C" . "A" resolutions require Wash_.igton app^o.al; """ 

resolutions require approval from the Area Director; "C" indicates that 

no BIA approval is necessary. The standards for this categorization 



248/ Id. at 49. 

249 / Id. at 45. 

250 / Hearings Before the Subcomm. on Indian Affairs of the Senate Comm. 
on Interior and Insular Affairs, August 30, 1973, Statement by Navajo 
Tribal Council Chairman Peter McDonald. 



609 

70 

are not published nor do they seem to be communicated in any other 
way. 

By any standard the steps prerequisite to starting a business on 
the Navajo reservation are designed to frustrate, and it is hardly 
surprising that fey have the patience to wait an undertermined period 
of time for an unpredictable result. 

3. Services 

Although natural resources and manpower, two prime components of 

development, exist , many secondary factors affect the development 

attractiveness to outside companies and capital. A manufacturer's 

access to markets is an important consideration in plant location. 

Transportation facilities on the reservation are severely limited. 

Roads generally have been built only to link the various government 

251 / 
facilities--schools , hospitals and government offices. Only 1,370 

miles of roads are paved; this is little more than one- third of the 

ratio of paved roads to square miles in the rural areas of the States 

surrounding the Navajo reservation. Other modes of transportation are 

even more limited. No major rail facility has shipping depots on the 

reservation. Air transportation is limited to small charter services. 



251/ Navajo Ten Year Plan at 21. 



610 

71 

Companies also often require physical facilities; sewers, paved 
streets, etc. These do not exist in any substantial quanity. 

Another serious factor for the outside private sector developer 
is the social isolation of the reservation. Companies which would have 
to relocate predominantly Anglo staff to man the facility — at least 
until Navajo managerial staff was developed--tend to be unwilling to 
come to the reservation with its harsh climate, scarce supply of 
housing, and absence of traditional urban social and cultural facilities. 



611 

72 

^. Economic Development: Summary 

In many respects, the problems faced by the Navajo tribe in the 
field of economic development parallel those problems which many 
developing nations must overcome. 

Having traditionally relied on an unscxupulous class, of traders 
who expropriated profits without aiding significantly in the 
development of an independent economy, the tribe is now attempting 
new means of retail merchandising. 

In terms of development on a larger scale, the Navajos are 
hampered by their lack of capital for developing the rich natural 
resources of their lands; hence, the apparent necessity for out- 
side developers. But the primary interests of such outsiders 
lie in profits alone and they generally are not concerned with 
the genuine development that is necessary to significantly 
raise the standard of living on the. reservation, except as a 
byproduct of "progress". 

The tribe has some political control, but only a degree of 
economic independence. Despite such bright spots as the Navajo 
Forest Products industries, the large developments are 
essentially controlled by those who control the larger economy. 
Although these companies pay royalties for the lease agreements, 
It has been alleged in recent times that considering the damage 



612 

73 
done to the environment, and perhaps the Navajo lifestyle, the 
price paid by Industry Is not compensatory. 

The Navajo tribe has maintained a tradition and culture that 
is distinct from that of the larger society. This culture has 
an Impact on wh^t specific, types of development tribal members 
may deem desirable or undesirable. For example, traditional Navajos 
do not believe that natural resources -- particularly the. land, 
because it is sacred -- should be disrupted or changed in the 
process of development. Another consideration will be the potential 
Impact of any type of Industrialization on the livestyle of a 
basically rural people. 

Nevertheless, the tribe has continued cautiously with an 
ambitious ten year development plan which portends better things. 
Hopefully, when concerned Navajos with sufficient expertise con- 
tinue the present trend towards control of those programs which 
determine the destiny of the people, some success will result. 
But until the Federal Government becomes more concerned with the 
plight of the tribe, caused in no small part by past Federal 
action and Inaction, the full development of tribal resources, 
on terms defined by the Navajo people, will remain a very distant 
goal. 



(See Exhibit No. 6 for appendix 1 of this report.) 



613 



APPENDIX 2 



A-4 



T 1' ;^ • r 



cc- o 




SAfvJ JUAN 



FLACSSVAPP 



KAVErOTA 






CHItVL.b= 






LI 



1^.\U 



T CO 



GT 



FARIV:SrViC3TOM 



uj==" 



CATEC 



r3LCC!f\1 - 

PrJZLD 



JEIVIEZ 

rviT. 



GALLUP - 

rv.:: Kir%iLSY 

ca. 



.: ': A 



r 



CU3A 



GRANTS 



"7 



- ^ 



■PUBLIC SCHOOL DISTPJCTS^C] 



614 

A-5 

APPENDIX 3 

RESERVATION M,\HP0\;ER ANALYSIS 

1. The Navajo Pvcscrvation 

A. Availability of Programs and Services: 

1, Manpower Program Inventory - 

The Navajo Reservation located in the Southwestern state of Arizona, 
New Mexico, and Utah has by far the largest complement of Manpov;er Prograr3. 
Of the reservations sampled the Navajo receives the most funds and pro- 
gram slots. A program inventory has shown that the Navajo Reservation has 
the availiability of the following Manpov/er Programs: (1) CEP; (2) K'YC; 
(3) MDTA (OJT and Institutional); (4) NAB/JOBS; (5) Pubiic Service 
Careers; (6) Operation Mainstream; (7) E.E.A. (PEP); and (8) \."IK. In 
addition to these programs the Employment Security Commission of Arizona 
provides soma services as does the Bureau of Indian Affairs through thair 
Social Services tir.d Eu.ployr.ent Assistance departments. 

While adhering to the basic concept and structure mandated by the De- 
partment of Labor the Navajo apply their Manpower Programs to meet their 
most pressing needs. These needs were found to primarily exist with the 
youth and the older worker who lack primary vocational skills and basic 
education. The following is a narrative discussion of the specific stresses 
and services undertaken by each program on the Navajo Reservation. 

a. Concentrated Employment Program (CEP) : 

The Navajo CEP is a comprehensive approach to solving the educational 
and unemployment problems on the Navajo Reservation. This CEP's primary 
purpose Is to find meaningful employnont opportunities for its cnrolleos 
on the Navajo Reservation utilizing primary vocational skills. To fulfill 
this purpose Navajo CEP stresses -two of Its program functions, vocational 



615 

A- 6 
training and work experience. 

Vocational training within Navajo CEP is a complete and tliorough ap- 
proach to meeting the needs of the reservation and its residents. The 
training sub-contractor to Navajo CEP, the Arizona Departnent of Vocational 
Education, offers training courses for clerical skills, sales clerl; skills, 
welding, auto mechanics, building construction skills, janitorial skills, 
cullinary skills, teacher's aides, cartographic engraving (a process of 
topographical map production) and ref ractionary lense manufacturing. The 
length of these training programs varies from eight (8) weeks to a naxir.un 
of twenty-six (26) weeks. The type and structure of these programs allows 
both men and v/omen to participate equally among them. 

While the skill areas represented are quite extensive and var>' with 
respect to sophistication, beginning wage , and length of training each 
skill training class is tied cllrecrly ro a pre-comn-.i tte-l job. This approach 
prevents training without consideration of the job market, as the training 
areas are tied directly to employment opportunities. Vocational training 
for Navajo CEP has resulted in one-third (1/3) of all placements flowing 
directly from this component, with the average starting wage being approxir.atel 
$2.20 per hour. 

The other primary component of Navajo CEP is Work Experience. This 
component takes the form of tv/o (2) programs internally labeled "operation 
mainstream" and "On-the-Job." The basic approacli utilized by this component 
is to place an enrollee with an employer for a certain period of tine during 
which the employer trains the enrollee in the skill area desired. During 
this training phase Navajo CEP subsidizes tlic enrollcc/traincc's salary. 
Upon completion of t' e Work Experience component the enrollee becor.os a 
fulltlne employee \n<i is no longor subsidized by Navajo C1"P. 



616 

A- 7 

Tlie training areas v.'hich are serviced by the VJork Experience coripoiient 
arc as numerous as the skill training areas. A partial list of the skill 
areas would include health, forestry, building construction, consur.er ser- 
vices, clerical, sales and the skill crafts. Again, this component is 
structured so that both male and female enrollees participate equally. 
The success of this component has been exceptional in that over 50% of all 
placements have resulted from this component. 

Aside from the above services it can be seen that Navajo CEP offers a 
full line of program services. These services include outreach and intake, 
assessment and orientation, counseling, basic education (this includes a 
special CED program), supportive services, job development and placer.ent, 
and follov7-up. This program is relatively new to the Navajo Reservation 
and it offers a comprehensive approach to reducing unemployment; an approach 
heretofore not eiqicric.nccd on the Navajo Reservation. 

This CEP's experiences throughout its first three (3) contracts have 
been very meaningful. Job placements have reached the 600 mark and are 
expected to increase. However, in spite of increasing performance "avajo 
CEP has been realizing yearly decreases in funding, a fact that greatly 
distresses those working with CEP. However, irrespective of numbers of 
placements and trends in funding levels Navajo CEP represents a well re- 
ceived and utilized manpower program on tlie Navajo Reservation. 

b. Neighborhood Youth Corp (NYC) : 

The NYC program found on the Navajo Reservation is the most popular 
manpower program and tlie most widely kno;>m program of all manpo\.'cr programs. 
As with all NYC's the target population is young people, ages sixteen 
through twenty-one. Tl)c popularity and notoriety of this program stem from 



617 

A-8 

the fact that approximately 30% of the reservation population is between 
the ages of nineteen through twenty-four and approximately 15% of the 
reservation population is between the ages of sixteen through tv;cnty-one. 
This population figure represents over 8,000 reservation youth who are 
potentially eligible for NYC participation. Of this group approxinately 75^ 
are unemployed. Therefore, it is readily apparent why NYC is a favored 
program, as NYC is directed at a specific group of individuals v;ho want 
and need a job. NYC meets this need. 

Again, NYC falls within the specific guidelines and objectives man- 
dated by the Department of Labor. These guidelines and objectives generally 
allow for valuable work experience situations for the youth, both on-going 
students and school dropouts. The Navajo NYC places its enrollees primarily 
in governmental agencies, generally the Navajo Tribe, whose work tasks 
cover all employment areas from clerical to warehousemen. The National 
Parks Service annually provides approximately 350 training slots outside the 
reservation while also acting as a major employer, employing some of the NYC 
enrollees at a wage of $2.00 to $2.50 per hour. 

The Navajo NYC annually serves a vast number of Navajo Youth. Last 
year the Navajo NYC served approximately 2,000 people within its three (3) 
programs: in-school, out-of-school and summer. For this year this manpower 
program is projecting a service level of approximately 1,300 high school 
aged Navajos. A number of these enrollees will return to school fulfilling 
another objective of NYC. Also, a number of enrollees will convert from 
their NYC subsidized work experience positions to full-time permanent em- 
ployees with those employers who have been providing the NYC slots. Aside 
from the National Parks and Ranger Services, the Navajo Tribe and the Bureau 
of Indian Affairs absorb enrollees into various positions such as dormitor>' 



618 

A-9 

aides, secretaries, file clerks, warehousemen, laborers and into other 
occupational areas. This approach works well as the employer has trained 
his prospective employee in his desired method and skills and he there- 
fore, knows the quality of employee he is employing. This approach also 
allows for greater upv;ard mobility within this employer's firm and appears 
to have resulted in a permanent employment situation for the new employee. 
With all these elements considered it is easy to justify UYC's success 
and popularity. 

c. Manpower Development and Training Act Programs (MDTA) : 

Throughout the last few years there have been numerous MDTA funded 
training programs, both institutional and OJT. The number, type, size, and 
structure of these programs seems to very with the availability of MDTA 
funds en the State and Federal levels; and with the desires of the Kavajo 
Tribe as to the need for specific programs. 

At the time of this field evaluation on the Navajo Reservation there 
were three (3) >©TA funded programs. These programs are: (1) Pre-appren- 
ticeship training program located at Page, Arizona; (2)' Ironworl;ers Pro- 
gram located at Window Rock, Arizona; and (3) Clerical Up-grade program 
located at Fort Defiance, Arizona. Tlie first two programs are primarily 
Intended to train and refer Navajo Indians: in apprenticable skills and 
to apprenticeship programs with various construction contractors on and 
around the Navajo Reservations. It was found that while a great number of 
Navajos had completed the pre-apprcnticeship training programs not all of 
them were presently employed as apprentices with available contractors. 
At Page, Arizona; whose practices have had a direct result on the employment 
of Navajo cnrollces completing the Page >©TA program. The Ironworker's pro- 



619 

A- 10 
gram has also experienced less than 100% placement which has been attri- 
buted to the low level of construction projects utilizing these skills on 
or around the Navajo Reservation. 

The Clerical Up-grade program, through a small program, is providing 
8 needed and well received service. Basically, this program allows vorking 
clerical personnel to attend, twice a week, a program designed to teach, up- 
grade or re-introduce basic secretarial skills such as typing, stenosraphy, 
or use of office machines. The material imported thus allows these people 
to perform better on their present job, and assures them greater vertical 
nobility within their employing agency due to their new or improved skills. 
This type of program has been utilized numerous tines in the past and it has 
continually been successful. 

As stated above there have been numerous MDTA funded prograriS ori the 
Navajo "Reservation. A partial listing of these programs would include: 
(1) forestry aide training for the Navajo Forest Products Ind'jstry; (2) Szall 
and large appliance repair for the Navajo Tribal Utility Authority ('.TTL'A) ; 
(3) Electrical Hot Lineman again for NTUA; (4) Electronic Assembly for General 
Dynamics; and (5) for a contract period, all Navajo CEP Vocational Training 
was MDTA funded. Again, this is only a partical listing of programs vhich 
were available at one time. The purpose of these programs was to provide 
an employer with a skilled labor pool but secondly, it also resulted in creat- 
ing employment opportunities for someone who was unemployed and lacked a 
primary vocational skill. 

It was also learned that two new projects had been submitted for 'a)IA 
funding. These projects arc aimed at Navajo Tribal Enterprise to prc^vidc 
skills in two (2) skill areas not yet developed. The first project is for 
water and sev^cr technicians for the Navajo Tribal Utility Authority nr.d 



620 

A-ll 
the second project is to train optical technicians for a future enterprise. 

No Navajo Indian, as of yet, possesses ski] Is in either area and tlie need 
for these skilled people was expressed for all. So while IffiTA funds will 
allow these people to receive these skills they will also create ne" in- 
dustries and employment opportunities. It was found that MDTA funded 
projects meet an irmediate and pressing skill need and v;hile meeting this 
need create more employment opportunities. 

d. Job Corps: 

At one time there existed three (3) Job Corps Centers on or near the 
Navajo Reservation. However, it v/as found that very Indians participated 
In these centers. The exact reason for this occurence is not known; however, 
one proposed theory is that the Navajo Indians did not want to participate 
in the progranis at these centers due to the proniiiience o£ other ethnic 
minorities. Another plausible reason given is that the skill training 
given could not be utilized on the Navajo Reservation; thereby requiring the 
person to move to a metropolitan area to utilize 'his skill. Whatever the 
reason, very few Navajo Indians have participated in the Job Corps program 
at these three (3) centers or any of the other centers. 

Presently, there is a Job Corps center in Montana funded and operated 
solely for American Indians. The concept utilized by the Kicking Horse 
Job Corp Center is to provide vocational skills to all American Indians who 
wish to avail themselves of the opportunity. Therefore, any Indian who meets 
the Department of Labor Intake criteria is eligible to utilize this center. 
Irrespective of his place of residence. However, it was found tliat on the 
Navajo Reservation that recruitment for this Indian progr^tn was alr.ost non- 
exlstant. Very few people even Indicated nny knoi^lcclgc of the existence of 



I 



621 

A- 12 
this specific procram and that its purpose and stress is for American 

Indians. Therefore, while the referral potential exists the affect of 

this program on the Navajo Reservation is ininimal, due to the lack of 

knowledge of its presence. 

e. NAB/JOBS : 

At the time of the field study on the Navajo Reservation only f..-o 
NAB /JOBS contractors were found. These organizations were the Korrison- 
Knudsen Company and Fairchild Camera Company. In addition to the above 
contractors another firm, Neilson Construction Company, is utilizing its 
NAB/JOBS contract on the Navajo Reservation, even though the contract 
was issued primarily for its Colorado operations. 

The employment areas enconposed by these contracts are construction 
skills and metal niechmist skills. Morrison-Knudsen is presently con- 
structing a coal fired electrical generating plant and a localized rail- 
road to transport the required raw materials in the Page, Arizona area. 
The specific jobs given by Ilorrison-Knudsen include welders, ironworkers, 
boilermakers, carpenters, and other skilled construction crafts required 
in heavy industrial construction. Neilsons is presently involved in road 
and related types of construction. Fairchild Camera Company located at 
Shiprocl;, New Mexico is primarily engaged in the assembly of electronic 
components. They are also establishing a complete machine shop for which 
they have received a NAS/JOBS contract to provide their skilled labor. 

NAB/JOBS contractors have come and gone in the same manner as M>TA 
programs. A listing of previous N<\B/JOBS programs or contracts v;as not 
obtainable but it was confirmed tlmt other contracts have existed. It uaj 
also found that the only planned NAB/JOBS program specif iclally for a tribal 



622 

A-13 
concern is a forestry project to be run by the Navajo Forest Products Ir.dus- 

try, an enterprise of the Navajo Tribe, located at Navajo, New Mexico. 

The NAB/JOBS program has provided a realistic and practical avenue 
by which Navajo Indians could enter a high skill occupation by receiving 
meaningful training in that particular skill area. It was found that with- 
out the NAB/JOBS program many Indians would not have been able to receive 
training and the subsequent employment opportunities. However, in total, 
the NAB/JOBS program has had minimal effect due to the cost of the program, 
the lack of interested industries willing to undertake this type of program, 
the general lack of industry and due to the large number of unemployed Indians. 
What has been provided has v/orked well; to the advantage of the employer 
and the Indian trainee/employee. 

f . Public Service Careers (FSC) : 

On the Navajo Reservation only one operational PSC program was found. 
This program operated by the local CAP-Ueadstart Program, is intended to 
up-grade teachers' aides and thus allow them to eventually become qualified 
teachers, and to up-grade present teachers to allow them to offer better 
instructional services. The CAP-Headstart program has structured its salary 
scale so that every PSC participant will receive salary increr.ents in ac- 
cordance with their rate of advancement in the program. The incentive of 
salary increases coupled with increased responsibilities, duties, and prestige 
has resulted in a favorable image of PSC within the CAP. The actual train- 
ing and formalized education is done under contract by Utah State Univer- 
sity. Presently, tliirty (30) Headstart staff are participating in this PSC. 

Two principle employers, the Bureau of Indian Affairs and the U.S. 
Public Health Service, have existing PSC program which arc not being utilized 



623 

A- 14 
on the Navajo Reservation. It was found that those PSC programs had been 

created v^ithin the top level of these agencies at their respective Vas'n- 

Ington, D.C. offices and then disseminated to the various field offices. 

One reason given for the lacl; of a PSC among these Federal agencies on the 

Navajo Reservation is the recent "freeze", prohibiting the employment of 

new- people for Federal positions. A program x/ith entry level and up-grade 

features would be impossible because of this freeze. Hov/ever, that was 

the only reason given by both agencies for the absence of PSC on the local 

level. 

PSC on the Navajo Reservation has been, for all practical, purposes , 

non-existant. l/hile there is one program available it serves only thirty 

(30) existing staff and, as of yet, has not resulted in creating new entry 

level positions by up-grading present employers. 

g. Operation Mainstream (0!?) : 

The Navajo Reservation operates a small Operation Mainstream prograa 
administered by the local Neighborhood Youth Corps Office. This program 
Is funded every six (6) months for approximately fifteen (15) slots, l^'ith 
such very fcv? people to handle, the NYC is very selective when determining 
who the participating training agent shall be. In general though, NYC's 
approach has been to utilize cluster placements with two (2) or three (3) 
agencies. To date, this program has been well received and is very success- 
ful in that the majority of the participants have been placed on permanent 
jobs upon the completion of the training program. Tlic training agents have 
also been very cooperative. This is due partly to the fact tliat CM fully 
subsldi/.cs the enrollccG wages while undergoing training, thereby, not re- 
sulting In minimal training cost to the cmploycr/traincr , and due to the fact 



624 

A- 15 
that the employer/ trainer will have a fully trained and knowledgeable cn- 

ployee upon completion on the program. For public agencies, the absence of 
any costs during training is important as these public agencies rarely 
have existing vacancies and because they budget for operational funds far 
in advance of the actual receipt of funds. Therefore, they can budget imme- 
diately for an additional position and upon completion of the training pro- 
gram the funds should be available for the employment of that person. O.M. 
has also been instrumental in assisting two (2) non-profit organizations in 
securing trained personnel with minimal costs to them. O.M. therefore, has 
been beneficial in assisting unemployed people and in assisting er.ployers in 
acquiring fully trained personnel. 

h. Emergency Employment Act-Public Employment Progrcira (EEA) : 

"I'be Navajo Tribe onsrates the largest lauian EEA or FEr program, in the. 
United States. Of the eight million dollars alloted for Ar.erican Indians 
the Navajo Reservation received $3,003,200.00 for A89 slots, v/hich has sub- 
sequently been increased to 643 slots. 

The EEA program on the Navajo Reservation h^s been utilized to the 
best extent possible while meeting some of the most pressing problcris of 
the Navajos. A primary problem of the Navajo Tribe has been securing ade- 
quate manpov;er to fulfill its social com.-;utments to the Navajos especially 
in light of decreasing revenues and increasing costs. EEA is meeting that 
need. 

The employment opportunities created by EEA are numerous. They can 
be basically classified as unskilled, skilled, or professional. In filling 
Its program slots the Navajo tribe lias only had problcins in findii-.^; eligible 
professional candidates Cor those specialized program slots. With an unem- 



625 

A-16 
ployment rate of 62.7%, or 20,230 Navajos of a labor force of 32,350 it is 

readily apparent v;hy the Navajo Tribe has had very fev? problems filling the 

unskilled and skilled positions. The salary range extends from a lou of 

$1.60 per hour to the allowable maximum of $12,000 per annum. 

The specific employment areas, as stated above, are very numerous. One 
tribal department with the greatest need for additional manpov/er was the 
police department. Before EEA it v;as a normal occurence for a police officer 
to work a 12-hour shift; and due to the Tribe's financial situation not re- 
ceive over-time pay. However, with the addition of fifty (50) EEA funded 
policemen and nineteen (19) clerks this problem has been partically solved. 
This has also been the case with other Tribal and Tribally created depart- 
ments or organizations. Such is the case with the local alcoholism program. 
With the assistance of EEA^a detoxification center was created and is meet- 
ing another social need. 

E.E.A. therefore, has been very instrumental in employing over 600 
heretofore unemployed Navajos and in turn allowing the tribe through its 
increased manpower to meet its social obligations to the Navajo people. 

1. Work Incentive Program (VJIN) : 

As vast as the Navajo Reservation is, there exists only one small WIN 
program for Navajos. Tliis WIN program, adr.dnstered and operated by the Utah 
Employment Service, extends services only to those Navajos v;ho reside in the 
Utah portion of the Navajo Reservation. This program thougli, is not specifi- 
cally aimed at the Navajo people as the sole participant. Wiilc no specific 
number of program slots are set aside for the Naviijos they do constitute 
the principal recipients class. I'hc previous progrnm year realized 90% of 
300 persons served as being Navajo Indians. At the time of this field stuity 



626 

A- 17 
755; of a 256 caseload were Navajo Indians. It is assumed that a similar 

experience v/ill be realized during the up-coming program year. 

While the general structure conforms to mandated guidelines control- 
ling WIN programs the local control has resulted in a program structured 
to meet local training needs. The Navajo WIN program encourages male and 
female welfare recipients to undergo vocational training by providing 
every participating recipient $30.00 per month in addition to his basic 
welfare payment. The concept supporting this approach is that the welfare 
receipeint upon completion of this training will secure permanent employ- 
ment; thereby, removing hin from the welfare rolls and making Iiim a pro- 
ductive member of the local economy. However, this resultant employment 
aspect is not being realized. It was learned that less 10% of WIN parti- 
cipants secure permanent employment after training. 

While placement figures are very low the program is providing train- 
ing for welfare recipients in a variety of employment areas. Currently, 
training is being offered in General Business (clerical), agriculture, and 
general home construction or building trades. With regards to the few 
placements that have resulted from tliese training areas it v;as found that 
those who do secure jobs do so as secretaries (salary range - $2.00/hr.); 
construction v7orkers and lieavy equipment operators (salary range - $5.00/hr.); 
or custodial workers (salary range - $2.00/hr.). During the approaching 
program year vocational training will be given in general business (twenty 
slots); business pre-technical training (thirty slots); public service areas 
(twenty slots); building trades (sixty slots); agriculture (thrlty slots); 
and other training areas (twonty slots). In addition to the above training 
areas forty-five ('iS> ««»t;-*rl:-.vc been commited to this WIN program by a >C1TA 
sponsored pie-apprcnticcship training program. 



627 

A- 18 
The training agent utilized by this IVIN program is Brigham Young Uni- 
versity who also provides "^dult Basic Education" to WIN participants. Total 
program slots allocated for the next program year will be 225 slots, a re- 
duction from previous years' levels. 

The state county (San Juan) served by this program is greatly in need 
of WIN and other manpov/er services. The VJIN coordinator interviewed 
stated that 41% of the county population is on v/elfare and there exists no 
immediate solution to this problem, as there is a definite lack of indus- 
trial development of any type in the area. This also causes the poor 
placement record of this program as the participants could secure a job 
if they were available or if they were v/illing to relocate to another area 
of the reservation, which they do not wish to do. Therefore, this pro- 
blem will probably continue as no solution appears in sight. 

J. State Employment Service: 

The Navajo Reservation due to its unique geographical location has 
Employment Service (ES) office throughout the reservation representing 
three (3) State Employment Security Commissions: Arizona; Utah; and New 
Mexico. However, their services arc minimal, as they basically provide 
only Intake and referral services. 

The State E.S. personnel that are operating solely as a component or 
sub-contractor to a manpower program, such as the Arizona and New Mexico 
E.S. sub-contractors to the CEP, extend greater and more numerous services 
to the Navajo people. IIov;cver, this is solely a result of their con- 
tractual commitment to that manpower program and those contractual services 
are limited to the participants of th.Tt program. Tlic services rendered 
by the E.S. participating v;ith a m.nnpoi/cr program are more extensive Jn 



628 

A- 19 
that they encompass most all manpov/er services. 

Normal state E.S. services are restricted to: (1) assessment; (2) 
placement (including job development); (3) vocational guidance; and (4) 
referral to training. These services constitute the maximum level of 
services provided, but even they are not all performed in every E.S. 
Office. The primary factors limiting E.S. services arc the lack of 
trained and qualified staff and the liinited budget levels which prevent 
more staff from being hired. 

The Arizona portion of the Navajo Reservation is served by a totaJL 
of ten (10) E.S. employees, including clerks and secretaries. .This portion 
of the Navajo Reservation covers 15,000 square miles and constitutes over 
50Z of the Navajo population. Every staff member contacted expressed a 
need for more funds for increased staff and travel. 

The state E.S.'s are aware of the need to utilize Navajo people as 
E.S. employees. All states have hired a relatively large number of Navajos 
to staff their field offices where they can serve their own people. How- 
ever, it was found that the Navajo field office managers had very little 
control over the operations of that particular office as' a "district" office 
located off the reservation and staffed primarily by non-Navajos controlled 
the field offices on the reservation. The Navajo E.S. field managers felt 
that more effective services could be offered if the control office was on 
the Reservation and staffed by Navajos. However, the state officials have 
yet to accede to this request. 

A listing of services not provided by the E.S.'s Includes counseling, 
training (both skill and education), orientation, outreach and recruitr.ent , 
work experience and on-the-job training opi)ortunitles (aside from referral) , 
and supportive services. Of these services it was found that counseling 



629 

A-20 
services are the most demanded and sought after element. The Navajo Tribe, 

as of the date of this report, is seeking an "Operation Hitch-hike" pro- 
gram under which counseling serves are an integral component. The ex- 
pressions stated by various tribal representatives indicated that a large 
mimber of Navajos, to become gainfully and permanently employed, required, 
In addition to skill training, a great deal of professional counseling in 
areas of employment, personal finances, use of alcohol and other related 
areas. Therefore, since this service is not available they are taking direct 
action to secure this service. 

A similar situation exists for job development and placement activi- 
ties. Basically, tribal officials felt that the state E.S.'s were not pro- 
viding the degree of service required and have undertaken the task cf pro- 
viding their ovm job development and placement activities. These activi- 
ties exist under the Tribal Job Development Program and an KE.*. (PEP) job 
development program. In addition to job development and placement these 
agencies also undertake outreach and recruitment tasks which are also not 
provided by the E.S.'s. 

The three (3) state E.S.'s due to budget limitations and policy pro- 
cedures, therefore, provide minimal services. VThile these services are 
negligible in scope they are meeting a need of the Navajo Rcservatiou. 
Wliere the E.S.'s have fallen short in providing services the Navajo Tribe 
through other means is attempting to make these services available. 

k. Bu" ^.3u of Indian Affairs - Employment Assistance (CIA): 

The Bureau of Indian Affairs Employment Assistance program is not 
a Department of Labor associated mnnpcwer program. Hoi.'cvcr, the ser- 
vices BIA offers arc identical to many services provided by DOL prograr.-s. 



630 

A-21 
This section therefore, recognizes the nature of these services and is 

simply an illustration cf another "manpower" agency. 

BIA has annually served many Navajo people in a variety of ways. Tlie 

basic operational approaches utilized by BIA are: (1) vocational training; 

(2) direct employment and; (3) on-the-job training. During fiscal year 
1971 BIA served approximately 6,413 family units in the following areas: 
(1) Adult vocational training - 1,302; (2) direct employment - 3,355; and 

(3) on-the-job training - 656. The effects of BIA are far reaching v.'hen 
considering the number of people served. The local economy also prospers 
as evidenced by the FY 1972 funding level of $1,567,000.00. 

The goal of BIA is to provide a means by which Navajo Indians night 
become employed through education and training. This approach coincides 
with the underlying philosophy of most Department of Labor manpower programs. 
Ilcncvcr, the iiicrtiiti of iiivjeiiiKncation arid actual operation are distinctly 
different. 

DDL programs are primarily localized programs; whereby, very fcv7 pro- 
gram participants are forced to move from their reservation to receive 
training or employment. Also, DDL programs are structured so that ideally, 
training is related to the local labor market and sufficient funding is 
provided so that the actual training may be given locally. DDL programs 
also provide job development activities enabling local employment opportuni- 
ties to be tapped, once the participants completes training. However, this 
approach is not utilized by BIA. 

Of tlie three (3) major components of BIA, on-the-job training is the 
only one utilized primarily on or around the Navajo Reservation. Local 
employers enter agreements with BIA to provide OJT slots which are then 
fiiiidcd by BIA. This approacli is well utilized by UIA and serves well 



631 

A-22 
to meet the needs of both the labor pool and the labor market. As the 

employers uahe a contractual comnitnient to retain the trainee as a full 

time employee upon completion this approach generally realizes a relatively 

high success in employment placements. This program is also well received 

by the employer as he gains an employee who is trained by the employer 

and at very little or no cost to the employer. This approach is mutually 

beneficial as all parties prosper. 

Hw^ever, this is not necessarily the result realized with the direct 
employment and vocational training components of BIA. It is conceded that 
a portion of the direct employment opportunities do exist on the reserva- 
tion and that a portion of the vocational training opportunities v;ill im- 
part skills that comform to the demands of the labor market. But, it is 
also recognized that a portion of tlie employment and training opportunities 
require the Kavajo to premansntly relocate to some distant location, ll.e 
relocation effort of BIA may or may not be effective. However, there are 
now Navajos v/ao possess a salable skill and are now permanently employed 
in these distant locations who night otherwise be unemployed and not pos- 
sess a salable skill if they had not relocated. 

BIA, irrespective of its local or relocation effort, does provide a 
service v/hich meets the needs of the Navajo Indians. They are receiving 
training and as a result of job development efforts arc receiving gainful 
employment. VJith the altering of BIA policy from relocation services to 
localized internal services, a greater stress to conform to the local 
Icibor market will have to be realized as the relocation effort will not 
afford CIA an external outlet for their participants. However, due to 
the lack of local training resources relocation for training purposes 
will probably continue. BIA therefore, will never be able to remove itself 



632 

A-23 
from relocation as long as local resources are void. Also, the cconoiaicnlly 

depressed reservations miclit force BIA to continue to seek external outlets 
for trained Navajos as long as training is not related to the reservation 
labor market demands and the reservations remain in their depressed states. 
BIA's services are attempting to meet the Navajos' needs. These ser- 
vices are necessary and they canrot be eliminated nor reducec', 

1. Bureau of Indian Affairs - Welfare Services: 

The BIA Welfare Services does not directly provide any manpov;er or 
manpov/er related services. BIA's primary goal is to provide thje necessary 
social and financial services required to assist Navajo Indians. For infor- 
mational sake, a listing of these services includes general assistance pay- 
ments, child v;elfare, aging services, child day care services and family 
counseling. While the problems, results and effects of these services are 
Important they are not a direct responsibility of this report. The section 
relating to special group needs (VI - C) , addresses itself to manpower ef- 
forts undertaken for welfare clients. 

BIA v;elfare services, however, does fund a tribal program that resem- 
bles certain manpov/er program approaches and has direct results on the 
labor pool. This program, the Tribal Work Experience Program (TUEP) , is 
a Tribally adninstered and controlled program which receives its funding 
solely from BIA. The approach utilized by T\JEP is basically short-term 
work experience (OJT) slots for welfare recipients. Each participants 
receives $30.00 per month in addition to his basic welfare payment. Tlie 
total project funding is for $17.5 million per year. 

The vjork experience slots arc quite numerous and arc involved in social 
projects such as home improvement, community improvement, hay and gialn dis- 



633 

A- 24 
trlbution and water hauling. All these projects are for the bcttcrncnt 

of the reservation as a whole and assist the Tribe in fulfilling its 

social conraitmont to the Navajos. In addition to the Work Experience 

slots, TOEP also provides on-the-job training slots and adult basic 

education. 

The approach utilized by TITEP is similar to a WIN program. Hot.;ever, 
one distinguishing factor is the lack of formalized vocational sl:ill 
training. The Tl.TiP participants must possess a basic skill or participate 
in a program (OJT) which might give that skill. Tlie primary employment areas 
within v/hich T\IEP participants are "employed" are low skill ai;eas. Even 
though this program receives $17.5 million per year, no funds are set a- 
elde for skill training as the bulk of these funds arc for direct v>7elfare 
payments. 

It was exnvesseii by the BIA welfare people that 'IVEP was not s'jccets- 
ful as it did not meet its goal of placing participants in permanent jobs. 
The reasons given for this failure were that the objective of the program 
was not kno\«» and that the economically depressed nature of the reserva- 
tion did not present sufficient employment opportunities- to absorb T\rE? 
participants. 

TWEP's effect on the reservation is to place two (2) to three (3) 
thousand Navajos on jobs presenting them the opportunity to secure perma- 
nent employment and to place then into work situations; whereby, the results 
•are beneficial improvements to the Navajo Reservation, as a whole. Tl-TEP 
is definitely meeting, at Ic.nst in part, a manpoi^cr need of the Navajos 
by providing training and employment opportunities. 



634 

A- 25 
B. Summary : 

As can be seen from the above text the Navnjo Reservation has access 
to many and varied programs. These programs serve the youth as v/ell as 
the older person. Program slots are as numerous as the opportunities they 
present. Total funds expended for manpower programs approximates $14,230,000. 
However, the unemployment problem still persists. It is assumed that with- 
out this yearly influx of Federal manpov;er monies the problem that would 
result is inconcicvable. At least in part the Federal Manpov/er funds ex- 
pended on the Navajo Reservation are reducing unemployment, or at least 
stabilizing it. 

Funding levels for all programs referenced above and their avail- 
able slots can be seen on the following chart. 



SOURCE . . Navaio Briefing Information , National Indian Training 
and Research Center, August, 1973. 



635 

APPENDIX 4 A"26 

HIGHLIGHTS 
OF NAVAJO a-lPL0Y2R DEWIfD SUHV2Y 19o9i* 

Tv.'elve thousand six hundre.' and thirty-one persons were reported employed 
In nonagrico I tural industries on the reservation In November of 1969; 42. 6? 
of these persons were female. Sixty-six and six-tenths percent of the 
nonagricul tural employed (8,412) were Navajo. 



Most of the reported nonagricul tural employment on the reservation was 
heavily concentrated in three major industrial categories: services (37.5i5), 
government (35.0?), and manufacturing {\6.'5%). 



There were a total of 381 current job openings reported by nonagricul tural 
employers on the reservation in November of 1959. About 60/t of these 
openings were reported by one agency, the Bureau of Indian Affairs. 



If the number of current job openings in November of 1969 (381) is compared 
with the number of Navajo who were found to be without work and wanting jobs 
in February of 1967 (14,900) — assuming there has been little change in 
unemployment since 1957 — It can be estimated that a nonagricu I tural job 
was available for only about one in every 40 Navajo jobseekers during the 
survey period. 



Approximately 1,060 job openings, other than current job openings, were 
anticipated by reservation employers in the next year for which workers 
would be actively sought. Forty-three and four-tenths percent of all 
anticipated openings were in The manufacturing industry (electronics 
assembly), 24.5? were in government, 15.9? were in services, and 10.0? 
were in the transportation, communication and electric services industry. 



The professional, technical, and managerial occupational category was by 
far the largest occupational group present on the Navajo Reservation. 
About 41.8? of all nonagricu I tural employed persons were reported to be 
in this occupational category. Half of those employed in this occupational 
category were Navajo (50.2?), and almost half were women (48.2?). There 
was a sraller percentage of Navajo in this occupational category than in 
any other. 

(continued) 



636 



A-27 



The largest concentration of current job openings was found in the professional 
technical, and managerial occupational category; 171 of the 381 currenT job 
openings (44.9^) were in this occupational group. The great majority of job 
openings within this group, 69.655, were occupations in education. In facr, 
119 or almost one-third (31. 2p) of all current job openings were in education. 



The second largest number of current job openings were found in the clerical 
and sales occupational category. The 63 openings reported in this category 
represented 16.5? of all job openings. The bench work occupatior.a! category 
had the third largest number of openings (45), all but one of which were in 
the assembly and/or repair of electrical equipment. 



Four hundred and forty-six job openings, A\ .6% of all openings, other than 
current openings, anticipated in the next 12 months, were occupations in the 
assembly and repair of electrical equipment; 154 anticipated openings were 
reported in education; 75 in food and beverage preparation and service; 48 
in stenography, typing, filir:g, and related occupations; 25 in transportation 
(service station attendants); and 25 in administrative specializations 
occupations. 



Hiring methods used by Navajo area firms and agencies in order of frequency 
used were: direct company application (85.6$), friends and relatives (82. 7?), 
State Employment Service (61.2fj), advertising and want ads (47.4?), and 
employment assistance (BIA - 44.4$). 



Mixed feelings prevailed among Navajo employers about training programs 
offered on the reservation. Three-quarters of the firms reporting thought 
vocational training programs would be of help to them in obtaining qualified 
employees. A majority of those firms responding, however, felt that the 
training programs which had been provided to on-reservation Navajo had been 
inadequate. The most common type of complaint listed was that training 
programs did not supply the types of trainees or training really required 
by f i rms . 



* Arizona State Eaploynent Service, June 1970. 



637 

A-28 

APPENDIX 5 
FEDERAL PROGRAMS 

The Federal government, in Its trustee function, Is primarily 
responsible for providing social services for Indian reservations. 
The Government provides programs In the area of housing, employment, 
medical care and welfare assistance. In addition, Indian reservations, 
as separate political and legal entities, receive revenue sharing funds. 

The number and quality of programs for Indian reservations has 
increased considerably over the last two decades. The President's 
proposed Indian Self-Determination legislation would also increase pro- 
grams for Indian reservations. 

NAVAJO REVENUE SHARING 

According to an Office of Revenue Sharing official a total of 
$2,309,439 was paid to the Navajo Tribal Council. $1,773,574 was paid 
for the first two periods and a sum of $535,865 for the third and fourth 
periods. 

To date, there is no data as to what is being done with the 
money received by the Navajo Tribal Council. The Office of Revenue 
Sharing is hopeful of receiving two reporto in the near future concerning 
the use of this money. 



638 

A-29 

HEALTH PROGRAMS (BACKGROUND) 

By treaty and by law, reservation Indians of one-fourth or more 
Indian blood are entitled to free comprehensive medical care. A 
Federal health program was first made available for Indians In 1832, 
at which time Congress appropriated a meager $12,000 for a health 
program. Four years later the Federal health program was extended 
to provide limited health services to the Ottawa and Chippewa Indians 
under treaty provisions. By 1880 the Bureau of Indian Affairs had 
four Indian hospitals and a total physician staff of 77 doctors. From 
that time until 1955, Indian health facilities continued to expand 
slowly, but Congressional appropriations were minimal. The results 
were that Indian health progretms were deplorably inadequate, and 
Indian disease and death rates were many times greater than for other 
Americans. 

In 1955, Indian health care was transferred to the Public Health 
Service, Department of Health, Education and Welfare. In that year, 
the Federal budget for Indian health was $24.5 million; by 1958, this 

figure had more than doubled to over $50 million, and in fiscal year 

i_/ 
1972 it was more than $153 million. At the present time, the Indian 

Health Service (IHS) operates 51 hospitals, 77 large clinic facilities 

U 
and several hundred field health stations. 



J_/ 25 U.S.C. §13. See Also, Sorkin, p. 51. 
2_/ Sorkin, p. 51. 
3 / Information furnished by the Indian Health Service. 



639 

A-30 

The Office of Economic Opportunity has also contributed some funds 
for improved health services for Indians, but In 1968, funds for local 
and national health programs through OEO programs was less than $1.5 
million. 

Despite these Increased funds and greatly improved facilities and 
staffing, Indian health is still about 20 to 25 years behind that of the 
general population. 



j>_/ Indian Health Programs . 1955-72, HEW, Publication No. 72,502, 1972. 
5 / Sorkln, p. 167. 



640 



A-31 
SUDJECT: INDIAN lIEALTfl SERVICE (General Information) 



component of HEW (Health Services and Mental Health Admin"". jtrati 
of the Public Health Service) 



Objec t ives ; In t!\!s cfTort, the Indian Health 

Scnicc lias t'.ircc major objectives: 

o To assist Indian tribes in developing 
tlicir capacity 10 man and manage 
their hcaltli prosrams through activ- 
ities such as health management 
training, technical assistance, and 
human resource development and 
provide every opportunity for tribes 
to assume administrative authority 
through contracts aiid-delcgation. 
« To act as the Indians' and Alaska 
Natives' advocate in llie health Held 
to generate other interests and re- 
sources whicli can be utilized, 
o To deliver the best possible compre- 
hensive healtli scivicrs, including hos- 
pital and ambulatory medical care, 
preventive and rehabilitative services, 
and to develop or improve commu- 
nity and individual water and sanita- 
tion facilities and other environmental 
factors afTectiiig good health. 



Oraanization of the Service 



- Headquarters is maintained for overall operations- and to 
provide guidance and advice to field offices. 

- Field Administration is divided into eight area offices and 
four program operations. 

- Areas are divided into service units. The Navajo Reservation 
has eight service units. 

- The Office of Research and Development is located in Tucson, 



SOURCE: HEW. Public Health Service. Health Services and Mental 
Health Administration. 1972 



641 

SUDJECT: HDALTII AND MEDICAL CARE • ^.32 

Health and Medical Care — 

There exists on the Navajo Reservation six (6) U.S. Public 
Health Service (PHS) hospitals of varying size. In addition to 
these services PHS also provides numerous clinics, mobile clir>ics, 
and field health personnel to meet the local health needs. These 
services are fairly extensive and exist i.; most every comr.,-inity 
that has a relatively large population base. The cost to the 
individual Navajo is nothing with the only exceptions being for 
specialized eye glasses and specialized dental work. In addition 
to the on-reservation services there are two hospitals located in 
tov/ns bordering the Navajo Reservation. Even though the Navajo 
population still experiences certain classes of medical problems 
the present services are well received by all. Of all respondents 
interviewed 71% felt this service was good to excellent an." 97% 
felt that the service was fair to excellent. 

In addition to this Federally provided service there are 
seven (7) private hospitals and numerous private physicians near 
the reservation providing health or r.edical services to those v/ho 
wish to utilize them at their own cost. 



SOURCE: American Indian Consultants, Inc. The Evaluation of Manpower 
Services and Supportive Services to American Indians on Reser- 
vations under Programs for which the Department of Labor and 
the Department of Health, Education and Welfare arc respon- 
sible. (Prepared for Dept. of Labor Manpower Administration) . 
July, 1972. 



642 



A-33 



SUBJECT: 



INDIAI^l HEALTH SERVICE - NAVAJO AREA V.'ORKLOAD STATISTICS 
APRIL 19 73 



Inpatient Services 

There \::re 1,4G7 admissions in April, 6% less than in March 
reflcc.r.g the usual seasonal decrease. April adraissions v;ere , 
ho.-/cver 2'd greater than the average of the 3 preceding years, 
although 1% less than last year. Chart I shov/s that adraissior.s 
are on the increase although the monthly data show v/ide fluct- 
uations . 

In the 10 month period July-April there have been 15,322 
admission, 2% more than last year. Shiprock hospital has 
repor-ed 19,495 admissions, 14% more than last year. Tuba 
City n.as reported 16,880, 7% more than last year. There has 
been an 8% decrease at Crov/npoint , 7% decrease at VJinslow. 
Both Gallup and Fort Defiance reported little change. 

ADPL continues to decrease. The seasonal trend is more 
obvious in ADPL than admissions and v;e note the sharp (11%) 
April decline from March. ADPL for the July-April period is 
3% less than last year and stood at 384,5. 

A-nUpulatory Patient Care Services 

There v/ere 40,011 ambulatory patient care services (individual 
encounters) in April, 21% more than last year. In the 10 
month period July-April, there have been 394,361 services 
(individual encounters) , 7% more than last year. Chart II shows 
the seasonal changes in APC services and the long terra increasing 
trend. 



The principal providers of ambulatory patient care services in 
the July-April period were: 



Facility 

Gallup Indian Medical 

Center 
Shiprock Hospital 
Ft. Defiance Hospital 
Tuba City Hospital 
Chinle Health Center 
Crownpoint Hospital 
Kayenta Health Center 
Winslow Hospital 



July-April 1972 July-April - 1972 %ChanCTe 



66,215 
51,611 
54,978 
40,358 
33,588 
23,905 
19,605 
16,621 



66,249 
47,539 
47,761 
32,630 
33,774 
24,835 
12,867 
18,001 



8 

15 

23 



3 



52.4 
7.7 



643 

A-34 

Public Assistance Programs in Arizona 

Public Assistcuice in Arizona is financed by the State and 
Federal Governments jointly. All programs are administered by 
the State Department of Public Welfare through a Cotinty Welfare 
Office located in the county seat of each of the 14 counties of 
the state. 

The programs are administered in conformity with the State 
Civil Rights Act and the Federal Civil Rights Act of 1964. The 
latter act states in part, "No person in the United States shall, 
on the ground of race, color, or national origin, be excluded 
from participation in, or denied the benefits of, or be subjected 
to discrimination under any program or activity receiving Federal 
financial assistemce." 
Old Age Assistance 

Old Age Assistance is a program which provides money payments 
to needy people 65 years of age or older who can no longer support 
themselves and who have no relatives who will do so. It also 
provides for recpiired visiting nurse or home health aide services 
through a vendor payment procedure. 
Assistance to the Needy Blind 

Assistamce to the Needy Blind is a program to assist needy 
blind persons who camnot earn their own living, have not enough 
money to live on, and no relatives who will support them. 



644 

A-35 

Aid to Dependent Children 

Aid to Dependent Children is a program to assist parents 
or relatives to provide economic security and proper care for 
minor children when it is impossible for the family to do so 
by its own efforts because of unemployment, death, sickness, 
desertion, etc. When there is a possibility of overcoming the 
problems causing need, assistcmce will be considered a temporary 
means of support until the family can become self-supporting. 
Aid to the Permanently and Totally Disabled 

Aid to the Permanently and Totally Disabled is a program 
to help needy persons who eire unable to support themselves by 
working, or from other resources, because they are severely 
disabled and their health cannot be restored through medical help. 
General Assistance 

General Assistance is a progreun to help needy persons who 
are unable to support themselves by working or from other resources 
because they are temporarily disabled or their discibility is not 
severe enough to qualify them as being permanently and totally 
disabled under the definition of disability for that program. 
Emergency Relief 

This program provides assistcmce on a short time basis to 
persons or families who, because of an emergency, are in dire 
and immediate need and eligibility for any other form of 
assistance has not yet been estcJslished or cannot be established. 



645 

A- 36 

Tuberculosis Control Program 

The Tuberculosis Control Program of 1955 provides medical 
care to persons with tuberculosis, financial assistance to 
persons receiving home care, and assistance to the dependents 
of the patient. Funds appropriated to the Department of Public 
Welfcure are used for assistance to those eligible for home care 
treatment or those dependent on the person who has contagious 
and communicable tuberculosis. 
Surplus Commodities 

The State Department of Public Welfare is responsible for 
distributing Federally donated foods. These foods are made 
available by the U. S. Department of Agriculture to eligible 
persons in all counties. (The Navajo Tribe assumes responsibility 
for distribution on their Reservation.) 
Welfare Problems 

There are presently three (3) welfare systems in operation 
on the Navajo Reservation. The Navajo Tribal Welfare Office: 
This Office is funded by the Navajo Tribe to provide Navajos 
with emergency assistance. This program gives financial 
assistance on a one-time basis to Navajo individuals or families. 
It provides for funeral expenses, financial crises, homes that 
have been fire-damaged and aids In obtaining building material 
for home construction or renovation. It also provides for 



SOURCE: (Bulletin) Public Assistamce in Arizona. Department of 
Public Welfare, Phoenix, Arizona 



646 

A- 37 

health items such as hearing aids, eyeglasses and wheelchairs. 
The major problem existing in the Navajo Tribal Welfare program 
is a lack of funds to adequately handle all the applicants. 
There are not enough funds or programs to handle the emergency 
needs of Navajos. 

The B.I. A. Welfare Department: This program provides a 
General Assistance fund to Navajos in need of welfare but do 
not qualify for Arizona or New Mexico state welfare. It also 
works in conjunction with the Navajo Tribe's Tribal Work 
Experience Program which provides work (some training) for those 
Navajos on welfare. It is solely a volunteer program cmd provides 
$30 per month for employment costs cind does NOT provide salaries 
or stipends. 

Arizona State Welfare: There are two major problems 
existing in State welfare procedures. First, Navajos are having 
a difficult time qualifying for state aid. They, in many cases, 
cannot substaniate that their children are deprived of parental 
support. This prolongs their applications. Second, paper work 
is lengthy and the network is complicated which leavffi the Navajo 
sometimes having to wait many weeks before he receives his welfare 
check. 



647 

A- 38 

HOUSING 

Substandard housing Is more often the case than not on Indian 
reservations. In 1966 BIA estimated that of 76,000 houses on 
Indian reservations and Alaskan vllllages, 76 percent or 57,000 
were substandard, and overcrowded. In addition, over two-thirds of 
these (42,000) were considered too run down to even merit improve- 

kJ 

ments. Between 1965 and 1968 fewer than 5,000 new units were built. 

Since conventional credit is exceedingly difficult for individual 
reservation Indians to obtain, several Federal programs have specifically 
concentrated on alleviating the critical housing problem. 

The BIA funds a housing improvement program. From 1964 to 1968 

some 2,600 units were constructed or improved. New homes are built at 

an average cost of $11,000 each. GEO also funds a home improvement 

program which by 1968 was funded at $413 million. However, since so 

many Indian homes are too dilapidated for improvements to be of much 

_7/ 
help, this program has had minimal impact on improving reservation 

housing. 

As with other low income persons, reservation Indians are eligible 

for low rent housing and other public housing programs. The Housing 

Assistance Administration (HAA) of the Department of Housing and Urban 



6 / Presentation made to the Phoenix Indian Health Board, February 1972. 

7 / Alan Sarkin, American Indians and Federal Aid , Brookings Institution, 
Washington, D.C., 1971, p. 172-176. 



648 

A- 39 

Development (HUD) funded construction between 1964 and 1968 for over 

2,000 units on reservations. 

In addition to conventional low rent housing aid, the HAA has 

sponsored "mutual help" programs; Indians contribute labor and land 

and the government provides materials and technical assistance. A 

possible advantage of mutual help over other public housing is that 

ownership may eventually go to the Indian family who helped build the 

home. However, many heads of household have other Jobs, if only part 

time, which limit the time they can expend on construction. Since 

many are unskilled in construction, to begin with, the potential for 

training in this area (as envisioned by the legislation) is dependent on 

the time actually on the Job. Between 1965 and 1969, nearly 2,000 

mutual help units were built, but actual construction has been much 

20/ 
slower than anticipated. 

Finally, both BIA and OEO have provided assistance to Indians seeking 

loans for housing improvement and housing construction from conventional 

and other governmental sources. From 1960 to 1965 about 3,300 families 

received some assistance in financing for new homes and about 7,500 

families received loans for home Improvement. 



J_/ Id. 
i_/ Id. 
10/ Id. 

11 / "Indian and The Federal Government," Bureau of Indian Affairs, Department 
of the Interior, October 1966, Mlneo. 



649 

A-40 

In addldon to Individual housing programs, HUD and Che EDA have 
funded programs for construction of community centers, parks, play- 
grounds and other community facilities. About $2 million was budgeted 
by EDA from 1963 to 1965 for this kind of activity. HUD funded several 

neighborhood centers and urban planning grants and Is reviewing additional 

12/ 
projects. 

12/ Id. 



650 

A-41 
HOUSING PROBLEMS ON THE NAVAJO RESERVATION 

The paramount problem with housing Is the lack of financial 
support for housing projects due to a moratorium on housing Imposed 
by George Romney, Secretary of HUD In January 1973. This has affected 
housing programs In FHA, Public Housing and the Farmers Home Program. 
Until the moratorium Is lifted, there will continue to be a shortage 
of funds for these much needed housing programs. 

Presently, there exists a great shortage of housing for employees 
in the Window Rock-Ft. Defiance area, Chlnle, Tuba City, Crownpolnt and 
Shlprock areas. Existing housing Is substandard for many Navajos especially 
the elder of whom many still live in hogans. 

The Navajo Tribal Utility Authority has brought electricity to most 
homes (including hogans). This adds some comfort to the dwellings. Water 
is still transported from Navajo Tribal constructed wells. Limitation is 
a major problem for the older dwellings. Sewer often backs up during 
heavy rainstorms. 

Present unsubsidized housing projects represent two problems. (1) 
Many are overdesigned which makes the homes costly, and contract needs 
are^ in effect, too high for allocated funds. (2) Unsubsidized housing 
projects are a financial burden to the Navajo whose average annual income 
is $1,500 a year. 

SOURCE: The Navajo Times. The Navajo Housing Authority. 



651 



APPENDIX 6 
NAVAJO TRIBAL ECONCMIC DEVELOPMENT POLICY 
CONCERNING PRIVATE CAPITAL INVESTMENT IN NAVAJOLAND 
Adopted March 3, 1964 

The Navajo Tribe Invites and encourages Investment by private capital 
to develop the extensive natural and human resources of the Navajo reserva- 
tion. The Navajo Tribe is convinced that mutual benefits will result and 
that Job opportunities and technical training, leading to a better living 
standard for the Navajo people, will be generated. The Navajo Tribe will 
participate in the economic development of the reservation preferably by 
using its land Instead of its money. 

In this respect, the following Tribal policies on economic develop- 
ment prevail: 

I. Investmsnt and leasing: 

A. Tribal Participation. 

1. The Tribe favors private financial Investment wholly, 

except where it is of advantage to the Tribe to partici- 
pate in order to provide employment for Navajo individuals 
in substantial numbers. 

B. Land Leasing. 

1. Coimnerclal and recreational business site leases. 

a. The Tribe may negotiate a cash rental on leases for 
select business and commercial sites, or the Tribe 
may require an interest in the enterprise which may 
be determined by the prevailing percentages for each 
type of business reflected throughout the intermountain 
region and further tempered by the local situation. 



652 

A-43 

2. Industrial site leases. 

a. The Tribe will negotiate leases of Tribal lands to 
industry interested in locating on the Reservation 
subject to local approval. 

b. The Tribe may construct or cause to be constructed 
industrial buildings which may be rented to Industry 
wishing to locate on the Reservation. The size and 
specifications of the buildings will be negotiated 
by the Tribe and industry. The terms of lease and 
rental will be negotiated for each individual proposal. 

c. Equipment and machinery will be the responsibility of 
the firm establishing the industry. 

d. Working capital required by industry will not be pro- 
vided by the Tribe 

C. Assurance and Protection. 

1. The Tribe favors and will legislate to the effect that all 
investment in the form of equipment and permanent structures 
will be protected through formal legal procedures. 
II. Utilities: 
A. Water. 

1. Water is available in some locations through the Navajo 
Tribal Utility Authority for which special industrial and 
commercial rates will be charged. 

2. Where water is not available, the investor may develop his 
own water supply for which no charge will be made. However, 
the Tribe may require that a domestic watering point be made 



653 

A-44 

available to local Navajos. 
3. Where the water required by Industry Is Insufficient, 
the Tribe will consider the development of the water 
source and Its delivery to Industrial sites. 

B. Electricity. 

1. Electric power Is available In some locations through 
the Navajo Tribal Utility Authority and special In- 
dustrial and commercial rates will be charged. 

2. Where electric power Is not available, the Investor may 
develop his own power source. 

3. Where the power load required by Industry Is sufficient, 
the Tribe will consider the construction of power lines 
to the industrial site. 

C. Fuels. 

1. Natural gas Is available In some locations through the 
Navajo Tribal Utility Authority and special industrial 
and commercial rates will apply. 

2. Where natural gas Is not available, the Investor may 
develop or provide his own fuel source. 

3. Fuel oil, propane gas and coal are also available. 

4. In the case where coal Is available, certain existing 
mining and royalty regulations will apply. 

5. Where the natural gas required by Industry Is sufficient, 
the Tribe will consider the construction of gas lines to 
the Industrial site. 



654 

A-45 

D. Waste Disposal. 

1. Sewer systems on the Reservation are generally limited. 
An Industry may be required to develop adequate lagoon 
or sewage treatment facilities which can be placed on 
tribal land without charge. Land leases for Industrial 
purposes will provide for sewer facility areas. 

2. Where the establishment of sewer systems Is mutually 
beneficial to Industry and the Navajo Tribe, the Tribe 
may share the cost of the systems for Joint use. 

3. All Industrial waste will be subject to control. 
III. Mineral Resources: 

A. There are many undeveloped minerals deposits on the Reserva- 
tion that may be utilized by Industry. The Tribe may negotiate 
with Industry for the Industrial use of minerals. 
IV. Housing and Community Facilities: 

A. The Tribe will assist and participate In the establishment of 
housing development for public use and particularly to satisfy 
the needs of industry. The Tribe will encourage and support 
comprehensive development of communities and public facilities. 
V. Manpower and Training. 
A. Labor Force. 

a. A large adaptable labor force is available on the Reservation 
to meet all industrial labor requirements. Navajos have a 
marked aptitude for Jobs requiring patience and manual dexterity. 
They are easily trained as skilled craftsmen and artisans. 



655 

A-46 

B. Training. 

a. Entry and on-the-job training programs are available 
to qualified industries from Federal agencies subject 
to appropriations. 



656 



APPENDIX 7 

Water Rights 

Those rights are the catalyst for all 
economic development. Without them the 
reservations are virtually uninhabitable, 
the soil remains untilled, the minerals 
remain in place, and poverty is pervasive. 13 / 

One of the primary problenis facing the Navajo nation in terms 

of eooncmic develotment is control of the water resources. For as 

14/ 

long as the Navajos have lived on the reservation (1868) , the 

Federal government has ostensibly been of the opinion that the Indian 

has pre-ertptive rights to the waters, primarily the Colorado River, 

15/ 
which traverse the reservation. While there is sane dispute as to 

v*iether the rights vested frcm the time of settlemsnt or fron the 

time of the establishment of the reservation, it is clear that the 

Navajos are entitled to enough of the flew of the big Colorado River 

to "irrigate all irrigable land capable of being used for agricultural 

16/ 
pursuits. " 

It should be noted in this respect that in the largely arid 

Southwest, access to an adequate water sij^ply is necessary to any 

large scale development of any area. For example, the Iitperial Valley 

cirea in California was developed largely through massive irrigation 



jL3/ E. Swenson, "Ripping Off Navajo Water Rights: A Case Study in 
the Exercise of Political Power," 2, for Subcommittee on Administrative 
Practice and Procedure, Senate Committee on the Judiciary, 92nd 
Cong., Ist Sess. (1971) (hereinafter cited as Swenson). 

lU/ Treaty of 1868. 

15 / Swenson at 5. 

16/ Id. 



657 

A-48 

projects vAiich eillc««ed the region to support an extensive agricultured 

expansion. But the necessity for water is not limited to the agricultural 

sector of the eoonany. In order for any type of development, water 

must be present in order to supply, if nothing else, the basic health 

and sanitation needs of the people. But in the Indian context, the 

need appecirs to be even greater. In terms of development, water is 

a nearly indispensible source of electric power. In fact, the 

Navajo reservation at piresent supplies much of the power requirements 

for large parts of the central Arizona region. 

Further, if large scale eooncniic developinent is to be anticipated, 

even greater demands i^xan the water sup:ply are necessary. For exaitple, 

the Bumham Coal Gasification Plant, v^iich will seek to transform 

subbituminous coal into usable high Btu gas for home and industry 

consunption will require a Icurge volume of water to be extracted 

18/ 
from the San Juan River. Similar industrial and extractive 

oonoems will greatly increase the demands that the Navajo pecple 
are to put on the water supply. Therefore, if the Navajo expects to 
develop industry sufficient to alter current reservation eooncmics, 
an eidequate water supply is an absolute necessity. 

But it is in the area of traditional ways of life and their 
naintenance that water rights are perhaps paramount, '"nie game they 
hunt, the heards they graze, and the crops they raise on their reserva- 
tions are cLLl d^sendent on water. Take away or seriously lessen the 
Indian's access to abundant water cind you have taken away his ability 



17/ Id. at 34. 

18 / Gas f ran Ooal , El Paso Natural Gas Oo. , Bumham Gasification 
Oatpany Pamphlet" (hereinafter cited as Gas f ccm Ooal) . 



658 

A-49 

to remain Indian; hence, the Indian's insistence of protecting his 

19/ 
water rights." Therefore, it is necessary to examine the major 

sources of Navajo water rights, the degree of protection that the 

Federal government has extended to the tribes under the government's 

trust responsibility, current and future uses, and the nature of the 

Navajo's claim to such waters in order to properly assess the 

development potential of the Navajo comunity. 

The Source: The Colorado River 

The Navajo Nation is located in the heart of the Colorado River 

Basin, and stretches across three States: Arizona, New Mexico and 

Utah. Portions of the mainstream of the Colorado River and one of 

its tributaries, the San Juan River, fori the Northern and Western 

boundaries of the reservation. Another tributary, the Little Colorado 

River, drains into the Colorado by flowing through the Southwestern 

part of the reservation. The mainstream of the Colorado River rises 

in the Rocky Mountains of Colorado and flews for 1,300 miles through 

the States of Colorado, Utah, Arizona, and along the Arizona-Nevada 

aivd Arizona-California boundaries, finally reaching Mexico vriiere it 

anpties into the Gulf of CcLLifomia. The basin is an immense area 

draining over 242,000 square miles, receiving water fran tributaries 

in Wyaning, Colorado, Utah, Nevada, New Mexico, cind Arizona. The 

basin is subdivided into twD parts. The ijpper basin includes the 

mainstream above Lee's Ferry, Arizona, as well as the tributaries 



]2_/ U.S. Ccmmission on Civil Rights, Southwest Indian Report 
128 (May 1973). 



659 

A- 50 

of the Green River, the Gunnison River, and the San Juan River. Ihe 

lower bcisin inclix3es the mainstream of the Colorado belcw Lee's Ferry, 

eis wall as the tributaries of the Gila and Little Colorado Rivers. 

The mainstream Colorado is gigantic: the annual flew at Lee's Ferry 

usually varies fran 13 to 17 million acre -feet. The ncn-Indian 

ecanart/ of the upper basin reflect the scarcity of water, and is 

20/ 
primarily ooncemed with ranching, mining, and sere agriculture. 

The National Water Cermission, in its Final Report to the President 

and the Congress entitled Water Policies For the Future , issued in 

June, 1973, took the following propositions as settled in the area 

of determining the rights of Indian tribes to waters appurtenant to 

the reservation: 

1. The cases of Winters v. United States and Arizona v. 
California , established beyond dispute that water ri^rts nay attach 
to Indian reservatiois i^xxi creation of the reservations by any lawful 
means (treaties , eicts of Congress , executive orders , etc . ) . 

2. The priority and quantity of these Indian water ri^ts 
present questions of law v*iich involve, at least in part, an 
interpretation of the documents creating each reservation and may 
involve for seme reservations the question of aboriginail rights. 

3. Indian water rights are different fran Federad reserved rights 
for such lands as national parks and national forests, in that the 
United States is not the owner of the Indian rights but is a trustee 

2(/ Swenson at 3. 



660 

A-51 

for the benefit of the Indians. While the United States may sell, 
lease, quit claim, or otherwise convey its own Federal reserved 
water rights, its po^rers and duties regarding Indian water rights 
are constrained by its fiduciary duty to the Indian tribes who are 
beneficiaries of the trust. 

4. The voliatE of water to vAiich Indians have rights may be 
large, for it may be measured by irrigable acreage within a reserva- 
tion (i.e., land \4iich is practicably susceptible to irrigatic»i) and 
not by Indian populaticn, present use, or projected future use. It 
may also be measured by other standards such as flews necessary to 
sustain a valuable species of fish relied upcn by the tribe for 
sustenanoe. 

5. Development of sv^iplies subject to Indian water rights was 
not illegal. Ordinarily, therefore, neither Indian tribes nor the 
United States as the trustee of their property can enjoin the use 
of water by others outside the reservation prior to the time the 
Indians themselves need the water. 

6. The future utilization of early Indian ri^ts on fully 
appropriated streams will divest prior uses initiated under both 
State and Federal law (and often financed with Federal funds) and 
will iirpose eooncmic hardship, ccnoeivably amounting in seme cases to 
dissister for users with large investments made over long periods of 
tijte. The existence of unquantified Indian claims on streams not yet 
fully appropriated makes determination of legally available supply 
difficult and thus prevents satisfactory future planning and develop- 
ment. 



661 

A-52 

7. The ntanetary valLE of uniased Indian water rights is difficult 
but not inpossible to determine. It should be possible on a case-by- 
case basis to establish a fair itarket value for unused Indian water 
rights. The problem of valuation is no more difficult than with 

other species of property that are not the subject of everyday 

21/ 
oamieiu e . Therefore, in terms of the Navajos' rights to the 

waters of the Colorado, it appears that, pursuant to the Winters 

doctrire, the tribe h;is federally protected rights vrfiich are prior 

and superior to all rights of the States v*iich were created after 

the reservation land was reserved for Indian use. Further, these 

rights are not based on diversion of the waters cis vrould be the ccise 

of others clciiming rights, but is vested, if not frcn the time of 

Navajo settlement, then from the tine of creation of the reservation 

22/ 
in 1868. 

However, it should be noted that both the Federal goveminent and 

the various States have been less than diligent in their efforts to 

secure for the tribe its entitlement to waters fron the Icwer basin. 

Instead, vMle the Federal govermrent assuned a benign role in the 

various controversies between the various Icwer basin States, notably 

California and Arizona, over an equitable distribution of the flew of 

the Colorado, these States agressively pursued such massive federally 



21/ National Water Ccmmission, Final Report to the President and the 
Congress, Water Policies for the Future (June, 1973) . 

22/ Swenson at 1. 



662 

A-53 

assisted plans as the Boulder Canyon Project and the Central Arizona 

Project (CAP) \i*iich sought to utilize the waters for the burgeoning 

urtan and agricultural populations that were developing after World 

Vfar II. For exanple, the CAP was an effort to provide water for the 

agricultural interests in Arizona vrtiich consume more than 90 percent 

23/ 
of the available water, and the cities of the central State area. 

The dispute between Ccilifomia and Arizona culminated in Arizona v. 

24/ 
California , in v*iich the Suprate Court decided to allocate 

California 4.4 million acre -feet of oonsunptive use plus half of any 

surplus in the IcMer basin area of the Colorado, 3,000,000 acre-feet 

plus 4 per cait of the surplus to Nevada, and 2.8 million acre- feet 

plus half of the surplus, less Nevada's allocation if Nevada chose 

25/ 

to contract with the Secretary of Interior for its share. 

In terms of Federal and Indian cillocations , the Court awarded 

one million acre -feet, primarily for the use of the various tribes, 

26/ 
including the Navajo. Ostensibly, this allocation conformed to 

the formula for the irrigation of eill lands for the five Icv^r basin 

tribes for all lands that could be used for agricultural purposes . 

27/ 
conservatively estimated to be 12 million acre -feet. In this 



23/ Swenson at 32. 

24/ United States v. Arizona, 295 U.S. 194 (1935) . 

25/ a^enson at 14. 

26/ Id. at 15. 

27/ Id. at 25. 



663 



connection, it is interesting to note that the Government intervened 

not to protect the tribe's superior and prior rights to the waters, 

28/ 
but only their rights to use the waters. Therefore, it would 

appear that the Government, v*io, through its trust responsibility 

should have asserted the affirmative rights vfcLch the tribe had 

through settlement and treaty, instead left the exact extent of the 

rights less clearly defined than they could have been. As a result, 

the allocations granted to the other States limited the extent of 

the tribe's rights to the water. Had the Government been more 

aggressive in asserting these rights, the tribe probably would have 

a more equitable share of this precious resource than it presently 

receives . 

Further, with respect to the waters of the upper basin, the 

tribe agreed to limit its claim to the 50,000 acre-feet vtdch 

Arizona was awarded, also agreeing to allocate 34,100 feet for the 

use of the Navajo Generating Plant, v^iich wDxiLd supply the area of 

Central Arizona with its needs, leaving the tribe with sate 16,000 

acre -feet, thus precluding massive eooncmic development for the 

19/ 
tribe. It is within this context that present and future 

attenpts at eoonanic developnent of the Navajo reservation must be 

viewed. 

2^ Id. at 16. 
2^ Id. at 34. 



664 



APPENDIX 8 



TABLE 1 



TABLE 2 



TABLE 3 



TABLE 4 



TABLE 
TABLE 

TABLE 
TABLE 



TABLE 9 



TABLE 10 



TABLE 11 



TABLE 12 



TABLE 13 



TABLE 14 



TABLE 15 



SOCIAL CHARACTERISTICS OF THE NAVAJO 
TRIBE: 1970 

OCCUPATIONS OF NAVAJO POPULATION 
AND URBAN AND RURAL RESIDENCE 

FA>aLY INCOME AND POVERTY STATUS OF 
NAVAJO POPULATION: 1970 

INCOME OF NAVAJOS 16 YEARS AND OLDER 
IN 1969 

POPULATION ESTIMATE, NAVAJO AREA 

NAVAJO POPULATION BY SEX, AGE AND 

WHETHER LIVING ON RESERVATION: 1970 

NAVAJO INDIANS BY AGE (YEARS) 

NAVAJO RESERVATION POPULATION 
ACCORDING TO STATE, AGE, 
SEX: 1970 

NAVAJO HOUSEHOLDS WITH AUTOMOBILES 
AVAILABLE: 1970 

HOUSING CHARACTERISTICS OF NAVAJO 
HOUSEHOLDS: 1970 

BOARDING SCHOOLS OPERATED BY THE 
BUREAU OF INDIAN AFFAIRS 

DAY SCHOOLS OPERATED BY THE BUREAU 
OF INDIAN AFFAIRS 

ENROLLMENT BY GRADE IN SCHOOLS 
OPERATED BY THE BIA 

COMPLETIONS AND NUMBER OF GRADUATES 
OF SCHOOLS OPERATED BY BIA 

BUREAU OF INDIAN AFFAIRS HIGHER 
EDUCATION PROGRAM: FY 1972 



A-58 



A-60 

A-61 
A- 62 

A-63 
A- 64 

A- 65 
A- 66 
A-68 
A-70 
A-71 



665 



A- 56 



TABLE 
TABLE 



TABLE 16 SCHOOL ENROLLMENT (3-34 YEARS OLD) A-72 

ON THE NAVAJO RESERVATION 

TABLE 17 YEARS COMPLETED IN ANY SCHOOL BY A-73 

NAVAJOS 23-25 YEARS OLD 

TABLE 18 ANNUAL SCHOOL CENSUS REPORT OF A-74 

INDIAN CHILDREN FISCAL YEAR 1972 

19 ESEA TITLE I FUNDS A-75 

20 - POPULATION ON & ADVANCE TO A-76 

RESERVATION 

TABLE 21 NAVAJO TOTAL EMPLOYMENT BY A-77 

EMPLOYMENT SECTOR 

TABLE 22 NAVAJO WORKERS IN 1969 BY WEEKS A-78 

WORKED 

TABLE 23 PERCENT OF NAVAJOS 14 YEARS AND A-79 

OLDER IN LABOR FORCE 

TABLE 24 - EMPLOYMENT STATUS OF NAVAJOS A-80 

16 YEARS OLD AND OVER AND 
CLASS OF WORKERS 

TABLE 25 WAGE BOARD DISTRIBUTION OF INDIANS A-81 

AND NON- INDIANS BY AREA OFFICE: 
AS OF JUNE 1972 

TABLE 26 GRADE LEVEL DISTRIBUTION OF GS A-82 

EMPLOYEES NAVAJO AREA OFFICE: 
AS OF JUNE 1972 



666 



TABLE 1 

SOCIAI CHARACTERISTICS OF THE NAVAJO TRIBE: 1970 

RELATIONSHIP TO HEAD OF HOUSEHOLD 

Total population 96,7^3 

Under 18 years old 51,401 

Living with both parents 37,092 

Percent of all under 18 years 72.2 

Head of Household 18,908 

Head of family 16,779 

Female head 3,238 

Primary individual 2,129 

Female primary individual 1,069 

Wife of head 12,630 

Other relative of head 59,855 

Nonrelative of head 2,719 

In group quarters 2,631 

Inmate of institution 931 

Other 1,700 

FAMILIES BY PRESENCE OF CHILDREN 

Total families 16,779 

With own children under 18 years 13,057 

With own children under 6 years 8,711 

Husband-wife families 12,782 

With own children under 18 years 10,241 

With own children under 6 years 7,105 

Families with female head 3,238 

With own children under 18 years 2,295 

CHILDREN EVER BORN 

Women ever married, 15 to 24 years old 2,801 

Children per 1,000 women ever married 1,555 

Women ever married, 25 to 34 years old 5,352 

Children per 1,000 women ever married 3,700 

Women ever married, 35 to 44 years old 4,079 

Children per 1,000 women ever married 6,008 

PLACE OF BIRTH 

Total population 96,495 

Foreign born 48 

Native 96,447 

Born in State of residence 75,356 

Born in different State 15,732 

Northeast 40 

North Central 251 

South 455 

West 14,986 

Born abroad, at sea, etc. SS4 



A-57 



SOURCE: Census, Table 11 at 146. 



667 



TABLE 2 



OCCUPATIONS OF NAVAJO POPULATION 
AND URBAN AND RURAL RESIDENCE 



A-58 



MAJOR OCCUPATION GROUP 



ON RESERVATION 



Male employed, 16 years old and over 
Professional, technical, and kindred workers 
Managers and administrators, except farm 
Sales workers 

Clerical and kindred workers 
Craftsmen, foremen, and kindred workers 
Operatives, including transport 
Laborers, except farm 
Farmers and farm managers 
Farm laborers and foremen 
Service workers, except private household 
Private household workers 

Female employed, 16 years eld and over 
Professional, technical, and kindred workers 
Managers and administrators, except farm 
Sales workers 

Clerical and kindred workers 
Craftsmen, foremen, and kindred workers 
Operatives, including transport 
Laborers, except farm 
Farmers and farm managers 
Farm laborers and foremen 
Service workers, except private household 
Private household workers 



10,019 


4,911 


1,039 


490 


348 


266 


168 


91 


582 


371 


2,190 


1,069 


2,3A4 


1,018 


1,510 


663 


96 


94 


549 


141 


1,183 


708 


10 


- 


6,269 


3,428 


517 


319 


66 


65 


188 


82 


1,635 


1,039 


111 


44 


1,192 


647 


54 


30 


64 


53 


63 


21 


1,960 


940 


419 


188 



URBAN AND RURAL RESIDENCE 

Total population 
Urban 

Rural nonfarm 
Rural farm 



96,743 
16,276 
70,223 
10,244 



56,949 



48,127 
8,822 



Census, Table 14 at 172, 17f. 



668 



TABLE 3 
FAMILY INCOME AND POVERTY STATUS OF NAVAJO POPULATION: 1970 



INCCMES OF FAMILIES 

All families 
Less than $1,000 
$1,000 to $1,999 
$2,000 to $2,999 
$3,000 to $3,999 
$4,000 to $A,999 
$5,000 to $5,999 
$6,000 to $6,999 
$7,000 to $7,999 
$8,000 to $8,999 
$9,000 to $9,999 
$10,000 to $11,999 
$12,000 to $1A,999 
$15,000 to $2A,999 
$25,000 and over 
Median income 
Mean Income 

All unrelated individuals lA 
years old and over 
Mean income 
Per capita income of persons 



TRIBE 

16,779 

3,761 

2,151 

1,882 

1,372 

1,298 

1,099 

1,11A 

838 

682 

659 

789 

717 

358 

59 

$3,A3A 

$A,608 

5,425 
$1,505 
$ 886 



INCOME LESS THAN POVERTY LEVEL 
Persons 

Percent of all persons 
Percent 65 years old and over 
Families 

Per-ent of all families 
Mean size of family 
Mean Income deficit 
With related children under 18 years 
Families with female head 

Unrelated individuals 14 years old 
and over 
Percent of all unrelated individ- 
uals lA years and over 
Mean income deficit 
Percent 65 years old and over 



56,426 

60.2 

5.0 

9,765 

58.2 

5.77 

$2,751 

8,304 

2,36A 

3,255 

72.1 

1,389 

17.9 



ON RESERVATION 

9,733 
2,A12 
1,325 
1,063 

793 

753 

624 

668 

466 

344 

315 

381 

383 

178 

28 

$3,08A 

$4,285 

1,493 
$1,319 
$ 776 



36,538 

6A.5 

5.5 

6,0A0 

62.1 

5.90 

$2,8AA 

5,090 

1,395 

1,042 

77.1 

1,312 

35.2 



SOURCE: Census, Table lA at 172,176. 



669 



TABLE 4 
INCOME OF NAVAJO S 16 YEARS AND OLDER IN 1969 



Male, 16 years 


old and over 


24,447 


Without income 




6,292 


With income 




18,155 


$1 to $999 or loss 




5,734 


$1,000 to $1,999 




2,820 


$2,000 to $2,999 




1,944 


$3,000 to $3,999 




1,490 


$4,000 to $4,999 




1,530 


$5,000 to $5,999 




1,323 


$6,000 to $6,999 




1,198 


$7,000 to $7,999 




829 


$8,000 to $8,999 




537 


$9,000 to $9,999 




284 


$10,000 to $14,999 




395 


$15,000 or more 




71 


Median income 




$2,269 


Mean income 




$3,156 


Female, 16 years old and over 


25,932 


Without income 




12,137 


With Income 




13,795 


$1 to $999 or loss 




6,192 


$1,000 to $1,999 




2,499 


$2,000 to $2,999 




1,531 


$3,000 to $3,999 




1,262 


$4,000 to $4,999 




840 


$5,000 to $5,999 




637 


$6,000 to $6,999 




453 


$7,000 to $7,999 




167 


$8,000 to $8,999 




52 


$9,000 to $9,999 




68 


$10,000 to $14,999 




59 


$15,000 or more 




35 


Median income 




$1,282 


Mean income 




$2,034 



TRIBE ON RESERVATION 



13,556 

4,002 

9,554 

3,254 

1,547 

991 

716 

814 

637 

708 

372 

266 

71 

138 

40 

$1,984 

$2,955 

15,214 

7,452 

7,762 

3,572 

1,358 

701 

672 

484 

412 

330 

115 

41 

25 

44 

8 

$1,228 

$2,032 



Census, Table 13 at 162, 166. 



670 



A-61 



TABLE 5 

POPULATION ESTIMATE 

KAVAJO AREA 

MEDIAN AND MEAN AGE 
IN YEARS BY SEX 

JANUARY 1. 1972 



Both Sexes 

Single 

Married 

Widowed 

Divorced 

Head of Household 

Males 

Single 

Married 

Widowed 

Divorced 

Head of Household 

Females 

Single 

Married 

Widowed 

Divorced 

Head of Household 



Median 

18.4 

12.3 
40.1 
63.6 
43.5 
42.4 

18.0 

12.3 
41.9 
67.3 
43.4 
42.3 

18.8 

12.3 
38.5 
62.7 
43.6 
42.9 



24.2 

14.9 
43.8 
63.8 
46.6 
46.6 

24.0 

14.9 
45.8 
68.1 
46.5 
46.3 

24.3 

15.0 
42.0 
62.8 
46.6 
47.5 



671 



TABLE 6 



NAVAJO POPULATION BY SEX, AGE AND 'WHETHER LIVING ON RESERVATION: 1970 



POPULATION 

Number 96,71+3 

Percent 12.7 

SEX 

Male 1*7, 065 

Female U9, 678 

AGE (years) 

Under 6 17,689 

6 to 15 28,675 

16 to 2U 17, 397 

25 to hk 20, 363 

45 to 64 9,0Ul 

65 and over 3,578 

LIVING ON RESERVATION -' 

Number 59,850 

Percent 61.9 



SOURCE: Census, Table 16 at I88. 



_/ Includes Navajos in Joint Use Area (Navajo-Hopl). 



672 



A-63 



AGE 

Male, all ages 
Under 5 years 
5 to 9 years 
10 to 14 years 
15 to 19 years 
20 to 24 years 
25 to 29 years 
30 to 34 years 
35 to 39 years 
40 to 44 years 
45 to 49 years 
50 to 54 years 
55 to 59 years 
60 to 64 years 
65 to 69 years 
70 to 74 years 
75 years and over 

Female, all ages 
Under 5 years 
5 to 9 years 
10 to 14 years 
15 to 19 years 
20 to 24 years 
25 to 29 years 
30 to 34 years 
35 to 39 years 
40 to 44 years 
45 to 49 years 
50 to 54 years 
55 to 59 years 
60 to 64 years 
65 to 69 years 
70 to 74 years 
75 years and over 



TABLE 7 
NAVAJO INDIANS BY AGE (YEARS) 
TOTAL TRIBE 



1/ 



47,065 

7,166 

7,703 

6,533 

5,397 

4,177 

3,058 

2,676 

2,235 

1,818 

1,507 

1,131 

1,037 

819 

621 

459 

728 

49,678 

7,287 

7,811 

7,208 

6,264 

4,215 

3,296 

2,934 

2,541 

1,805 

1,499 

1,087 

1,034 

927 

741 

325 

704 



SOURCE: Census, Table 12 at 152, 155. 



ON RESERVATION 

27,317 

4,036 

4,869 

4,081 

3,047 

2,025 

1,446 

1,494 

1,162 

1,056 

954 

691 

688 

550 

435 

284 

499 

29,632 

4,383 

4,936 

4,207 

3,744 

1,978 

1,682 

1,677 

1,479 

1,172 

1,025 

734 

708 

636 

473 

258 

540 



1 / These figures do not Include Navajos living in the Joint Use Area (Navajo- 
Hopi) in Arizona. That area has a total Indian population of 7,726. 



673 



A- 64 



>l 



^ 


T 


^' 










a 












> 












c 


o 


p^ 


^ 


LTS 






X) 


-* 


CO 


SO 




Ti 


J- 


■vO 


r- 






C 















OJ 


^ 


















-* 


-o 


VD 


o 


Q 




-0 


XI 


ON 


OS 


o 


-^ 


l/^ 


OS 


f- 


OS 


CM 


to 
u 

(0 


■* 


LfS 


m 


'^ 






XI 


~ ro 


J- 


^ 


■3 


^ 


o 


CVJ 


J- 


"—^ 


J- 


^ 


no 


-^ 


^ 


<: 




-" 


t-^ 


no 




J- 


[-- 





J- 


-It 




lOJ 


Ol 


OD 


CO 


LTS 






-H 


o\ 


r- 


no 




>i 














CT\ 


i/\ 


cm" 






LfN 


O 


OS 


s 


SO 




rH 


I-- 


-* 




t— 
















VO 


r- 




u^ 


. _ 




^0 


ON 


no 


CVJ 


-* 






M 


t~- 


w 


no 




>-l 


J- 


f- 


CVJ 


J- 




11 












t3 


o 


SJD 


no 






C 












3 












01 




^ 


O 
SO 


S 




§ 


o 


OS 


J- 


■H 














r" 


o 


CO 


CJs 


rH 


a 


Ph 


CVJ 


r-\ 








-- 




. — - 





CO 


V 


t~- 


no 


o 


-* 






M 


M 


-* 


« 




S 


m 


O 


CVJ 
















^ 


XI 


CO 


-{ 




+> 


o 


no 


no 


M 




c 










§ 


0) 


o 


t-^ 


CO 


^ 


Si 


CM 








e 


s 










2 


h 


o\ 


OS 


8 


o 


tl 


J- 


OS 


l/\ 


a 


o\ 


OS 


t~- 


CVJ 














3 


-o 


SO 


r- 


CVJ 


_ 


s 


u\ 
















O 


































3) 


X 










C 

o 


k 










M 




Si 










» 


a 






M 


u 


tl 


+> 






o 


< 


2 


3 




4^ 










o 


c 


^ 


c 




£i 


f-t 


M 


M 



674 



SOURCK: Census, Table 15 at l82, l86. 



A- 65 



TABLE 9 
NAVAJO HOUSEHOLDS WITH AUTOMOBILES AVAILABLE: 1970 

TRIBE ON RESERVATION 

TOTAL HOUSEHOLDS l8,731 10,531 
AUTOMOBILES PER HOUSEHOLD 

1 &,2ka ^,896 

2 1,783 1.092 

3 or more 285 ^^^ 
None 8A33 '^,'♦52 



I 



675 



A- 66 



TABLE 10 



HOUSING CHARACTERISTICS OF 


NAVAJO HOUSEHOLDS: 


1970 






TRIBE 


ON RESERVATION 


Total households 




18,731 


10,531 


In owner occupied units 




9,998 


6,474 


Percent 




53.4 


61.5 


In renter occupied units 




8,733 


4,057 


Roms 








1 room 




6,917 


4,239 


2 rooms 




3,698 


2,107 


3 rooms 




3,081 


1,545 


A rooms 




2,516 


1.269 


5 rooms 




1,881 


1,141 


6 rooms 




407 


166 


7 rooms or more 




231 


64 


Median 




2.2 


2.0 


PERSONS 








1 person 




1,749 


925 


2 persons 




2,512 


1,265 


3 persons 




2,217 


1,136 


4 persons 




2,285 


1,218 


5 persons 




2,120 


1,170 


6 persons or more 




7,848 


4,817 


Median, all occupied units 




4.8 


5.1 


Median, owner occupied units 




5.1 


5.3 


Median, renter occupied units 




4.5 


4.9 


Units with roomers, boarders. 


or lodgers 337 


108 


PERSONS PER ROCM 








1.00 or less 




5,389 


2,547 


1.01 to 1.50 




2,261 


1,172 


1.51 or more 




11,081 


6,812 


Units with all plumbing facilities— 






1.01 or more 




3,481 


1,713 


UNITS IN STRUCTURE 








1 (Includes mobile home or trailer) 


16,324 


9,951 


2 




558 


160 


3 and 4 




381 


112 


5 to 49 




1,363 


308 


SO or more 




104 


- 


YEAR STRUCTURE BUILT 








1969 to March 1970 




1,215 


799 


1965 to 1968 




3,435 


2,351 


1960 to 1964 




3,642 


2,324 


1950 to 1959 




4,609 


2,559 


1940 to 1949 




1,939 


853 


1939 or earlier 




3,891 


1,645 



676 



A- 67 



TABLE 10 
HCUSIKG CHARACTERISTICS 07 TIAVAJO HOUSEHOLDS 



SELECTED EQUIPMENT 

Uith coaplece bathroom 

With more than 1 bathroom 

With piped water in the building 

With public water supply 

With public sewer 

With air conditioning 

VALUE 1/ 

Specified owner occupied units 
Less than $5,000 
$5,000 to $7,A99 
$7,500 to $9,999 
$10,000 to $14,999 
$15,000 to $19,999 
$20,000 to $24,999 
$25,000 to $34,999 
$35,000 to $49,999 
$50,000 or more 
Median 

CONTRACT RE:rr 2/ 

Specified renter occupied units 
Less than 3 30 
530 to $39 
$40 to $59 
$60 to $79 
$30 to $99 
$100 to $149 
$150 to $159 
3200 to 3249 
5250 or aora 
So cash raat 
Median 



USEHOLDS: 


1970 (con't.) 


TRIBE 


ON RESERVATION 


6,710 


2,891 


576 


137 


8,194 


3,845 


8,382 


4,351 


6,427 


2,922 


1,206 


496 


5,701 


3,660 


3,919 


2,988 


720 


273 


198 


116 


491 


191 


193 


68 


107 


14 


55 


6 


18 


4 



33,600 



7,312 
486 
505 

1,772 
955 
631 
536 
151 
5 
23 

2,138 
$58 



$3,100 



2,935 

327 

340 

1,228 

155 

33 

12 

38 



802 
$47 



1^/ Limited zo one-family homes on less than 10 acres and no business on 
property. 

2/ Excludes one-faoiiy hones on 10 acres or nore. 



'.r^Cc: C^-sus, Taoie 15 at 132, 186. 



677 



TABLE 11: Boarding Schools Operated by the Bureau of Indian Affairs 





Fiscal Year 


1972 












Post Office 






Enrollment 








Total 


Boarding 


Day 


Grade 


NAVAJO 




20 


,802 


18,494 2 


,308 




Arizona 
Chinle 


Chinle 


12. 


,251 
790 


10,506 1 
790 


,745 


B-7 


Crystal 


Navaio, N. Mex 




133 


107 


26 


K-5 


Dennehotso 


Kayenta 




274 


238 


36 


K-5 


Dilcon 


Wins low 




742 


441 


301 


K-8 


Greasewood 


Ganado 




618 


452 


166 


K-8 


Hunter's Point 


St. Michaels 




180 


180 


-- 


B-5 


Kaibeto, Lower 


Tonalea 




175 


113 


62 


K-1 


Kaibeto, Upper 


Tonalea 




484 


470 


14 


2-8 


Kayenta 


Kayenta 




555 


555 


-- 


B-8 


Kinlichee 


Ganado 




256 


234 


22 


K-7 


Leupp 


Wins low 




556 


520 


36 


K-8 


Low Mountain 


Chinle 




208 


65 


143 


K-3 


Lukachukai 


Lukachukai 




575 


234 


341 


K-6 


Many Farms Elem. 


Chinle 




731 


731 


-- 


K-8 


Many Farms High 


Chinle 


1 


,009 


1,009 


-- 


9-12 


Nazlini 


Ganado 




149 


121 


28 


K-4 


Pine Springs 


Houck 




74 


53 


21 


K-2 


Pinon 


Pinon 




306 


197 


109 


K-3 


Rock Point 


Chinle 




358 


190 


168 


K-6 


Rocky Ridge 


Tuba City 




143 


69 


74 


K-2 


Seba Dalkai 


Winslow 




145 


119 


26 


K-3 


Shonto 


Shonto 


1 


,022 


960 


62 


K-8 


Teecnospos 


Teecnospos 




701 


657 


44 


K-6-S 


Toyei 


Ganado 




759 


738 


21 


K-8-S 


*Tuba City 


Tuba City 


1 


,099 


1.099 


-- 


B-8-S 


Wide Ruins 


Chambers 




209 


164 


45 


K-5 



Table continued on next page. 



♦Boarding high school at Tuba City opened after the publication of these 
statistics. 



678 



A- 69 



Continuation from previais page. 

TABLE 11: Boarding Schools Operated by the Bureau of Indian Affairs 





Fiscal Year 


1972 










Post Office 


tI 




Enrollment 








3tal 


Boarding 


Day 


Grade 


NAVAJO 


New Mexico 
Baca 


Prewitt 


6 


,768 
40 


6,206 

40 


562 


B-1 


Canoncito 


Laguna 




134 


70 


64 


K-4 


Chichiltah 


Gallup 




108 


74 


34 


K-2 


Chuska 


Tohatchi 




627 


627 


-- 


B-8-S 


Crownpoint 


Crownpoint 




849 


849 


-- 


B-8 


Dlo'ay Azhi 


Thoreau 




111 


111 


-- 


B-3 


Dzilth-Na-0-Dilth-Hle 


Bloomfield 




387 


268 


119 


B-8-S 


Lake Valley 


Crownpoint 




115 


88 


27 


K-5 


Marino Lake 


Gallup 




126 


74 


52 


K-3 


Nenahnezad 


Fruit land 




327 


306 


21 


K-6 


Pueblo Pintado 


Cuba 




233 


188 


45 


K-4 


Sanostee 


Shiprock 




535 


392 


143 


K-6 


Shiprock 


Shiprock 




624 


624 


-- 


1-8 


Standing Rock 


Crownpoint 




50 


50 


-- 


B-2 


Toadlena 


Toadlena 




297 


281 


16 


K-6 


Tohatchi 


Tohatchi 




349 


349 


-- 


B-8 


Torreon 


Cuba 




51 


51 


-- 


B-2 


Whitehorse Lake 


Cuba 




45 


38 


7 


B-1 


Wingate Elem. 


Ft. Wingate 




737 


737 


-- 


S 


Wingate High 


Ft. Wingate 


1 


.023 


989 


34 


9-12 


Utah 

Aneth 


Aneth 


1. 


,783 
343 


1.782 
343 


1 


B-6-S 


Intermountain 


Brigham City 


1 


,416 


1.416 


-- 


9-12-S 


Naval Mountain 


Tuba City. Ariz. 


24 


23 


1 


B-1 



Source: 



BIA, Statistics Concerning Indian Education. Fiscal Year 1972 
Table 4 at 12 (hereinafter cited as BIA Statistics). 



679 



A-70 



TABLE 12: 



Day Schools Operated by the Bureau of Indian Affairs 



Fiscal Year 1972 





Post Office 


(All Ages) 
Enrollment 


Grades 


NAVAJO 




1 


.292 




Regular Day Schools 




1 


.209 




Arizona 


Chinle 




705 




New Cottonwood 




428 


K-6 


Red Lake 


Tonalea 




174 


B-5 


Chilchinbeto 


Keyenta 




103 


K-4 


New Mexico 


Magdalena 




504 




Alamo 




31 


K 


Beclabito 


Shiprock 




60 


B-4 


Borrego Pass 


Crownpoint 




52 


K-3 


Bread Springs 


Gallup 




60 


K-3 


Cove 


Shiprock 




114 


K-5 


Jones Ranch 


Gallup 




71 


K-4 


Red Rock 


Shiprock 




116 


K-2 


Trailer School 
Oio Encino 


Cuba. N. Mex. 




83 


K-3 



Source: BIA Statistics . Table 5 at 20. 



680 



A- 71 



TABLE 13: 



Enrollment by Grade in Schools Operated by the BIA 
Fiscal Year 1972 



NAVAJO 


Grand Total 


22,094 


Kindergarten 


943 


Beginners 


2,041 


First 


2.586 


Second 


2,357 


Third 


2,141 


Fourth 


1,927 


Fifth 


1.878 


Sixth 


1,466 


Seventh 


1,274 


Eighth 


974 


Ungrad. Elem. 


1.223 


Subtotal Elem. 


118.810 


Ninth 


965 


Tenth 


819 


Eleventh 


781 


Twelfth 


719 


Dngrad. Sec. 


-- 


Subtotal Sec. 


i,284 


Subtotal Elem. & Sec. 


22.094 



BIA Statistics Table 8 at 24. 



TABLE 14: Completions and Number of Graduates of Schools Operated by BIA 

Fiscal Year 1972 



Area 


High School Graduates 


8th Grade Completions 


Post Graduate 
Completions 


Navajo 


609 


1,015 


-- 



Source: BIA Statistics Table 9 at 25. 

********** 

TABLE 15: Bureau of Indian Affairs Higher Education Program: FY 1972* 



Area 

or 
Agency 


Total 

No. 

Students 


No. Under- 

Graduate 

Students 


No. 

Graduate 

Students 


Under 
Students 
Earning Degrees 


Graduate 
Students Earn- 
ing Degrees 


Navajo 


1,732 


1,732 


-- 


100 


-- 



*This table indicates the number of undergraduate and graduate students who 
received scholarship grants during fiscal year 1972, also the number of 
students earning degrees. 

Source: BIA Statistics Table 15 at 34. 



681 

A- 72 

TABLE 16 

School Enrollment (3-34 Years Old) On the Navajo Reservation 

Total enrolled, 3 to 34 years old 37,266 

Nursery School 593 

Kindergarten 2,638 

Elementary (gardes 1-8) 23,995 

High School (grades 9-12) 8,649 

College 1,391 



Source: Census . Table 11 at 146. 



682 

TABLE 17 
Years Completed In Any School By Navajos 
25 - 34 Years Old 



TRIBE ON RESERVATION 

Male, 25 to 34 years old 5,734 2,940 

Elementary: Less than 5 years 1,209 631 

5 to 7 years 911 425 

8 years 564 299 

High School: 1 to 3 years 978 542 

4 years 1,466 764 
College: 1 to 3 years 501 230 

4 years or more 105 49 

Female, 25 to 34 years old 6,230 3,359 

Elementary: Less than 5 years 1,705 971 

5 to 7 years 1,035 517 
8 years 571 324 

High School: 1 to 3 years 1,072 581 

4 years 1,380 751 

College: 1 to 3 years 406 173 

4 years or more 61 42 



A- 73 



Source: Census, Table 12 at 152, 156. 



683 



O <3 >-i 



A- 74 



~1, 



684 



A- 75 



TABLE 19 

ESEA 
TITLE I FUNDS 
School Districts In or bordering Navajo Reservation 
Fiscal Year 1972 



Aztec 

Bloomfield 

Central 

Cuba 

Dulce 

Farmington 

Gallup 

Grants 

Jenez Mountain 

TOTAL 



ALLOCATION 

45,102.00 

146,723.00 

467,219.00 

164,730.00 

18,245.00 

136,195.00 

744,456.00 

190,495.00 

66,430.00 

1,979,595.00 



EXPENDITURE 

45,102.00 

146,420.65 

464,381.88 

160,091.93 

18,238.46 

136,074.29 

727,000.63 

189,997.37 

62,600.34 

1,949,907.55 



SOURCE: New Mexico State Department of Education: Fiscal Year 1972 
Funds at 1-2. 



685 



A-76 



2S 



JS 






o -o 

9 S 



4J 9 

M (d 



fi-s 

S9 



5^2 



686 



TABLE 21 



A-77 



NAVAJO TOTAL EMPLOYMENT 
BY EMPLOYMENT SECTOR 



Employmenf Sector of 
the Economy 






Percentage of the Navajo Economy 
(by 1967 Employment) 



Total Number of 
Novajos Employed 



Government 






7287 



29.3% 



Range I and 



i f ii nfflj 



8464 34.1% 



Service Trades 



3011 



12.1% 



Manufacturing 
and Processing 



W. 



928 



3.7% 



Commercial Trades 
(including Tourism) 



786 



3.2% 




(Source: Evaluorion of Population Support Copacity of the Navajo 

Reservation, Bureou of Indian Affairs, Navajo Area Office.) 



687 

A-78 



TABLE 22 
NA.V2U0 WDRKE3« IN 1969 BY WEEKS WORKED 





Tribe 


On Reservation 


Male, 16 years old and over 


14,956 


7,392 


50 to 52 weeks 


6,806 


3,185 


27 to 49 weeks 


3,012 


1,546 


26 weeks or less 


5,138 


2,661 


FEMALE, 16 YESiRS OLD AND OVER 


9,326 


4,910 


50 to 52 weeks 


3,628 


2,052 


27 to 49 weeks 


1,815 


934 


26 weeks or less 


3,883 


1,924 



SOURCfi: Census, Table Ik at 172, 176. 



688 



A-79 



TABLE 23 
PERCENT OF NAVAJOS lA YEARS AND OLDER IN LABOR FORCE 



14 and 15 years 

16 to 19 years 

20 to 24 years 

25 to 34 years 

35 to 44 years 

45 to 64 years 

65 years and over 

: 14 and 15 years 

16 to 19 years 

20 to 24 years 

25 to 34 years 

35 to 44 years 

45 to 64 years 

65 years and over 



TRIBE 

2.2 
14.7 
51.9 
71.0 
66.9 
48.9 
10.1 



ON RESERVATION 

2.6 
11.5 
42.0 
63.7 
60.6 
44.5 
10.7 

3.5 

7.0 
40.1 
45.3 
28.9 
15.1 

1.5 



SOURCE: Census. Table 13 at 162, 166. 



689 



A-80 
TABLE 24 

QiPLOYMEMT STATUS OF NAVAJOS 16 YEARS OLD AND OVER AMD CLASS OF WORKERS 

TRIBE ON RESERVATION 

EMPLOYMENT STATUS 

Male, 16 years old and over 24,447 13,556 

Labor Force 11,946 5,743 

Percent of total 48.9 42.4 

Civilian labor force 11,477 5,724 

Employed 10,019 4,911 

Unemployed 1,458 813 

Percent of civilian labor force 12.7 14.2 

Not in labor force 12,501 7,813 

Female, 16 years old and over 25,932 15,214 

Labor Force 6,935 3,768 

Percent of total 26.7 24.8 

Civilian labor force 6,884 3,754 

Employed 6,269 3,428 

Unemployed 615 326 

Percent of civilian labor force 8.9 8.7 

Not in labor force 18,997 11,446 

Male, 16 to 21 years old 6,003 3,144 

Not enrolled in school 2,310 1,193 

Not high school graduate 1,321 724 

Unemployed or not In labor force 980 609 

CLASS OF WORKER 

Total employed, 16 years old and 

over 16,288 8,339 

Private wage and salary workers 9,501 3,518 

Government workers 6,442 4,636 

Local government workers 2,232 1,763 

Self-employed workers 306 167 

Unpaid family workers 39 18 



SOURCE: Census, Table 13 at 162, 166. 



690 









3 






M 


OOO-lOOOO 


I-I 


gu. 






gv 






crs 






« o 


ootnnmr^oo 


00 


UJ3S 




r-l 


E3 






p 

9 






0«3-0«*CMrH00 


r-l 


I-I 


r-l CN 


sr 






M_ 


0^0^0^^^^^^*^•^0 


CT» 


s 


CM M .-1 CN r-l 


CM 


»-t 


OfM\00»S-<000 


m 


s^ 




t-t 


1 






o 


0'>Jr~vO<t-M'-'i-i 


»d- 


zs 


r-c r~ f>. — 1 


00 


o 




i-l 


1— f 






< 

5pr 






i-ir-ir^corvii^OO 


o 


2: <S, 


O «> ■-' CT> t^ 


o 


1-1 


i-i 


n 


a 






7C 






*-* 


ooN-it^mr^nsi' 


r-l 


•z 


r-i o eo c^ 00 ■-' 


r^ 




CM r- 1 r-* 1— * 


00 


fs 






< 






(-1 


00-<Or-IOOO 


CM 


g=- 






>-i 






^^ 












o 


0'-'0o>>-eof0'-' 


vn 


ys^ 


CM r-- 


CM 


X 




•-* 


i-i 






i~ 






t-ir-icgi^<j-^00 


CO 


s: (n 


n I-I r-l 


sr 


p. 






r»i 






<; 












^^incr>>-<>-'N«* 


^ 


M*^ 


f<i <f u-» L-i en — ' 


CO 










en a 






O^ C^ C^ C^ C^ 0^ > 






CNOOOOCnCN O 






cn 0^ O r\ <Ti C\ " 






v,T « - - . »r- -o 






«o r~ CO o c^ ■-' ;: 




t-< 


■--i v><n- </> o .-1 </> ra 


u 


0) 


CO- <rt- 


to 


> 


1 1 1 I 1 1 < 


-i 


CI 


3 O O O 




.J 


ViOOOOCOO 


B 




^OOOOOOO 


r-l O' 


a 


ijinoOO --<> 




C3 


- - ^ -o vr 00 


U (.1 


n 


fl.ulP^COON^^'-^'"* 


>« 


» 


3 o cv <«- v> </></> </>• 


H w 



J; 



A- 81 



r-l o 




>< -1 


C 


tjl 10 


C3 


> 


•rl 


o 


•3 «) 


•• B! 


C -• 


U 




O r3 


■ r-l S 


a: p 


C i« «l 


=> o 


o^u. 



691 



A-82 



Table 26 

Grade. Level disCribucion of GS Einployees Navajo 
Area Office: As of June 1972 









Indians 




Non- 


•Indians 


Grade 


To':.ll 


;:---'_-'^r 


>:.Tle 


FcT?alc 


.>;u::ibcr 


Xnlc Fcni-Tc 


1 


95 


95 


31 


64 





- 


2 


38 


38 


13 


25 







3 


573 


557 


130 


427 


'16 


6 10 


4 


1091 


999 


240 


759 


92 


23 69 


5 


301 


205 


91 


114 


96 


43 53 


6 


95 


77 


37 


40 


18 


8 10 


7 


166 


77 


48 


29 


89 


38 51 


8 








— 


— 





— — 


9 


1006 


145 


59 


86 


861 


427 434 


10 


10 





— 


— 


10 


8 2 


11 


254 


60 


42 


18 


194 


146 48 


12 


112 


28 


27 


1 


84 


76 8 


13 


39 


8 


7 


1 


31 


28 3 


14 


22 


3 


3 


— 


19 


18 1 ( 


15 


1 


1 


1 


~ 





~ ~ 


16 








— 


»- 





•<— '"' 


TOTAL 


3796 


2293 


729 


1564 


1503 


817 635 



SOURCE: Gi-.-ida Level D isC ri bucioa by Kinorltv and Sok. Bu .c-.u 
of Indian Ai'fcirs. Alburucrque. >"av' :-:;::ico Area - As o^ 5/30/72 



Includes total area office emplo/rr.anC (both Indian and non-Indian) , 



^;Jon-Indian category includes Negro, Spanish-Suma^ned, Oriental 
and Vn-iice. 



692 

Exhibit No. 6 

TREATY BETWEEN THE UNITED STATES OF 
AMER.;]A AND THE NAVAJO TRIBE OF INDIANS 



cz: 



T?4?^ 



■-: ^^.,.i 









/fa.^ jg^^^^^dt 2uL&^ 9^^2i^ «-<J' 



«r -. ,." 






Articles of a Treaty and ARreement made and entered into 
el Fort S-.imnur, New Mexico, on the first day of June, 
1868, by and bcuvccn the United States, represented 
by its ConimissionRrs. Lieutenant General VV. T. Sher- 
man and Colonel Samuel F. Tappan, oC the one part, 
and the Navajo n.ilion or tribe of Indians, represented 
by their Chiefs .nnd Hojdmen. duly authorized and 
cnipowrrcd to .irt for l!if whole people of said na- 
tion or tribe, (the nnints of said Chiefs and Headmen 
being hereto subscribed.) of the other part, witness: 

Article 1. 

From this day forw.ird all \:m between the p.irties to 
this a:jtfemcnt shall lor ivur ce.ise. The i4"vernmr.nt of 
li-..- L'lui.i! Sl.iti.s d'^sinv^ p,Mc .-. and its liruior is hurcbv 
pi 'd'.;.-!! tu kcofi it, 1 h.- Iiiili,ins desire peace, and they 
ti'jiv p!i<di;e Ihirir lionnr to knp it. 

If bad men a:noii;. ilic whil.s. it among other penplir 
sii!)jr!i : to the ;.ii'lii.ntv of lit.' llnilrd Sl:ite., r.li.dl r.om 
mi! a;iy wrnu:; up. in Ihr pi rsiin or pmpirty o( the Indians. 
the United Stales will, upon proof m ulo to the nfiCTt and 



forwarded to the Commissioner of Indian Affairs at Wash- 
ington city, proceed at once to cause the offender to be 
arrested and punished according to the laws of the 
United States, and also to reimburse the ':'.jurcd per- 
sons for the loss :ii' .Mined. 

If bad men among the Indians shall commit a wrong 
or depredation upon the person or property of any one, 
white, black, or Indian, subject to the ae/hority of the 
United States and at peace therewith, the Navajo tribe 
agree that they will, on proof made to their agent, and 
on notice by him, deliver up the wrongdoer to the United 
States, to be tried and punished according to its laws: 
and in case they wilfully refuse so to do, the person in- 
jured shall be reimbursed for his loss from the annuities 
or other moneys due or to become due them under this 
treaty, or any others that may be made with the United 
States. And the President may prescribe such rules and 
regulations for ascertaining damages under this article as 
in his judgment may be proper; but no such damage shall 
be adjusted and paid until examined and passed upon by 
the Commissioner of Indian Affairs, and no one sustain- 
ing loss whilst violrting. or because of his violating, the 
provisions of this treaty or the laws of the United States, 
shall be reimbursed iherefor. 

Article II. 
The United Slates agrees that the following district of 
country, to wit: bounded on the north by the 37th degree 
of north latitude, south by an east and west line passing 
through the site of old Fort Defiance, in Canon Bonito, 
east by the parallel of longitude which, if prolonged 
south, would pass through old Fort Lyon, or the Ojo-de- 
oso. Bear Spring and west by a parallel of longitude 109° 
30 west of Greenwich, provided it embraces the outlet 
of the Canon-de-Chilly. which canon is to be all included 
in this reservation, shall be. and the same is hereby, set 
apart for the use and occupation of the Navajo tribe of 
Indians, and for such other friendly tribes or individual 
Indians as from time to lime they may be willing, with 
the consent of the United States, to admit among them: 
and the United Stales agrees that no persons except those 
herein so authorized to do, and except such officers, 
soldiers, agents, and employes of the government, or of 
the Indians, as may be authorized to enter upon Indian 
reservations in discharge of duties imposed by law, or 
the orders of the President, shall ever be permitted to 
pass over, settle upon, or reside in, the territory described 
in this article. 

Article III. 
The United Sl.iles agrees to cause to be built at some 
point within said rf^servation, ivhere timber and water 
may be convcniuiil. the folloivin;; buildings: a Wiirehousc, 
to cost not cxteeding twcnty-fue hund.-ed dolLirs; an 
agency building for the residence of the agent, not to cost 
nxrci'(lin:4 three tluiiisand doll:M's: a carpentr-r shop and 
lihickMiiilli sliiip, not to rosl cvrmlin'; one tlvMis.iud 
dnilais e.icli: m\A a s, l„i.>l-iio:ise :ind chapel, so soon as 
a hutfirieni iiMiiilii r ol children can be induced to aliend 
school, which sh.ill not cost to exceed five thousand 
dollars 

ArlicI,- IV. 
The United Slates agrees that the agent for the 



693 



Navajos shall make his hnme at the agency building: 
that he shall roside amon-; thfm iMid shall keep an oKice 
open at all times for the purpose ol prompt and dilijeiit 
inquiry into such matters of conipl:iint by or against the 
Indians as may be presented ftir iiivestisalion, as also for 
the faithful discharge of other duties enjoined by law. 
In all cases of depredation on person or pcnprrty he shall 
cause the evidence to be taken in writin" and forwarded. 
together with his finding, to the Commissioner of Indian 
Affairs, whose decision shall be binding on the parties 
to this treaty. 

Article V. 

If any individual belonging to said tribe, or legally 
Incorporated with it. being the head of a family, shall 
desire to commence farming, ne shall have the privilege 
to select, in the presence and with the assistance of the 
agent then in charge, a tract of land within said reserva- 
tion, not exceeding one hundred and sixty acres in extent, 
which tract, when so selected, certified, and recorded in 
the "land book" as herein described, shall cease to be he'.d 
in common, but the same may be occupied and held in 
the exclusive possession of the person selecting it. and 
of his family, so long as he or they may continue to 
cultivate it. 

Any person over eighteen years of age. not being 
the head of the family, may in like manner select, and 
cause to be certified to him or her for purposes ot culti- 
vation, a quantity of land, not exceeding eighty acres in 
extent, and thereupon be eiititled to the exclusive pos- 
sssion of 'he same as above directed. 

For each tract of land so selected a certific.te con- 
taining a description thereof, and the name of the person 
selecting it. with a certificate endorsed thereon that the 
same has been recorded, shall be delivere] to the party 
entitled to it by the agent, alter the same shall have been 
recorded by him in a book to be kept in his office, sub- 
ject to inspection which said book shall be known as the 
"Navajo Land Book." 

The President may at any time order a survey of the 
reservation, and. when so surveyed. Congress shall pro- 
vide for protecting the rights of said settlers in their im- 
provements, and may fix the character of the title held 
by each. The United Stales may pass such laws on the 
subject of alienation and descent of property between 
the Indians and their descendants as may be thought 
proper. 

Article \^. 

In order to insure the civilization of the Indians 
entering into this treaty, the necessity of education is 
admitted, especially of such of them as may be settled 
on said agricultural parts of this reservation, and they 
therefore pledge themselves to compel their children. 
male and female, between the ages of six and sixteen 
years, to attend school: and it is hereby made the duty 
of the agent for said Indians to see that this stipulition 
is strictly complied with: and the United Slates agrees 
that, for every thirty children betwee.i said ayes who can 
be induced or compelled to attend school, a house shall 
be provided, and a teacher competent to teach the ele- 
mentary branches of an English education sh.ill be fur- 
nished, who will reside among said Indians, and faithfully 
discharge his or her duties as a teacher. 

The provisions of this article to continue for not less 
than ten years 

Article VII 
When Ihi' hoa.l of a f.im.ly sh.Ml have sel-(--d l.uuls 
and rccoived his certificate as abinc directed, and tin- 
uijenl shall he siitisficd that he intLndr. in i^ood faith to 
cumnii'ncf <.uUiv.'\linv: the soil fur a livin;;, hr sh ill be en- 
titled to rocirive sonds and agricultural iniplciiients lor th<- 
first year, not exceedinj; in value one hundred dollars. 



and for each succeeding year he shill be entitled to 
receive seeds and implements to the value of twenty-five 
dollars. 

Article VIII. 

In lieu of all sums of money or other annuities pro- 
vided to be paid to the Indians herein named under any 
treaty or treaties heretofore made, the United States 
agrees to deliver at the agency house on the reservation 
herein named, on the first day of September of each year 
for ten years, the following articles, to wit: 

Such articles of clothing, goods, or raw materials in 
lieu thereof, as the agent may make his estimate for. not 
exceeding in value five dollars per Indian — rach Indian 
being encouraged to mauufac-ture their own clothing, 
blankets, &c : to be furiMshed with no article which they 
can manufacture themselves. And, in order that the Com- 
missioner of Indian Affairs may he able to estimate prop- 
erly for the articles herein named, it shall be the duty of 
the agent each year to forward to him a full and exact 
census of the Indi;'.ns, on which the estimate from year 
to year can be based. 

And in addition to the articles herein named, the sum 
of ten dollars for each person entitled to the beneficial 
effe.'ts of this treaty shall be annually appropriated for 
a period of ten years, for each person who engages in 
farming or mechanical pursuits, to be used by the Com- 
missioner of Indian Affairs in the purchase of such 
articles as from lime to time the condition and neces- 
sities of the Indians may indicate to be proper: and if 
within the ten years at any time it shall appear that the 
amount of money needed for clothing, under the article, 
can be appropriat-?d to better uses for the Indians named 
herein, the Commissioner of Indian Affairs may change 
the appropriation to other purposes, but in no event shall 
the amount of this appropriation be withdrawn or dis- 
continued for the period named, provided they remain at 
peace. And the President shall annually detail an officer 
of the army to be present and attest the delivery of all 
the goods herein named to the Indians, and he shall in- 
spect and report on the quantity and quality of the goods 
and the manner of their delivery. 

Article IX. 

In consideration of the advantages and benefits con- 
ferred by this treaty, and the many pledges of friendship 
by the United Stales, the tribes who are parties to this 
agreement hereby stipulate that they will relimiuish all 
right to occupy any territory outside their reservation, as 
herein defined, but retain the right to hunt on any un- 
occupied lands contiguous to their reservation, so long 
as the large game may range thereon in such numbers as 
to justify the chase; and they, the said Indians, further 
expressly agree: 

Isl. That they will make no opposition to the con- 
struction of railroads now being built or hereafter to be 
built, across the continent 

2nd. That they will not interfere with the peaceful 
construction of any railroad not passing over their reser- 
vation as herein defined. 

3rd. That ihey will not attack any persons at home 
or travelling, nor molest or disturb any wagon trains, 
coaches, mules or cattle belonging to the people of the 
United States, or to persons friendly therewith. 

4th That they will never capture or carry off from 
the settl'-mcnls wiimen or children, 

.Tth Tiii.y will mivrr kill or si.ilp \ihi:' men. nor ,it- 
tom[it to do iliini h.irm. 

Cth Thay will not in future oppose the construction 
of railroads. waj;on ru ids. miil stati'in-;, or other works 
of utility or ne.-rssity which injy bo ordered or p.:, mitt. 'd 
by the i.iws of the Uiiilud States: lint should such roa.ls 
or other vvorivS bu constructed on the lands of their 



694 



reservation, the poirrnmcnt %vlll pay the trihe -.vhatexer 
amount of damage may be assessed by three riistinrer- 
esled commibsioners to be appointed by the President 
for that purpose, one o! said commissioners to be a chief 
or head man of the tribe. 

7lH They will make no opposition to the military 
posts nr roads now established, or that may be estab- 
lished, not in viiilation of treaties heretofore made or 
hereafter to be made with any of the Indian tribes. 

Article X. 
No future treaty for the cession of any portion or 
part of the reservation herein described, which may be 
held in common, shall be of any validity or force against 
said fndians unless agreed to and executed by at least 
three-fourths of all the adult male Indians occupying or 
interested in the same; and no cession by the tribe shall 
be understood or construed m such manner as to deprive, 
without his consent, any individual member of the tribe 
of his rights to any tract of land selected by him as pro- 
vided in article 5 of this treaty. 

Article XI. 
The Navajos also hereby agree that at any time after 
the signing of these presents thsjy will proceed in such 
manner as may be required of them by the agent, or by 
the officer charged with their removal, to the reservation 
herein provided for. the United States paying for their 
subsistence en route, and providing a reasonable amount 
of transportation for the sick and feeble. 

Article XII. 

It is further agreed by and between the parties to 
this agreement that the sum of one hundred and fifty 
thousand dollars appropriated or to be appropriated shall 
be disbursed as follows, subject to any conditions pro- 
vided in the law, to wit; 

1st. The actual cost of the removal of the tribe from 
the Bosque Redondo reservation to the reservadon, say 
fifty thousand dollars. 

2nd The purchase of fifteen thousand sheep and 
goats, at a cost not to exceed thirty thousand dollars. 

3rd. The purchase of five hundred beef cattle and a 
million pounds of corn, to be collected and held at the 
military post nearest the reservation, subject to the orders 
of the agent, for the relief of the needy during the com- 
ing winter. 

4th. The balance, if any. of the appropriation to be 
invested for the maintenance of the Indians pending their 
removal, in such manner as the agent who is with them 
may dete.-mine. 

5th. The removal of this tribe to be made under the 
supreme control and direction of the military comm.Tnder 
of the Territory of N'ew Mexico, and vvher, completed, 
the management of the tribe to revert to the proper agent. 



Article XIII 
The tribe herein named, by their representatives, 
parlies to this treaty, agree to make the reservation here- 
in described their permanent home, and they will not as 
ti tribe make any permanent S'-ltlement elsewhere, reserv- 
ing the ri';ht to hunt on tin- l.inds adjoining the said 
r.'S.'rv.itin:-. I'ornn-rK railed theirs, .^uhj.xt tti lli.' miidili- 
catioiis r.inicd in this l.-ealy ;hu1 the nrdrrs of the com- 
mander of the d-parlmeni in uhich s;iid r.-icrvaiion may 
be for the time b.;in>j; and it is further an"'''' am! under- 
stood by tlio parlies to this treaty, that if any N'avnji) 
Indian or Indians nhall ItMve the reM-rvali(iii hert-in di'- 
iscrihotl to sellle eUcuhfre, ho or they shall Inrtcit all 
Ihc rights, (iri'.ilej'es, and aimuilies ronferred by the terms 
iif this treaty; niid (1 is further agreed by the parlies to 



this treaty, that they will do all they can t" induce Indiana 
noiv away from reservations set apart t ; Ihc e^clusi'-; 
use and occupation of the Indians, leadi.ig a no'i'ii'iG 
life, or engaged in war against the people of the ; "itd 
States, to abandon such life and settle permane"'"'" in 
one of the territorial reservations set apart for t'l.; ex- 
clusive use and occupation of the Indians. 

In testimony of all which the said parties have here- 
to, on this the first day of June, eighteen hundred and 
sixty-eight, at Fort Sumner, in the Territory of New 
Mexico, set their hands and seals. 

W. T. SHERMAN 
Lt. Gen'l, Indian Peace Commissioner. 
S. F. TAPPAN. 
Indian Peace Commissioner. 



BAR80NCIT0, Chief. 

ARMtJO. 

DELGADO. 

MANUELITO. 

LARGO. 

HERRERO. 

CHIQUETO. 

MUERTO DE HOMBRE. 

HOMBRO. 

NARBONO. 

NARBONO SEGUNDO. 

GANADO MUCHO. 

Council. 
RIQUO. 

JUAN MARTIN. 
SERGINTO. 
GRAN'DE. 
IN'OETEN'ITO 
MUCHACHOS MUCHO. 
CHIQUETO SEGUNDO. 
CABELLO AMARILLO 
FRANCISCO. 
TORIVIO. 
DESDEN'DADO. 
lUAN. 
GUERO. 
GUGADORE. 
CABASON. 
B.^RBO.V SEGUNDO. 
C.^BARES COLORADOS 



his X mark, 
his .X mark. 

bis X mark, 
his X mark. 
his X mark. 
his X mark. 
his X .Tiark. 
his X mark, 
his X mark, 
his X mark, 
his X mark. 

his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark, 
his X mark. 
his X mark, 
his X mark, 
his X mark, 
his X mark. 



Attest; 
Geo. W. G. Getty. 

Col. 37th Infy. Bt. Maj. Gen'l U. S. A. 
B. S. Roberts, 

Bt. Brg. Gen'l U. S. A.. Lt. Col. 3d Cav'y. 
J. Cooper Mckee, 

Bt. Lt. Col. Surgeon U. S. A. 
Theo. H. Dodd, 

U. S. Indian Ag't for Navajos. 
Chas. McClurc. 

Bl. .\laj. and C. S. U, S A. 
fames F. Weeds. 

Dt. Maj. and Asst. Surg. U. S. A. 
J. C. Sutherland, 

Interpreter 
VVilliiim Vaus, 

Chnplniii U. S. A. 



And whereas, the s; 
to the Si'iiali: of llie lid 
niitidii theri'on. the Sfn, 
of [illy, line llnuis.iiul iri 
vise ;iiid i:r)i\stfnt U) thr 



id treaty having been siibmilled 
ited .Slates for its cOM5titii!io;ial 
ilo dill, oil Ihr luenlv-liilli il.iy 
^lit hundred and si\t>-ci|;lit. ad- 
ratiliralion ot the .s.inie. bv a 



resoltilioii in the words and figures fnllowin;4. to wit: 



695 
Exhibit No. 7 

PLAN OF OPERATION FOR CHAPTER HOUSES 

A Plan of Operatioa is needed to efficiently carry out the functions and 
purposes of the Chapter Houses as stated in the Advisory Committee 
Resolution ACAP-61-60, Policies, Procedures, and Standards Relative to 
Chapter House Construction . 



MANAGEMENT : 



The chapter house and permises are entirely controlled by the 
chapter members represented by their Chapter Officers and 
Council Delegates. All matters pertaining to the management 
of the Chapter shall be presented to the Chapter at a duly 
called meeting so that the matter can be placed on the meeting 
agenda. 

The Chapter shall not be held responsible for any mishaps, 
accidents, loss of items, etc., of the attending people. 



RECREATION COMMITTEE: 



The Chapter shall appoint five (5) members of the community, 
with their consent, to form a Recreation Committee which will 
act as: 

1. "Watch Dog", overseer of the building and grounds and in 
so doing will suggest changes needed. 

2. Recommend suitable individuals for responsible positions 

as Building Custodian, Welding Machine Custodian, Recreation 
Leader, Food Cormittee Chairman, etc. The persons selected 
shall be presented to the Chapter for their approval or dis- 
approval. 

3. Reconmend the removal of incumbent Custodian. This action 

would need not less then " " in attendance at a duly 

called meeting. 

U. The Committee shall serve for one year without pay and meet 
not less than six (6) times a year or whenever required. 
The Recreation Committee ir.eeting can be held the same day 
but prior to the regular meeting so that items can be per- 
sented to the Chapter when the meeting begins. 

5. Reconanend changes in the management of Che Chapter for the 
best Interest of the peopla. 

6. The Committee will make arrangements with outside organi- 
zations for educational, vocational training, or other 
activities for the benefit of the Chapter. They shall make 
the necessary suggestions for approved activities and secure 



■I- 



696 

proper materials f«r these events. Selection of the movies 

to be shova ac the chapter. 

BUILDING CUSTODIAN: 

The Recreation Coimiittee shall select members of the Chapter hy 
a majority vote at a duly called meeting for consideration. The 
result of this election by the Recreation Committee shall be 
made public at the regular chapter meeting and shall have a 
majority standing vote in electing a custtdian. The custodian 
will assume duties as prescribed by the Chapter. The Building 
Custodian shall serve tor one year and will be paid at the dis- 
cretion of the people. 

DUTIES OF THE BUILDING CUSTODIAN: 

I. Responsible for the operation maintenance af the Chapter 
facilities : 

a) Generator or electrical power source facilities and all 
lighting fixtures in and around the chapter premises. 

b) Cleanliness of building and grounds. 

c) Any disorders or needed supplies shall be reported at 
meetings for necessary action and for the approval of 
the Chapter for payment of bills incurred. 

d) Secure building and grounds when not in use. 

e) Confer with the Recreation Committee on the use of the 
building by outsiders and present the matter to the 
people at a regular meeting for their approval. If 
unable to be present when building is to be used by 
outsiders, the Custodian will delegate a responsible 
person to be liable for the care of the building. 

f) The free use of the building will be allowed to agencies 
concerned with the welfare of the people: (1) Welfare 
Agencies, (2) Educational, etc., (3) Employment, etc. 

g) Retain schedule of building use t« be posted. 

h) Act as collector of funds turned in from the use of the 
chapter facilities. Using the receipt book provided, 
issue cash receipts and turn in the monies to the 
Secretary-Treasurer who in turn will issue the Custodian 
a receipt for money turned in. 

i) Maintenance of chapter facilities as designated by the 
people. 

j) Work in conjection with the Community Worker to secure 
needed parts, assistance, suggestions, etc. 



697 



BOOKKEEPING SYSTEM - MONIES: 



The Chapter will select a bank where all the funds will be 
deposited as per the Bookkeeping System for chapter houses. 
This selection will be made at a July called meeting of the 
Chapter and veted upon. The Chapter shall elect by majority 
votes signers of checks for the chapter. All check disbursements 
shall contain the two or three signatures needed, whichever applies, 

This bills to ke paid and items to be purchased shall ke pre- 
sented to the peor le ind they shall have majority vote in 
whether approval or disapproval. And the same shall be reported 
as per the Chapter Bookkeeping System. 

The Secretary or elected member will have all records, letters, 
etc., pertaining to the financial status of the chapter in his 
possession. He or she will either mail by money or«^er or deliver 
in person monies for deposit in the selected bank and will make 
reports to the people at the next meeting. 

Reporting of all check disbursements, balance on hand, and other 
pertinent information will be made every month. 

BOOKKEEPING SYSTEM FOR CHAPTER HOUSES: 

A uniform bookkeeping system for all chapter houses on the Navajo 
Reservation is needed to efficiently carry out the functions and 
purposes f»r which they were brought into effect. 

These chapter houses are to be self-supporting and with this in 
mind it is necessary that records of financial condition be 
kept up-to-date. The records should be of such a nature that 
the simplicity of it be understood by people other than the keeper 
of the books. 

The simplicity of this system should also be in a manner that non- 
accountant Community Workers of the Navajo Tribe can audit the 
records without much difficulty. 

CASH RECEIPTS : 

All funds received by the chapter, whatever the source, should be 
reported in the receipt book so that the remittor may have 
written evidence that the chapter has received the money. It 
becomes necessary for all people who do remit money to the chapter, 
be It for use of shower, laundry facilities, sewing, etc., demand 
a receipt from whoever is in charge of the chapter. 

These same receipts become evidence that should appear in the cash 
receipts journal kept by the bookkeeper. 



-3- 



698 

In the case of events such as darices or movies, there is usually 
a charge of admission. For purposes of better control of money 
handled it should be stressed that pre-nuniber tickets be used. 
Where there is a difference ia admittance charges of adults and 
children, tickets of different colors should be used. The number 
of the first ticket on hand before each event should be n»ted so 
that when subtracted from the ending ticket number, the number of 
tickets s»ld and money collected would be better controlled. The 
person in charge of collecting the gate money should also demand 
a receipt from the treasurer that the money remitted was received 
by the treasurer. 

The bookkeeper should keep all cask reaittances recorded up-to- 
date In the Cash Receipt Journal. The date of the receipt should 
be entered in column 1 and receipt number frem the receipt book 
which will have a carbon copy of the bookkeeper in column 2. In 
column 3 will be oKtered the nare •f the persoa or organization 
making the remittance with the total of all remittances i« column 
A. Into columns 5 through 10 will be entered the amount for what- 
ever activity the" remittance is for. These colura«ar break dowas 
will show what activity is w»rth the tine of carrying on. In the 
other column, 9 and 10, will v- entered those activities which 
do not fit well in the others with a brief explanation. 



699 





6 - 








! 

1 




1 


1 


I 


1 i 

i 




! 


1 


1 1 


1 I 


o 
Pk 

W 

H 


^ 


































u 

c 

3 ^ 
O O 
























1 










c 
o 

o. 
o 


































1 

>< 
u 
•o ^ 

C 00 
3 ^ 

3 


































1 E ^ 


































Conces- 
sions 


































C 1^ 

o [1 
































3 d 

5 II 
































2 J 

f 
































Receipt 
No. 
































H 




















1 


1 

— t. 











700 



CASH DISBURSfMEN'TS; 



A pre-numbered check book should be kept by each chapter. 
When certain biHs for service or purchases are approved, all 
payments by check will be entered in the Cash Disbursement 
Journal . 

In column 1 shall be entered the dace of the check and the 
check number in column 2. the name of the person or organi- 
zation being paid should appear in column 3. The total amount 
of each check snail appear in the total column, which is column 
4. When the grand total of column 4 of the Casn Disbursement 
Journal is subtracted from the total of column 4 in the Cash 
Receipt Journal it will t>e knowi just how much money remains in 
the bank. 

The purpose for which a check is written shall be entered in 

the appropriate column, 5 through 12. Where a disbursement does 

not fit into any cf the columns, 5 through 10, it should be 

recorded in column 12 with a brief explanation in column 11. 

All cash received is to be deposited, intact, immediately after 
collection is made. The money should be deposited in the nearest 
bank at which the checking account is set up. When deposits are 
made by money order, the money order number ."ihould be written in 
column 11 of the Cash Receipt Journal. In column 12 should appear 
the amount of the deposit made. 

Periodically, audits will be made by Community Worker to de- 
termine if a set of books are being properly kept and are pre- 
sented fairly for the people of the comniiinity. To re>.oncile the 
cash on hand, the auditor shall confirm the b.^nk balance as of a 
given day and compare i.ol'imn 4 ot tie cash receipts and disburse- 
ments with the deposit coijtms and tlien ^'erify the cash on hand 
or in transit to bank. 

All new billings should be filed alphabetically. When these are 
approved for pa\Tnent at a duly called meeting, then the date of 
payment and check number siiouid be written on the bill. The paid 
bill should then b;. tiled ir. cfio-k .number order for vertif ication 
of the auditor. 

When postal mon<.y orders jre made to send deposits it would be 
best to have the post n^astor write on the check stub;, the money 
order fee. This will bocojie •ividenci- of a payment other than 
by check or reimbut senitnt ro depositor. 



-6- 



701 



CHA?TER MOVIES: 



The Recreation Committee will select and schedule films to be 
shown aiid to be drawn in three (3) m«nths advance. They shall 
screen the submitted educational films for their selection to 
be shown. hey will submit to the chapter meeting after ^ue 
considerations of any request by outsiders for movies other 
than at the chapter house. 

The projector will be under the care and maintenance of the 
elected projectionist of the chapter organization. 

The projectionist will We thoroughly instructed and held re- 
sponsible when on duty. He will ke given a chart to check off 
on their monthly inspection and cleaning. Any parts broken or 
in nee* of attention will be promptly reported for replacement 
or repair. Such request for payment of repairs will be made to 
the chapter for approval. 

The projector will be inspected annually by a qualified person 
for wear and tear and adjustment. 

Movies will be staged every . 



All the movies shown shall be reported on the form "Movie Report". 

Tickets shall be used as per Bookkeeping System of chapter houses. 

The movie projector use jnd movies shown shall be recorded on 
their respective form. 

BUILDING RENTAL (Custodian or elected member) 

The building will be rented f«r the use of outsider for: 

1. Dances at the flat rate of at each event ($15 - $35) 

a) Length of time - five (5) hours. 

b) Check out renters officially for damages, if any, which 
will be charged them. 

c) Not liable for fire, loss articles, etc. 

2. Rooming: 

a) Overnight accommodation will be paid in advance at rates 
established . 

b) Check out private parties who will be charged at a flat 
rate of per event. 

3. Chapter activity such as potluck suppers, etc., shall con- 
sist of: 



■8- 



702 






u 

X 
H 
O 


B — 
< ^ 


















... 


... 












m 




° 

a 

ti 
Q 




































Misc. 

Sup- 
plies 
(10) 




































Conces- 
sion 

(9) 




































m 




































Movies 
(7) 




































Service 
(6) 




































u u 

CJ -rf O --^ 




































o 
(-1 




































Payee 
(3) 




































Check 
No. 

(2) 




































Date 
(1) 






















. , 















703 

CANONCITO. NEW MEXICO 

The Canocito Navaho Community lies about thirty miles west of 
Albuquerque, New Mexico, separated from the rent of the Navaho 
Reservation by about 100 miles of "checkarboard" area, non-Indian lands, 
and Pueblo lands. Slightly over 1000 residents inhabit its 77,000 acres. 

The history of Navaho settlement in Canoncito goes back to the 
1700 's (or earlier) and is a history of stable, peaceful, industrious, 
and self-sufficient havitation. 

While separated from the major reservation, Canoncito has maintained 
close ties with the rest of the Navaho. Its Chapter House was built in 
the 1930 's and the community has been represented at the Navaho Tribal 
Council from the very beginning of the Council. 

Originally, the Bureau of Indian Affairs Eastern Navaho Agency 
at Crownpoint held administrative jurisdiction over the community; in 
1940, however, jurisdiction was shifted to the United Pueblos Agency 
at Albuquerque. Since the community was not consulted before this 
transfer, it had little or no understanding of the thinking behind it. 

In 1949, Congress assigned 50,000 acres of land to be held in 
trust for the Canconcito Band of Navaho. In effect, this act established 
Canoncito as a reservation apart from the Navaho Reservation and pro- 
vided the opportunity for the people of Canoncito to assume more 
responsibility over their own affairs and to exercise increased leader- 
ship in matters affecting them. The community took advantage of this 
opportunity and demonstrated both interest and ability in managing 
their own affairs. 



704 

2 

Assumption of responsibility by the people of Canoncito was 
characterized by forward-looking thinking on the part of both elders 
and young members of the band; motivation to work together to improve 
the let of both individuals and total community; energetic cooperation 
on community projects; leadership of high caliber; and increased 
understanding of the principles and practices of community development. 
Evidence of these characteristics was revealed in number of community 
projects. 

Two programs were identified as "top priority" in 1954 — improvement 
of homes and increase in employment. The success of both these programs 
demonstrated to the community and others that Canoncito 's ambition, 
cooperation, and desire to learn were effective substitutes for its 
initial ignorance of formal techniques of community development. The 
success also served to encourage additional projects. 

The housing project was designed to provide a house for each family, 
utilizing the work of the family itself and the volunteer assistance of 
other members of the community. No one was paid for his labor; the 
only outside help came from the Navaho Tribe's Public Works Project. 
Skilled craftsmen, such as bricklayers, taught other their trade, and 
the people learned to make adobe bricks and build functions for their 
new homes. Within four years, over 100 new adobe homes were completed. 
The building of new homes has continued, each new group being more 
modern than the earlier ones. 



705 



Having seen how well their first "do-it-yourself" project had 
developed, the Canconcito Navaho were confident and anthusiastic about 
tackling the second "top priority" area-increasing employment. In 
1959, "Operation Bootstrap" was launched; its purpose was twofold — to 
help employed residents commute back and forth between Albuquerque and 
Canonclto daily, and to find additional job opportunities for the Navaho 
in the Albuquerque area. With funds allocated from the Tribal Public 
Works project, Canconcito bought two vehicles to provide daily transportation 
for workers and to take people who were looking for jobs to Albuquerque 
and its environs. A second phase of "Operation Bootstrap" involved 
establishing contact with businesses in Albuquerque to find additional 
job opportunities for Canoncito Navaho. Approximately twenty soch work 
openings were identified. "Operation Bootstrap" proved highly 
successful; in addition to showing the feasibility of daily commutation 
to wage work in the city (later made even more convenient by the 
installation of an all-weather road in place of the ages-old dirt road) 
and opening up new employment opportunities, it helped to increase 
family stability by enabling working fathers to return home each 
evening. After a year and half of operation, the community's two 
vehicles were replaced by car pools established by the workers themselves. 

Aside from these two large-scale projects, Canoncito has demonstrated 
its community spirit, energy, and talents in other areas. Although 
most American Indians have not been actively involved in elections other 



706 

4 

other than tribal elections, Canconcito, with over 200 registered 
voters, participates in state and federal elections. The leadership of 
Division G of Precinct 14, Bernalillo County, New Mexico, is totally 
Navaho, both Democratic and Republican. On Election Day, Navaho poll 
judges and poll clerks staff the polls and have earned praise for 
their work from the County Clerks. 

The community also is actively engaged in encouraging as many students 
as possible to attend school in the Albuquerque Public School system. 
At this writing, one-third (100 out of 300) do so. 

In 1964, Canconcito established a twelve-member Canoncito Navaho 
Community Council. This group implements the decisions of the community, 
initiates projects, and presses for assistance from BIA, Tribal, and 
State Agencies. 

Pleased with their accomplishments but cognizant of all that yet 
remains to be done to improve the education and economic situation of 
Canoncito 's residents, in May, 1966, Canoncito submitted an EDA application 
for a Community Facility to serve as a training and manufacturing center. 
In the building would be facilities for Community Action Projects such 
as a pre-school class, home improvement training, tutoring, remedial 
education, adult basic education, and other training programs. The 
proposed uses of the Community Facility indicate continuing desire on 
the part of Canoncito residents to work togather to improve all areas 
of their lives. 



707 



In view of Canoncito's accomplishments and proven ability to 
administer its own affairs, the community strongly desires to be 
allowed to continue such administration. At present, Canconcito 
administrators its own land; it is responsible for regulations and 
procedures governing grazing, leasing for commercial purposes and 
mineral exploration; and improvement of home sites. The Council and 
Grazing Committee make all regulations affecting livestock. Proud of 
their success in these areas and convinced that Indian people must be 
given the right and opportunity to determine their own affairs, the 
people of Canoncito wish to maintain their authority over land use and 
livestock as well as to initiate additional community development 
projects. 



708 

Aa<«at 83, I9f7 



TOt Ar«ft DiTcctwr. Kavajo Ar«ft Otticm 

rtOBt <2*tt«r«l CotttMMil 

6abJ»ctt States of Alaao, Otnovcite and RaaMk 
Chapter Or£«Bixatlo&s 

Itr. Wilbur DlzoB, Director of Public 
8«rrlc«« DlTi«lont luts forwarded to &• hi* ill* 
r«^rdie$ ttxm statu* of Masto. Canonclto and fiatiab 
Chapter or.^aoLicatiOQa. It appear* that on f'ebruary 7* 
1&67, ttie ttveo i^irector of Public Service* i^lvlaioa* 
Ut» Sa*uet W« Billison, sent you a aeaoraRdua req;»c*t- 
X.n4 ao explacatiOD of the treseot lei:;ai statu* of 
the** cocmualtie*. It apoears that on Jastianr 17« 
1967, the Cottttcll dele<vate* xro* thee* chapter* a*k*4 
for *peeific Infomatloe: 'A. Authority vhlch 
place* the* ooder the ^aeajo Area Office; &• Their 
ri(ht*i aa^ C* Validity eX their censu* auuabera*** 

ttr» Billlsoa* it appear** re<itte*ted thi* 
iaforfeatioa fron hr. falter O. Olsea, Ar*« Director* 
9sited P**t»l.i* Ageacf* 

I would appreciat* yoor re f err icip to Mr* 
Bllllsoa** aenora&dtt* of fehruary 7, 1967, aod adri** 
mm coo€«raioi( the 1*4*1 *t«ts* ol the** chapter** 



l*rol4 B. Vott 
Qeaeral Coi>B*el 

ecs ChairaA*, aarajo Tribal Council 

Council delegate*, Alaao, Canoacito and Baaah Chapter* 
Director, Public Serricc* Divi*ioa 

ChroDo 

Filci^^ 

H£lfOTT:lD:8/23d 



709 

INTER OFFICE MEMO 

THE NAVAJO TRIBE 

May 10. 1967 

DATE 

TO: Director, Public Services Division 
FROM: John Y. Begaye, Assistant Director, Public Services Division 
SUBJECT: Status of Alamo, Canoncito and Ramah Chapter Organizations 



Attached is a copy each of Chapter meeting minutes of December 2, 
1965, a memorandum to the Area Director, Navajo Area Office dated 
February 7, 1967, and a letter to Walter Olson, Area Director, 
United Pueblos Agency regarding the present status of Alamo, 
Canoncito and Ramah Chapter organizations. The copies of the 
references attached are self-explanatory. 

Since there is no reply from the Navajo Area Office and the 
United Pueblos Agency, the attached reference materials were 
referred to the Tribal Legal Department, however, the present 
Tribal government is undergoing re-organization. It was 
recommended to BEfer the attacheu materials to the newly appointed 
Director of Public Services Division for a follow-up afte r the 
new General Counsel of the Navajo Tribe has been appointed. 

Whatever the outcome may be should be forwarded to the Council 
Delegates and Chapter Officers of Alamo, Canoncito and Ramah 
Chapter organizations. 



/J^hn-Y. B/gaye U v 



/Scma-\. B/gaye 

ATTACHMENTS 

DISTRIBUTION: 

Area Director, Navajo Area Office 

Area Director, United Pueblos Agency 

Chairman, The Navajo Tribe 

Council Delegate, Alamo 

Council Delegate, Ramah 

Council Delegate, Canoncito 



710 

Public Services Division 



7 February 1967 



MEMORANDUM 

TO: Area Director, Navajo Area Office 

THROUGH: Chairman, Navajo Tribal Council 

FROM: Director, Public Services Division 

SUBJECT: Written Authority on the Status of Alamo, 
Canoncito and Ramah 



Attached copy of memorandum dated 17 January 1967 is 
self-explanatory, however, the Council Delegates and 
Chapter Officers from the above named reservations or 
communities request a written document from the Bureau 
of Indian Affairs. 

This is to request that your office issue a written 
memorandum explaining the present legal status of the 
above named comriiunities which will resolve some of 
their questions. 

Your assistance will be greatly appreciated. 



/s/ Samuel W. Billison 
Director, Public Services Division 

Attachment 

Distribution: 

Martiano Apachito, Council Delegate, Alamo 

Chairman, Navajo Tribal Council 

Chavez Coho, Council Delegate, Ramah 

Desidero Flatero, Council Delegate, Canoncito 

Chrono 

File 

BILLISON/ joe 



711 
Exhibit No. 8 

RESULTS OF A 

PART^,ERSHiP 
BETWEEEv! THE 

Ar\/fERICAN it^DlAH 
AND THE 

ECONOr\/llC DEVELOPEVJEEMT 
ADf</slNiSTRATION 



U.S. DEPARTa/iENT OF 
COfVtMERCE 



AUGUST, 1973 



712 

FOREWARD 



The American Indian is known today as the poorest segment 
within the population of the United States. Although the 
Indian tribes have a land base unlike any other ethnic 
group, their annual incomes are far below and their unem- 
ployment rates are far above any other group of citizens 
of this country. 

Beginning in 1967, the Economic Development Administration 
developed a program with special emphasis on economic de- 
velopment on Indian reservations and trust lands. The di- 
rection of this program is in all fields of planning and 
technical assistance as well as the necessary "brick and 
mortar" money to make economic dreams come true. As of 
June 30, 1973, EDA provided funds for 37 industrial parks, 
72 community, skill training and multi-purpose centers, 
and 37 tourism/ recreation complexes. In addition, many 
other projects were approved in other areas of economic 
and community development. 

A listing of all projects approved by EDA for Indian 
tribes and groups as of June 30, 1973 indicates the vital 
mission this Agency carries on in assisting the Indian 
tribes to develop a viable economic base on their land. 
It will take time for the total impact of these projects 
to be felt, as identified in employment opportunities, 
improved living conditions, and vital community activi- 
ties. Meanwhile, a start has been made and results are 
already identified. 



Legend of 


Project Symbols: 


PW 


. .Public Works 


PWIP. . 


..Accelerated Public Works 


BL 


. .Business Loans 


TA 


...Technical Assistance 


PG 


...Planning Grants 


DG 


. . .District Grants 



713 

FUNDING LEVELS BY STATES 

ALASKA $ 5,W,912 

ARIZONA i^i*, 788, 733 

CALIFORNIA 1 , 823, 182 

COLORADO I,209,it30 

FLORIDA 2 , 1/|2 , 769 

IDAHO 3,972,784 

LOUISIANA 79, 500 

MAINE 1,331,218 

MICHIGAN 168,000 

MINNESOTA 6.867.918 

MISSISSIPPI 950,225 

MDNTANA 18, 022, 212 

NEBRASKA 1 , 17 5, 050 

NEVADA 2 , i^06 , 604 

NEW MEXICO 18 , 452 , 829 

NEW YORK 3,786,500 

NORTH CAROLINA 859,200 

NORTH DAKOTA 6,942,371 

OKLAHOMA 2,475, 539 

OREGON 5,493,886 

SOUTH DAKOTA 5,961,804 

TEXAS 2,714,000 

UTAH 3,008,294 

WASHINGTON 9,396,148 

WISCONSIN 3,455,644 

WYOMING 1 , 757 , 785 

NATIONAL 1,698,176 

$156,397,713 



714 

NAVAJO (Land in Arizona", New Mexico and Utah) 

FY 66 Business loan for expansion of mill to 

National Forest Products Inc. $475,000 BL 

FY 67 Development of 50-acre industrial park 

at Ft. Defiance, Ariz. 126,000 PW 

FY 67 Development of 50-acre industrial park 

at Shiprock, N.M. 153,000 PW 

FY 67 Construction of industrial water/sewer 
system for Shiprock, N.M. 

FY 67 Forest management study 

FY 67 Technical assistance in development 
of community center design 

FY 67 Lake development for water sport 
recreation 

FY 67 Technical assistance for water/sewer 
consulting services 

FY 68 Townsite improvements for Navajo, 
N.M. community on reservation 

FY 68 Business loan for construction of 
commercial facilities at Navajo, 
N.M. 270,300 BL 

FY 68 Construction of water storage facility 

at Kayenta community on reservation 225,000 PW 

FY 68 Construction of water and sewer system 

for community of Tuba City 92,000 PW 

FY 68 Construction of industrial sewer system 
for community of Shiprock (supplement 
to EPA) 684,400 PW 

FY 68 Business loan to Navajo tribe for 
Fairchild Semiconductor Plant at 
Shiprock 678,467 BL 



1,650,000 


PW 


70,000 


TA 


1,119 


TA 


67,783 


PW 


1,125 


TA 


130,000 


PW 



715 

FY 69 Construction of service road to 

mining operation in McKinley County $1,783,200 PW 

FY 69 Water system improvements at Buell 

Park 256,000 PW 

FY 69 Establishment of reservation planning 

program 75,000 PG 

FY 70 Construction of water and sewer system 

at community of Chinle 1,098,330 PW 

FY 70 Construction of water and sewer improve- 
ments at Chinle (supplement to EPA) 280,000 PW 

FY 70 Construction of water and sevjer system 

at community of Ft. Defiance 2,296,800 PW 

FY 70 Construction of water system improve- 
ments at community of Tuba City 970,000 PW 

FY 70 Constructioa of water and sewer improve- 
ments at Tuba City (supplement to EPA) 310,063 PW 

FY 70 Business loan to Navajo tribe for 
industrial building at Shiprock to 
Fairchild Semiconductor, Inc. 462,800 BL 

FY 71 Construction of water system for 

Navajo Community College 1,190,000 PW 

FY 71 Construction of sewer improvements 

for Navajo Community Collete (supple- 
ment to EPA) 309,880 PW 

Continuation of reservation planning 

program 70,000 PG 

Construction for water and sewer 

improvements for community of Shiprock 792,000 PW 

Design study for community develop- 
ment improvements at Shiprock 7,500 TA 

Construction of water and sewer 

improvements for Ft. Defiance and 

Window Rock areas 1,299,900 PW 



FY 


71 


FY 


71 


FY 71 


FY 72 



716 

FY 73 Continuation of reservation planning 

program 81,082 PG 

FY 73 Feasibility study for recreation 

development 2 500 TA 

FY 73 Navajo Forest Products - construction 

of particle Board Plant 3,285,000 PW 

FY 73 Development of 76-acre industrial 

park at Church Rock, New Mexico 1,088,000 PW 

$20,282,249 



NEW MEXICO 
GALLUP INDIAN COMMUNITY 

FY 71 Indian business development center 58,500 TA 



717 

INDIAN DEVELOPMENT DISTRICT OF ARIZONA 

FY 68 Establishment of a program of planning 

for economic growth on Indian reservations 

in Arizona $177,000 PG 

FY 68 Addition technical assistance for 

statewide planning programs 7,000 PG 

FY 68 Technical assistance for establishment 

of rehabilitation center 10,000 TA 

FY 69 Establishment of an Indian Business 
Development Program for reservations 
of Arizona 188,500 TA 

FY 69 Continuation of state-wide planning 
program 

Continuation of planning program 

Funding of intern position for 
business development program 

Continuation of planning program 

Continuation of business development 
program 

Continuation of planning program 

Continuation of business development 

program 135,980 TA 

FY 72 Study of upper and middle management 
positions and capabilities relevant 
to reservation business enterprises 
and tribal government 16,000 TA 

FY 73 Continuation of planning program 350,120 PG 

$1,769,970 



FY 


70 


FY 


70 


FY 


71 


FY 


71 


FY 


72 


FY 


72 



210, 


,190 


PG 


102, 


,8A0 


PG 


11. 


,250 


TA 


205, 


,680 


PG 


124, 


,730 


TA 


230, 


,680 


PG 



718 
Exhibit No. 9 

A PLAN FOR NAVAJO ECONOMIC DEVELOPMENT 

By David F. Aberle* 

FOREWORD 

For many years, Navajo economic development has been hampered 
by rapid population growth and an eroding agricultural resource 
base. Although in recent years the tribe has derived substantially 
increased revenues from oil leases, the economy remains essentially 
that of an underdeveloped region. David Aberle argues that the Nav- 
ajos are in what is essentially a colonial situation, with the chief 
benefits of natural resource exploitation going to outsiders. Aberle 
outlines a development approach which would involve the Navajos in 
planning for their own economic development and would allow the 
tribe to exploit their own mineral re-sources and control their own 
indu.^trial development. Other development needs he identifies 
include rapid expansion of transportation facilities and public utili- 
ties and improvements in health services and the educational system. 
Aberle stresses that no major development effort can succeed without 
a commitment by Congress — not only a sustained commitment of 
fund.^, but a commitment to let the Navajos manage their own 
affairs. 

CONTENTS Pas^ 

Preface 225 

I. Introduction 228 

II. Eu\iroiinient 228 

III. History of the Navajo Economic Scene 230 

IV. The Reservation as an Underdeveloped Area 236 

A. The technological base 237 

1. Livestock 237 

2. Roads 237 

3. Water 237 

4. Fuel, light, and heat 238 

5. Miscellaneous 239 

B. The course of mineral exploitation 239 

C. Education 240 

D. Employment 242 

E. The region 242 

F. Summary 243 

V. The Local Economy 243 

A. The style of life 243 

B. The role of the trader 245 

C. Summary 249 

VI. Possibilities for Development 250 

A. Who should plan development? 250 

B. The population context of development 251 

C. Mineral exploitation 252 

D. Industry 254 

E. The technological base 258 

F. Commerce 259 

G. Livestock industry 260 

H. Farming 264 

I. Some land problems 265 

1 . Off-reservation groups 265 

2. The executive order territory 265 

J. Population movement and labor migration 266 



♦Department of Anthropology and Sociology, University of British Columbia, 
Vancouver, B.C. 



719 

VI. Possibilities for Development— Continued ^*«« 

K. Education 266 

L. Health 269 

M. Welfare 270 

N. Miscellaneous 271 

1. Housing 271 

2. Experts and the training of experts 271 

O. Summary of the purpose, nature, and advantages of the plan 

outlined 271 

P. Summary of disadvantages 272 

Q. Requirements for implementing this plan 273 

R. The alternative - --- 274 

S. The price tag 275 

References 275 



720 



Preface 

This report was prepared at the request of the Joint Economic 
Committee of the U.S. Congi'ess. I was asked to prepare a plan for 
economic development for the Navajo Tribe to aid the committee in 
its deliberations. As I understood the request, it was that an anthro- 
pologist undertake to say what kinds of things needed to be done for a 
satisfactory development of the reservation: that is, one that would 
contribute to a more satisfying life for Navajos. I did not think that I 
was to prepare budget estimates, and I have not done so. The report 
was pre])ared without staflf or funds. Work began in October 1968, a 
first draft was circulated to a large number of i)eople in December of 
1968, and the final draft was completed in March of 1969. 

My qualifications for preparing it are nearly 30 years of intermittent 
contact with hundreds of Navajos, including past and i)resent members 
of the Tribal Council and past and present Chapter officers, with 
officials of the Bureau of Indian Affairs, and especially of the Navajo 
Area Office, and with traders, missionaries, and border-town Anglos. 
The report is based on recollections of the Navajo scene in 1940 and 
1941, and on eight summers' field work at the community level 
(1949-53, 1965, 1966, and 196S), the last tlu-ee cxi>licitly concerned 
with the effects of the contemporary economy on Navajo family and 
kinship organization. It is also based on several years' research on the 
history of the Navajo economy (Aberle, 1966, esp. pp. 23-106), and 
on a good deal of reflection on the condition of underdeveloped 
economies in the world today. 

The first draft has been extensively revised in the light of comments 
from BIA officials, officials of the Navajo Tribe, and social scientists, 
and in the light of documents submitted by the Navajo Area Office 
of the Bureau of Indian Affairs, asterisked in the bibliography at the 
end of this report. 

The report has been i)repared under time pressure and without 
access to a great many important facts — -indeed without a knowledge 
whether some of those facts are available without further firsthand 
research. It has, however, benefited by the new information received 
since December. 

I should like specifically to acknowledge the assistance of the follow- 
ing individuals, none of whom would agree with everything in this 
report, and some of whom would disagree with most of it. None can be 
held accountable for the opinions I have expressed, nor for errors of 
fact or interpretation that may follow. They are: Graham Holmes, 
Russell E. Kilgore, and Val ?^lcBroom, of the Navajo Area Office, 
BIA; Paul W. Hand, Chinle Agency, BIA; Wayne Holm, Rock Point 
School, BIA; Walter O. Olson, Robert W. Young, and F. D. Shannon; 
Albuquerque Area Office, BIA; Ed Darby, Navajo Tribal Office, 
Edward B. Danson, Museum of Nortliern Arizona; Jerrold Levy, 
Museum of Northern Arizona and Portland State University; Mary 
Shepardson, San Francisco State University; Elizabeth Colson, 



721 

University of California at Berkeley; Louise Lamphere, Brown 
University; William Willmott, Cyril S. Belshaw, Braxton Alfred, and 
Terry Reynolds, University of British Columbia; my wife, Kathleen 
Gough, Simon Fraser University; Stephen Kunitz, Yale University, 
Robert Bergman, U.S. Public Health Service; and Tom T. Sasaki; 
the Johns Hopkins University. Allan McMillan assisted greatly in 
collating the comments received from all of these sources. 

It is a matter of concern to me that this report inevitably criti- 
cizes some of the very people who have helped me: Bureau officials, 
traders, and members of the Tribal Council in particular — not by name 
but by category. In spite of the criticism, however, I see the Bureau, 
the traders, and the Tribal Council as locked into a situation that they 
can change less than it needs to be changed. The tragedy of the Bureau 
is that so much intelligence and humane concern should have been 
channeled into an organization that has largely lacked the power to 
take necessary steps and has often failed to take steps that might 
have made a modest, favorable difference, because of political pres- 
sures engendered by local interests. The traders' tragedy is that al- 
though many have a decent attitude toward the Navajos, they 
themselves are the next to bottom rung in a chain of exploitation 
that they cannot break. The tragedy of the Council is that, with 
resources now to control, they have become so preoccupied with the 
mechanics of this operation that they have lost sight of their own 
constituencies — or so the constituents tell me. In addition, they have 
been exposed to only one approach to development — that through 
external, private business exploitation of Navajo resources — and they 
have accepted this outlook with too little question. 

Having dealt with the deficiencies of planning and action of all 
of these parties to present Navajo i)roblems throughout this report, 
I should like to say at this point that the primary responsibility 
finally falls on that arm of the Government that provides funds; 
that is, the Congress of the United States. It is possible to add up 
appropriations for the benefit of American Indians over the years 
and to claim that a great deal has been done — but not if one is forced 
to contemplate the results. In terms of political muscle, the BIA 
is one of the weakest arms of the executive branch. Only Congress 
could strengthen it, but it has been sensitive to the demands of national 
and local business and to local politicians, far more than to the needs 
of Indians. 

This report suggests some ways of breaking out of the present 
frame of reference. As I write it, however, I am aware that the prepara- 
tion of plans too often has been a substitute for action, rather than a 
basis for action, in the case of American Indians. A plan was recently 
developed by Abt Associates (see Radov 1968 in the bibhography of 
this report); the tribe has recently hired consultants to assist in its 
planning; now Congress has this report. Similar multiple efforts could 
be found for the 1930's, 1940's, and 1950's. The question is. When will 
resources be made available so that some plan can go forward? 

It is barely possible that some Navajo readers will regard this 
document as lacking respect for their way of life: as an outsider's 
view that they must be "uplifted." This is not the case. I like Navajo 
lifestyles. I find living with Navajo families a blessed relief from some 
of the pressures of an academic existence But Navajos complain to 



722 

me about their diet, as to its quantity, quality, and variety, about 
their deficient housing, medical care, and education, about their 
lack of control over their own affairs, and about their difficulties in 
earning a living. This report is dedicated to showing the roots of these 
miseries and suggesting some remedies. 

It is, however, a report by an American anthropologist, not by a 
Navajo. If my definition of Navajos' needs disagrees with their own, 
my views must yield. Finally, although this report was prepared at 
the request of the Joint Economic Committee, it is prepared /or the 
Navajos — for the Tribal Council and for any Navajo who wants to 
read it and use it. 

This last point must be underscored for the benefit of Navajo 
readers. I view this report as one man's view of what is needed for 
Navajo development, not as a plan to be imposed on Navajos. The 
Joint Economic Committee is, of course, not a committee with a 
responsibihty for detailed planning of Navajo development. The aim 
of the report is to stimulate the committee's thinking, and, far more, 
to provide suggestions to Navajos interested in planning their own 
future. The remainder of this report will, I trust, make it fully clear 
that I think that -the right and the responsibility for planning: (but 
not for fundraising) rests with Navajos, 



723 



I. Introduction 

The Navajo Reservation has rich resources; the Navajo Tribal 
Council receives sizable revenues from a portion of these; there are 
more to be utilized in the future; but the per capita income of reser- 
vation Nave j OS is perhaps a third of that of Anglos in the Southwest 
(see U.S. Census for 1960). To understand this apparent paradox we 
must first examine their natural environment, their history, and their 
current pattern of relations with the larger society. It will then be 
possible to discuss their needs, to speak of the kind of technological 
development that would meet those needs, and to explore some w^ays 
of arriving at the desired end state. 

Economically speaking, the Navajo constitute an underdeveloped 
group. They are an underdeveloped, internal U.S. colony. They show 
the marks of it. Their poverty and their undereducation are not causes 
of their underdevelopment but results of it. The underdevelopment 
results from their relations with the larger society, which limit the 
economic options open to them, drain off their resources, and fad to 
provide them with the education, the technological base, and the 
organizational forms necessary for satisfactory development. 

Because I view the Navajo Reservation as an underdeveloped econ- 
omy, I have put stress on programs related to mineral exploitation, 
industry, and conmierce, above all. Farming and livestock improve- 
ments are important and urgent, but less so than these matters. 
Educational changes are vital, but are seen here primarily as an 
instrument for local economic development, rather than treated 
primarily as a means to remove Navajos from the reservation as a 
part of the labor force. The option of migration under satisfactory 
conditions should, of course, be open to Navajos. Tourism is not 
stressed, although it is in much tribal planning, because Navajos have 
much more significant assets than the excess cash brought by tourists, 
and more important and hmnanly significant tasks open to them than 
acting as living examples of their culture for the benefit of Anglo 
visitors. Health and welfare programs are seen as sustaining economic 
development, rather than viewing the Navajo future as one of major 
dependency on individual doles. In sum, the program recommended, 
which is summarized near the end of this report, is one that would put 
Navajos in control of their own economic destinies and create a 
developed economy in the area. Before detailed recommendations can 
be supplied, however, a good deal of background information must be 
supplied. That is the purpose of sections II-V. 

II. Environment 

The Navajo probably number in excess of 120,000 people, most of 
whom reside for at least })art of the year on a reservation in northern 
Arizona and New Mexico and southern Utah, and in off-reservation 
check erboarded allotted areas to the east and south of the reservation. 



724 



A handful live off reservation in southwestern Colorado. Many work 
off reservation for a part of the year, and some have relocated, perma- 
nently or temporarily, in border towns and in such major American 
urban centers as Los Angeles, San Francisco, Denver, Dallas, and 
Chicago. 

The entire Navajo-Hopi Reservation area includes about 23,600 
scpiare miles, of which about 19,400 square miles is clearly Navajo- 
owned and about 1,500 square miles is clearly Hopi-owned. The re- 
mainder has been allocated by court decision (Jones vs. Healing) to 
the two tribes to work out their way of allocating surface and sub- 
surface rights. They have not succeeded in doing so. Hence a definitive 
area for the Navajo Reservation cannot be supplied. The Hopi 
Reservation, however defined, exists entirely surrounded by Xavajo 
lands. An additional 3,000 square miles of allotted land occui)ied by 
Xavajos is in New Mexico, adjoining the reservation. There are addi- 
tional Navajo groups at Ramah (230 square miles), Canoncito (120 
square miles), and Puertocito or Alamo (100 square miles), the last 
two remote geographically from the main body of the Navajo. 

Altitude ranges from 4,500 feet above sea level to 10,000 feet on 
the mountain peaks, with the bulk of the area between 5,000 and 7,000 
feet. Rainfall varies from averages of 7 inches per annum (lows down 
to 1.5) up to averages of 27 inches, a figure reached only at the highest 
elevations. A tabular presentation will clarify conditions. 

TABLE 1.— CLIMATE, SOIL, AND VEGETATION 









Temperature 














Average 


Average 






Percent 


Annual 


summer 


winter 






Type 


of area 


average 


maximum 


mmimum 


Vegetation 


Uses 


Semidesert 


55 


50-60 


95-105 


U-30 


Chamise, greasewood, 
vKeeds, barren. 


Herding. 


Steppe 


37 


45-50 


80-88 


10-25 


Grassland, weed, sage- 
brush, chamise, 
greasewood. 


Farming and 
herding. 


Humid 


8 


43-50 


70-80 


4-15 


Timber, meadow, wood- 
land, aspen. 


Farming, herding, 
forest products. 



Note: The presence of irrigated or irrigable land makes farming possible in any zone except at altitudes too high for 
a reliable growing season. About 2,600 square miles of the Navajo and Hopi Reservations are barren or inaccessible or 
both. 

Source: The Navajo Yearbook, 1961: 358-366. 

The land can be divided into the following kinds of use areas from 
the point of view of food production: over half is suitable for livestock 
(principally sheep) but minimally satisfactory for subsistence agricul- 
ture; over one-third is suitable for livestock with better agricultural 
potential than the first; some is suitable for relatively productive 
agriculture on irrigated farmland, with livestock subsidiary. In addi- 
tion, two other types of production should be mentioned: a few good 
forests of timber, principally Yellow Pine {pinus ponderosa) stand on 
the reservation, notably in the Chuskas and Lukachukais, and mineral 
resources are found in variou"^ areas: the reservation presently pro- 
duces oil, natural gas, helium, uranium, and coal. Other minerals are 
known. 

The scanty and fluctuating rainfall that characterizes most of the 
reservation makes for uncertain production and occasional catastrophe 
in both farming and livestock management. 

31-685— 70— vol. 1 16 



725 
III. History of the Navajo Economic Scene 

The original homeland of the Navajo is far to the north, where 
most of the Athapaskan languages are found today, in Canada and 
Alaska. (Navajo is one of the languages of Apachean; Apachean is a 
subgroup of the Athapaskan language family.) Ancestral to present- 
day Navajo culture is a hunting and gathering technology. The 
Navajos acquired agriculture either en route to the Southwest or 
when they arrived here, adding cultivation to their hunting and 
gathering pattern. Probably about 1600 A.D. the Navajos acquired 
Spanish techniques of riding and herding horses, using them for 
hunting and warfare, and shortly afterward, Spanish techniques of 
managing sheep, cattle, burros, and so forth. 

When the Navajos arrived in the Southwest, they found that the 
best watered sites (those capable of supporting farming villages like 
those of the modern Pueblo Indians) were already mainly occupied 
by the Pueblos. The Navajo therefore settled in an inter-Pueblo 
niche. They had to live on relatively small, scattered spots where 
they could use floodwater runoff for farming, while they continued 
to hunt and raid. The scattered residence pattern created by this 
pressure from their natural and cultural environment was reinforced 
when they began to build up their herds (sizable by 1750), since a 
concentration of several hundred people around a compact village 
would require each herdsman to take his animals out far from the 
village and remain in an isolated and dangerous situation for the 
sake of pasture. Otherwise the forage area around the village would 
be denuded. Consequently, from the beginning of their recorded 
history until today, they have lived scattered about over the country- 
side in large family units, some as small as two members, but many 
with 20 or more men, women, and children. Seasonal moves to new 
pasture were also required — two, three, or more per year. 

This pattern .of exploitation of the natural envu'onment remains 
the basic one for the majority of the onreservation population. It 
means that, although the reservation grows constantly more crowded, 
the population remains spread out, in separate clusters of kin, dis- 
persed by its own livelihood pursuits, rather than concentrated in 
villages. The partial exceptions occur where a different kind of re- 
source is involved: the closer clustering of individual homesteads on 
the irrigated land of Shiprock, Fruitland, and Many Farms; and the 
town pattern of various agency headquarters, where Navajos depend 
on steady wagework, predominantly for the Bureau of Indian Affairs, 
the U.S. Pubhc Health Service, and the Navajo Tribe. 

Competition between Mexicans and Navajos must have begun 
fairly early. It was certainly a chronic feature of the scene by the time 
of the American occupation of the area in 1846 and following. Although 
Mexicans and Navajos raided each other for stock and slaves, the U.S. 
Government patently considered the Navajo raids the primary issue, 
not the Mexican. Kit Carson, who was the planner of the American 
conquest of the Navajos in 1863, viewed this as unjust; yet under his 
leadership in 1863, American troops burned off Navajo crops, drove 
off Navajo stock, and invited Navajos to come to Fort Sumner if 
they did not wish to starve in the winter. Some eight thousand made 
the trek to eastern New Mexico. A number — variously estimated from 
a handful to five thousand — stayed out in the hills. Called a resettle- 



726 

ment project at the time, Fort Sumner could in no wise accommodate 
the Navajos and other Indians incarcerated in what can better be 
called a nonlethal concentration camp, nor could it protect them from 
the raids of still other Indians, such as the Comanches. In 1868 a U.S. 
Army commission, headed by General Sherman, finally decided that 
they should be released. A peace treaty was signed, and the Navajos 
were returned to a portion of their former homeland, with an agency 
headquarters at Fort Defiance. Livestock were issued to them, and 
they commenced to rebuild their lives. They lost large amounts of their 
best eastern territory, but over the years they spilled out over the 
reservation borders, to be repeatedly confirmed in the possession of 
new territories, until expanding white settlers and Navajos reached an 
approximate territorial equilibrium in the early 20th century. The last 
major addition occurred in 1907, the eastern off-reservation area was 
restored to the public domain in 1908-11, and thereafter there were 
only minor additions up to 1934, when Government additions ended. 

Warfare disappeared from, the Navajo techniques of livelihood after 
1868; there were no further serious breaches of the peace. Involvement 
with the American market began in the 1870's with Navajos selling 
increasing amounts of wool blankets and later silver, to procure 
various trade goods on which they came increasingly to depend. Still 
later pinon nuts became a significant item of sale as well. The agents 
connecting Navajos with the American economy were the traders, 
who sold a wide range of goods to Navajos and bought their goods 
from them. The traders sold coffee, fat, flour, potatoes, cooking 
utensils, water barrels, wagons, farm implements, horse gear, clothing, 
cloth, etc. The prime medium of exchange was credit and trader script: 
that is, the trader extended credit until time for wool sales or until 
rugs were brought in, or he purchased these items from the Navajo 
with "tin" or "paper money" good only at his trading post — a practice 
finally halted only in the late 1930's. In addition, Navajos pauTied 
their turquoise and hand-crafted jewelery to the trader. Navajos in 
the late 19th Century, then, combined subsistence farming and herding 
with commercial herding and crafts and entered the American 
economy. 

As far back as the 1850's and presumably far earlier, some Navajos 
had many sheep and others had few. It was presumably those with 
least who were willing, from the turn of the century on, to enter the 
job market, seeking part-time employment initially on the railroad 
as it was extended west through the Navajo country. The absolute 
number and the percentage of Navajos involved in the off-reservation 
job market has increased steadily, with a big jump during World 
War II; indeed among able-bodied Navajo men 60 and younger at 
present, it would be hard to find one, English-speaking or not, who 
has not worked at least part time, off reservation for several years — 
on the railroad, in the beet, bean, or carrot fields, or elsewhere. I have 
known Navajos with no command of English who have worked for the 
railroad as far afield as Chicago and The Dalles, in Oregon. The 
traders act as labor recruiters. 

In this way, Navajos have developed a dependency not only on their 
reservation subsistence resources and on the sale of native products, 
but also on the larger job market. In the process, one mode of liveli- 
hood has not replaced another, but outside sources have supplemented 



727 

the exploitation of on-reservation resources. This theme will be dis- 
cussed further below. 

Beginning in the 1930's, the Navajos suffered a major economic dis- 
location, in their own view second only to Fort Sumner as a hardship. 
This was the livestock reduction program of the Bureau of Indian 
Affairs. To understand this program we must go back some decades. 
From the modest beginnings of Navajo herds in the issue of livestock 
by the Government to the Indians immediately following the return 
from Fort Sumner in 1868, the herd had grown rapidly. By the 1880's 
agents had begun to comment about the overgrazing of the range. 
Although the reservation grew, the herds grew faster. By the late 
1920's, when there was a total of perhaps 1,300,000 head of sheep and 
goats, including immature animals, plus 60,000 to 75,000 cattle and 
horses, the Bureau regarded the situation as critical. The depression 
following 1929 resulted in a lower level of sales and herd buildup, and 
drought or bad Avinters caused major livestock losses on the over- 
crowded reservation land — and, for that matter, in the equally crowded 
off-reservation allotted areas. 

By the 1930's, then, the range showed marked effects of overgrazing. 
The quality of the forage had deteriotated. Areas that once produced 
hay now produced Russian thistle. What had once been runoff flood 
plains in wet weather had turned to deep arroyos. Loss of plant cover 
was causing wind erosion of topsoil, as well as dissection of the comitry 
by water. This was also the period of the dustbowl in American farm- 
ing. A conservation-minded administration turned to livestock reduc- 
tion and control for the Navajos, 50 years after the problem had first 
been noted. 

The Bureau asked for, and got Navajo Tribal Council consent for 
reduction — but what consent meant in this case is problematic: the 
Councilmen received an explanation of the value and importance of a 
reduction program, were told that if they were genuinely interested 
in the welfare of their people they would accept reduction, but were 
also told that even if they did not accept it, the herds would be re- 
duced. They also understood that the people would be able to secure 
Government jobs to compensate for their hvestock losses. Work for 
the Civilian Conservation Corps and Emergency Conservation Works 
did provide them with new income, but did not supply the amount 
or duration of employment that the Navajos had expected. The 
Council accepted. Between the mid 1930's and the mid 1940's, Navajo 
herds were reduced from nearly 940,000 mature sheep units to below 
450,000 mature sheep units. (A sheep or a goat is one sheep unit. 
Cattle are rated at four units, horses at five.) The quality of the sheep 
was improved by Bureau efforts, so that the total amount of meat and 
wool on the hoof on the reservation actually increased — even if there 
were fewer hooves — ^but since Navajo population was growing rapidly, 
the net effect was a per capita decrease of some magnitude, and one 
that has, by and large, continued ever since: herds have varied 
somewhat, rising slightly in the past few years, but population has 
risen constantly. (In 1967 there were 585,000 mature sheep units on 
reservation and 131,000 on Navajo lands in districts bordering the 
reservation. The reservation was 18 percent over estimated carrying 
capacity.) 

Along with reduction went New Deal on-reservation government- 
supported employment: Emergency Conservation Work, expanded 



728 

Bureau payroll, and so on. But, as some Navajos said, it was not 
necessarilj^ those who lost the stock who got the jobs. As the United 
States began to prepare for World War II, Government job supple- 
ments to the reservation economy decreased. There might have been a 
•crisis, but the war itself averted it. Many Navajos were drafted or 
volunteered, and in the labor shortage situation oJ the w artime econ- 
omy, many more NaAajos left the reseivation to v.crk in industrial 
plants. This is a phenomenon to be stressed: when the economic 
situation was advantageous, when jobs with good pay were abundant, 
Navajos who were, on average, of lower educational attainment than 
is the present Navajo population, could be induced to do wagework 
off reservation and could perform successfully. No relocation program 
since has o]>erated imder these economically advantageous conditions. 

The effects of peace in 1945 and after, created a near disaster. 
Veterans and wartime industrial workers returned to a still more 
overpopulated reservation, with no local reservoir of jobs, with sharp 
limitations on the livestock economj'^ in the form of livestock regula- 
tion, and with a level of local technological development well behind 
the non-Indian parts of Arizona, New Mexico, and Utah, and even 
fartlier beiiind the more developed sectors of the United States: to a 
roadless country with little water development and no electricity 
other than that suppled by local generator systems, for traders and the 
Bureau. 

The Navajo-Hopi 10-year rehabilitation program was instituted in 
1950 to attempt to cope with the crisis. Over a period of 11 fiscal years 
it supplied a total of just short of $90,000,000 (of the $108,570,000 
authorized in 1951 and 1958, not all allocated by Congress). It is 
doubtful that this level of expenditure would have had much effect, 
had it not been that tribal income increased rapidly during the same 
period. There was a small jump with the discovery of uranium ores on 
the reservation (visible in 1952 and after), and a much larger jump, 
especially in 1953 and after, when rich oil fields were discovered — not 
the first in Navajoland, but incomparably more productive than 
•earlier finds. The tribe deployed some of these funds for various forms 
of relief and part-time employment and expanded its organizations. 
In addition, through Federal payment to the Southwestern States of 
unusually large proportions of welfare funds, beginning in 1950, 
Navajos and other Indians became eligible for State relief funds (old 
age, aid to dependent children, aid to the needy blind) even if resident 
on reservation. They were also eligible for social security, old age and 
sm-vivor's benefits, etc., if they could qualify on the basis of employ- 
ment or as selfemployed. In 1961, however, an estimated 30 percent of 
qualified Navajos did not receive social security or old age and sur- 
vivors' benefits because they did not know about their eligibility. 
Since then the tribe has employed some Navajos to explain the system 
And to deal with complex cases. Whereas between 1951 and 1960 the 
number of payments to the aged and the blind remained more or less 
level, there was a striking increase in aid to dependent children. No 
more recent figures are available to me, but the trend doubtless 
■continues. 

More recently a major school building program in the 1960's has 
afforded new jobs for construction workers and instructional aids, 
and the OEO program (Office of Navajo Opportunity, or ONEO, in 
the Navajo country) has created a large number of part-time jobs. 



729 

Tribal public works programs are a significant source of short-term 
employment. 

Mineral resources have been exploited almost entirely by private, 
nontribal capital. Income from minerals comes to the tribe in the 
form of rents, royalties, and bonuses. Betewen 1935 and 1956, some 
$19 milHon accrued. Between 1957 and 1968, the total was $217 
million. The upturn is obvious. The first period shows an average of 
less than $100,000 per annum, the second, an average of about $18 
million per annum, with a range from less than $9 million to nearly 
$35 million. 

It would be a mistake to believe that these royalties could substan- 
tially benefit individual Navajos if they were divided on a jper capita 
basis. The principal reason for this lies in the present economic con- 
dition and economic opportunities of Navajos (described below). Per 
capita divisions would be dissipated at once to meet such consumer 
needs as trucks, furniture, and clothing, leaving each family with 
precisely its present inadequate economic base. The principal bene- 
ficiaries would be border town merchants. The average benefit would 
vary around $200 per person, or $1,000 per family, per annum. As 
will be shown later the tribe has not divided these funds but instead 
has used them for a variety of useful purposes. 

There is some tribal industry. And there is now some private indus- 
trial development on the reservation. 

The result of income from uranium, oil, gas, and coal is recent 3'^ears 
has been to transform the role of the Tribal Council and to make some 
progress toward breaking down the barriers to development engen- 
dered by the lack of the necessary technological base (infrastructure) 
on the reservation. 

The tribe has used its funds in imaginative ways: For emergency 
relief, for housing grants to those unable to afford materials (limited 
to $600), for relief of impoverished families whose homes are destroyed 
by fire, for prostheses, which the Public Health Service will not supply, 
for baby layettes and clothing for schoolchildren whose parents cannot 
afford them — for a range of social services. It has set aside a large 
principal sum the income of which provides scholarships and loans 
tor college students. It has enacted enabling legislation to permit it 
to cooperate in industrial development on reservation and in border 
towns where this development would result in Navajo employment. 
It has set up a revolving credit fund. It pays the Navajo law and 
order (police) staff and the tribal judges. It supports the construction 
and improvement of chapter houses (for community organization 
headquarters and community functions). It has put money into Tribal 
enterprises, of which a Forest Products Industry, a Tribal Utility 
Authority, an Arts and Crafts Board, some motels, and a housing 
project are successful examples, and a cement products, clay products, 
leather products, wood products, and wool textile industry are unsuc- 
cessful examples, together with four trading posts once owned by the 
Tribe. It is engaged in water development. The Tribal public works 
program supports activities that improve a variety of local conditions, 
including work on dirt roads whose maintenance is vital for community 
travel. And more projects could be named. 

Furthermore, it has negotiated successfully for access to gas pipe- 
lines running from reservation gas sources to the west coast. Electrical 
power is generated on the reservation by coal, by Utah Construction 



730 

Co., and the Arizona Public Service Co., and a portion of this is 
reserved for tribal use in the future. Electricity has been run in from 
Farmington as well, and the Navajo Tribal Utility Authority deals 
with electrification, natural gas systems, and water and sewage 
facilities. 

Indeed development projects undertaken by the Tribe since the 
1950's would require a volume for description and evaluation. 

There is ONEO money, as has been said, furnishing part-time 
employment to many Navajos. 

The result of this period of expansion is the existence of a number 
of new foci of power on the reservation. Prior to 1920 the foci were the 
BIA, the traders, the missions, the border town financial interests, 
and influential Navajo leaders. In the 1920's the tribal council and the 
local chapters began to be slight forces, and in the 1930's larger ones. 
At the same time, with the first oil leases, large corporate business 
began to be a force on the reservation, with interests in council 
decisions. Today, in addition to traders, missions, and border town 
financial interests, there is still the BIA, there is a well-organized 
Tribal Council, there are local chapters, there are a variety of major 
corporate financial interests, there is ONEO (Office of Navajo Eco- 
nomic Opportunity), which is not under BIA control and becomes a 
new power element, there is DNA, a legal aid organization funded by 
ONEO but \\4th its own board of directors. Needless to say the powers 
clash, and the results of the clash are visible in conflicts within the 
Tribal Council, since each non-Navajo force seeks support within the 
Council. 

To read the preface to the Navajo Tribal Code (published in 1962) 
written by the former attorney to the Navajo Trilje, is to feel that 
tremendous progress has been made. Yet the per cai)ita income figures 
are discouraging, both as to relative amounts and as to source. 

Perhaps the most important point to be made is that Navajo 
income is probably in the neighborhood of one-third to one-quarter 
of various white comparison groups. The second important point is 
that nearly three-quarters of that income comes from wagework and 
another sixth comes from welfare, social security, railroad retirement, 
etc. This is, then, a low-income group, one of the very lowest in the 
country, and one that spends a great deal of its time in mamtaining 
herds and farms but gets most of its income from elsewhere. 

Young, for example, estimated Navajo per capita income in 1960 
at $521 net and at $645 if the value of "free" Government services 
and surplus commodities was included. This includes the value of 
livestock and farm products consumed by the producers. The State 
of New Mexico (including Navajos) had a per capita of $1,812; 
McKinley Country (including Navajos) had a per capita of $1,709, 
and the United States as a whole had a per capita of $2,116 (TNY 
1961: 229). U.S. Census figures for 1960 are not computed separately 
for Navajos, but are for rural Indians in Arizona and elsewhere. They 
show higher per capita figures, but these are based on all individuals 
14 or over and are not directly comparable with Young's. Indian 
figures run at one-third to one-quarter of white figures in Arizona. 
Adams' figures for Shonto in 1955 (Adams 1963: 137-148) run lower 
than Young's but are for an isolated area with relatively little wage- 
work income. Belaboring the point will not change it; Navajo figures 



731 

are probably low among American Indian groups, but not at the 
absolute bottom; their incomes are below Negro and Spanish- American 
incomes and far below Anglo incomes. No figures for more recent 
years are available. 

Young has estimates for percentages of income from various sources 
for Navajos in 1958 (TNY 1961: 100-109), regrouped in Aberle 
(1966: 81). Only 10 percent of income came from livestock and agri- 
culture; only 1 percent from arts and crafts; 68 percent from wages; 
5 percent from mineral leases; but 16 percent from raUroad retire- 
ment, social security, welfare, etc. Over 60 percent of wages were 
derived from off-reservation work, and two-thirds of off-reservation 
wages were then from railroad work. Furthermore nearly two-thirds 
of on-reservation wages were derived from Federal and tribal employ- 
ment: 40 percent from Federal and 23 percent from tribal sources. 
(In 1967-68, the BIA employed 3,300 Indians, most of them Navajos, 
out of an estimated labor force of 32,000, over 10 percent of employ- 
ables. Apparently 50 percent of that force was seeking employment. 
Navajo Area Office 1968a: 12, 14.) 

The figures for 1958 on farming and livestock include estimates for 
the value of products consumed and do not reflect sales only. Thus 
in 1958 the two dominant sources of income were wages and welfare, 
which made up 84 percent of all income in goods and cash. This is 
no subsistence economy. I have no comparable figures for the present 
period. They would show a rise in terms of on-reservation wageworK, 
because of ONEO funds (about $11,500,000 in 1968), Tribal public 
works programs. Federal building programs, and increase in the 
number of school employees. Welfare would also rise. The percentage 
derived from farming and herding would fall. Yet under present 
circumstances, for reasons to be set forth, many Navajos will not 
give up and dare not give up their farming and herding, although on 
a dollar accounting basis it is relatively trivial. Instead, the charac- 
teristic pattern for Navajo families is the necessity to depend on a 
multiplicity of income sources, no one of which yields a stable and 
predictable income. 

rV. The Reservatiox as an Underdeveloped Area 

What are the equities of the Navajo situation? There are several 
ways of looking at this. In earlier decades, a plea for improvement of 
Indian conditions was often based on the fact that since Western 
European settlers took the continent from the Indians, we owed a 
special debt to them. A later plea was based on the argument that 
we have a moral obligation to "lift the Indian to our level." To each 
of these the counter argument has been made that the Indians could 
have done for themselves what various immigrant groups did for 
themselves. This ignores the fact that Indians were not immigrants, 
but on the contrary fighting a losing battle against immigrants 
backed initially by various colonial forces and later by the Federal 
Government. 

The argument set forth here is that the Navajo country is an 
underdeveloped area, and that the cause of its underdevelopment is 
its historical and current relations with the larger poUty, economy, 
and society. If this is so, the issue becomes relatively clear: either 
these relationships must be changed, or we must openly decide that 



732 

the dispossession and deprivation of the Navojo sector (and many 
other submerged sectors of our society) is something the consequences 
of which the rest of the society is prepared to accept. 

The basic reason for this hundred-year period of underdevelopment 
is that the Navajos did not have the capital or the know-how to 
achieve development, Congress would not provide the Bureau with 
the funds necessary for development, nor would the States, and until 
the 1950's private industry had little interest in exploiting reservation 
resources. Various features of the reservation will be examined in turn. 

A. THE TECHNOLOGICAL BASE 

The Government did not, and for many decades the Navajos could 
not create the technological base that would make it possible for the 
area to be developed by Navajos, rather than by outside forces. 

1. Livestock. — ^\'irtually no effort was made to avert the eventual 
catastrophe that overtook the Navajo livestock industry in the 1930's. 
Many steps could have been taken. First, although there were sporadic 
efforts to bring larger and more productive sheep on the reservation 
in earlier days, these failed because the sheep could not cope with 
Navajo environmental conditions. In a crisis it was possible to develop 
a sheep that provided a much increased meat and wool yield and could 
cope with the reservation enviromnent, and when it was developed, 
the Navajos accepted it: the barriers to improved livestock, then, 
were not just Navajo conservatism, but American. Earlier develop- 
ment of this breed could have made it possible to reduce the livestock 
painless!}^ if certain other stei)s had been taken as well. Incentive 
payments for culling, incentive payments for raising improved breeds, 
parity payments for livestock — all these, combined with livestock 
regulation, could have created improved Uvestock practices and eco- 
nomic yields. Government subsidies to farmers in other areas have 
proved to benefit large, rather than small owners. It is, therefore, no 
particular surprise that a tribe of small holders was not the beneficiary 
of such a program as has been outlined. 

2. Roads. — The road system has always been inadequate. There were 
no paved roads on the reservation except for Highway 666, which was 
needed to connect nonreservation communities, until the 1950's. 
Today the reservation has about 30 percent as many miles of surfaced 
road per 1,000 square miles as the surrounding rural areas. The States 
receive Federal supplements to their highway programs, nominally to 
buUd reservation roads; the Indians pay State gasoline tax, which goes 
toward road building; but the State does little to buUd reservation 
roads, which are primarily built by the Federal Government. The in- 
adequacy of the system of paved roads handicaps every phase of 
Navajo life: job seeking, transportation of children to schools, trips to 
medical facilities, livestock marketing, and so on. As one indication, 
when a single black-top road was built in one community, half the 
boarders in the local school became day pui)ils. 

3. Water. — The water system remains totally inadequate, whether 
in terms of domestic water or stock water. As respects domestic water, 
in 1960, a survey of over 1,400 homes indicates that less than 12 per- 
cent had a water source 14 mUe or less from the home; another 36 

Eercent had a source between 3^ mile and 2 mUes, so that less than 
alf of the houses had a water source closer than 2 miles. The remaining 



733 

52 percent were drawing on water sources more than 2 miles distant, 
and indeed over 17 percent traveled more than 4 miles (TNY 1961: 
306) . We are speaking here of water for drinking, cooking, dishwashing, 
laundry, and for washing hands, face, hair, feet, et cetera. (Most 
bathing is done in sweat baths or by using a chapter or schoolhouse 
bath facility — or the trailer- of a friend working in the school.) At one 
time this perhaps made not too much difference. Today, hauling water 
requires the use of male labor and at times ties men down who might 
otherwise take off-reservation jobs (see below under Fuel, light, and 
heat). 

It is unlikely that much can be done about running water in homes 
while Navajos live scattered as they do. Where sizable concentrations 
of population are found— as at agency headquarters — there is running 
water in the homes. Expansion of water systems beyond agency 
headquarters proper is a function of the Navajo Tribal Utility 
Authority, founded in 1966. It had about 1,000 customers in 1967, 
or perhaps a maximum of four families out of 100. Only increase in the 
number and percentage of people living in concentrated clusters of 
residences will make it ])ossible to reduce the number of people who 
must carry their water. There has been a considerable improvement in 
recent years in the number of Government wells from which people 
can draw domestic water, but they are not inspected frequently 
enough. As a corollary of the lack of running water, there is a serious 
sewage problem. Population densities have tripled since 1930, but 
Navajos outside agency headquarters use outhouses for the most 
part (they once followed a more salubrious practice of burying wastes), 
which promises serious health problems in the futm'e. NTUA is 
developing sewage systems, but these are, of course, for concentrated 
populations. 

The failure to develop adquate stock water resources contributes 
to the erosion of the reservation and makes rational use of pasture 
quite impossible. Undeveloped water is a resource that Navajos do not 
regard as the exclusive property of anyone. If they did, one man's 
flocks could die when his source was dry, and his neighbor's on a simi- 
lar occasion. Hence people have traditional rights to move across 
another man's customary pasture to get to water in that pasture, 
treading out and consuming fodder in the process. I have known 
men who had to move their owm stock to a winter pasture area in 
the summer because, during a dry spell, their neighbor's sheep were 
going to and fro so often. Govermnent-developed wells are protected 
for common use by current grazing regulations. The results are 
conflict, treading out of pasture, and inability to plan the use of 
pasture. The topics of water for industry and irrigation are discussed 
elsewhere. 

4. Fuel, light, and heat. — The Federal failure to develop local 
electrification in a largely electrified Nation is conspicuous. There is an 
increasing amount of electrification on the reservation today — as a 
result of Tribal Council, not Federal action. The NTUA had 7,000 
electric customers in 1967, or about 30 out of 100 families. 

In the absence of highways, the gathering of wood is unduly diffi- 
cult, which again ties men at home who might find ])ositions in the 
extra-reservation labor force. Today some Navajos begin to use 
propane, for heat, light, and cooking in their homes, but the delivery 
of large gas supplies remains a problem — this for a tribe that is at one 



734 

end of a gas pipeline tliat reaches to the west coast and was constructed 
at a cost of $140 niilUon (TNY 1965: 266). Some of the natural gas 
leases make provision for Navajo tapping of the pipeline, but relatively 
little has yet been done to pi])e gas to liomes. NTUA had about 1,300 
customers in 1967, or about five families out of 100. This situation is 
again partly a problem of scattered population. 

The cost of tins pipeline is sometimes used as a figure to justifj" the 
fact that Navajos receive royalties on tlieir minerals rather than ex- 
ploiting them themselves. If one considers, on the contrary, that 
private capital can pay for the lease, the exploitation, the processing, 
the royalties, and the pipeline and still realize a profit, the picture 
alters somewhat. And when the $140 million used by private capital 
for this one pipeline is j)ut alongside the $90 million allocated to re- 
habilitate the Navajo and Hopi combined from 1951 to 1961, serious 
questions arise as to how to spend rehabilitation funds, and as to how 
nil'. eh money is reciuired. 

5. Al'scelloveoiis. — ^Tlie list of underdevelopment could go on and 
on; it is worth mentioning housing and communications, in order to 
say that both are sadly underdeveloped. Some progress in housing 
has been made recently. 

Under these circumstances, commercial, industrial, and agricultural 
and livestock development on the reservation necessarily lags: it has 
nothing to "hook up to" and, because of the educational deficit (see 
below), until recently it could rely on almost no supply of adequately 
trained local labor. 

B, THE COURSE OF MINERAL EXPLOITATION 

It is only by luck that the Navajos have mineral wealth. In the 
1870's Agent Amy tried to release a strip across the northern end of 
the reservation of those days, because he thought there were minerals 
there. Alerted by traders married into the tribe, the Navajos succeeded 
in having him removed. From 1889 to 1891 there were efforts to find 
minerals in the northern reservation, illegally and legally, and the 
agent foresaw a fate for the Navajos like the dispossession of the Sioux 
when gold was found in the Black Hills. A cession of part of the reser- 
vation in 1892 occurred because it was thought that there were 
minerals there. 

The Navajos were fortunate, however. No significant mineral finds 
on the reservation were made until the 1920's, when the Federal 
Government created a Tribal Council for the specific purpose of having 
a legal body to sign mineral leases. (The Council was not always 
willing to do so, however; see Kelly, 1968.) They were also fortunate 
that a protracted series of battles in Congress raised the allowable 
jiercentage of oil royalties going to Indians living on reservation land 
created by Executive order (see Kelly, 1968). Until recently, royalty 
rates ran at a normal rate of 12.5 jtercent by Federal law, except in 
individually negotiated instances. In 1961 the rate was raised to 16?| 
l^ercent, with the possibility of higher rates in some instances (TNI 
1961: 265). In addition, the tribe receives bonuses. On improven land 
these sometimes run up to $5,500 per acre. On proven lands they 
run at a fixed rate of $500, but royalties are negotiable, and under 
certain conditions some of them reportedly brought high royalty 
bids, averaging as much as 50 percent (Navajo Tribal Code, I (1962) : 
xiii). 



735 

The dollar costs of these leases have been low. For exainple, in 1960 
about $114,000 was spent for the salaries of Federal and Tribal em- 
ployees who expedited leasing;. This, of course, does not include such 
concealed costs as the per diem figures for Councilnien meeting to 
consider the acceptance of bids nor the salary of the Tribe's legal staff 
insofar as that staff sj^ent time in providing general advice to the 
tribe in these matters. Even so, additional concealed costs would still 
represent a relatively small figure compared ^^'ith the $12 million of 
income from leases, bonuses, and royalties received in 1960. The 
costs of exploitation of the oil fields, on the contrary, is high: $100,000 
to $300,000 per completed well in the Aneth area, and $140 million 
for a gas pipeline to the west coast. It has become an accepted dictum, 
to be challenged here, that leasing is the appropriate, sound, and 
economical way to exploit Navajo mineral resources (see, for ex- 
ample. Hough, 1967). 

The point to be made, however, is that the entire operation has 
been run with primary concern for non-Navajo needs. Had minerals 
been discovered earlier on Navajo land, the land would not have 
remained Navajo. The rate of exploitation is determined by the 
needs of private industry and Government, without consideration of 
any controlled rate of exploitation for the sake of Navajo budgetary 
planning. And the producer receives a tax benefit, a depletion allow- 
ance, although it is Navajo resources that are being depleted. In 
sum, through tax loopholes the American public underwrites a not 
inconsiderable part of the expenses, the Navajos get the royalties, 
and the oil companies get the profits. 

The answer to all this might well be that since the Navajos have 
little, they cannot afford the experts, equipment, roads, gaslines, and so 
forth, necessary to exploit the fields. This would be a reasonable 
argument, were it not that the U.S. Government subsidizes many 
well-endowed enterprises. It runs an agricultural subsidy program 
that has been rep-^atedly shown to benefit large producers more than 
small. It pays the research and development expenses of large corpora- 
tions manufacturing novel military equipment and then pays a profit 
to these same corporations when they sell to the Government (see 
Nieburg, 1966) and so on. Under these circumstances, it would seem 
reasonable to redress the equities somewhat, to consider a subsidy 
sufficient to permit Navajos to develop their own mineral industry. 

Instead, although a joint development program with a private firm 
was considered and rejected by the Bureau and the Tribe a few years 
ago, so far as I know Navajo management has never been proposed to 
the Tribe by the Government, and there is reason to believe that 
Federal oflBcials emphasize the advantages of leasing and the difficulties 
of native development, so that by now everyone is convinced of the 
eflficiency, economy, and equity of the present arrangements. 

C. EDUCATION 

1. Early in this report it was said that undereducation was a result, 
not a cause of underdevelopment. That is true in the sense that the 
Federal Government has not supplied Navajos with an adequate 
school system, and that this failure is a part of a general undernourish- 
ment of the reservation's economy and society. It is also true that an 
undereducated population is one of the factors that slows development. 



736 

In sum, the Navajos were provided with insufficient schools for 
their children from 1868 until the 1950's, when, for the first time, 
there were enough seats in schools for almost all the children. About 
90 percent of Navajo children of school age are now in school, the 
remainder being largely the phj^sically or mentally handicapped and 
the children of parents who avoid sending them to s .lool. 

There was early Navajo resistance to schooling, partly because the 
labor of children was an asset for the livestock economy, but also 
because the early schools were often brutally run, fed the children 
miserably, and created conditions that resulted in many deaths from 
infectious deseases. From 1946 on, as children became an economic 
liability and as wartime exposure of a part of the population to the 
outside world showed them the disadvantages of undereducation, 
Navajos began to plead for schools. Now they demand an adequate 
educational system. The long-term lack of education has meant a 
lack of opportunity to com.pete successfully in the larger society. 

2. Only in the last few j^ears has there been the beginnings of a 
broadscale effort to introduce special methods for the teaching of 
English (English as a second language), although the vast majority 
of enterins: pupils speak only Navajo. Early, promising efforts by 
Willard Beatty in the 1930's and early 1940's did not take hold. As 
a result, there is often little relationship between the language com- 
petence of a pupil and his nominal grade level. I know seventh- 
graders who can barely understand simple English in a face-to-face 
situation with a familiar person. Clearly they cannot cope with 
seventh-grade instruction in mathematics, history, and science. 

3. In the 1930's and early I940's, under Willard Beatty's aegis, 
there was an effort to introduce curricular material that would en- 
courage a feeling of pride in being a Navajo and an Indian. Again, this 
effort did not take hold. There is now some reviA'^al of such efforts, 
which find slightly more acceptance among teachers today as America's 
general ethnic problems multiply. Meantime, however, most Navajos 
passed through school under conditions that led them to believe that 
they and their culture were regarded as inferior. Some people pass 
through such an experience hardened and tempered in their opposition 
to the larger society, but a commoner result is a feeling of defeat early 
instilled. 

4. The pattern of schooling makes unusual demands on both parents 
and children. The early approach in the Navajo country was on- 
reservation boarding schools, later supplemented by off-reservation 
boarding schools. These early schools (from the 1870's to the early 
1930's) had unfavorable characteristics mentioned above. In addition, 
they demanded the separation of parents and children. Yet few 
families in the larger society would accept a similar separation from 
their young children by Government edict. 

Later, a day school program in the 1930's foundered for lack of a 
technological base: the roads were so poor that pupils could not be 
bussed to school, nor, given weather conditions on the reservation, 
could they walk in winter, nor did their parents have adequate ways 
to bring them. Today in some areas a child is in boarding school near 
his home until eighth grade and may then be in boarding school some 
distance from his home. In other areas, he nmst leave his home region 
after third grade. A notable exception is found in major administra- 
tive centers where many agency and tribal personnel live. There, 



737 

public high schools are to be found, so that this group of parents does 
not have to part with its children. Some 50 to 60 percent of Navajo 
children attend boarding schools. 

It is true that boarding schools permit parents, all of whose children 
are in school, to seek winter off-reservation employment, but this 
marginal employment pattern, further discussed below, is not a 
desirable one. 

5. The first community college was opened in 1969, although as yet 
it has no building of its own: it now occupies part of a large high school 
that has not yet been filled. It is good to note that it is directed by a 
Navajo board of regents. 

6. There has never been an adequate Bureau-operated college for 
Indians off reservation. 

7. There has never been a proper college preparatory program on 
reservation. 

8. Only in recent years has there been a Federal scholarship program 
for Indian students. In recent years BIA scholarship support has 
increased. On some agencies it is able to support all students admitted 
to college or university. In the case of the Navajo, the tribe's mineral 
wealth has been used in part for a scholarship fund, which supports 
about 500 students. The BIA, in the Navajo case, uses its scholarship 
funds to support those students to wliom the tribe is unable to make 
grants, which is a reasonable approach, and one that has provided 
funds for a number of successful students. It is the lateness of Federal 
entry into this field, however, that I wish to stress. 

D. EMPLOYMENT 

Navajos are subject to the racial discrimination so common in 
American society when they seek jobs in the off-reservation world. 
They are thereby reduced in their capacity to secure income through 
employment. They are discriminated against in hiring, in wage levels, 
and in working conditions. Furthermore, this discrimination is most 
marked in the border towns, precisely in the areas that would be most 
convenient for Navajos seeking work — 'and also in the very communi- 
ties most dependent on Indian customers for income. The Navajo 
Times, the tribe's own newspaper, characteristicallj' carries ads for 
consumer goods from border towns and help wanted ads from remote 
communities. Although the Bureau is the largest single employer of 
Navajo workers, charges of discrimination have been made even there. 

E. THE REGION 

Section VI of this report deals with proposals for the development 
of the reservation. A proper perspective on development, however, 
requires attention to the towns bordering the reservation, since the 
reservation is not an isolated enclave. These towns are themselves 
relatively underdeveloped, with a heavy reliance on tourism and on 
an impoverished Indian clientele and an emphasis on retail and whole- 
sale facilities. (Farmington relies as well on the newly developed oil 
and gas industry.) They have contributed to reservation underde- 
velopment, since they have been jealous of competing on-reservation 
facilities. In the long run, a prosperous Indian population will, how- 
ever, benefit them. As things now stand, the reservation is an under- 



738 

developed vacuum standing inside a larger partial vacuum: the 
border towns. 

F. SUMMARY 

The Federal Government is responsible for the situation on the 
reservation. It has been in charge of the land and the people for a 
hundred years. At the end of this time we find an undereducated, 
unhealthy, overcrowded population with a primitive livestock and 
farming pattern, with no technological substratum for development, 
and with almost no development save for the exploitation of mineral 
resources by outside private capital. Furthermore, Navajos have not 
been protected from the relatively monopolistic situation created by 
trading posts, for pressures to enter the job market on unequal terms, 
or from an unplanned draining off of their resources. They are, then, 
a population that is exploited and underdeveloped. 

It should be noted that I have referred here, and in m.any, but not 
all other places in this report, to the Federal Government, rather than 
to the BIA. The BIA is what local and national popular pressures 
and Congress have made it: an understaffed, underbudgeted operation 
with no control over many of the salient factors that would make a 
difference in Indian economic development. It is not encouraged to 
set up tribal businesses of any scale, it is not in a position to exert 
much pressure on border town populations, and so on. In the Navajo 
case, what water, roads, police, schools, agricultural extension work, 
livestock extension work, and planning were to be found in the area 
until the 1950's, when tribal income increased, were the product of 
the Bureau and its resources. I have tried to show that what it was 
able to do was totally inadequate, in spite of the labors of many men 
of good conscience and intelligence. 

The inability of the BIA to proceed with development with its own 
resources is amply evident from the most recent budget available to 
me, that for fiscal year 1968. The total is $54,715,490. Nearly 70 
percent of that budget is for "education and welfare services," almost 
all of the 70 percent for education. Another 12 percent is for resovnces 
management and repair and maintenance. Only a little over 18 percent 
is allocated to construction (buildings and utilities — a little over 1 
percent) and road construction (the remainder). It is notable that 
development funds cam.e from the Economic Development Adminis- 
tration ($8.5 million, with plans to apply for another $21 million). 
The point is not necessarily that the Bureau's budget should include 
development funds (although I will later argue that in the past it 
certainly should have), but that unless generous funds on a preferential 
basis can be made available to the Navajos and other Indian tribes, 
development must lag hopelessly. 

We turn from the overall picture to a closer examination of the 
local economy. 

V. The Local Economy 

A. THE STYLE OF LIFE 

The effects of all these factors jiromoting underdevelopment in the 
Navajo country are, at the local level, a particular style of ecoiiomic 
and social life — one often criticized by Anglos as evidence of back- 
wardness, or praised by some as "the Navajo way." It has some roots 



739 

in custom, but it has its present causes in current economic conditions 
and represents an adjustment to them. 

It is a curiosity thatrso much energy has been expended by agents of 
American society — Bureau officials (particularly in the past), mission- 
aries, sometimes traders, and others — to push Navajos to give up 
"Navajo ways" like long hair, ceremonials, and even mother-in-law 
avoidance, and so little has been expended in giving them an oppor- 
tunity to take on those parts of American life that they so evidently 
want: Roads, plumbing, electric lights, sewing machines, and so on. 
The aim has been too often to rob them of cultural identity while de- 
priving them of material benefits, where it should so clearly be a 
matter of providing them with the opportunities for materially im- 
proved conditions while allowing them cultural identity and pride in 
being Navajo. 

The key items that promote the Navajo style are — 

(1) shortages of material equipment, stemming from a shortage 
of cash; 

(2) simple logistic problems in running the household and the 
subsistence economy, resulting from a need for some wage labor 
and from the difficulties involved in herding, getting water, and 
hauling fuel ; and 

(3) fluctuating income. 

By shortages of equipment I refer to a number of things. Navajo 
families have difficulty managing without access to a pickup truck, 
which is often needed for such mutually contradictory purposes as 
hauling wood and water, getting to and from a job, and procuring 
supplies from the trading post or the town. Yet by no means every 
unit of husband, wife, and immature children can aflford a pickup. 
Hence a cluster of such families (an extended family) is advantageous, 
since it can share the pickup and often can pool sporadic contributions 
to maintain the payments on a pickup. (In effect, Navajos today are 
involved in the lifetime rental of a pickup truck, at about $200 per 
month. It takes about 3 years to pay for a pickup, and by the end of 
that time, road conditions being w^hat they are, it is uneconomical to 
keep it. It is traded, and payments on a new one begin.) But not only 
pickups are involved. I have seen gas irons, gas lamps, tarpavJins, 
water barrels, sewdng machines, automobile tools, etc., borrowed 
from family to family to meet temporary exigencies. 

The absence of running water, of adequate stock water, and of 
fuel except in the form of firewood, all require the labor of some men 
in the family for at least a day or two a week. Again the extended 
family is useful as labor pool. There are, however, families where, for 
one reason or another, there are no resident adult males: Where there 
are a set of related women all of whom are divorced or Andowed, whose 
younger male relatives have married out or taken jobs far away. In 
one such case, as an example, a woman's married son is the major 
source of labor for firewood and water hauling, for her and several 
female descendants with small children. He lives an hour's drive away 
and has a major commitment to his own children and his wife's family 
as well. Meantime he certainly cannot seek en\ployment. 

Along the same lines, many Navajos do not believe that they dare 
to give up their livestock. But someone must herd it. Within limits 
this work can be done by women, although it is seldom done exclusively 



740 

by Avomen. Particularly in winter, and when sheep are lost, herding 
is arduous in the extreme. To have only one possibly herder in a family 
is to tie the herder permanently to the home, without opportunity 
even to go to the trading post, and to invite disaster if that one should 
fall i]l. Again the labor pool afforded by the extended family is 
valuable. 

As for fluctuating income there is, for m,ost Navajos, no stable and 
predictable single source of income. Weather, disease, and fluctuating 
prices for wool, mohair, and sheep and cattle cause wide variations 
in both the food supply and the income from livestock. In an arid 
environment, crops often fail as weU. The wagework market is vari- 
able. Even Governm.ent jobs (BIA and Office of Navajo Economic 
Opportunity) fluctuate in accordance with budgetary variation. 
Furthermore a man receiving disability pay may experience no change 
in his physical condition yet be cut off the welfare lists, through the 
occasional "re-evaluations" of conditions like bad backs that occur. 

Not only is there continual gift giving and borrowing within the 
extended family to cope with these variations, but there is a wide 
circle of kin who depend on each other, who ask for help when they 
need it and give help when they can. This style of economic life we 
may call reciprocity — the Navajos call it "helping out" when they 
speak of it in English— and the ethic that accompanies it is generosity. 
No more than among other peoples does every Navajo do what is 
expected of him, but this ethic dominates the Navajo values at 
present. The behavior that accompanies it is often seen by whites 
as foolishly im.provident. It is not: it is the best way for people thus 
circumstanced to survive. 

Thus in a typical extended family — parents, some of their children 
(usually daughters) and their mates, and their children's children — 
multiple economic dependencies are the rule: Livestock, farming, 
weaving, part-time off-reservation work, and welfare are frequently 
found as income and subsistence sources in the same unit. No one of 
these can be relinquished — that is, efficient speciahzation is impos- 
sible — because none is certain and none is sufficient. 

Three hundred years of history leave the Navajo in one sense exactly 
where they started: In the 1660's they depended on multiple, fluc- 
tuating resources — the farm, the herd, the hunt, the raid, and in the 
1960's the sources have only partly changed — the farm, the herd, the 
hunt to a small extent, the job, the wood, rug, silver, and pinon nut 
market, and the welfare check. 

B. THE ROLE OF THE TRADER 

Any institution may be a force for progress in one era and a conserva' 
tive force in another, without changing its basic form. That is what has 
happened to the traders. Once they were the primary channel for 
introducing Navajos to the elements of Western technology, food, 
clothing, utensils, and so forth, that they could use; assisted Navajos 
in their land struggles — some still do; and explained the ways of white 
men and Government to them. Today, as the center of each com- 
munity's credit system, they are forced into being conservative forces 
by their quest for market security. Each attitude was tied to oppor- 
tunities for profit — the first to gain, the second to retain a market. 
And their situation is becoming increasingly difficult. 

31-685— 70— vol. 1—17 



741 

Traders aim at keeping a certain volume of Navajo business, which 
they manage by judicious use of credit. There is no long-term debt 
peonage in the Navajo coimtry: Navajos are allowed credit only in 
amounts that they can repay in the relatively near future. The trader 
supplies his customers with credit sufficient to absorb their short-run 
(6 months to a year) future income, extending credit for expectable 
income that is likely to pass through the trader's own hands. This 
income includes wool sales, rug sales, sheep sales, and to some degree 
cattle sales (when these go through the trader), welfare and railroad 
retirement checks, and Federal and tribal paychecks in areas where he 
is the only easily available agent for cashing checks. Although tribal 
law requires a trader to give the Navajo payee the full amount of a 
check he cashes for him, this law is certainly widely violated. (Traders 
could have been more tightly regulated by the BIA. Regulations 
permit this, but U.S. attorneys have not pushed enforcement.) The 
trader allows credit on future wools, rugs, sheep, and cattle, and on 
future checks, and balances off the credit when the Navajo sells to 
him or when the checks come in. He serves as a pawnbroker for 
Navajo jewelry. 

The trader is in a position to put pressure on Navajos to take ofF- 
reservation jobs so that they can pay off debts to him, and he can apply 
pressure on men working off reservation to remit money by informing 
the man's family that credit will be cut off if no money comes in. 
This is riskier than the livestock and wool sales and local checks 
(often mailed care of the trading post), but traders learn eventually 
who are good and who are poor credit risks in these situations. 

As every trader is well aware, he is the community's bank, and 
apparently the Tribe, the Government, and the local financial interests 
in the towns are willing for this arrangement to continue, since they 
have developed no feasible alternatives, such as a fully adequate 
Tribal or Federal loan program. The Tribal revolving credit program 
had outstanding loans of $1,123,000 at the end of fiscal year 1967-68, 
according to the Navajo area office. It is not clear whether this in- 
cluded loans to Tribal businesses or not. Even if we assume that these 
are all loans to individuals, it should be noted that in 1961 Young 
(TNY 1961: 245) estimated a need of $2,500,000 to $3 million to 
support an adequate loan program. The Area Office also mentions that 
in 1967 "outside sources" provided financing in excess of $47 million, 
but without further particulars one does not know what to make of 
this figure, which includes loans to the tribe. 

The trader maintains his position, insofar as he can, by credit 
saturation, as Adams (1963) calls it. (Most of my information on 
trading comes from this source; some comes from observation of a 
number of posts from 1949 on.) Credit saturation is the practice of 
soaking up a man's future earnings by judicious extension of credit, 
since this tends to result in a monopoly over that man's purchasing 
power. His interest in credit saturation is demonstrated by the will- 
ingness to give a man a higher dollar value for his livestock in credit 
than in cash. 

He compensates for his role as banker — for the costs of his credit to 
him — in a variety of ways. One way is high markup. Prices on reserva- 
tion are high in comparison with the border towns. At one post, where 
prices averaged 10-15 percent above town prices, markups ranged from 
35 percent for groceries to 75 percent for dry goods, 100 percent for 



742 

hardware, and 100-200 percent for remedies (Adams, 1963). Traders 
justify their high markup on two bases, transportation costs and credit 
risks. Both are certain!}^ elements in traders' costs. So, of course, are 
the traders' own interest rates. What a reasonable markup would be, 
of course, has not been established. Some traders add to then- markup a 
credit charge, sometimes aflat 10 percent of the purchase. Some give 
to regular Anglo customers, cash or credit, discounts as high as 20 
percent. Some also give discounts to Navajos who regularly pay cash 
or who pay cash often, but these are smaller— about 10 percent. There 
is no evident reason why Anglos should get a higher discount than 
Navajos, except as a way for the trader to separate "us" from "them". 

What it does in addition, of course, is to make costs lower for Anglos, 
who have higher incomes, than for Navajos, who have lower ones. 
Perhaps it preserves more business for the trader, inducing Anglos to 
postpone fewer purchases until their next trip to town. But if there is 
still a profit after a 20 percent discount, one is curious about the entire 
operation. Both Navajos and Anglos who have been given discounts 
are discouraged by the trader from discussing the practice with others. 
Since they do not wish to lose the discount, they are likely to talk about 
it only to a limited extent. 

At present the reservation situation is highly variable from one place 
to another. In many areas, Navajos are served by local retailing 
facilities with the characteristics of a general store in a rural community 
in the 1930's. Still others are served by facilities like small super- 
markets. At Window Rock a new Fed-Mart store, opened in fall of 
1968, provides a combined discount house and supermarket facility 
for Navajos from that area on a day-to-day basis and from a much 
larger area for occasional shopping trips. (Tribal funds were used to 
attract this business, which has undertaken to hire Navajo staff for 
middle managerial, as well as lower positions.) 

In the hinterlands, there is an increasing number of cafes attached 
to trading posts; closer to town are restaurants or drive-ins not so 
attached. In larger centers there are tourist courts. Some trading 
posts run garages. 

In the hinterlands, only trading posts serve to cash checks. In Ship- 
rock and Window Rock there are banks, in the founding of which the 
Tribe has played an economic role. 

Nevertheless, much of the population must travel distances of 20 to 
150 miles for boot and shoe repairs, radio repairs, complex automotive 
repairs, haircuts (except for the amateur jobs, often quite good, that 
Navajos supply to each other), beauty parlors, even duplicate keys. 
For all these trivial items, as well as for major items like furnitm-e, 
men's suits, women's dresses (except for the simpler ones), they must 
travel, for the most part, to border towns or, with the new Fed-Mart, 
to Window Rock. This means gross inefficiency for Navajos in their 
daily living (since they must run hither and yon for quite minor items) , 
a high cost of living (since they must pay transportation costs), and 
finally the siphoning off of cash to the border towns, so that Navajo 
income has no "multiplier" effect for Navajos: the range of customer 
services that could be provided by Navajos on reservation are sup- 
plied by non-Navajos, primarily in border towns. There are many 
reasons for this lack of facilities. One is the trader's fear of over- 
expansion; another the poverty of the population; a third the potential 



743 

Navajo entrepreneur's lack of capital; a fourth is the relative scarcity 
of trained Navajos to run local businesses. For a visitor to Shiprock 
or Window Rock, or even a smaller center like Chinle, the situation 
has changed enormously in the last 20 years. At points farther from 
the reservation borders the change is far too slow. 

To summarize thus far, the trader is the center of the credit system 
of many communities. He serves the purpose of extending credit to 
compensate for the fact that Navajoincome comes in irregular amounts. 
He therefore controls a good deal in the community: pressures for 
off -reservation employment, for example, may emanate from him, and 
his attitude toward extending credit controls a family's ability to 
undertake a large ceremony. He has changed from a "fashion leader" 
to a reluctant fashion follower, whose customers seek more kinds of 
goods than he wishes to stock. The reservation lacks many important 
consumer facilities, which are located in border toA\Tis. 

The trader's situation, however, is complicated today by three 
factors: (1) There is more ready cash available to Navajos. Although 
they must often cash Federal and Tribal paychecks with the trader, 
they do not always do so. (2) Transportation is easier with better 
roads, and more pickups and larger trucks, making it possible for 
Navajos to do quantity buying in town or at more distant posts, and 
even to sell cattle and sheep in small quantities in town. (3) His own 
credit costs are rising, so that his credit business is probably more 
costly to him today (no figures available). 

Nowadays some relatively well-to-do Navajos use the trading posts 
as they would the corner grocery — for the occasional loaf of bread or 
bottle of milk — doing their major shopping in supermarkets, some- 
times a hundred miles or more away. They do so because it saves 
money. Others, ordinarily not at all well off, use the credit arrangement 
to insure larger amounts of disposable cash at particular times. Thus 
a woman may get credit on a rug at one post but sell it at another, or 
in town. Eventually she must pay off the debt with another rug, but 
temporarily she has the credit and the cash as well. If this can be done 
at a time when she has to clothe her children for school or meet some 
other emergency, the delay may be worth while. The restriction of 
inventory also leads to shopping in town, and such shopping clearly 
is not likely to be for the odd item but for a large order. (Among the 
goods one might not find in some out-of-the-way posts are dental 
floss, ashtrays, and mailing labels, all of which are nevertheless used 
by some Navajos and some non-Navajos in the community.) 

In the early 1950's the Tribal Council talked as if it might fail to 
renew a number of trading post leases or renew them only on a short- 
term basis. In the end, however, it set up provisions for 25-year 
leases, with no option for renewal except where a case was made that 
capital could not be recovered in 25 years. It also set up some anti- 
monopoly provisions. Leases can be canceled for cause (see Navajo 
Tribal Code). These leases will expire, for the most part, in 1978-79. 

The trader is at the bottom of a business hierarchy in the Southwest. 
Above him are wholesalers and banks. In the power hierarchy of the 
Southwestern States, few actual traders are to be found, although 
many significant figures come from what were once trading families. 

Traders are kings only on the reservation, and their position is 
certainly undermined today. Adams argues that many traders could 
survive in no other setting because they are not sufficiently up to 



744 

date as businessmen. This may be true for some; it does not seem to 
be true for most of those I have known. Furthermore, Tribal regulations 
would appear to make it difficult for a reservationwide or regional 
monopoly to be set up, but many traders are united by kinship and 
marriage. Shared interests and personal ties do now, and will in- 
creasingly in the future, create a tendency towary,anp ooillgo d 
toward a "monopoly" by a few people united among themselves and 
able to compete successfully with new outsiders and with potential 
Navajo traders, but perhaps not with an expansion in the number of 
stores like Fed-Mart. 

It must be noted that traders do many things not in the repertory 
of the corner grocer or supermarket manager. They advise Navajos 
who receive bafflling documents from the Government, notify people 
about meetings, drive them to the hospital in emergencies, turn out to 
rescue them from snow and flooded arroyos, provide their own tele- 
phone at cost per call to members of the community, deliver individual 
messages, give wedding presents, sometimes bury the dead, and bear 
with some patience the trials of daily life. 

Nevertheless, Navajos are served by a relatively expensive, inven- 
tory-constricted set of retailers. These retailers control the credit 
network and operate with high interest charges that are neither 
regulated not clearly visible to the customer. (A 10-percent credit 
charge on any credit purchase — not a universal practice by any 
means — is not a clear charge, since it might in different cases amoimt 
to 10 percent per day, per month, or per year.) Consumer facilities 
situation on the reservation are underdeveloped. The trader's position 
is being weakened, but traders form a relatively weH-consolidated 
interest bloc on the reservation. Traders of Navaio origin, it should 
be made clear, are few and far between. 

C. SUMMARY 

Let us suppose that we could cut a cross section through the reser- 
vation territory extending about 8,000 feet below ground, and that we 
could make a rapid-motion picture of the flow of population, money, 
and resources from about 1900 on. What would we see? First, we would 
see a population doubled thrice between 1870 and 1958: hogans and 
houses would multiply before our eyes. Plant cover would disappear; 
huge washes would appear and increase in size; topsoil would disap- 
pear. An ebb and flow of the population off the reservation to eniploy- 
ment sites could be observed. But money would flow predominantly 
to the trader and from the trader to the larger economy, balanced 
only by a flow necessary to sustain life and (in recent years) somewhat 
to enhance the standard of living. Sheep would increase rapidly — and 
then decrease suddenly in the 1930's, to remain more or less steady in 
quantity. Horses would increase until the 1930's and dwindle rapidly 
thereafter, while pickup trucks would partly replace them. Wagons 
would increase to the 1930's and almost disappear by the 1960's. 
Timber for firewood and house construction would dwindle fairly 
rapidly, commercial timber less so. Meantime, below ground, we would 
see oil, helium, coal, uranium, and vanadium draining off into the 
surrounding economy; we would see rents and royalties flowing into 
the tribal treasury, but, of course, major profits accruing to the cor- 
porations exploiting the reservation. We would see the slow develop- 



745 

ment of roads, water for stock and drinking, government facilities, 
and so forth, and a flow of welfare funds coming in, to go out again via 
the trader. The net flow of many physical resources would be outward; 
the flow of profits would be outward; and the only major increase to be 
seen would be population, with a minor increment in physical facilities 
and consumer goods. 

This is the picture of a colony. It can be duplicated time after 
time, place after place, in Africa, Asia, Latin America, and the Carib- 
bean (for not all colonies are formally the political property of the 
country that dominates them), and, of course for other American 
Indian groups. Where do we go from here? 

VI. Possibilities for Development 
A. who should plan development? 

Planning with Navajos has been a major aim for the Navajo Area 
Office for several decades. Navajo Progress (see bibliography) and 
other Area Office documents make it evident that efforts at joint 
planning with Navajos are to be found at every level from reservation- 
wide planning to the local community, and in every area, from in- 
dustrial development to schools and roads. How much actual devolu- 
tion of power there has been, however, is another question. 

It is not satisfactory, however, to grant Navajos a share in the 
planning process. The solution is for Navajos to plan for themselves, 
drawing on such advice as they wish, whether from the Bureau and 
other Federal agencies. Congressmen, universities, management con- 
sultants, private industry, and whatever experts they need. The reason 
for this is that whereas Navajos may make mistakes, only Navajos are 
primarily concerned for Navajos. Congressmen are primarily concerned 
with their constituents, only a minority of whom are Indians. Bureau 
officials are constrained in many ways : they wish to be primarily con- 
cerned for Navajos, but they must be concerned lest they violate their 
role as trustees for Indian property, and lest they upset local interests, 
who in turn will put pressure on Congress, which will put pressure on 
them. Furthermore, neither Congress nor Federal officials have to live 
with mistakes in dealing with Navajo resources as closely as Navajos 
do. 

To say that Navajos must plan does not mean that all planning 
should reside in the Tribal Council. There are now two levels at which 
planning occurs and a third seems to be emerging and should be en- 
couraged. There is the Council and there are the Chapters, or, approxi- 
mately speaking, a tribewide and a communitywide level. Regional 
groups are beginning to appear: Agency councils, presently made up of 
chapter officers and local tribal delegates. (There are five agencies in 
the Navajo Area Office: Fort Defiance, Crownpoint, Shiprock, Chinle, 
and Tuba City, and five agency councils.) Under present circumstances 
these councils are not elective, nor are they strong. A variety of possi- 
bilities exist for altering this situation, but it would be premature 
to discuss them here. 

A responsive, responsible, and flexible system for Navajo planning 
would involve all three levels, since some issues are purely local, far 
more are regional, and some are tribal. The advantages of the regional 
(agency) council would be that it would permit new leadership to 



746 

emerge, that it would be attuned to local issues, and that it would be 
a counterforce for grassroots level Navajos to the Tribal Council, 
whose concern with development in recent years has put it somewhat 
out of touch with local Navajos — or so they tell me. The Council is 
also unduly sensitive to the opinions of the Bureau and of private 
industry, and new regional councils might break that mold. Such a 
step, however, should be undertaken by Navajos, and not be external 
pressure. 

The Bureau's reaction to this sort of recommendation is that it is 
"bringing Navajos along" as fast as it can. Nevertheless, it is true that 
I have found a great deal of frustration among Navajos who have 
definite ideas about what needs to be done and no way of influencing 
events: there are signs, then, of a great deal of frustrated energy on the 
reservation, where the Bureau seems to find apathy and hesitancy. It is 
also said that the Council tend to distrust Anglo employees of the Tribe 
and that they therefore show a high rate of turnover. But surely it is 
better for the Tribe to draw on experts whose sole responsibility is to 
the Tribe than to depend on those whom it did not hire and cannot fire. 

The plan submitted below, then, is one man's version of what needs 
to be done. But it is assumed that the final plan, if there is to be a sound 
one, will be made by Navajos. 

A necessary adjunct to Tribal planning is a Tribally operated unit 
capable of undertaking sample surveys to determine relevant char- 
acteristics of the Navajo population and Navajo reactions to possible 
plans. The recently completed Navajo manpower survey is an excellent 
start. It was begun in spring of 1967 and should soon be available. The 
tribe, the Bureau, ONEO, USPHS, and the Arizona State Employ- 
ment Service joined forces to carry out this work. 

It is evident from the work that Navajos have done as interpreters, 
census takers for the U.S. Government and for the chapters and the 
BIA schools, ONEO and social security investigators, and so on, that 
literate Navajos, some with only a sixth-grade education, are capable 
after brief training of working as interviewers. A sample of 1,000 
to 2,000 Navajos should be adequate for quite complex surveys. 
What is needed are funds and a few experts — initially from outside, 
perhaps, but later Navajos — who can plan the sampling technique to 
be used and cope with the problem of wording interview schedules and 
of translating them into Navajo. The Tribe should not have to depend 
on the interests of outside investigators for data of this sort. 

The Tribe also badly needs resource surveys. It seems that the 
USGS will not conduct surveys of Navajo mineral assets. Neither 
will the BIA. The Tribe should have its own experts, responsible to it, 
rather than depending on surveys by private businesses for their own 
purposes. 

It should be noted that the Tribe is already carrying out its own 
planning activities and hiring its own experts. This should continue 
at an accelerated rate. 

B. THE POPULATION CONTEXT OF DEVELOPMENT 

Navajo population doubled between 1870 and 1898 (28 years); 
between 1898 and 1932 (34 years — slowed down by the terrible influ- 
enza epidemic after World War I) ; and between 1932 and 1958 (26 
years). Its present rate of growth is probably on the order of 2^ to 33^ 



747 

percent per annum (doubling in 22-26 years). No forces are e\'ident 
that would slow the rate of growth; on the contrary ^\^th 55 percent 
of the population below 19 and 79 percent below 34, growth should 
accelerate in the future. Since the present population, on and off 
reservation, is in the neighborhood of 120,000, about 90 percent of 
whom spend some part of each year on reservation, any plans developed 
should be on the assumption that by 1990 (only a httle more than 
20 years away) there will be about 240,000, and that unless the 
external economy and the educational system alike have been enor- 
mously improved, 80 to 90 percent of these will wish to have a place 
on the reservation. Over 3,000 should enter the potential labor force 
this year, and about 4,500 in 1979. Any planning must be done on 
the basis of a maximum estimate of population and population growth 
and a minimum assumption respecting emigration from the reserva- 
tion. These assumptions are necessary for humane, rational planning. 
Too many plans for the enhancement of standards of li\nng in under- 
developed areas have foundered through a failure to allow for popula- 
tion growth. To develop a plan for extensive migration is easy but 
inhumane. It is also to a considerable extent unnecessary. With no 
planning at all, emigration will be forced. Navajos, however, are 
living in their homeland. They have significant resources. A rational 
and humane plan will be one that makes migration a matter of choice 
and provides maximum opportunity for them to gain an adequate 
livelihood from their own resources. 

This report has not discussed organized planning for emigration 
because it deals with reservation development. It is, nevertheless, true 
that Navajos will wish to migrate, and that the educational system 
should be one that gives sufficient opportunity to prepare for this 
option. There should also be efforts to assist Navajos desiring to 
migrate to find jobs, housing, and so forth, job training opportunities 
such as now go on (see below), and perhaps planned efforts to locate 
Navajo migrants in groups in cities, instead of scattered about, as is 
typical now. Such enclaves seem to have made for a good urban 
adjustment for some Pueblo Indians, for example the Laguna colony 
in Barstow. 

C. MINERAL EXPLOITATION 

Since only a fraction of the projected population can achieve a 
decent standard of living based on farming or herding, we wiU begin 
with mineral exploitation, industry, and commerce. 

In my opinion, the present pattern of leasing mineral rights drains 
both resources and wealth from the reservation, in spite of the residue 
that remains in the Tribal treasury. The mineral Avealth of the Navajo 
country is not unlimited, and the yield will decline. All the more rea- 
son why it should be managed by Navajos and its profits devoted 
to them. At present the tempo of exploitation is set by oil and coal 
companies, and the product used largely for fuel. Yet the oil and coal 
have potential use for the manufacture of synthetic products. By the 
time the reservation is ready to take advantage of the potential for 
more complex use of these minerals, they may well be largely gone or 
entirely under the control of enterprises whose interests lie many 
miles from Navajo country. 

Although the initial outlay would be considerable, and would re- 
quire Government support, and although trained personnel would 



748 

initially have to come from outside, the rational procedure for a 
planned program of economic development would be for the Navajo 
Tribe, as a corporate body, to own and operate its own petroleum, 
gas, coal, vanadium, and so forth, industries, to set its own pace for 
extraction, to process the products in as large part as possible, to sell 
them, and to utilize the profits for the benefit of members of the tribe. 

At present, Navajo assets are used to enrich non-Navajo enterprises. 
Tax funds enter the reservation in relatively "soft" forms like ONEO 
part-time employment funds. The use of Federal funds, whether as 
subsidy or as low-interest rate loans, for Tribal enterprises of this 
sort could reverse the present impoverishment of the Navajos and 
their dependence on welfare and "soft" Government money, like 
ONEO. 

The Tribe operates the Navajo Forest Products Industries and the 
Navajo Tribal Utilities Authority. Thus it is not Tribal enterprise as 
such that constitutes a block to Tribal exploitation of minearl resources. 
The obstacles lie elsewhere. First, the Federal Government's trustee 
obligations to the tribe are such that legislation would be needed for 
approval of enterprises involving higher risk than the present ones. 
Second, shortage of capital would have to be remedied by Federal 
action. Third, managerial staff would be needed. 

There are, however, still other obstacles. Most Federal employees 
and most Council members are at present persuaded that the low risk 
and infinitesimal investment involved in present leasing arrangements 
are preferable to the higher risk and large investment otherwise needed. 
Both of these attitudes are supported by the reactions of private 
industry, which undoubtedly would like to use the mineral wealth of 
the reservation for their highly profitable operations. This last point, 
I believe, is very important. By and large, private industry and local 
interests alike resist the development of competitive economic activi- 
ties by Indian tribes. Thus a sawmill is acceptable because it is a small 
operation with relatively small profits and hence has little opposition 
from the lurtiber industry. The present mineral operation is a very 
large one with very large profits, and it can be anticipated that there 
would be great pressure against development of Tribal mineral enter- 
prises. Hence it would be necessary to insure a sales outlet for Navajo 
oil, gas, and coal. Since the U.S. Government is one of the larger users 
of all three commodities, it would be in a position to guarantee the 
purchase of Navajo supplies at fair market prices. 

To anticipate somewhat, on the Navajo Reservation at present are 
various industrial plants in defense-related industries. So far as I know, 
a considerable part of the product of the companies involved is pro- 
duced on a cost-plus basis for the Federal Government. This is a tax- 
subsidized business operation. If this can be done for defense purposes, 
it would seem that tax money could be used to develop Navajo re- 
sources, particularly since in the end the reservation would be far less 
dependent on Federal funds than it is at present. The fact that Tribal 
enterprises are not presently subject to Federal tax would also provide 
a badly needed advantage in establishing tribal industries. 

As things now stand, even the manner of exploitation of Navajo 
resources lies outside the control of the people. There is strip mining 
of coal near Window Rock, and there Avill be strip mining by Peabody 
Coal at the north end of Black Mesa. When I was there the local 



749 

population did not know anything about strip mining plans, but only 
about mining, in some general way, nor did they have information 
(nor do I) as to arrangements, if any, for disposition of toxic wastes, 
backfilling, contouring, or reforestation. Yet Navajos have been using 
this area for their own purposes. The entire subject needs wider 
discussion am.ong Navajos. (I am informed that future strip mining 
contracts will contain restoration clauses, but how enforceable these 
will be I do not know.) 

Conceivably Navajos would be more prudent in then- rates of con- 
sumption of these rare and limited resources and m.ore careful in con- 
sidering the effects of the m.anner of exploitation than is private 
industry. Possibly they would prove less prudent and careful. In 
either case, however, decisions would be based on local considerations 
and not on the needs of particular corporations. This seems vital for 
the Navajo future. 

I have earlier mentioned processing. What we are seeking here is the 
well-known multiplier effect: that the extraction itself should employ 
as many Navajos as possible, that the refined rather than the crude 
product should, insofar as possible, be produced on the reservation, so 
that more jobs for Navajos are created on all levels, labor and man- 
agerial, that centers of production of this kind become population 
centers demanding various service industries (stores, garages, and 
so forth), which in turn would be Navajo-run, and so on. 

For this processing to come off, of course, further capital is needed, 
and the technological substratum of roads, power, et cetera, pre- 
viously mentioned in virtually every section of this report, is required. 

No yjroposal in this report has encountered more objections from 
BIA officials than that for Tribal exploitation of minerals. Alternative 
suggestions made to me are that the Tribe might operate processing 
plants but not the basic extractive industries, or that management of 
the entire operation might be Tribal but the capital be external. The 
objections to these plans, each of which has advantages compared with 
the present situation, are twofold: neither curbs the outflow of profits 
from Navajo resources to non-Navajo recipients, and neither places 
control of the pattern of exploitation in Navajo hands. 

There are a number of oil leases on the reservation. Peabody Coal, 
Pittsburgh and Midway Coal, Utah Mining and Construction Co., and 
El Paso Natural Gas Co., are all involved in coal exploitation. Other 
mining interests are represented by Kerr-McGee, CUmax Uranium, 
and Vanadium Corp. of America. 

El Paso Natural Gas Co. owns pipeline booster stations, and Shell 
Oil operates a refinery at Aneth, Utah. 

D. INDUSTRY 

As much processing of minerals as possible should occur on the 
reservation, for the sake of multiplier effects. In addition, there 
should be development of the manufacture of various kinds of finished 
goods and components. 

The past few years have seen a rapid but somewhat special growth of 
industry in the Navajo country. 

The Tribe itself operates Navajo Forest Products Industries, at 
Navajo, N. Mex. It runs the Navajo Tribal Utilities Authority 
(NTUA), providing electricity, gas, water, and sewage to an increasing 



750 

number of customers. It runs the Arts and Crafts Guild, one of the best 
outlets for high quality Navajo silver, rugs, and other crafts products 
in the Southwest. And it runs motels and restaurants at Window Rock 
and Shiprock. 

The size of the NTUA operation has been described. In line with 
what has be3n said before about Navajo control of Navajo resources, 
NTUA has one interesting feature. It buys power from the Arizona 
Public Service Co., which runs a pov.erplant near Fl'uitland, N. Mex., 
with a present capacity of about 570,000 kilowatts, soon to be increased 
to 2,080,000 kilowatts. Arizona Public Service is headcpiartered in 
Phoenix. Ownership of the expanded facility will include APS and 
Southern California Edison Co., Salt River project, Tucson Gas & 
Electric Co.. Public Service Co. of New Mexico, and El Paso Electric 
Co. Coal for the plant is supplied by Utah Construction & Mining Co. 
from Navajo mineral leases. Current will be transmitted to southern 
California. By about 1970. it is said, tha payroll will include 800 per- 
sons involved in plant construction, and thereafter the present payroll 
for the plant proper will double. "The combination of the new power 
units and the mine will mean an additional $1,041,600 annually in 
rents and royalties to the Navajo Tribe. The coal reserves will last 
through the economic life of the powerplant" (Anonymous, 1966a; 
Destination: the Twentieth Century, p. 3). 

This means that Navajos lease mines to Utah Construction & 
Mining Co., that they receive the royalties on these leases, whereas 
Utah Construction & Mining Co. receives the profits, and that they 
then buy back the coal in the form of electric current, which they sell 
at a profit locally. NTUA is indeed an im])ortant achievement for the 
Tribe. But is there not some less roundabout way for the Tribe to use 
its Own coal and to hold a larger margin of the profits from it? Further- 
more, should Navajos relinquish so much of their coal for the sake of 
power users in California, so that at a later date they can pay for the 
import of power to the reservation when their own needs expai\d? 

Navajo Forest Products Industries employs about 500 people, 
over 90 percent of them Navajo; I do not have figures on NTUA 
employees, save that 93 percent are Navajo. It will probably expand 
to make particle board, door and window frames, and other products. 
It should. 

There are a number of private industries in the Navajo country. 
One is a utility, already discussed; Arizona Public SerWce Co.'s Four 
Corners Power|)lant at Fruitland, presently employing about 120 
people, less than 20 percent of whom are Navajos. One is Navajo 
Furniture Industries, Inc., which manufactures juvenile furniture in 
Gallup, with about 25 employees, almost all of them Navajo. 

Tiiere is, as has been said, an oil refinery at Aneth, Utah. 

Finally, there are three manufacturing plants, all of them in defense- 
oriented industries. Fairchild Semiconductor Division, Fairchild 
Instrument and Camera (,\)rp. nuxnufactures semiconductors in a 
plant at Shiprock, employing 850 people, 800 of them Navajos. It 
expects to expand to 1,200 employees. General Dynamics (\->rp., 
Pomona Division, has an electronic assembly j^lant at Fort Defiance, 
Ariz., employing 150 people, 125 of them Navajos. And Vostrou Elec- 
tronic Packaging Iiulustries carries on electronics assembly at Page, 
Ariz. It employs 36 people, all but the manager being Navajo. (Data 
on industries from Navajo Area Office, BIA.) 



751 

In the past the Tribe began industrial operations that were later 
canceled, all of them involving substantially less complex processes 
than the private plants just mentioned: Cement, c\s.y, leather, and 
wood products, and wool textiles. I have been told that these enter- 
prises were terminated because they were losing monej" — through lack 
of local markets for products, because of high transportation costs for 
finished products, etc. I have also been told that in the 1950's, when 
they were stopped, the Bureau was less than wholehearted in its 
support for Tribal enter})rises. 

At present, then. Tribal enterprises employ well over 500 Navajos 
(no figures for NTUA), and private industry on reservation in the 
neighborhood of 1,000. This is an enormous change from a few years 
ago, but it represents only a tiny fraction of the potential labor force, or 
even of the total of Navajos now employed part and full time. 

However pleased one may be about this rise in employment oppor- 
tunities and about the Tribal and Bureau enterprise that helped to 
bring about these results, there are some significant features of indus- 
trial developments to date that deserve considerable thought. First, 
the electronics plants, the major industrial employers, hire almost 
entirely women. Thus, opi)ortunities for steady employment for men 
on reservation are not improved by these industries. There is nothing 
about the employment of women that is undesirable, either from the 
point of view of develoi)ment or from a Navajo point of view. But 
unless parallel opportunities arise for men, demoralization of the male 
labor force will continue. 

Second, once again private industry rather than Tribal industry has 
been let in on the ground floor, so that payroll comes on the reserva- 
tion but profits go off. Furthermore, to the degree that water is a 
limiting factor for industrial development in the Navajo country, 
these firms inhibit any later possibilities for Tribal industries to arise. 

Third, concentration of Tribal industrial employment in defense- 
oriented industries would seem unwise unless the United States is to 
maintain present levels of military spending indefinitely — in itself an 
unhappy prospect. 

Fourth, since there is reason to believe that tax money has been 
used to finance the development of defense-oriented private enterprise 
on the reservation, the question arises why it could not be used to 
finance Tribal enterprise. In brief. Federal funds paid for on the job 
training; the firms in question carry on a considerable portion of their 
activities on a cost-i)lus basis; their location on the reservation seems 
to have been a product of Kennedy administration policy to spread 
the locations of defense-oriented industry to hardship areas. The net 
result appears to be that the Navajos have secured a ])aAToll for about 
1,000 employees (at fairly low wages), that in order to do so they 
have de])loyed reservation land and water, that the Federal Govern- 
ment has footed the bill for the employment training and, in one way 
or another, underwritten the profits of the firms in question — profits 
that do not accrue to the Tribe. (See H. L. Nieburg, "In the Name of 
Science" (1966), for substantiation of the general position taken here.) 

It would appear, then, that a more frontal approach to industrial 
development on the reservation might be attempted through the 
creation of Tribal industries — one that would (as at present) use Feil- 
eral funds to assist in employee training, perhaps one that would 
provide cost-plus contracts initially, but certainly far better one 



752 

that would provide low-interest loans initially. Furthermore, the 
development program should be less one-sided than the present 
defense orientation. Tribal industry would be highly advantageous 
in retaining profits in the area. Finally there should be employment 
for men. as well as for women. 

There are many possible ways, instead of, or in addition to the 
above, for the Tribe to acquire more control over its own industrial 
development. It could begin as a minority or majority shareholder, 
instead of an owner. In that case there could be built-in opportunities 
for the Tribe to purchase increasing quantities of stock on an option 
basis at a fixed price until it became majority shareholder or owner, 
as might be deemed desirable. Since options are granted to corpora- 
tion officials for their services, they could equally well be granted to 
the Tribe in exchange for its site, roads, and relatively cheap, non- 
unionized labor (unions are forbidden by Triballaw). There is Tribal 
enabling legislation for partnerships with private concerns now on 
the books. 

It might be said that trained Navajo manpower would constitute 
a relatively stable labor supply, since Navajos are strongly desirous 
in so many cases of finding work on the reservation. 

It is evident that in the early phases of Navajo-owned complex 
manufacturing, non-Navajo know-how would be needed. It can be 
hired, as it has been for the Forest Products operation. The greatest 
obstacle, of course, would be the diffi.culties of marketing products in 
the face of a distaste for competition on the part of large corporations, 
and the simplicity that arises for private and governmental purchasing 
agents in going to large corporations to satisfy their needs. But if this 
problem cannot be met, the Navajo country cannot be developed 
except in the present highly exploitative fashion. 

It should be noted that each of the private plants is located on the 
periphery of the reservation, and the same is true of the Tribal ones. A 
Tribally planned development could be based on a sj'-stem of plant 
locations that took account of the Navajos' own needs. The present 
pattern benefits only selected portions of the reservation, except for 
those Navajos who relocate to take advantage of employment. Light 
industry has a wider potential range of placement than it has yet 
achieved in the Navajo country. 

If there is to be well-developed cash-crop farming in the land made 
available by the Navajo Indian irrigation project (see below), and if 
the livestock industry is to be improved (see below), food processing 
plants and meat-packing plants would be highly desirable. 

The Navajo Forest Products Industries, the Tribe's most successful 
enterprise to date, now has Navajo employees cai)able of assuming 
major responsibilities. One, at least, has been oft'ered an excellent 
job in an outside wood products company but has refused and is 
staying on the reservation for lower wages than he could make else- 
where. He was trained on the job. There is, however, no particular 
reason to assume that local loyalty will operate to keep well-trained 
Navajos in the Navajo country: It is likely that some are as vulnerable 
to "brain drain" salary offers as are Englishmen and Canadians, now 
that the United States ])ays top dollar. Hence salaries must be com- 
petively high. But more important, on-the-job training opportunities 
must exist in all industries, so that, as rapidly as possible, Navajos 



753 

may assume responsible jobs. Responsibility is not learned except in 
responsible positions. Preparation for jobs should also occur in schools. 
.(See education, below.) 

D. THE TECHNOLOGICAL BASE 

Further mineral exploitation and industrial development, as well as 
topics discussed below, such as commerce, education, and health 
programs, demand rapid movement to create an adecjuate technologi- 
'Cal base, in terms of roads, electrical service, gas service, and a variety 
lof other features. Mineral exploitation, industrial development, and 
improvement of the livestock industry and of farming all demand 
water development. 

The 20-year road plan jointly developed by the Tribe and the Bu- 
reau wUl cost $300 million and provide an expansion from the present 
430 miles of paved road to about 4,000 miles. This would seem urgent, 
and 20 years too long a time. A bus service is needed. The basis for 
expanded electrical and gas service now exists. The water situation is 
more complicated. 

Since 1961, water development has been largely in the hands of 
the Tribe, with cooperation from the U.S. Public Health Service, 
which provides technical guidance in developing and protecting 
shallow water sources. A report by Heinrich J. Thiele & Associates 
(Thiele, 1966) supplies a detailed picture of the situation in 1966 and 
of future prospects. It recommends the establishing of a Navajo 
Tribal Water Authority, and the removal of water development and 
service from the Navajo Tribal Utilities Authority and all other pro- 
grams now dealing with water. I can only concur. The Thiele report 
indicates clearly that planning for water use is a prerequisite for the 
development of urban centers, industry, commerce, irrigated farm- 
ing and pasture, and tourism on the reservation. The picture as re- 
spects quality and abundance of water is far too complex to present 
here. SuiSice it to say that relatively abundant, potable water can be 
found on only about 39 percent of the reservation's area, that portion 
in which about 66 percent of the population was living in 1966. Thirty- 
two percent of the area brings in brackish water, and 29 percent has 
almost no water potential. Under these circumstances, planned loca- 
tions for denser aggregates of the population, for schools, and for 
industry are an urgent need. Furthermore, there is potential competi- 
tion for water as respects the demands for livestock, farming, mineral 
exploitation, industry, and domestic use. 

The Thiele report makes mention of future industrial needs but 
contains few projections on this score. It indicates that since wells 
were first dug on the reservation, neither selection of sites, construction 
methods, materials, nor maintenance has been adequate. It is ex- 
pected that use of water in rural area on the reservation will increase 
from 6,000 acre-feet in 1966 to 30,000 or more in the year 2000. No 
figure for industrial and urban use is supplied by the report. 

The Navajo Indian irrigation project is supposed to supply about 
508,000 acre-feet of water for 1 10,000 acres of land when it is completed 
(according to BIA projections, in 1981; according to some newspaper 
accounts, in the 1990's a date di-couraging to Navajos). Oridnally 
23,000 acre-feet in addition was set aside for municipal and industrial 
use, a figure that did not allow for the domestic water needs of people 



754 

making use of the irrigated land. This was later increased to 100,000 
acre-feet. Of this amount, 51,500 acre-feet has already been allocated 
to Public Ser\'ice Co. of New Mexico, Southern Union Gas Co., and 
Utah Construction & Mining Co., for thermal electric uses, leaving 
not very much for future domestic and industrial use. (See Public Law 
90-272, 90th Cong., S.J. Res. 123 of Mar 22, 1968). 

Meantime, Peabody Coal's operation, to slurry coal to Nevada, 
draws on deep wells in the Black Mesa territory. Full details are not 
available to me, but there are apparently at least four wells, to depths 
of 2,500 feet, providing 2,000 gallons per minute each, and costing 
$250,000 each. Thus scarce water resources are being used to shunt 
Navajo resources to Nevada, without, so far as can be determined, 
any overall water plan having been adopted by the Tribe. 

To sum up: There is far more water in the Navajo country than 
might be supposed; much of it is at a considerable depth; it is not 
evenly distributed; and a water plan and a water authority are urgent 
needs underlying every phase of development. 

F. COMMERCE 

At present on the Navajo Reservation there are a large number of 
trading posts, some with cafes and garages, some private motels (at 
Tuba City, Monument Valley, and Chinle at least), two Tribal motel- 
restaurant combinations at Window Rock and Shiprock, two banks, 
at Window Rock and Crownpoint, brought there through the efforts 
of the Tribal Council, assorted small businesses like laundromats, and 
the new Fed-Mart store in Window Rock. There is also the Navajo 
Arts and Crafts Guild, run by the Tribe. 

The perspective for development is a 25-year period, at the end of 
which time there will be an estimated 240,000 Navajos, most of whom 
will spend at least a portion of the year on the reservation. 

About 10 years from now, a major decision point will arise. The 
traders' 25-year leases were mainly negotiated in 1953-54 and will 
expire in 1978-79. 

If development occurs on other fronts, principally industrial and 
livestock, there will be an increasingly prosperous and an increasingly 
large population to be served by retail facilities of one sort and 
another. Furthermore, if there is industrial development, there will 
be (as there already are) population shifts on reservation creating a 
number of more densely populated centers. Finally, if livestock 
management were carried out on a suprafamilial level, even in rela- 
tively out-of-the-way communities there could be a less scattered 
pattern of residence, all of which would make retail activities more 
inviting. 

There are dilemmas in the various plans that come to mind for 
future commercial development. The Fed-Mart store is a new factor 
that will condition the next few years to a marked extent. If, as 
appears likely, it is a success, it seems probable that Fed-Mart will 
build additional outlets in such population centers as Shiprock and 
Tuba City. And if these succeed, other agency headquarters afford 
additional possibilities. Each such move will create a small increment 
of jobs (60 in the Window Rock facility at present) and will draw 
Navajo business that might otherwise have gone to traders or to the 
border towns. This is likely to make the traders' position less attractive. 



755 

One can envisage the possibility, then, that as the traders' situation, 
already undermined to some degree, becomes less viable, and as leases 
expire, the new occupants will be either Anglos content with quite 
small-scale operations or Navajos willing to operate on a low margin 
of profit. The advantage of the Fed-Mart development is that it 
provides consumer goods to Navajos at far lower prices than they have 
paid to traders and border-town merchants in the past. The dis- 
advantage is that again an outside interest will achieve a position of 
dominance on the reservation. While this may well make more com- 
mercial establishments available to Navajos, it will preempt large- 
scale commerce, since Navajos will not be able to compete with Fed- 
Mart in terms of range of goods. The likelihood is, however, that 
Fed-Mart will have secured its advantage well before any alternative 
possibility could be realized. 

This being the case, there seem to be three areas of planning availa- 
ble. The first is the possibility of Tribal or individual Navajo control 
of trading posts as their leases expire. The second is an effort to reserve 
for Navajos the wide range of small business opportunities that ought 
to open up at an accelerating rate: Such facilitres as laundromats, 
barber shops, beauty parlors, clothing stores, appliance repair shops, 
etcetera — some needed already, some not feasible for some years. This 
requires tribal control of licensing (which it has), an education program 
that will provide appropriate training in skills and particularly in bvisi- 
ness management, and a loan program on a considerable scale. The 
third is to modify the trader's role in the credit system, either by 
regularizing his interest charges or by displacing him as the community 
"bank" by providing a far more extensive tribal loan system, which 
would require underwriting by the Government. Navajos ought to 
have other resources to turn to for futures in meat and wool, for 
example. This would make it possible for Navajos to have more con- 
trol over their own economic lives and would free the trader from a 
credit squeeze that begins to create problems for him. If, however, the 
credit now supplied by traders were to disappear without a substitute 
(and it has been argued here that more credit is needed than is now 
available, not the same amount by different means), Navajo families 
would suflFer terrible hardships. At present trader and Navajo are 
"locked into" the system. 

G. LIVESTOCK INDUSTRY 

Most Navajos today are not in the livestock business in the sense in 
which a commercial farmer is in the wheat business. Their production 
is for a combination of use and sale. The sale is not, in any simple 
sense, for the sake of making a profit, but to buy the necessities of 
life at the trading post and the store. Neither mentally nor bj^ means 
of bookkeeping is there a separation of the herd as a cash-and-credit 
enterprise, the herd as a source of food, and the herd as a form of 
insurance — to be used for an emergency, or to fall back on when a 
man loses his job. This can be seen in the arrangements in some ex- 
tended families with respect to the yield from livestock. The sheep 
are earmarked for various members of the family, and each such 
member would claim that the sheep so marked were his. They may 
be used in any of the following ways: They may be eaten by family 
members, contributed for the ceremonies of relatives outside the 



756 

family, or used for ceremonies within the family. The wool may be 
sheared and sold. The sheep may be sold. As for cattle, they are 
produced mainly for sale. Sometimes they are used for ceremonies. 
The}' are seldom killed for ordinary family consumption, because they 
are too large to be used before spoiling occurs. A given family member 
ordinarily allows decisions about killing sheep for meat or giving them 
for ceremonies to be vested in the senior member of the extended 
familj'. He also makes claims of his own for food and gifts. He may 
or may not shear his own sheep separately and sell the wool separately. 
If his parents' needs are great and he has a steady job, he may well 
allow the wool profits to remain with the parents. He may even allow 
the money from the sale of lambs to accrue to the parents. He will 
ordinarily claim the right to sell his own cattle and utilize the proceeds: 
cattle are seen in more of a business context. In sum, considerations 
of equity, far more than of profit, dominate the procedures of the 
family livestock industry. 

Nevertheless, more and more people Avish to be in the livestock 
business properly speaking. This often means conversion from sheep 
to cattle. There are several factors pushing people in this direction. 
First, so many Navajos are engaged in at least part-time wagework 
that a shortage of herders is on the way. Cattle require less daily 
management; they can be run with only occasional mass mobilization 
of manpower, to count, brand, castrate, dehorn, et cetera. Further- 
more, it is often asserted that if the family unit cannot manage 
livestock operation of high quality, it can make more money from 
a herd of cattle than from a herd of sheep. (It is also asserted that 
under optimal conditions for the sheep, they would be more profitable 
than cattle.) In addition — why I do not know — cattle are viewed 
differently from sheep : it seems to be considered normal for a person 
to realize his own money from sales of his own cattle, rather than 
turning over the proceeds to a parent. 

Cattle, however, have one major disadvantage compared to sheep: 
they cannot be casually killed for a few days' meat. The older people 
are keenly aware of this; the thought of having only cattle, or very 
few sheep alarms them. They survive on the sheep. (It is also true that 
most Navajos like mutton better than beef. Many non-Navajos who 
have eaten range mutton and range beef would agree with them.) 

For adequate economic development of the livestock base, there 
must be more water development in order for any rational use of 
pasturage to take place. Fencing is impossible without water develop- 
ment. This need not always mean deep wells, or even shallow ones. 
Plastic catchment basins draining into stock tanks can in fact provide 
adequate stock water in many areas. Under these circumstances it 
would be possible to fence and to plan the use of the range, regulating 
by season and responding to weather conditions, without the present 
problems created by few watering spots. 

This, however, is not sufficient. At present the Navajo range can 
support an amount of livestock that was less than adequate for 
40,000 people. There are now about 120,000 Navajos, with doubling in 
prospect in 22 to 26 years. 

There are, however, possibilities of increasing the forage yield two- 
fold to fortyfold. At present in some 25 locations on the Navajo Res- 
ervation this is being done. It involves chaining off pinon and juniper 
trees or uprooting sage and reseeding with hardy grasses. But for the 



I 



757 

grasses to survive, controlled grazing must be achieved, by making 
water available in each pasture and by fencing. Further work along 
these lines is certainly desirable. 

One difficulty already evident in some areas where fencing, chaining, 
and seeding have gone on involves the disposition of the dead pinons 
resulting from chaining. Ideally these should be left initially as ob- 
stacles to prevent excessive runoff, and ultimately to decay and enrich 
the soil. Unfortunately, the shortage of firewood results in the speedy 
clearance of these trees for fuel. 

There are, however, special social and economic consequences that 
follow from these practices that have not, in my opinion, been thought 
through. At present, each reseeded area is an extended or nuclear 
family pasture, that is, a customary use-right area of such a famil}^, 
fenced only by permission of the neighbors. The reservation is not 
allotted in severalty at present. Nevertheless, the effects of fencing are 
to confirm a specific use right for a specific family with a clarity that is 
not found in other areas. Such families take the position that trespass 
is involved if other herds move on to the area. Without any doubt they 
will come to think that these use rights are subject to hereditary trans- 
mission. And in time the typical problems of fractionation of heirship 
will arise. Furthermore, it is probable that if the fencing continues, 
some individuals will find themselves without grazing areas in the 
not too distant future. It is by no means clear (a) that systematic 
family allotment on a de facto basis is a sound practice, or (6) that the 
alternatives to such allotment have been discussed, or (c) that the con- 
sequences of family allotments have been made clear to the Navajos. 
Instead, the BIA seems to prefer to let the system grow on the assump- 
tion, no doubt, that it will make Navajo property patterns conform 
more closely to those of the dominant society. 

Rational use of the range, with water development and seeding, 
could be based on the community as a unit, or on the set of contiguous 
related families and their pasture as the unit, or (as at present) the 
single extended or nuclear family as a unit. The present program of 
range improvement should continue, but not without a thorough airing 
of the consequences. The technical possibilities of this program and 
the issue of the proper management unit should be raised in discussions 
between the BIA, Tribal officials, and local Navajos, so that the con- 
sequences of the alternative management patterns are fully explored. 
Decisions about range management should be reached only after this 
step. The issue is always a sensitive one for Navajos, but that is one 
reason it needs to be discussed. At present, the Bureau is sliding into 
a policy the ramifications of which are not clear to Navajos, whether 
or not they are to the Bureau. 

One significant and favorable feature of present policy should be 
mentioned. The tribe has permitted the issuing of "conservation use 
permits" to people who chain, fence, and seed — permits based on a 
survey of the range in the fenced area. These permits are renewable 
at 3-year intervals: At each review they may be increased, reduced, 
or eliminated, depending on range conditions and the conservation 
efforts of the users. It appears that these permits make it possible 
for more livestock to be raised in a given area and serve as an important 
incentive for conservation practices. Not every part of the reservation 
is ecologically suited to chaining and seeding. The practice is not a 
cure-all, but it seems to have value. 



758 

There is no reason why range management, adult education in 
range management, education in livestock care, and so forth, could 
not be turned over to the tribe more rapidly than is being done. The 
Federal Government has recently turned over many of these activities 
to the States. It would be better in the long run to supply the funds 
it provides to the States, or additional funds, to employ experts 
selected and paid by the Tribe. The experts should be answerable to 
the Tribe. Well-trained interpreters should be developed by the educa- 
tional program (a step never undertaken), to serve as an effective 
communications link between experts, governmental or other, and 
the people. The educational system should be oriented to producing 
young Navajos trained as range management and livestock specialists 
to take over the positions now occupied by others. 

The Tribe will also have to become sensitive to the future poten- 
tialities of the livestock market in planning along these lines. It would 
be possible to undertake an unwise expansion of the livestock industrj^: 
One that does not take into account its inelasticities or the signifi- 
cance of foreign and local competition. The balance of sheep, mohair 
goats, and cattle must be considered in this context. 

The Navajo Indian Irrigation Project, scheduled for completion 
in 1981, will provide irrigation water for about 110,630 acres of land. 
It is apparently planned to use some of this land for irrigated pasture, 
which would make it possible for Navajos to raise grain-fed beef 
locally. 

At present the tribe sponsors cattle auctions through the Cattle- 
men's Association. Considerably more could be done in the way of 
organized marketing activities by the tribe (for example, as respects 
wool and mohair), or in terms of cattle and sheep marketing coopera- 
tives or management cooperatives at the local level. It is important 
that there be vigorous local organizations; as the tribal council takes 
on more functions, it is likely to become excessively dominant, unless 
the mission of chapters is expanded or other local, suprakin organiza- 
tions emerge, or regional organizations appear — or all of these. 

In the past, local cooperatives have not been successful. There are, 
however, special reasons for local opposition and apathy in most 
cases. Several cooperatives began by removing part of the pastureland 
of a given area from the control of families that had used it for many 
years and putting it under cooperative control. This step guaranteed 
undying opposition on the part of a segment of the community. The 
issue, however, should be reopened without this obstacle, so that 
Navajos may consider whether they wish a local economic unit 
larger than the family (whether for marketing or management or 
both), to give them leverage in dealing with traders, border-town 
businessmen, and tribal and BIA officials. 

Finally, as respects both herding and farming (see below for farm- 
ing), planning cannot be based on the assumption that Navajos 
need only a subsistence economy. Whereas- they may derive food 
from farming and herding, these activities must be planned to yield 
a living, and not merely foodstuffs. Evidently there will come a time 
when family herds will not be the most economical or efficient way 
to use the range: When, by one means or another, aggregations of 
herds and of pastures will become desirable. All the more reason that 
this should be considered now, and from now on. 



759 

H. FARMING 

There are two distinct issues connected with farming. The first is 
the likely fate of subsistence farming; the second is the question of the 
use of scarce and valuable irrigated farmland. 

As to subsistence farming, there is some decrease in the number of 
farms per capita in many areas, and indeed probably an absolute 
decrease in the number of farms. One factor that probably contributes 
to this phenomenon wherever it is found is labor shortage. Many 
younger people are working on and off reservation at wage labor jobs 
or are in school during such critical periods as those for the prepara- 
tion of fields, for cultivating, and for harvesting. This leaves a shortage 
of labor for herding. Older people prefer to concentrate on the live- 
stock industry in many parts of the reservation and hence decide not 
to try to prepare fields. There are additional local factors, such as the 
short growing season on the slopes of Black Mesa, w^hich makes farming 
marginal there, irregular and unpredictable water supply, and lowering 
of the water table, which has destroyed the utility of some fields good a 
generation ago. 

In other areas, farming is probably holding its own. In a few, where 
irrigated farming is to be found, principally at Shiprock, Fruitland, 
and Many Farms, it is supplemented by cash crop farming, and new 
kinds of crops are being introduced. These areas are, however, in- 
eflSciently planned. The farms are small enough to require the family 
to produce partly for use and partly for sale and in addition to supple- 
ment their farming with wagework labor (cf. Sasaki, 1960). The result 
is an inefficient farmer, an inefficient wageworker, and an inefficient 
irrigation system. 

If the livestock industry were to improve, would subsistence farming 
in nonirrigated areas increase or decline? Possibly, with more income 
from livestock, families would rely more on purchasing food and less 
on subsistence farming. On the other hand, if families had more income, 
there might be less part-time summer employment and more labor 
available to farm. These two possibilities should be considered. 

Irrigated farming, however, is another matter — not so much for 
Fruitland, Shiprock, and Many Farms, unless there is to be a great 
deal of reorganization there — in the case of the Navajo Indian 
irrigation project. 

There are today about 35,000 acres of irrigable land on the reserva- 
tion, of which perhaps a third is utilized. Low utilization results from 
such factors as farm units too small for effective commercial farming 
(as at Fruitland) and uneven and unpredictable w^ater supply (as in 
the Chinle Wash area) . The Navajo Indian irrigation project (based on 
the San Juan-Chama diversion) is planned to increase irrigable land 
greatly. It is to supply 110,630 acres of land with 580,000 acre-feet 
of water by 1981. The work on this project has lagged by comparison 
with other portions of the San Juan-Chama development. An addi- 
tional 13,000 irrigated acres could be supplied in other ways. Thus, 
there is a potential 158,000 acres of irrigable land, by comparison 
with today's 35,000. 

The Navajo Indian Irrigation Project raises a number of planning 
issues. First, as BIA officials readily recognize, the area must be used 
for commercial, not subsistence farming. This, however, raises the 
question whether it should be cut up into small holder plots of reason- 



760 

able size with, say, farm machinery and marketing cooperatives, or 
worked in very large plots as corporate enterprises, or what. There is 
also the question, mentioned before, of using a part of it for irrigated 
pasture. If, in fact, it is to be used efficiently, it will have to have a far 
better technological base than Navajo farming heretofore. 

Even before the land has become available, there is some talk of 
using a portion of the 508,000 acre-feet for domestic or industrial 
purposes, which disturbs Navajos who wish to farm there considerably. 
But the balance between potential use of that water for farming, herd- 
ing, industry, and domestic purposes must soon be settled. 

In irrigated farmland areas, adult education for farmers is desirable. 
Responsibility for agricultural extension work was transferred from the 
BIA to the State extension services July 1, 1968, with Federal funding 
continuing. It would seem desirable that it should soon pass into 
Navajo hands, and that the education system should produce Navajo 
stock experts and agricultural extension workers — still with Federal 
funding. 

I. SOME LAND PROBLEMS 

1 . 0^ -reservation groups. — The existence of off-reservation groups 
(other than urban migrants) creates special problems for any develop- 
ment plan. These groups include (a) Navajos in Grazing Districts 16, 
19, and 20, east and south of the reservation on allotted land, and 
(6) Navajos in the separate enclaves at Ramah, Puertocito, and 
Canoncito. 

For purposes of development, it would be valuable to be able to 
work in terms of a contiguous area. The enclaves make this impossible, 
but the borders of the reservation could be extended to create a 
continuous reservation that would include the groups enumerated in 
{a) above. This, however, would not lead to any simple solution, be- 
cause these lands are allotted. The kind of mineral, industrial, and 
commercial development described in this report requires the ability 
to deal with fairly large tracts of land, and allotment would hence 
constitute a problem. (Allotment of the entire reservation is no solu- 
tion at all, although the fencing now being carried out in some areas 
seems to be moving Navajos toward a dejacto allotment system with- 
out prior discussion of its probable effects. Allotment in the areas 
mentioned above was necessary to preserve Indian claims to this land, 
but in the general history of American Indians under the U.S. Govern- 
ment, allotment has not led to the solution of Indian problems, but to a 
transfer of Federal headaches to Indian heads, and to loss of Indian 
lands to non-Indians.) The Tribe seems inclined to extend such benefits 
as Tribal police and public works programs to at least some of these 
enclaves, but there would be problems of extending the general bene- 
fits of a reservation development program to them. All that can be 
done here is to point to the existence of a problem. 

2. The Executive order territory (Executive order oj December 16, 
1882) . — This area is a large rectangle surrounding the territory presently 
occupied by the Hopi Indians (District 6). It was established by the 
Executive order of December 16, 1882, at which time it bordered the 
Navajo Reservation as enlarged in 1878 and 1880. It was established 

for the Hopi Indians and other Indians dwelling in the area (not a 
quotation) . As a result of a suit, Jones v. Healing, the area now presents 
a difficult problem for the planning of development. The court threw 



761 

on the Hopi and the Navajo Tribes the burden of arriving at a joint 
decision respecting the exploitation of surface and subsurface re- 
sources. To date they have been unable to do so. It is unlikely that 
they will be able to reach a solution without long congressional legisla- 
tion clarifying the situation. Thus at present rational overall planning 
by either Tribe seems difficult. The building of roads, gaslines, power- 
lines, and so on, should be planned to benefit this entire area, either, 
and, indeed, for this reason the Executive order area is the most in- 
accessible and underdeveloped sector of the entire reservation with 
respect to roads, electricity, schools, medical facilities, commercial 
establishments, etc. The issue must be resolved. Some Navajos and 
Hopis say they could solve it were it not for white lawyers. The ideal 
solution would be joint planning by the two Tribes. 

.T. POPULATION MOVEMFNT AND LABOR MIGRATION 

Everything proposed previously should result in a more concen- 
trated pattern for the population. It is evident that on-reservation 
mineral, industrial, and commercial development \n\\ result in in- 
ternal migration and denser aggregations of the population. A com- 
bination of adequate roads and patterns of management of livestock 
and farming in larger units would make it possible for families to 
live in more of a town or village pattern, with farming and herding 
territories around the towns. This in turn would make a day school 
program feasible as well as great expansion of the electric, gas, water, 
and sewage systems to family dwellings, now so scattered that even 
under more favorable circumstances few could be served. This con- 
centration is another advantage of the proposal for cooperative live- 
stock ventures and corporate or cooperative farming on irrigated 
lands. The educational program should train people for the many 
new kinds of expertise that this living pattern would require. 

Whereas the thrust of this report is to make the reservation more 
liveable for more Navajos, many will wish to migrate not within 
the reservation but outside its boundaries. The educational system 
(see below) should provide not only the adult vocational training 
programs that now exist, but the guidance in career planning and 
the training that would enable Navajos who desire to do so to re- 
locate. They should, however, be given as much psychological arma- 
ment as possible against the prejudice they will encounter in the 
larger society. 

K. EDUCATION 

Most of the foregoing material relates directly to economic de- 
velopment. Education, health, and welfare are necessary for develop- 
ment but do not constitute development in any direct sense. Education 
in particular, is too often viewed as a substitute for development: 
it is too often reasoned that if Navajos are given sufficient education 
so that (in theory) they can leave the reservation, there need be no 
development of the reservation. In the present report, education is 
treated primarily as a means to development, not as an alternative 
for it. 

There is evident need for an expanded, updated, and experimental 
program of education in the Navajo country. It should be said that 
the BIA is making some efforts to achieve many of the goals listed 



762 

below. Nevertheless, while the BIA is understandably optimistic 
in comparing its present efforts with its past performance, people 
not directly involved in education but with an opportunity to ob- 
serve the system and its fruits are quite discouraged. The recom- 
mendations below reflect the latter state of mind, but should not be 
understood to ignore what is being done. 

1. There seems no reason why the entire school system should not 
come under the managerial control of the Tribe and of local Navajo 
school boards. The Bureau has said for decades that it is trying to 
put Indians in a position where they can manage their own affairs 
and it can go out of business. Nevertheless, a program of actual with- 
drawal is not feasible, because it removes essential protection from 
Indians. There is, however, no reason why there should not be a 
vastly increased role for the Tribe and for the local community, and 
a vastly decreased direct role for the Government in the immediate 
future. 

There are nominal school boards attached to most reservation 
schools, but there has been relatively little devolution of authority to 
date. Local school boards will not be workable unless they have fiscal 
control and sizable funds. 

In education, modest results have been achieved by creating cor- 
porations that administer Federal funds and use them to operate 
Navajo school facilities on an experimental basis. The first Navajo-run 
school has already been created at Rough Rock, with a school board 
some of whose members do not speak English but who seem quite 
competent to deal with the issues. Experimental programs can be 
found at other schools — for example, English as a second language is 
particularly strongly developed at Rock Point. Turning over the 
school system to the Tribe seems a reasonable prospect for the imme- 
diate future. Training of Navajo teachers and administrators in 
greatly increased numbers is therefore a must. Upgrading of Navajo 
employees is also needed. The Bureau recognizes this, but much more 
needs to be done. 

2. Closely associated with the first, the education program should 
be one that attunes Navajo Indians to pride in their own language 
and culture and gives them a realistic understanding of their situation. 
An announced goal of the BIA, this is scarcely realizable when so 
many teachers are in fact firmly ethnocentric, when social life of 
Navajo and non-Navajo employees remains de facto largely separate, 
and when few teachers have any experience of the actual daily life of 
Navajos. Nor is it realizable when there are penalties for children 
who speak Navajo in school, to name but one of the many points 
where policy and practice are at variance. 

?. Experimentation in the teaching of English is a must. Different 
schools could well utilize different approaches, which could then be 
evaluated. One school might experiment with a full development of 
teaching English as a second language, another with teaching young 
children in Navajo and making them literate in Navajo, with a 
subsequent transition to English (as has been done for Spanish-Ameri- 
cans) and so on. While it is true that some experimentation now goes 
on at Rough Rock and Rock Point, there is room for more. There is a 
need for better teaching materials and better teachers for the English 
as a second language program, wliich remains more of a slogan than an 
actuality. 



763 

4. The salary levels for teachers should be raised so as to attract a 
higher caliber of teachers and other conditions changed to make it 
possible to hold them. The school system is fortunate in the number of 
dedicated people it does draw, but there are a number of inhibitory 
factors: salary levels, a smothering bureaucratic atmosphere that dis- 
courages initiative and experimental variation, and a censorious 
concern with the personal lives of employees that drives some new 
teachers away in short order. 

5. Several junior colleges on reservation seem desirable in the 
immediate future. (There is one, now, at Many Farms with a Navajo 
Board of Regents.) They could and should recruit part of their staff on 
short contracts from the better universities around the country, as 
visitors. These universities should be encouraged to pay the salaries 
of such visitors. 

6. There should be a concentrated effort at better preparation of 
students for a variety of vocational and career opportunities and a 
much enlarged program of vocational guidance. A variety of trained 
Navajos will be needed in the near future: stockmen and extension 
workers, teachers and counselors, managers and forestry workers, 
computer specialists, statisticians, draftsmen, interpreters, and so on. 
Furthermore, some Navajos will wish to find their place in the larger 
society. As things now stand the school system is not geared to poten- 
tial Navajo careers, vocational guidance personnel are few and under- 
trained, and Navajos are often discouraged from such careers as law 
and medicine. This is not wise. 

7. The amount and quality of personal counseling available in the 
schools should be raised. 

8. Occupational training for those who have left school should 
continue and be expanded. The Federal Government at present runs 
a program that prepares Navajos for over 150 occupations, under the 
aegis of the Branch of Employment Assistance. 

9. Adult education classes now in existence should be continued and 
enlarged. 

10. The combination of Tribal and Federal funds (which now provides 
college scholarships for about 650 students per annum 500 of them 
supported by tribal funds) should be continued and expanded. But 
the tribe should be encouraged to set its sights higher. It tends to 
select the poorer quaUty local universities as optimal places for its 
scholarship students. In some cases this may be wise, but able students 
should be encouraged to go to first-class institutions in any part of 
the country. It should also encourage some high school students to 
go to off -reservation private schools that welcome them, as is true at 
certain Quaker schools (George School and Westtown) and Verde 
Valley. The tribe should also encourage academic, as well as vocational 
programs as choices for college students, and should provide support 
for graduate work, even if this means a more selective approach to 
college scholarships. Tribal scholarships and vocational guidance work 
should be integrated. 

11. Various universities in the Southwest should be encouraged to 
do far more than has been done to meet the special problems of Indian 
students. The document, Indian Education Research Projects and 
Action Programs, compiled by the Southwestern Cooperative Educa- 
tion Laboratory, includes information from only five colleges and 



764 

universities, and may not be representative. There is evidence of 
efforts to provide special training for some people and in a few instances 
of language programs for Indian college students. It is evident, how- 
ever, from what is happening in several American universities, that the 
curriculum and atmosphere they provide is not acceptable to ethnic 
minorities. It would be pleasant to hear of Southwestern universities' 
taking steps to remedy the situation before student strikes or sit-ins 
force their hands. Indians are already involved in various "third 
world" curriculum demands on the west coast. The time for action 
is now. 

12. It should be assumed that Navajo children are variable in 
ability, outlook, and personahty: that different programs, different 
modes of teaching, and different approaches to educating an American 
minority group will appeal to different children. A pluralistic, not a 
monolithic approach seems indicated, with an effort to match the 
child and the program, or the child and the teacher. Since American 
education as a whole does not seem to be able to manage this, perhaps 
it is too much to expect of the reservation program, but such an ap- 
proach should be the target. 

A school program for Navajos should be designed on the assumption 
that will be far more expensive per capita, not less expensive, than 
the program in the "best" (i.e., wealthiest) sections of urban centers. 
This will necessarily be the case in any bilingual situation. 

L. HEALTH 

The reservation program has the following major needs. 

(1) Many more doctors. 

(2) Many more nurses, nurses' aides, and health education 
personnel. 

(3) An increase from almost none to many medical interpreters 
The work of Prof. Oswald Werner of Northwestern University 
Prof. Jerrold Levy of Portland State University, and Dr. Stephen 
Kunitz of Yale University is relevant here. They have shown that, 
given a competent, trained interpreter and a doctor who listens, 
an adequate medical history and explication of symptoms can be 
obtained from Navajos. With present interpreting facilities, 
however, this is not often possible. Prof. John Adair of San 
Francisco State University and Dr. Kurt Deuschle of Mount 
Sinai Medical School, New York City, have shown that with 
sufficient staff to inform Navajos and undertake casefinding, 
Navajos can be induced to use pubhc health facilities wisely and 
frequently enough to merit great expansion of present resources. 

(4) If possible, some reduction in the likelihood that a Navajo 
who is iU will see Doctor X on one visit and Doctor Y on the 
next, something that Navajos, like others, find disheartening. 
And a change in attitude on the part of some doctors and nurses. 
Many are superb, but some make Navajos feel that they are the 
subjects of veterinary medicine practiced on not too worthwhile 
animals. 

(5) A vast expansion of preventive medicine and health edu- 
cation. More public health nurses concerned with preventive 
medicine and health education are needed, more Navajo person- 
nel capable of instructing in Navajo are badly needed, better 



765 

inspection of drinking water is needed, and a whole series of 
fields of instruction need development. These include prenatal 
and maternal care, sex, contraceptive, and venereal disease edu- 
cation for adults and adolescents, accident prevention, etc. 
Adequate visual aids, including film strips and movies wdth 
Navajo oral text, are vital for health education programs. 

(6) An improvement of dental care. Whereas children are seen 
routinely in school, most adults are not adequately informed 
about dental care and go to the dentist only when their teeth are 
so bad as to require extraction. 

(7) A program of free prostheses: eyeglasses, dentures, hearing 
aids, and false limbs. At present medical care and drugs are free, 
but these are not, yet they are reasonable features of any public 
health program and any approach to habilitation and rehabili- 
tation. Eyeglasses are sometimes provided to school-children, 
but often too late in the year to be much help. At present this gap 
in the PHS program is filled to some degree by Tribal funds, but 
not adequately. 

(8) A considerable rise in the availability of ambulance and air 
ambulance service. 

(9) More psychiatrists— there are two at present, the first ever 
to be attached to the PHS on the Navajo Reservation. 

(50) A systematic program of recruitment, integrated with the 
vocational guidance program, and the scholarship program, to 
secure more Navajo doctors, nurses, nurses' aides, health educa- 
tion personnel, and medical interpreters. 
It should be emphasized that there has been a tremendous improve- 
ment in medical care beginning in 1947, when physicians subject to 
the draft began to be assigned to work Nnth Indians. The improvement 
continued after 1954, when the PHS took over from the Indian Bureau 
PHS. What was once an unqualified disaster has become merely in- 
adequate in all respects mentioned. The quality of the physicians them- 
selves, however, has improved strikingly. This will not continue to 
be the case if physicians are not subject to the draft unless PHS sti- 
pends are raised — since PHS service is presently an alternative to 
military service for physicians. 

M. WELFARE 

It is assumed that in terms of eligibility and amounts the welfare 
program for Navajos will be that of the State and Federal programs, 
and that some emergency welfare will be available from tribal sources. 
Far less emphasis has been put on welfare in this presentation than 
would be made if the stress were not on the development of the reser- 
vation economy. Were the steps described to be taken, the welfare 
load would be considerably lightened over a 25-year period. If they are 
not, it will increase. If numerous Navajos are to remain permanent 
welfare clientele, as seems likely under present conditions, then a vastly 
expanded welfare program would be necessary. Present amounts are 
totally inadequate, Navajos are removed unpredictably from the 
rolls, and many do not know their rights. 



766 

N. MISCELLANEOUS 

1. Housing. — The traditional Navajo house 'vas the hogan, a 
ch'cular, single-room, dirt-floored dwelling made of wood or stone 
and used both for living and for ceremonial practices. Today most 
Navajos and most of their ceremonial practitioners insist on the use 
of a hogan for ceremonial purposes, so that many Navajo clusters of 
kin maintain at least one hogan. Shortage of the timbers necessary 
for a good hogan, desire for larger structures, and need for floors as 
more and more families have furniture and stoves, have led to the 
building of increasing numbers of dwellings built of machine-orocessed 
frame materials. In this building program people have been aided by 
tribal funds for those with minimum income and by ONEO funds and 
labor force. Furthermore, the ONEO program has provided training 
in house-building skills for many Navajo men (Home Improvement 
Training Program). 

The present houses, however, have serious deficiencies. These 
include cordless, badly fitted windows, that are difficult to open or 
keep open, concrete floors, which are cold, and uninsulated houses 
both hotter in summer and colder in winter than the mud-chinked 
timbered houses of the past. An experimental program in housing is 
needed for the reservation (and for the United States at large, which 
lags in this respect). The BIA and ONEO are now developing model 
homes, which is a beginning. 

The industrial and commercial development suggested in this 
document will require housing projects in the centers where this 
development occurs; so will an expanding population elsewhere. An 
improved housing program would be beneficial in terms of employ- 
ment and for those housed, and would be essential for families working 
in newly developed centers. Such a program shoidd develop under 
Tribal aegis. A fair amount of housing has been built in various centers 
b)'' the Bureau and the Tribe. 

2. Experts and the training of experts. — Mention has been made of 
hiring experts for various purposes. In some cases these would be 
consultants; in others they would occupy managerial roles. In either 
case, the Tribe would be well-advised to consider experts whose experi- 
ences are particularly relevant to their situation: Livestock and farm- 
ing experts with experience in arid lands, whether in the United States 
or in the Near East, for example. By the same token, the Tribe might 
wish to send some of its scholarship students to areas where paraUel 
geographical conditions must be met (for example, Israel), or where 
industrialization with slender means has made progress. The tendency 
to use consultants and managers whose prior experience is that of 
operating with maximal resources and under optimal conditions 
should be avoided. 

O. SUMMARY OF THE PURPOSE, NATURE, AND ADVANTAGES OF THE PLAN 

OUTLINED 

The purposes of this plan are (1) to allow Navajos to utilize their 
own resources to improve their own livelihood; (2) to give Navajos 
control over the utilization of their own resources; (3) to increase the 
level of income by increasing the number of jobs on the reservation and 
by improving the range; (4) to permit individuals to specialize occu- 
pational ly in the interests of greater efficiency. 



767 

1. First, and foremost, it is proposed that any planning, along lines 
proposed here or other lines, should involve the Tribal Council, re- 
gional organizations, and chapters or other community-level organiza- 
tions as primary planners. This is not a call for joint planning with 
the Bureau but for primary rights and responsibilities to be vested in 
Navajos. 

2. It is proposed that the Navajo Tribe undertake future exploita- 
tion of its own minerals, process them, market them, and enjoy the 
profits from them. 

3. It is proposed that future industrial development be Tribal in 
character, whether at once or on a phased basis. 

4. It is proposed that there be a rapid development of roads, bus 
ines, and utilities as a basis for all other developments, and that the 
ssue of water allocation be carefully considered. 

5. It is proposed that commercial development of a more specialized 
type than is found today is necessary and feasible for the reservation 
population, and that such development might place major emphasis 
on individual Navajos, Navajo partnerships and corporations, or the 
Tribe itself; for development and control. 

6. Range improvement is proposed. This must be combined with 
stock water development, transition from sheep to cattle for n.any 
people, enhancement of the quality of the stock, and fencing. It is 
urgent to discuss and decide whether the managem.ent units should 
be nuclear families, extended families, larger kin groups, cooperatives, 
or community corporations. In all events except the last, heirship 
problems will arise with respect to improved, fenced range. 

7. The irrigated farmland already in prospect raises questions 
respecting the efficient unit of management. Again the question of 
family units, larger kinship units, cooperatives, or large corporate 
farms arises. 

8. It is proposed that an expanded and experimental educational 
program be carried out, that health facilities be expanded and im- 
proved, and that welfare operate at the level characteristic for non- 
Indians. 

The advantages of the plan proposed are, first and foremost, to make 
Navajos responsible for their own economic affairs by giving them 
control thereof. Let us be clear: Responsibility is not doing what some 
one else wants one to do; it is being able to think about the conse- 
quences of one's acts, calculating the effects of those acts on others and 
on oneself, and being willing to live with the consequences. There is 
no such thing as preparing a people for responsibility. The capacity 
to deal with the groui)'s affairs grows only by performance, not by 
rehearsal. The other advantages are a heightened standard of living, a 
more variegated series of occupational niches on reservation, and a 
decrease of dependency on welfare and disguised welfare programs. 

p. SUMMARY OF DISADVANTAGES 

There are two major disadvantages to the proposal. The first is that 
given some economic freedom, there will be individual Navajos who 
will prove as foolish, as corrupt, and as greedy as some people in the 
larger society. Some plans will go awry, and some Navajos will be 
guilty of breach of trust. This is a necessary risk. The second is that if 
planning is to be vested in Navajo hands, at present the principal 



768 

agent of planning would be the Tribal Council. The Council is, how- 
ever, out of touch with many sentiments at the grass roots level, or 
so I am told by many noncouncil Navajos. In addition, in a number 
of cases, members of the Council have come to believe that the 
interests of the Tribe and those of corporations interested in the 
Tribe's assets are identical. Remedies lie in the use of regional and 
local planning units where possible. 

Q. REQUIREMENTS FOR IMPLEMENTING THIS PLAN 

Since this is by no means the first plan for Navajo economic de- 
velopment, we must ask what must be dealt with so that this (or any 
other likely plan of any. scale) can be implemented. 

1. Congressional behavior will have to change. It will have to 
expend funds for Indians on a scale much greater than in the past, 
particularly to back the Tribe in the development of its own mineral 
exploitation and industry. Furthermore, funds will have to be pre- 
dictable from year to year, which is not a congressional habit. 

2. Considerable opposition will have to be met — 'from U.S. Sena- 
tors and Representatives, national business interests, local business 
and livestock interests, State political figures, some members of the 
Navajo Tribal Council, and some other Navajos. The kinds of attitudes 
that must be overcome include at least the following. 

(a) It is too expensive. (It is expensive for some years to come, but 
not in the long run.) 

(b) It allows Navajos certain advantages or protections at the tax- 
payer's expense in competing with national and local business and local 
livestock interests. ( It should. A close examination of a hundred years 
of history — the so-called long walk to progress celebrated by the 

Navajo Tribe in 1968, the anniversary of their release from Fort Sum- 
ner, indicates clearly that the U.S. Government has failed to give 
Navajos the material and educational tools to cope with the larger 
society and has responded to pressures from powerful national and 
local interests to make that competition more difficult. After 100 years, 
the Navajos are undereducated, unhealthy, living in a downgraded 
environment, living in part on unconsolidated checkerboard fee patent 
lands in unequal competition with surrounding ranchers, and passive 
participants in the exploitation of their own lands for mineral re- 
sources, a passivity encouraged by the Federal Government. This plan 
attempts to redress the balance. At least 25 years will be required to 
do so.) 

(<?) It will undermine native life. (This objection is not too likely 
from Navajos. Poverty, overgrazing, and overpopulation with the at- 
tendant need for more and more of the population to move off the 
reservation part time will, in time, not so much erode as corrode native 
life. Navajo life is bound to change in significant respects during the 
next 25 years. The question is not whether it should change, but in 
what respects it will change under different conditions.) 

(d) It interferes with the natural processes of a market economy. 
(That is why we are where we are today : these very forces have, with 
relatively little Government interference, created the urban mess, pol- 
lution, a stagnant rural economy in many places, and a "widening 
wealth differentiation that, while it accompanies a general rise in the 



769 

standard of living, leaves the underprivileged increasingly badly off 
by comparison with the rest of the society. ) 

(e) It is not aimed at integration but at segregation; it is racist. 
(This objection is particularly likely from liberals. The plan is in fact 
consonant with a decided tendency toward ethnic solidarity on the 
part of the Navajo. It is also consonant with the fact that it is easier to 
gain acceptance in the larger society and to feel secure there if one has 
an adequate base to operate from. It is consonant with the obvious gen- 
eral increase in ethnic movements in the United States. And it makes 
sense when one realizes that at present Navajos are not being inte- 
grated as a tribe into the larger society, but being squeezed dry by it, 
and that they are being neither integrated nor assimilated into the 
larger society as individuals, but pushed into its lower echelons on 
most unfavorable terms. 

(J) Perhaps the most insidious argument, one that has already been 
raised by some BIA officials, is that everything suggested is already 
being done. Clearly anything that is being done along these lines is to 
the good; it is unfortunate to criticize the Bureau for not doing what 
it is doing — but without a tremendous boost, it is too little and too 
late. Communications from the area office make it evident that 
priorities established there include the same broad elements as are 
brought out here: education, roads, industries and commerce, com- 
munity facilities, and agriculture (in that order for the area office, 
but not in my mind). It is not so much lack of understanding that 
impedes the Bureau, but lack of instrumentalities. 

3. A well-coordinated development program will require that fund- 
ing be more centralized — vested in fewer Federal agencies than is 
presently the case. To read the roster of agencies to which the BIA 
and the tribe must appeal to get support for each piecemeal program 
in housing, education, or health is to be amazed by the endurance of 
officials who, in the end, get even a part of what they need. 

R. THE ALTERNATIVE 

Under present circumstances and without a major development 
thrust, the Navajo economic situation will continue to develop much 
as at present, but with continually increasing pressure on its surface 
resources. That is, there will be some development of irrigation, which 
will absorb a few people into cash crop farming. There will be a 
gradually increasing amount of land fenced, chained, seeded, and 
developed for water in some areas but in no planned fashion, so that 
there will have been no thought given as to optimal units of manage- 
ment, consequences in terms of transition from use ownership to 
effective ownership, and consequences in terms of heirship. Ineffi- 
ciency will characterize many such operations because of the need of 
many men to seek part-time employment off-reservation. Mineral 
exploitation will continue along present lines, but at a pace that is not 
Nava jo-determined, and in a manner that produces a minimum of 
multiplier effect. Outside forces will gain a stranglehold on somewhat 
expanded Navajo retail economy. And support of Navajos by part- 
time works projects based on "soft" money, uncertain from year to 
year, and by welfare, will involve an increased amount of money, 
without development of the reservation. It is not to be expected that 
for some time to come Navajos will be absorbed into the external 



770 

economic scene on favorable terms. Unemployment rates tend to be 
relatively high in the economy except through war booms, and Nava- 
jos, because of educational handicaps and prejudice, are unfavorably 
placed for job competition. The attendant political consequences, 
which will to some degree occur in any case, will involve an increasing 
conjunction of Navajos in a Navajo power movement, of Indians in a 
red power movement, and of Indians, Mexicans, and Blacks in a 
generalized movement of oppressed ethnic groups. 

S. THE PRICE TAG 

It was understood that this report was to deal with the manner of 
economic development rather than with the budget for development. 
Some idea of the order of magnitude can be gained from the fact that 
the combined Navajo Area Office-Tribal 20-year plan for road improve- 
ment would cost over $300 million in 1968 dollars. Evidently a 25-year 
plan to encompass roads, schools, industry, commerce, credit, utilities, 
range improvement, and so forth, would cost a great deal more. There 
would be short run range compensations in reduction of soft money 
programs, like ONEO. If ONEO remained at its present level, it 
would expend over $250 million in 1968 dollars over 25 years, in ways 
that would sustain families and improve morale but that would con- 
tribute only modestly to development. In the long run, of course, the 
development plan would be less expensive than the present modes of 
sustaining the Navajo population at a minimum level 

REFERENCES 

The meager list below consists of references cited in the text and of 
current materials, not all cited, supplied by the Navajo Area Office. It 
does not attempt to include a list of every publication relevant for the 
the subject, nor even of the various publications consulted in the 
course of writing this document. For a full bibliography on the Nava- 
jos see Brugge, Correll, and Watson (19673. Starred items were kindly 
suppHed by the Navajo Area Office. 

Aberle, David F. 1966. The Peyote Religion among the Navaho. Chicago 

Aldine Pubh-shing Co. 
Adams, William Y. 1963. Shonto: Study of the Role of the Trader in a Modern 

Navaho Community. Bureau of American Ethnology Bulletin 188. Washington, 

G.P.O. 
♦Anonymous, n.d. Navajoland, Business Frontier. (A publication on industrial 

and commercial opportunities in the Navajo Country, with a foreword signed 

by Raymond Nakai, Chairman, Navajo Tribal Council, and Graham Holmes, 

Navajo Area Director. Probable date, 1968.) 
Anonymous. 1962. Navajo Tribal Code. 2 vols. Orford, New Hampshire, Equity 

Publishing Co. (Together with 1967 Cumulative Pocket Supplements, Vols. 1 

and 2.) 
♦Anonymous. 1966a. Destination: The Twentieth Century. Phoenix Cement News, 

4, no. 1: 1-3. 
♦Anonymous. 1966b. Four Corners Goes West. Phoenix Cement News, 4, no. 3: 

1-3. 
Brophy, William A. and Sophie D. Aberle, comp. 1966. The Indian, America's 

Unfinished Business. Norman, Oklahoma, University of Oklahoma Press. 
Bbuoge, David M., J. Lee Correll, and Editha L. Watson. 1967. Navajo 

Bibliography. Window Rock, Arizona, Navajo Tribal Museum (mimeo). 
Hough, Henry W. 1967. Development of Indian Resources. Denver, World 

Press, Inc. 



771 

Kelly, Lawrence C. 1968. The Navajo Indians and Federal Indian Policy, 
1900-1935. Tucson, The University of Arizona Press. 

♦KuTNEWSKY, Fremont. 1966. Industry in Indian Land. New Mexico Magazine, 
September, pp. 16-19, 38-39. 

♦Navajo Area OflSce. n.d. Roads on the Navajo Reservation. Mimeo, 5 pp. 

♦Navajo Area Office. 1967. History of the Navajo Indian Irrigation Project 
(March, 1967). Prepared by J. Y. Christiansen. Mimeo, 22 pp. 

♦Navajo Area Office. 1968a. Navajo Progress (deals with Fiscal Year 1967-68). 

♦Navajo Area Office. 1968b. Irrigation Agriculture in the Arizona part of the 
Upper Colorado River Compact Area (December, 1968). Prepared as a one-page 
information sheet for the Navajo Tribal Council. 

♦Navajo Forest Products Industries. 1967. Navajo Pine: Navajo Forest Products 
Industries Annual Report (Eighth Annual Report). 

♦Navajo Tribal Utility Authority. 1967. Annual Report to the Navajo People. 

The Navajo Yearbook (See Young 1961). 

NiEBURG, H. L. 1966. In the Name of Science. Chicago, Quadrangle Books. 

Ohannessian, Sirarpi, prep, and ed. 1967. The Study of the Problems of Teaching 
English to American Indians, Report and Recommendations, July 1976. Wash- 
ington, Center for Applied Linguistics. 

♦Radov, Karl. 1968. Economic Development Possibilities of the Navajo Reser- 
vation, ms., 6 pp. From a report prepared by ABT Associates, Inc., 55 Wheeler 
St., Cambridge, Mass. 

Sasaki, Tom T. 1960. Fruitland, New Mexico: A Navaho Community in Transi- 
tion. Ithaca, New York, Cornell University Press. 

♦Thiele, Heinrich J. and Associates. 1966. Navajo Water Resources, Supplies 
and Management and the Proposed Navajo Tribal Water Authority (NTWA), 
A Reservation- Wide Water Study. (Heinrich J. Thiele and Associates, Con, 
suiting Engineers, Economists and Hydrologists, Scottsdale, Arizona, July 1- 
1966. Published by the Navaju Tribe, Raymond Nakai, Chairman, Navajo 
Tribal Council, Window Rock, Arizona.) Although published by the Navajo 
Tribe, this report has not been accepted officially by the Navajo Tribal Council. 

TNY (See Young 1961). 

U.S. Bureau of the Census. 1963. U.S. Census of Population: 1960. Vol. 1, Char- 
acteristics of the Population. Part 4, Arizona. Washington, G.P.O. 

U.S. Bureau of the Census. 1963. U.S. Census of Population: 1960. Subject 
Reports. Nonwhite Population by Race. Final Report PC(2)-1C. Washington, 
G.P.O. 

♦U.S. Congress, 1968. Public Law 90-272, 90th Congress, S. J. Res. 123, March 22, 
1968. Joint Resolution to approve long-term contracts for delivery of water 
from Navajo Reservoir in the State of New Mexico, and for other purposes. 

♦U.S. Department of the Interior, Bureau of Reclamation, Navajo Indian 
Irrigation Project, P.O. Box 28, Farmington, New Mexico, 87401. 1967. Infor- 
mation Summary on Navajo Indian Irrigation Project (revised March, 1967). 
Mimeo, 7 pp. 

Werner, Oswald. 1967. Some Cultural Prerequisites to Teaching English as a 
Second Language in BIA Schools. Mimeo, 26 pp. 

Young, Robert W., comp. 1961. The Navajo Yearbook, Report No. viii, 1951- 
1961, A Decade of Progress. Window Rock, Arizona, The Navajo Agency. 
(Cited as TNY.) 



772 
Exhibit No. 10 



ECONOMIC DEVELOPMENT THROUGH SMALL BUSINESS 



Robert E. Salabye 

Director / Dineh Cooperatives, Inc. 
Chinle, Navaho Nation 



October 22, 1973 



773 

Can the Navaho Tribe really develop an economic base with large 
outside industries? No. Then why are we letting those large corporations 
develop. From what economic development there is was accomplished for 
the benefit of the exploitative anglo corporations , squeezing the Navaho 
Nation of its potential economic development and strenghening the very 
system which is oppressing our people as the money recyle itself in those 
communities outside the reservation. Such examples of corporations are 
strip mines, power plants and coal-gasification developments on our 
Navaho land. 

One of the most recent proposed plan to cutback J/3 of our water 

from the Navaho Dam for Navaho irrigation is one that definitely reflects 

the knowledge that if we loose that water it will only harden the burden 

of hardships that our people presently are forced to assume. This 

proposed cutback can be obtained from Phillip Reno, Suite 238 

Petroleum Plaza Building 
3535 East 30th St. 
Farmington , New Mexico 

Essentially the report says that if we use a sprinkler system of 
watering, instead of the gravity method we will not need some 180,000 
acre/ft of water. Obviously the problem here is why should we shift 
from the gravity method (which does not require so many pumping stations) 
to sprinkler system (which requires pumping stations) - I believe are 
questions that are answered two ways: 1) the anglos want more of our 
water 2) they are trying to blackmail us into okaying the coal-gasifi- 
cation plants. Because the pumping stations for the sprinkler system 
will require huge amounts of power which can come either from a elect- 
rical generating station like 4-Corners Power Plant or from the coal- 
gasification plants. They analyze these alternatives themselves in the 
report (pg. 35-37) based upon their analysis they have determined that 
the most available and cheapest way would be power from the coal-gasifi- 
cation plants. Therefore what they are saying is that inorder to 
implement the sprinkling system we'll need power from the coal-gasifi- 
cation plants to use the 2/3 remaining water for the irrigation project. 



774 

This Is obviously being forced upon the Navaho people without the 
knowledge of the consequences of their decision. The attempt to use 
force or bribery to induce Navaho communities to make their decision 
is pure blackmail. We Navahos have a right to make our own choice 
without being forced. 

These large corporations, for example, have begun developing 
because they received the adequate backing financially and politically. 
If they should fail the anglo business world would accept this failure, 
because in the American free enterprise system there is a general 
acceptance of failure and succeeding in a business. In fact the ex- 
pectation is far more failure than success, except when applied to the 
minority cuid poor communities trying to develop their economic alternatives. 
They are not afforded the same kind of leeway, even though it is generally 
understood that persons in the minority community are not naturally 
talented by birth, or through some magic of birth, with business know- 
how and that they will fail in business nine times out of ten. 

The poor Navaho small business operators are not permitted this 
latitude. Now this robs a person of his right to fail, and I maintain 
that everyone has a right to fail- even the poor. This also robs a 
community of an opportunity to fully understand what is needed to succeed 
because they go hand in hand- success and failure - striving to succeed. 

The secret of successful businessman in the mainstream of society 
is a person who sprang an idea and is willing to work 24 hours a day to 
make it work, because it's his idea and his baby - that is the secret of 
all business success. 

Here on the reservation, the lending and granting agencies expect 
the community to modify and be instructed to do it this way and that way 
or else you will not be allowed to use your money. Certainly , as an 
advocate of the poor people, whether you agree with it or not, you cannot 
afford not to follow instructions because you need the money. Various 
agencies who over sees such business developments operates in a very 



I 



775 

demanding and insulting way, example is the BIA business site lease. 
Intended or not, this BIA business site lease is a blockade and 
obstacle toward a small business development simply because it takes 
anywhere from one totwo years to obtain the business site lease. 
This waiting and harrasment for the lease has cause failure because 
you are subject to changes and modification of your idea before you 
receive the final approval from the BIA. 

Our cooperative development approached the Small Business Administrat- 
ion for a loan and we were turned down because we were a non-profit 
organization. We applied for financial assistance in 1971 to BIA 
and FHA and received what was the very last funding of its kind. The 
Indian Business Development fund has since rein out of funds and has not 
been refunded. The Farmers Home Administration gave us a hard time 
in obtaining the funds because the Pinon area of the Navaho Nation was 
not declared an impact area by that agency. 

There are presently two bills before Congress that are suppose to 
provide for financing the economic development of Indians and Indian 
organizations and for other purposes . They are Senate Bill 1013 and 
Senate Bill 1341. I certainly hope they have incorporated in the bills 
that we receive the monies directly and be able to make our own decisions 
as to how we utilize the monies. 



776 
Exhibit No. 11 

1. SUMMARY OF ACCOMPLISHMENTS 

During the past eight months the Navajo Small Business 
Development Corporation has gone through a period of problem 
recognition and establishment of priorities. Unlike the problems 
facing minority businessmen in the mainstream of the U.S. 
economy and in the urban developed areas, the Navajo reservation 
presents atypical obstacles to small business development. Since 
the minimum operating staff of this BDO was brought together in 
October of 1972, identification of these obstacles has been 
researched . It was discovered that providing mere technical and 
financial assistance is not enough to function effectively as a 
Navajo Business Development Organization. Naturally, the technical 
and management assistance is being provided on a continuing basis 
to those who request it. An extraordinary amount of energy has 
been expended in encouraging a management training program through 
the local educational institutions. In addition, major efforts 
have been made to attract venture capital and provide a community 
development corporation or similar organization to handle seed 
capital for equity investments in Navajo businesses. Until debt 
financing is available through the current lending establishments, 
alternative sources of financing will have to be developed. It is 
to this end that we are concentrating our present efforts. 

II. PROBLEM AREAS OR OBSTACLES TO NAVAJO ECONOMIC DEVELOPMENT 
A. Navajo Nation Sovereignty & Legal Structure 
The sovereignty of the Navajos originated not from the 

federal government but rather from within the Navajo government 

before their conquest by the United States. After the conquest, 

the tribal sovereignty became limited by treaties and agreements. 

Those rights which were not restricted were considered to be within 

the governmental powers of the Tribal government. 

State laws do not apply either, and as a result reservation 

businesses are protected from state taxation. This condition. 



777 

however, has created insurmountable problems for the businessmen in 
seeking loans. Banks and other financial institutions are unwilling 
to make any loans where property (real or personal) on the reser- 
vation is used as collateral. 

Navajo Nation sovereignty has presented several conflicts 
between state laws that have been and are being handled through the 
courts. Since state laws do not apply, the Navajo reservation is 
exempt from any sales tax. The Navajos are also exempt from real or 
personal property tax. This condition, however, has served to 
further isolate the Navajo from relationships with organizations who 
operate under state laws. This pertains especially to financial 
institutions and the eligibility of Navajo property to be considered 
as collateral against loans. 

B. Isolation 

The geography and physical separation of the reservation 
has created an isolation in addition to the cultural separation 
between the Indians and non-Indians. The changes in the industrial 
and commerical complex occurring in the mainstream of the U.S. 
economy has the last and least effect on the reservation. 
Technology, new industries and innovations are observed throughout 
the country before this significance is felt by the Navajos living 
on the reservation. 

C. Employment & Income 

Accurate figures are not available on employment and income 
for the Navajo reservation; however, certain sources have provided 
a general indication of the Navajos' status. The relative comparison 
of the Na'vajo and his average American non-Indian counter-part 
provides a good view of the problem. 

An estimate for the per capita income for the Navajo for 1970 
was only $753 whereas the average American was receiving $3,700. 
In comparative terms the average person in the U.S. has $2,900 

more to spend on food, clothing, and shelter than the Navajo. It 
is understandable then that disposable personal income is small 



778 

indeed. The Navajo has little if any income to save or to inject into 
the local economy. To further aggravate the picture the incomes that 
are generated on the reservation flow off to the non-Indian 
communities without generating additional employment or secondary 
sources of income for the reservation economy. In other words, in 
the absence of a well developed business community, the level of 
investment and resultant multiplier effect is quite small and almost 
inoperative. 

The unemployment rate is anywhere between 45 and 65 per cent. 
Even many of those that do have jobs are underemployed. This data 
is overwhelming in view of the statistics for the nation as a whole. 

With such a large labor force on the reservation and the surplus 
of semi and unskilled labor there exists a heavy drain on the economy. 
These individuals become dependent on welfare programs, but at 
the same time contribute little if anything to the economy. 

Although there is a large surplus of labor, it is ironic that 
there is a shortage of persons with critical skills. While the 
surplus labor may attract certain labor intensive industries the 
shortage of skilled workers, technicians and management personnel 
discourages the development of a commercial and industrial base. 

D. Education & Language 

To further aggravate business and economic development on the 
reservation, the educational level of the Navajo is probably the 
lowest in the United States. The average amount of education for 
white people in the United States in 1967 was estimated at about 
the twelfth grade. For all non-whites it was about ninth grade and 
for Navajos only about the fifth grade. There is little wonder why 
there is such a dearth of management or skilled personnel. In the 
Navajo society the entrepreneur is a rare individual. 

Englidh is not the primary language of the Navajo. Among those 
Navajos who have little formal education, English is not likely 
spoken or understood. During sessions of the Navajo Tribal Council 



779 

the proceedings are translated into English for the record. Many 
of the laborers do not understand more than very simple English. 
For the entrepreneur it is necessary to have an understanding of 
English and business terminology in order to conduct business with 
the non-Indian community. 

E. Cultural Factors 

Tribal cultrual patterns are critical factors as a barrier 
to business development and employment of Navajos. In many cases 
these patterns are diametrically opposed to those behavior patterns 
that are taught in the dominant "American culture". These behavior 
patterns, which include values and attitudes become deep seated and 
are different to change. 

The Navajo society is changing however, and this makes it 
difficult to determine which elements of the culture are remaining 
and which have been altered. Although there are certain very general 
characteristics about the culture and Navajo behavior, the Navajos 
are so individualistic that it would be difficult to make any 
blanket statements with accuracy or validity. -Certain aspects of 
the culture have been observed and in one way or another retard 
business and economic development in general. Some of these that 
should be considered are: the absence of a competitive spirit in 
business matters; an inconsistent attitude or orientation toward the 
work ethic; an inability to save; over-extension of credit to 
family members; a religion which discourages capital accumulation; 
and lack of aggressiveness. 

F. Land & Business Site Leases 

On the positive side it can be said the "Navajoland" offers a 
tourist attraction. The Tribe does derive an income from the tourist 
trade, but even this has not been promoted to the fullest extent. 
In general much of the reservation land is unproductive. 

Raising livestock and growing crops is seriously hindered due 
to the desert, mountains, and canyons. Most of this land is not 



780 

conducive to agricultural dev^elopment. The Navajos raise cattle 
and sheep, but the land is more barren than fertile. Where there 
does exist a little fertile strip it is highly susceptible to 
periods of drought. 

The procedure for obtaining land for business sites is 
one of the principal problems to business development on the 
reservation. 

Reservation land may not be sold to a non-Navajo nor may 
it be sold by one Navajo to another. Becasue of this unique 
arrangement, land for business site leases cannot be obtained by 
purchasing it as is the case outside the reservation. In order to 
acquire a business site, the individual Navajo must submit an 
application to the Tribal government. This application is then 
routed through a series of offices and agencies of the Tribe and 
must be approved by each. 

Currently, there are about twenty steps the application must 
pass before the entrepreneur obtains his business site lease. The 
length of time this approval procedure takes. varies from indivi- 
duals depending on the information required by the various offices. 
Some are granted within one year while others may take five or even 
nine years. Naturally, some requests are held up indefinitely in 
the bureaucratic process awaiting greater information. This delay 
in obtaining the site lease often brings about discouragement and 
causes the entrepreneur to lose interest in starting his business. 

In the larger society of the United States, acquisition of a 
business site is facilitated by the entrepreneur's desire to start 
a business and the sailor's or lessor's desire to consumate an 
agreement. This does not take place when the Navajo businessman 
has to deal with the Tribal government. The result of this time 
consuming system is the dissuasion of new business starts. 

G. Scarcity of Capital 

The availability of capital is a critical problem in all 



781 

areas of minority business development and overall economic 
development for the whole nation. The Navajo reservation has 
atypical problems which separate it from the mainstream of the 
American economy. 

The scarcity of capital is directly related to other problem 
areas which have already been discussed such as the political 
sovereignty of the reservation, low incomes and high unemploy- 
ment, absence of savings, land status, etc. 

To date there is really no credit structure on the reservation 
which can meet the needs of business. Even though there is a Navajo 
Tribe Revolving Credit Program, an Indian Business Development 
Fund and -a Credit Union, these are not sufficient to provide the 
financing requirements. Private sources of capital are not interested 
in making credit available for fear of not being able to reclaim 
property on the reservation. Few private organizations have invested 
in development programs or industries in the area. Most federal 
government funds have been used to finance social services and in 
relation little have gone into directly productive enterprises. 

III. GOALS AND ACTIVITIES OF NSBDC 

A. Functional Goals 

Consistent with the goals set out by the Office of Minority 
Business Enterprise, U.S. Department of Commerce, the Navajo 
Small Business Development Corporation has applied itself toward 
the following : 

1. Assure Navajo equal access to economic benefits 
of business enterprise. 

2. Expand opportunities for Navajos to own and develop 
businesses. 

3. Increase Navajo entrepreneurs' capabilities to improve 
their business operations. 

4. Improve federal administrative efforts in support of 
Navajo business enterprise. 

B. Technical Assistance 

Various types of existing businesses (service stations, 
grocery stores, wholesale and retail jewelry stores, barber shops, 



782 

laundromats, construction firms and others) have received manage- 
ment and technical assistance from the NSBDC. 

Of sixty-three clients served by the BDO since the first of 
January, 197 3, 12 have beer given management and technical assis- 
tance. The remainder of the clients are still establishing their 
plans or have not submitted the necessary information to enable us 
to help them. 

In the cases of two jewelry wholesalers and one jewelry retailer, 
more involved assistance than usual was provided. All three Navajo 
businessmen had to have a bsic initiation m the concept of business 
which was done by instructing each indivisual in the fundamentals 
of his business operations. This included setting up and explaining 
the various books of original entry, the general ledger, and 
various tax procedures (basic yearly returns, quarterly reports, etc.) 
All three of these businesses had been established for more than a 
year and were showing positive sales results but lackea sound 
management practices. Naturally, the amount of cime required to 
help "businessmen" with virtually no business background is immense. 
In the case of one service station operator, i early one day was 
required to convince the man that all cash receipts were not profit, 
and definitely not to be spent as he wished. We contiued by 
establishing management and accounting policies for him to 
follow. As a result of weekly supervision he is now operating 
more profitably. 

In almost all cases of technical-management assistance, 
constant vigilance of the business is required. In the case of a 
small grocery store, a contractor ana a laundratat,, we actually 
had to keep their books for an initial period before they could 
adequately run their business. 

We can now see cases where our assistance has definitely made 
the difference between a failure or marginal firm and a going 
concern. 



783 

C. Related Business Development Activities 

For the development of small businesses to take place, there 
must be greater strides in providing management training and 
business education for the Navajo. 

This problem is very real and major efforts have been made 
by the NSBDC to make this training available. Contact has been made 
with the Navajo Community College, the Center for Executive Develop- 
ment of Arizona State University, the College of Business and 
Administrative Sciences of the University of New Mexico, the Small 
Business Administration Training Division, the National Council 
for Small Business Management Development and the Bureau of Indian 
Affairs, Education Division. Although there are already business 
courses organized, we are currently working towards a larger, 
scale, comprehensive, management training programs to be conducted 
by the Navajo Community College. 

Coordination between the NSBDC and several other related 
business development organizations has been made to over-come the 
obstacles to Navajo business development. A series of seminars has 
been planned to discuss these problem areas and to coordinate 
development strategy. 

In treating the availability of capital problem, investigations 
and inquiries have been made into the possibility of outside 
financing. It has been discovered that until the Navajo businessmen 
create or receive equity financing they will not qualify for debt 
financing through local institutions. On numerous occasions direct 
appeals were made to local and state-wide banks in Arizona and 
New Mexico on behalf of our clients. Each time, financing is denied 
because these institutions will not recognize real or personal 
property -on the reservation as collateral for loans. In one 
particular case a client had a net worth conservatively valued 
at $87,000 but was denied a $4,000 loan. In many cases the clients 
simply do not have the required 10 - 15 or 20 per cent equity 
investment with which to apply for debt financing; consequently, 



784 

our efforts have been and are currently being directed towards 

acquiring the much needed seed capital or "front money." 

Applications are currently being considered by the Ford Foundation, 

OEO and a list of other foundations, corporations and commissions. 

This list includes such organizations as: 

The American Management Association 

The Council on Foundations 

Amoco Venture Capital Company 

The United Methodist Church, Commission of Religion & Race 

National Committee for Self-Development of Peoples 

Presbyterian Economic Development Company 

Due to the stalemate which exists between the Navajo 
businessmen and the local lending institutions, the NSBDC has 
devoted most of its time and energy in seeking alternative 
solutions to the most pressing problems of establishing minority 
owned and operated businesses. Until some of these obstacles can 
be overcome, there is little optimism for financial lending 
assistance to the Navajo entrepreneur. 

Gains are being made, but these tradtional blocks are not 
easily removed. By concentrating our current effort towards seeking 
venture capital for our clients, we can place these minority 
businessmen on more equal footing with their fellow non-Indian 
businessmen. Before loan packaging can be of any real consequence, 
we must direct our energies toward these more basic problem areas. 

We feel these efforts on our part are preliminary to and 
consistent with the goals of this organization. 



785 
Exhibit No. 12 




IN REPLY REFER TO: 



UNITED STATES Area Credit 

DEPARTMENT OF THE INTERIOR 

BUREAU OF INDIAN AFFAIRS 

NAVAJO AREA OFFICE 

Window Rock, Navajo Nation, Arizona 86515 

23 October 1973 



Mr. Stephen Horn 

Acting Chairman 

U.S. Commission on Civil Rights 

Window Rock, Arizona 86515 

Dear Mr. Horn: 

Pursuant to your request during my testimony yesterday at the hearing 
held by your commission at the Civic Center here in Window Rock, copies 
are enclosed of the applicable parts of those two documents which I 
mentioned wiiich provide that the technicians heading up the supervision 
of the credit program at the area and agency offices shall be under 
Civil Service. 

The one copy Is of the policy section of the Credit & Financing Program 
part of the Bureau of Indian Affairs Manual. Your attention is 
directed particularly to 47 BIAM 1.2E. I have underlined the pertinent 
provision. 

The other copy is of section 12 of the Declaration of Policy and Plan 
of Operation governing the Navajo Revolving Credit Program. Here again, 
the pertinent part has been underlined. A copy of Resolution ACMY -63-62 
passed by the Navajo Tribal Council on May 1, 1962, approving the plan, 
as ai'-ended, is also enclosed. It will be noted that the resolution ties 
in the applicability of the BIA Credit Manual to the operation of the 
Tribe's credit program. 

I hope this information will be responsive to your request. I 
appreciated the opportunity of appearing before your commission to 
discuss the Tribe's credit program. 



Sincerely you; 




Enclosures (3) 



786 

BUREAU OF INDIAN AFFAIRS I-1ANUAL k^J BIAM 1.1 

CRKDIT AND FINANCING 
Program 

1.1 Objective. The objective of the program is to help raia: economic 
and social conditions among Indian l/ people by assisting both 
Indian organizations and individual Indians obtain funds for 
financing commercial, industrial, agricultural, and other develop- 
mental activities, including loans for educational purposes and 
for housing. Advice and guidance in financial and other business 
practices are furnished. 

1.2 Policies . 

A. Primary emphasis . The primary emphasis in the Bureau's credit 
and financing program is placed upon helping Indians (both groups 
and individuals ) obtain justified financing needed to promote 
their economic development from the same institutions (both 
private and governmental) serving other citizens. 

B. Secondary Emphasis . Loans made through the Bureau directly 
(by the United States ) or indirectly (relending by tribes 
and other Indian organizations) receive secondary emphasis. 

C. Tribal Funds . Tribes desiring to finance enterprises or to 
rclend money to siembers or associations of members, aijd which 
have tribal funds available in the Treasury or elsewhere, or 
funds accruing from income, are required to use their own 
money before loans from the revolving fund by the United States 
will be approved. 

D. Revolving Fund for Loans . Loans from the revolving fund may 

be approved only when, in the Judgment of the approving officer, 
there is a reasonable prospect of repayment and only to 
applicants who are unable to obtain financing from other soijrces 
on reasonable terms and conditions. Loans for expert assistance 
for the preparation and trial of claims pending before the 
Indian Claims Commission are governed by the provisions of the 
Act of November k, I963 (25 U.S.C. TOn-l), as amended. 

E. Assistance. Tribes that have funds available which are 
not budgeted or programmed for other purposes are required 
to pay the salaries and expenses of Agency employees work- 
ing on credit matters if they wish to conduct credit 



1/ As used in 4? BIAM and Supplement, "Indians" also means Eskimos and 
Aleuts . 
Release 47-2, 7-28-71 



787 

BUREAU OF INDIAN AFFAIRS MAMJAL hj BIAM 1.2 F 

~~~ CREDIT AND FINANCTNG ~~ 
Program 

programs . Positions of Area and Agency Credit Officer must 
be Civil Service positions. Other employees assisting 
tribes in their credit operations may be tribal or Civil 
Service positions, depending upon whether they are paid 
from funds disbursed through Treasury Disbursing Offices 
or from Income or funds which are advanced to the tribes 
and become subject to local control. 

Where feasible, Indian credit associations that have 
sufficient retained earnings from credit operations shall 
assist in defraying the cost of administering their credit 
programs. Because credit associations do net have funds 
which are disbursed through Treasury Disbursing Offices, 
positions financed from the funds of the associations will 
not be under Civil Service and consequently will be limited 
to positions other than those of Credit Officer 

F. Loans by Indian Organizations . Financing operations are 
conducted through tribes and other Indian organizations 
wherever possible. Where organizations propose to make 
loans to members from revolving funds borrowed from the 
United States, they may do so only to members of one- 
quarter or more degree of Indian blood who cannot receive 
financing from the same credit institutions serving other 
citizens. Evidence that applicants cannot receive 
financing from such institutions is required. It is the 
responsibility of approving officials to make certain 
that loan dockets contain evidence of the unavailability 
of loans from non-Bioreau credit institutions. Where 
tribes propose to make loans to individual members from 
tribal funds, applicants should be urged and encouraged 
to obtain financing from the sajne institutions serving 
other citizens. Deviations from the general policy of 
financing through customary credit channels, however, 
are permissible. Evidence is not required that applicants 
cannot receive financing from the same institutions serving 
other citizens. Where credit operations are entirely 
financed by tribal funds loans may be approved to individuals 
of less than one- quarter degree of Indian blood, but the 
individuals must be members of the corporation, tribe or 
band to which the funds belong, euid to members who are 



Release 47-2, 7-28-71 



788 

recorr-fiendations to the committee or the Tribal Council as may 
be authorized by the Superintendent. The Agency Credit Officor 
will be responsible for prompt filing or recording of all 
documents given as security for loans. He will see that 
borrowers are notified when payments are in arrears and that 
these notifications are properly made a matter of record. 

11. LEGAL ASSIST ANCE: 

The Navajo Tribe's Legal Department will handle such legal 
work as may be necessary in the enforcement of any credit 
obligations to the Tribe. 

12. COMPENSATION TD CREDIT EMPLOYEES : 

So long as funds are made available by the Navajo Tribal 
Council and while the Tribe is conducting a credit program 
under this Declaration, the Tribe will pay for the services 
of the Agency Credit Officer and assigned Civil Service Loan 
Examiner, (salary and expenses) from appropriated Tribal funds. 
The Agency Credit Officer's position will be under Civil 
Service, and the grade of the position and those of the Loan 
Examiners will be determined in accordance with Civil Service 
rules and regulations . Necessary expenses of supplies for 
the Tribe's credit activities will be defrayed from "local" 
Tribal funds. The Tribe also will pay, from "local" Tribal 
funds, for the services of a Tribal clerk-stenographer and 
for such other services as are deemed necessary by the com- 
mittee and approved by the Superintendent. All employees 
paid from "local" Tribal funds to assist in the Tribe's credit 
operat:ions will be employed under Navajo Tribal Pc/jomiel 

- 7 - 



789 

ACMY-63-61 



RESOLUTION OF THE ADVISORY COMMITTEE 
OF THE NAVAJO TRIBAL COUNCIL 

Approving Am en ded Declaration of Policy and P lan of Operation, 
Navajo Revolving Credit Program 

WHEREAS : 

1. The Advisory Committee of the Navajo Tribal Council 
approved a Declaration of Policy and Plan of Operatio:.-; for the 
Navajo Revolving Credit Program on March 12, 1962. P.esolution 
ACMA-27-62. 

2. This approval was to govern all future loans made 
by the Tribe under the Revolving Credit Program, together with 
the Bureau of Indian Affairs' Credit Manual for procedural guid- 
ance . 

3. The Declaration of Policy and Plan of Operation has 
been reviewed by the Gallup Area Office; Bureau of Indian Affairs, 
and certain amendments have been suggested. 

4. The Advisory Committee has studied the suggested 
changes and, v;ith minor modifications, agrees to incorporate S'.ich 
changes into the Declaration of Policy and Plan of Operation, 

NOW THEREFORE BE IT RESOLVED THAT: 

1. After due and careful consideration of the attached 
Declaration of Policy and Plan of Operation. Navajo Revolving 
Credit Program, the said plan, as amended, is hereby approved and 
shall henceforth govern all future loans made by the Tribe under 
the Revolving Credit Program. 

2. The Bureau of Indian Affairs Credit Manual shall 
govern all loan procedures, and thr. making of all loans by the 
Revolving Credit Program, except as specif i^.ally provided for in 
this Declaration of Policy and PI?.n of Operation, Navajo Revolving 
Credit Program, 

CERTIFIC ATION 

I hereby certify that th.ci foregoing resolution was duly 
considered by the Advisory Conimittcie of tb.e Navajo Tribal Council 
at a duly called meeting at Window Rock, Arizona, at which a 
quorum was present and that same, was passed by a vote of 7 in 
favor and opposed this ist day of May. 1962. 



^^- 



Vice Chairm.an 
Navajo Tribal Council 



790 
Exhibit No. 12A 

July 2U, 1773 
Dictrlct Director 
uliS. Md to Indians 

Louis F. Lcun, Associate Admlnletrator for Operations, SBA, v.ashlngton^ D. C. 
Biru: Gilbert Montano, Regtooal Director, SEA, Beglon EC, Saa JVanclsco EO 



After h years of etudy of the Indian ecoDoolc situation as It relates 
to the SBA prograo, it is n^ conclusion that their problems are 
separate and distinct from that of any other olnorlty group. SBA 
regulations and policies ere not adapted to serving Indian applicants 
because of the unlcjue history and developoent of the Indian people. 

In Arizona, Indians constitute approxlinately 200,000 of the State's 
population, vith their land coo^prising 26^ of its total area. Ihelr 
reservations represent a social, economic and cxiltural structure 
vhich differs drastically froo the modern nan- Indian society. Each 
tribe has different rules and customs which oust b« handled on an 
individual basis. 

Ibe lifestyle of Arlzcxia Iniiiinns is handicapped by: 

(1) Inadequate roed systems. Ihls affects every phase of 
their existence. Much of the population oust trevel distances of 
20 to 150 miles for such things as boot and shoe repairs or complex 
autoiaotlve repairs. Wiis causes a higher cost of living since they 
have to pay tronspoi-totion costs . 

(2) Inadequate water system. Hauling v.-ater requires the use 
of male labor and at tlaics ties men dovm uho might otherwise be 

ec^jioyed. 

(3) There is o shortage of material equlpoent in Indian 
feoilies, for exao^ple, a pickup trucX for hauling uater and wood. 
Gathering fuel sometimes requires the labor of sons In the family 
for at least a day or two a week. 

(U) Steady en^loynient for men on the reservation has not been 
improved by Industry because major industrial employers hire nore 
woosn than men. 

Other factors vhich affect the lifestyle of lodicns are housing, 
heelth, and education. 



791 



•Do assess the situation txom tbs Fboeaijc District Office viewpoint, 
tb« follovlzig list vlll glTe you an Idea of the ImDsnse region tbat 
should be covered bjr SBA parsoimel, but the attention It sbould receive 
is being sllgbtad because of lack of parsomiBl and direct Ainds. 

(1) Oooopab • SooBrton, Ariaoaa 

(2) <>iechiin - YUaa, Arlaona, and Wintezteren, California 

(3) OoXorado Blver Tribes - Parker, Arlsona, and Big City, California 
Ih) Nobave • Iteedlee, California 

p) Bualapal - Peacii Sprli^, Arlxona 

(6) Havasupei - Qraad Caajron 

(7) Kaibab - Rredonia, Arisoaa 

(8) HEtvaJo - Wlndoi' Rock, AtIzmib 
(9; Bofpl - KeeoB Caiiyon, Arisooe 

(10) White Mountain Apache - White River, ArlKooa 

ill) San Qirlos Apache • San Carlxie, Arizooa 

(12j Plea - Sacaton, Arizona 

(13) Nericopa • Stanfield, Arlsona 

lih) Plea - n. NcOowell end Scottsdale, Arizona 

(l^j Papa^o - San Xavler, ArlzMxi 

(16j Papaco - Sella, Arizona 

(17j Papeco - Oila Bend 

(I8j Xsvapai Apache • Prescott, Arizona 

(19) Ihvapal Apache - Oaq^ Varde, Arizona 

Arisooa has the largest Sadlan territory and the greatest aiober of 
tribes la the Italted States. I have art with oany tribal leaders during 
the past k years, and I tell you nov that the TnrilnnB are tired of 
WKfUlflUed proaisee and eeaaolagless flpssturea and, frankly, that is 
all I have been ahle to give tfaaa. Z have, inthe past, rccooMnded 
tte estahliiAaMt of an Indian deak in Arizona to deal exclusively 
with the IWians and their probleas. 

Oiera az« aaagr IsckI coooe pt e vhich need to be clarified if socio- 
ee cn art ft derelopaent is to take place on the re serva tions . Here are 
mam ot Xtm techn1«?el problSM that bear directly on this office* 
ahlUty to assist in financing ss»ll businesses on a considerable 
•eel*. 

(1) Title Inwrewe is livosslble to obtain for ■ortgagees. 

(2) It is unkaowB idiether the State or IMeral courts have 
Jurisdiction on aoortgages on Bavajo land. It is the Tribe's position 
that such aortcBfipes Mtst be forec l oe e d in the tribal courts. 

(a) Attoraays axe uofaaillar vith tribal court rulae. 

(b) Ihera are no written deeialoas. 

(e) 3to Judges are not trained attomsys, although they 
are appointed for lift and have judicial coasultaats. 



792 



(3) Om Tk-lba Insists on approval of tha purobaaar at foracloaux*. 

(k) Crlbal pontics bava aatto it ax traaaly difficult, araa 
la^nssibla, to bara businaas laasas approrad. 

Tbase problew bora baen dlscussad vltb tba Barajo IM.ba*s laaA 
spaciallsts and BIA paraoonal. All agraad tbat a tltla pollejr 
satisfactory to a BortCBcaa cottld not ba obtaload; bowavar, it waa 
the tribal atttfnajr's contantlon tbat erva if foraclosur* vara 
oacassary in tba tribal court sjrataa, tha aortCBflaa would ba traatcd 
fairly and aqultably. Thera is a coBflictiDf c^inioa trotk local 
attcmays as to tha fairness and aq^iltablaaasa tbat a aortcacaa 
vould racaira in tribal eomrts. 

Varloua nthoda in ordar to rvaolra ttaaae problaoa henm ban attaavtad. 
Tha trlba'a attoroay advlaad ow lasal counaal tbat FBA bas in tta*ir 
Kortgasaa a clauae vharaby tha triba would bava first option to asauas 
the lean on dafiault. If tba trlba did not aoEerclaa thia option, TBK 
oould foracloaa aztd aiqr purdtaaar vould ba allow«d on tba Raaarvatioa. 

BasinBss>Bita Laaaaa could ba approv«d or rajaetad In lass tia* than 
is currastly raquirad; bowarwr, tha qjuastion this Agancy ■urt anavar 
is • To vtaat MEtaot ara v« willinc to taha tha risk to land aonajr 
kaowti« that tha laeal ri|^a of tha aortcacaa, as of thia data, 
are not knovn. 

Ibe purpose of SM la to giva aid to thoaa vufortunata peraona who 
cannot participate In the Aaaricon vay of Ufa If left to thair own 
resourcaG. Regardless of bow successful SBA bas bean in tha past, 
aol It certainly bas been suceassfVil, it oanaot ba co^plataly 
successful until tbe Agency takes tba nacassary staps to prorid* 
adequate fUnds for financial assistance to Indiana. 



Stanley D> OoUbarg 
Diatriet Dlraetor 



"SO rmBBorernnar 



793 

^■~Ai\''-ii. U.S. Government 

•F o-'^T' Small Business Administration 

'^^-y^\o WASHINGTON, D.C. 20416 



NOV 3 19^3 

Mr. Lawrence B. Click 

Deputy General Counsel 

U. S. Commission on Civil Rights 

Washington, D. C. 20425 

Dear Mr. Click: 

Enclosed is a summary listing of the loans approved to Indians, in 
Fiscal Years 1971, 1972 and 1973 in the States of Arizona, New Mexico, 
and Utah, in specific counties that comprise the Navajo Reservation. 

The listing shows the state code, fiscal year, county, number of loans, 
total amount approved, and the SBA share. Also enclosed is a listing 
of the states and counties involved, and their numeric codes. 

We hope that this information will be helpful to you. Please let us 
know if we can be of further service. 



Sincerely, 



Richard J. Sadowski 

Director 

Reports Management Division 

Enclosures 




794 



Kavajo H c sei'vat ion 
Boundaries 



State Co unties 

Arizona (04) Apache - 001 

Coconio - 005 
Navajo - 017 



New Mexico (35) McICinley - 031 

San Juan - 045 

Utah (49) San Juan - 037 



795 



NOV. 23, 1973 



INDIAN LOANS, NAVAJO RESERVATION 
07/01/70 THRU 06/30/73 



STATE 




FY 


COUNTY 


LOAN COUNT 


APPROVED GROSS 


APPROVED SBA 


0-!. 




71 


001 


1 


25,000.00 


25,000.00 


04 




71 


005 


2 


45,000.00 


45,000.00 


OA 




71 


017 


7 


137,000.00 


136,000.00 




FY 


TOTALS 




10 


207,000.00 


206,000.00 


04 




72 


001 


1 


12,000.00 


12,000.00 


04 




72 


005 


1 


25,000.00 


25,000.00 


04 




72 


017 


5 


78,500.00 


78,500.00 




FY 


TOTALS 




7 


115,500.00 


115,500.00 


04 




73 


005 


1 


20,000.00 


20,000.00 


04 




73 


017 


1 


12,000.00 


12,000.00 




FY 


TOTALS 




2 


32,000.00 


32,000.00 




STATE TOTALS 




19 


354,500.00 


353,500.00 


35 




71 


031 


1 


25,000.00 


25,000.00 




FY 


TOTALS 




1 


25,000.00 


25,000.00 


35 




73 


031 


12 


24,700.00 


24,700.00 


35 




73 


04 5 


2 


36,000.00 


36,000.00 




FY 


TOTALS 




14 


60,700.00 


60,700.00 




STATE TOTALS 




15 


85,700.00 


85,700.00 



NOV. 23, 1973 



INDIAN LOANS, NAVAJO RESERVATION 
07,01/70 THRU 06/30/73 



STATE 


FY 


COUNTY 


LOAN 


COUNT 


APPROVED GROSS 


APPROVED SBA 


49 


73 


037 




1 


24,000.00 


21,600.00 




FY TOTALS 






1 


24,000.00 


21,600.00 




STATE TOTALS 






1 


24,000.00 


21,600.00 




OVERALL TOTALS 






35 


464,200.00 


460,800.00 




796 
Exhibit No. 12 B & C 

United States Department of the Interior 

BUREAU OF INDIAN AFFAIRS 
WASHINGTON, DC. 20242 



IN REPLY REFER TO: 



Contracting Services 
BCCO-5736 



Mr. Lawrence B. Glick ^J^^ " ' 

Acting General Counsel 

United States Commission of Civil Rights 

1121 Vermont Avenue, N.W. 

Washington, D. C. 20^25 

Dear Mr. Glick: 

This is in response to your letter of January 25 concerning the 
hearing conducted in Window Rock, Arizona, in October 1973' 

Your questions are answered in the order set forth in your letter. 

1. Section 369O, Revised Statutes, provides: 

"All balances of appropriations contained in the annual 
appropriation bills and made specifically for the service 
of any fiscal year, and remaining unexpended at the 
expiration of such fiscal year, shall only be applied to 
the payment of expenses properly incurred during that 
year, or to the fulfillment of contracts properly made 
within that year; and balances not needed for such purposes 
shall be carried to the surplus fund. This section, 
however, shall not apply to appropriations known as perma- 
nent or indefinite appropriations." 

In this regard the Comptroller General has stated: 

"The general rule relative to obligating fiscal year 
appropriations by contracts is that the contract must be 
made within the fiscal year the appropriation for which 
is sought to be charged, that the signing of the contract 
must be within the fiscal year, and that the subject 
matter must concern a need arising within that fiscal 
year." I6 Comp. Gen. 37. 

There are certain exceptions to the general rule which permits extend- 
ing a contract into a succeeding fiscal year when the services to be 
provided are not considered to be severable in nature. Whether an 
exception to the general rule may be made must, however, be determined 
on a case by case basis. The laundry and dry cleaning services 
discussed in the transcript of the hearings are not the type of 
services that would fall within the exception, as they are severable 
in nature. 



797 



With the exception of construction funds, which are made avail- 
able until used, an other Bureau appropriations are available 
on a fiscal year basis. Therefore, contracts must meet the 
provisions cited above. 

2. The Buy Indian Act does not contain a definition of 
Indian ownership. The Bureau's policy on this matter 
is, however, set forth in its manual at 20 BIAM 5-5. 
In essence the Bureau's policy is that an Indian 
enterprise is eligible for preferential treatment 
under the Act when the enterprise is 100 percent 
Indian owned and controlled. 

3. The cover page of the enclosed Bureau report explains 
some of the procedures underlying the BIA population 
and labor force statistics. These are local estimates, 
the exact procedure varies from reservation to reservation 
depending upon the existence of records or recent surveys 
available at the particular location. The BIA does not 
conduct house to house surveys on a regular basis because 
this is very expensive, and there are many other Indian 
needs which take priority. 

Sincere3.y yours, 



Acting Deputy 



Commissioner of Indian Affairs 



Enclosure 



798 

Exhibit No. 12D 
Laundry from Tuba City Boarding School is 
presently being handled by Lukee Enterprises, Inc. 
located in Cortez, Colorado. 



799 
Exhibit No. 13 

GUIDELINES FOR THE ESTABLISHMENT OF 

NAVAJO MANPOWER UTILIZATION 

REQUIREMENTS IN CONSTRUCTION ACTIVITY 



(i:,ffective March 1, 1973, and 
as amended September 7, 19 73) 



Prepared by the Office of Navajo Labor Relations 



800 

OUTLINE 

I. The Navajo Manpower Utilization Requirements Contained Herein 
Apply to: 

A. Each and every bid let and contract for construction 
entered into between the Navajo Tribe of Indians (here- 
inafter "Navajo Tribe") and any party; and 

B. Each and every agreement or renewal of agreement between 
the Navajo Tribe and any party for the leasing of land, 
granting of rights of way, or for any other purpose, which 
ultimately results in construction activity taking place 
within or near the Navajo Indian Reservation involving 
tv;enty (20) or more persons. 

II. Navajo Manpower Utilization Requirements must be Specified in 
Each and Every Bid and Contract Above Described, Including 
Requirements and Guidelines for: 

A. Specific minimum percentages of Navajo craftsmen to be 
employed on the construction project. 

B. Apprentices. 

C. Wages. 

D. Hiring Procedures and Qualification Determinations. 

E. Terminations. 

F. Promotions. 

G. Administrative and Office Personnel. 
H. Summe:: Students. 

I. Reporting. 

J. Specific Affirmative Action Program Steps. 

K. Grievance Procedures for Individual Workers. 

L. Post-Contract Meetings. 

M. Subcontractors. 

N. Compliance and Enforcement. 

O. Sanctions. 

P. Contract Administration Fee. 

Q. Validity and Enforceability. 



801 



GUIDELINES FOR THE- ESTABLISHMENT OF 

NAVAJO fVU>IPOWER UTILIZATION 

REQUIRE^^;NTS IN CONSTRUCTION ACTIVITY 



COVERAGE 

The following guidelines shall apply to (1) all bids let 
and to all construction contracts entered into between the 
Navajo Tribe and any person, corporation, partnership, sole 
proprietorship, governmental agency or any other organiza- 
tion and (2) all other agreements entered into between 
the Navajo Tribe and any person, corporation, partnership, 
sole proprietorship, governmental agency, or any other 
organization, for the leasing of land, granting of rights- 
of-way, granting of licenses, or for any other purpose, 
which ultimately results in construction activity taking 
place within or near the Navajo Indian Reservation involv- 
ing twenty (20) or more persons. 

The Director of the Office of Navajo Labor Relations will 
participate in the making and reviewing of such contracts 
and agreements entered into between the Navajo Tribe and 
any of the aforesaid parties to insure adequate guarantees 
of compliance with the Navajo Manpower Utilization Require- 
ments set o»it hereinbelow. 

A. In cases of such bids let and contracts for construction: 

1. Every invitation and notice for bid issued by the 
Navajo Tribe shall contain specific requirements 
for Navajo Manpower Utilization. No bidder shall 
be considered a responsive bidder and thus eligible 
for award of a contract from the Navajo Tribe unless 
it has submitted as part of its bid a statement that 
it will comply with the specific Navajo Manpower 
Utilization Requirements set out in such invitation 
and notice. 

2. Every contract for construction entered into by the 
Navajo Tribe shall contain such provisions as are 
necessary to insure the contractor's compliance with 
Navajo Manpower Utilization Requirements. 

B. In the case of agreements or renewals of agreements between 
the Navajo Tribe and any party for the leasing of land, 
granting of rights-of-way, or for any other purpose, which 
ultimately results in construction activity taking place 
within or near the Navajo Indian Reservation involving 
twenty (20) or more persons: 

1. No such agreement shall be binding until the Office 
of Navajo Labor Relations has certified that the 
agreement provides for the contracting party's, its 
agents', its assignees' and its subcontractors' 
compliance with the specific Navajo Manpower Utiliza- 
tion Requirements established by the Office of Navajo 
Labor Relations in accordance with the guidelines set 
out herein. 

2. Every notice to bid issued, or contract for construc- 
tion on or near the Navajo Indian Reservation entered 
into by any party (or its agents, or assignees or 
subcontractors) operating under agreement with the 



802 

Navajo Tribe must first be certified by the Office 
of Navajo Labor Relations as containing the specific 
Navajo Manpower Utilization Requirements. 

Such certification to each invitation to bid issued 
and each contract for construction entered into be- 
tween any party (or its agents, or assignees or sub- 
contractors) and the Navajo Tribe shall be considered 
a material condition to the agreement between that 
party and the Navajo Tribe. Failure on the part 
of any such party operating under agreement with 
the Navajo Tribe to obtain the aforementioned Office 
of Navajo Labor Relations certification shall be a 
sufficient basis to permit the agreement between that 
party and the Navajo Tribe to be rescinded by the 
Navajo Tribe. The Navajo Tribe shall also be entitled 
to any or all of the remedies as are provided for in 
Section "0". 



II. "NAVAJO MANPO^'JER UTILIZATION REQUIREMENTS" SPECIFIED 

The following terms when used hereinafter shall mean as follows: 

a. The term "contractor" shall mean any person, corpora- 
tion, partnership, sole proprietorship, governmental 
agency, or any other organization entering into a 
construction contract or agreement within the cover- 
age of the guidelines herein. 

b. The term "subcontractor" shall mean any person, corpo- 
ration, partnership, sole proprietorship, governmental 
agency, or any other organization entering into an 
agreement with a contractor for the performance of 
services or the furnishing of materials in connec- 
tion with a construction contract or agreement 
within the coverage of the guidelines herein. 

c. The term "contract" shall mean any agreement within 
the coverage of the guidelines herein. 

d. The term "craftsman" shall mean a worker with a 
journeyman's ability to perform the work required 
of him. 

e. The term "apprentice" shall mean a worker who does 
not possess the qualifications cf a craftsman but 
does possess the ability to acquire them if afforded 
proper training. 

A. Specific Minimum Percentage of Navajo Craftsmen to be 
Employed on the Construction Project . 

1. The Office of Navajo Labor Relations shall set, in 
percentage terms, the minimum number of Navajo 
craftsmen to be hired by the contractor (and its 
subcontractors, if any) in each craft for each six- 
month period the contract will be in effect or for 
F'."^>i shorter period if acti'.'ity under s'Jich contract 
is less than six months, and the Office of Navajo 
Labor Relations shall require the contractor to 
meet these percentage requirements. However, for 
federally assisted projects within the coverage 



803 

of the guidelines herein, the Office of Navajo 
Labor Relations shall set the aforesaid specific 
goals and time tables which shall be included in 
the invitation to bid. 

2. The percentages are to be expressed in terms of man 
hours of employment as a proportion of the total man 
hours to be worked by the contractor's (and its sub- 
contractor's) entire work force in each and every 
employee craft or category used in the performance 
of the particular contract. 

B. Apprentices . 

All apprentices shall be Navajo. Apprentices shall not 

be used as laborers. Apprentices shall only be employed 

on the job in the craft or crafts for which they are being 
trained. 

1. The Office of Navajo Labor Relations shall establish 
craft committees, composed of Navajo craftsmen and 
other persons familiar with the craft, to advise 
the Office of Navajo Labor Relations and to develop 
particular criteria for the evaluation, periodic 
review and classification of apprentices. The 
criteria for classifying apprentices shall not include 
any minimum level of attained education unless it has 
been determined by the craft committee that attain- 
ment of such level of education is reasonably related 
to the work required of a craftsman in such craft. 

2. For each craft to be used in construction activity 
falling within the coverage of the guidelines herein, 
the Office of Navajo Labor Relations in consultation 
with the craft committee for that craft, shall estab- 
lish a minimum ratio of apprentices to craftsmen to 

be used on the job and shall require that the contrac- 
tor adhere (and cause its subcontractors to adhere) to 
such minimum rate. 

3. Each apprentice will enter the appropriate training 
program on a probationary basis, and shall remain so 
for a period determined by the craft committee (but 
not to exceed 500 working hours) . Those participants 
retained in the program after the probationary periods 
ha"e expired shall be classified by the craft ccrrj^.it- 
tee, and shall continue in the training program for 
such time as is necessary to qualify as craftsmen. 
During the training period, the apprentices shall be 
reclassified periodically in accordance with advance- 
ment critieria developed by the craft committee and 
approved by the Office of Navajo Labor Relations. 



Wages . 

The contractor and its subcontractors shall pay to crafts- 
men and apprentices wages equivalent to that specified in 
union wage scales prevailing for each craft in the state 
in which the construction is occurring. However, for any 
federally assisted contract, the contractor and subcontrac- 
tor shall pay to craftsmen and apprentices a minimum wage 
in each craft in compliance with the minimum wage rates 
established by the Department of Labor for the region in 
which construction is occurring. In all cases in which a 



804 

worker is not a union member, the contractor and its sab- 
contractors will include in such employee's hourly wage 
an amount equal to the health, welfare and pension contri- 
butions that would other^^7ise be paid to the respective 
union if the worker was a union member. There shall be 
no discrimination in the amovmt or rate of wages paid 
to Navajo employees on the basis of race, creed, color 
or sex. 



Hiring Procedures and Qualification Determinations . 

The contractor and its subcontractors may hire craftsmen 
from whatever sources are available to them and by what- 
ever process they choose, provided: (i) they may not use 
any hiring procedure which requires a Navajo applicant 
to make regular trips to places more than fifty (50) miles 
from the job site in order to be considered for employment 
without the express written consent of the Office of 
Navajo Labor Relations; and (ii) whatever procedure they 
employ, they may not hire a non-Navajo until the Office 
of Navajo Labor Relations has been given five (5) working 
days to provide a qualified Navajo for the job. If the 
Office of Navajo Labor Relations is able to locate a 
qualified Navajo, the contractor or subcontractor shall 
hire him after processing him through whatever referral 
system is used by the contractor or subcontractor. The 
contractor shall agree that any non-Navajo worker hired 
by it or its subcontractor in violation of this provi- 
sion shall be summarily removed. Further, such violation 
by the contractor or its subcontractor shall also subject 
the contractor to such sanctions as are provided for in 
Section "O" herein. 

The contractor and its subcontractors shall retain the 
right to reject any job applicant. However, if the con- 
tractor or its subcontractor is unable to meet its per- 
centage requirements for Navajo Manpower Utilization, the 
contractor shall have: (i) the burden of justifying the 
rejection of every Navajo applicant in each employee 
craft or category in which the contractor or its subcon- 
tractor was unable to meet its requirement; and (ii) the 
burden of substantiating the criteria used in hiring for 
such employee craft or category as being relevant to the 
job to be performed. 

Terminations . 

No Navajo craftsman in other than a supervisory position 
shall be terminated by a contractor or subcontractor 
through layoff or reduction in force while a non-Navajo 
craftsman in the same craft is still employed on the job, 
even if the non-Navajo in such craft is more qualified 
*-han the Navajo. 

Where the contractor or its subcontractor terminates 
employees through layoffs by crews, each Navajo working 
on each such laid-off crew shall be transferred to a 
working crew replacing a non-Navajo employed in such 
working crew, so long as any non-Navajo is employed in 
the same craft elsewhere on the job site. 



805 

Promotion . 

The contractor and its subcontractors shall bt required 
to employ Navajos as foremen in the same minimum percen- 
tage as Navajos to the total work force in each employee 
craft or category (as referred to in Section II. A. herein- 
above) . However, the contractor and its subcontractors 
shall give Navajos preferential consideration for all pro- 
motion opportunities, and they shall actively encourage 
Navajos to seek such opportunities. 

The contractor shall file together with its report to the 
Office of Navajo Labor Relations (described in Section "I" 
hereunder) a statement describing which Navajos, if any, 
applied for any supervisory position filled by it or its 
s\ibcontractors during the reporting period, the reasons 
why each such Navajo applicant was not given the job, 
and the efforts made by the contractor or its subcon- 
tractor to inform Navajo workers about the opportunity. 

Administrative and Office Personnel . 

The above requirements regarding wages, hiring, termination 
and promotion ( i.e. , Sections "C" through "F" hereinabove) 
shall apply where applicable to all administrative and 
office positions. 

Summer Students . 

Navajo students shall be given preference in the hiring of 
summer student employees. The contractor shall make every 
reasonable effort to provide after-school, summer and 
vacation employment for Navajo youth by it and its sub- 
contractors. 



I. Reports . 

The contractor shall submit reports to the Office of Navajo 
Labor Relations within five (5) business days covering 
employment activity by it and its subcontractors during the 
immediately preceding week in a form acceptable to the 
Office of Navajo Labor Relations, including (but without 
limitation thereof) : (i) new hiring, promotions and 
terminations, broken down into Navajo and non-Navajo; 
(ii) the total work force in each employee craft or 
category broken down into Navajo and non-Navajo employees; 
and (iii) the total number of work hours during the 
reporting • period for each employee craft or category, 
broken down into Navajo and non-Navajo. The contractor 
shall also submit: (i) prior to its commencing performance 
of its contract, a manpower forecast for each month of the 
project for each employee craft and category anticipated 
to be utilized by it and its subcontractors; and (ii) by 
the last day of each month, a manpower forecast in which 
it shall indicate the number and description of antici- 
pated new hiring by it and its subcontractors for the 
immediately following six (6) months. 

J. Specific Affirmative Action Programs . 

1. The contractor shall notify the Office of Navajo Labor 



806 

Relations and such other organizations as the Office 
of Navajo Labor Relations shall specify that the con- 
tractor or its sxibcontractor has employment opportuni- 
ties available, at least five (5) working days prior 
to any hiring for such posiLion; Lhe conLiacLor shall 
maintain records of such ongoing communication with 
such specified organizations, 

2. The contractor and its subcontractors shall maintain 
a separate file containing information on all Navajo 
workers who applied for work and were not employed, 
or were employed but subsequently terminated. The 
file shall reflect the name, last known address, em- 
ployee craft or category of such employee and a detail- 
ed description of the reasons why he was not hired or 
was terminated. 

3. The contractor and its subcontractors shall dissemi- 
nate the Navajo Manpower Utilization Requirements 
(hereinafter "their policy") within their own organi- 
zation by: (i) including their policy in any manual 
or similar publication; (ii) publicizing their policy 
in company newspapers, annual reports or other similar 
publications; (iii) conducting meetings with staff, 
employees and union representatives, at which time 
their policy can be explained and discussed; (iv) 
posting their policy at appropriate places; (v) con- 
duct ing periodic revie ws of t heir policy with all 
Navajo employees; and (vi) utilizing such other means 
as the Office of Navajo Labor Relations shall specify 
so as to make their policy generally known to their 
employees. 

The contractor and its subcontractors shall further 
disseminate their policy by (without limitation thereof) : 

(i) informing all sources of recruitment of their policy; 

(ii) advertising their policy in the media when utilized 
by them in their hiring activities; and (iii) utilizing 
such other means as the Office of Navajo Labor Relations 
shall specify so as to make the policy generally known 
to, among others, potential Navajo employees. 

4. The contractor shall have an affirmative obligation to 
insure that it and its subcontractors provide such 
training to Navajos as is necessary to have available 
Navajos sufficient to meet the specified Navajo Man- 
power Utilization Requirements. The contractor and its 
subcontractors shall also develop on-the-job training 
opportunities and participate and assist in such other 
training programs as are related to their employment 
needs and as are consistent with their obligations 
under the Navajo Manpower Utilization Requirements. 

5. The contractor shall be obligated to insure that no 
employment practice by it or its subcontractors rela- 
ting to seniority or job classification violates their 
obligations under the Navajo Manpower Utilization 
Requirements. 

6. The contractor shall notify any union which it intends 
to utilize in connection with the performance of its 
contract of its Navajo Manpower Utilization Require- 
ments and of the supremacy thereof over any conflicting 
term or provision in any agreement between the con- 
tractor and such union. 



807 

7. The contractor shall invite qualified Navajo contrac- 
tors to bid and negotiate for subcontracts relating 
to its job and it shall explore means of further 
utilizing Navajo contractors as "standard practice" 
in other construction activities for projects within 
or near the Navajo Indian Reservation. The contractor 
shall also submit to the Office of Navajo Labor Rela- 
tions a breakdown of subcontracts to be let on its 
projects and shall submit the names of those Navajo 
subcontractors hired, if any. Where a Navajo subcon- 
tractor is not hired, the names of those Navajo 
subcontractors who were interviewed and the reasons 
for their rejection shall be submitted to the Office 
of Navajo Labor Relations. The contractor shall 
inform the Office of Navajo Labor Relations of all 
interviews with Navajo subcontractors and invite 
the Office of Navajo Labor Relations staff to attend. 

K. Grievance .Procedures for Individual Workers . 

Any Navajo employed by any party subject to the Navajo 
Manpower Utilization Requirements may file a complaint 
with the Office of Navajo Labor Relations as to (but 
without limitation thereof) initial hiring, promotion, 
termination or treatment on the job. Upon receipt of a 
complaint, a representative of the Office of Navajo 
Labor Relations shall investigate and attempt to obtain 
a solution of the problem acceptable to both the contrac- 
tor and the employee. If such representative is unable 
to resolve the problem, a committee shall forthwith be 
formed consisting of one (1) representative of the con- 
tractor, one (1) representative of the Office of Navajo 
Labor Relations and one (1) person mutually agreeable 
to both the contractor and the Office of Navajo Labor 
Relations (or if such third person cannot be agreed to, 
by designation of such person by any trial judge of the 
Navajo Tribal Court) . The committee shall hear such evi- 
dence as either side wishes to present and shall conduct 
sucn investigation as it deems necessary. The committee 
shall then make a decision on the complaint including 
what relief, if any, should be granted the complaining 
party. The decision of the committee shall be final and 
non-appealable, and the parties shall be bound thereto. 

L. Post-Contract Meeting . 

Within twenty (20) days after a bid is accepted or an agree- 
ment executed where there is no bidding, representatives of 
the contracting parties shall meet with a representative of 
the Office of Navajo Labor Relations to discuss the Navajo 
Manpower Utilization Requirements and to work out specific 
steps for implementation. 

M. Subcontractors . 

The Navajo Manpower Utilization Requirements shall be part 
of all of the contractor's subcontract specifications, and 
such contractor shall cause its requirements to be part of 
all subcontracts under it, regardless of tier. No sub- 
contract shall be executed by the contractor until the 
Director of the Office of Navajo Labor Relations has certi- 
fied, in writing, that the contractor's Navajo Manpower 



808 

utilization Requirements have been incorporated into such sub- 
contract. The contractor shall be obligated to rescind (and 
be solely liable to such subcontractor for any and all damages 
arising therefrom) any subcontract executed without such cer- 
tification by the Office of Navajo Labor Relations. The 
contractor shall also be obligated to supervise and cause 
compliance by its subcontractors with the Navajo Manpower 
Utilizatipn Requirements. 



Compliance and Enforcement . 

\'Jhere the Office of Navajo Labor Relations finds, after 
notice and hearing, that the contractor or any of its 
subcontractors has failed to comply in good faith with its 
obligations under the Navajo Manpower Utilization Require- 
ments, the Office of Navajo Labor Relations shall take such 
action and impose such sanctions as may be appropriate (in- 
cluding the sanctions as are provided for in Section "O" 
hereof). The Office of Navajo Labor Relations will have 
the burden of proving in any such proceeding that the con- 
tractor or its subcontractor has not met its Navajo Man- 
pov^er Utilization Requirements, but the contractor's or 
subcontractor's failure to meet its requirements having 
been demonstrated, the burden of producing sufficient evi- 
dence to establish its good faith in meeting its require- 
ments snail shift to it. 

Except as provided in Section "'K" hereof, if the Director 
of the Office of Navajo Labor Relations has probable cause 
to believe that a contractor or subcontractor has failed 
to comply with all or any part of its Navajo Manpower 
Utilization Requirements, he shall notify that contractor 
or subcontractor in writing, specifying in detail each 
such alleged violation. The initial decision as to whether 
there has been non-compliance shall be made by the Director 
of the Office of Navajo Labor Relations after the contrac- 
tor has had an opportunity to present any evidence and/or 
witnesses it v;ishes to bring forth to support its compliance. 

Any contractor found by the Office of Navajo Labor Relations 
not complying v/ith its Navajo Manpov/er Utilization Require- 
ments may appeal the Office of Navajo Labor Relations deci- 
sion to the Navajo Tribal Court, at which hearing the 
Director of the Office of Navajo Labor Relations shall 
represent the interests of the Navajo Tribe. 



O. Sanctions . 

The contractor and its subcontractors shall agree that, 
in the event it is found by the Office of Navajo Labor 
Relations, after notice and hearing, that the contractor 
or any of its subcontractors has not complied with the 
Navajo Manpower Utilization Requirements, the Office of 
Navajo Labor Relations shall be entitled to do any or 
all of the following: 

1. Declare a default by the contractor under its con- 
tract so that the Office of Navajo Labor Relations 
may impose any sanction or remedy provided herein- 
below, 

2. Declare the contractor or subcontractor ineligible 
to bid on any contract or agreement covered under 



809 

the guidelines herein until such time as the con- 
tractor or subcontractor has complied with the terms 
of the applicable Navajo Manpower Utilization Require- 
ments. 

3. Promulgate mandatory enforcement orders. 

4. Order the re-hiring of any Navajo terminated in vio- 
lation of the Navajo Manpower Utilization Require- 
ments, and the granting of back pay and restitution 
to any Navajo who has not been given preference in 
either hiring, job assignment or termination in 
violation of said Ream' rpmp-nt-t; . Howe^"=r.- hcfn-rp any 
sanction shall be imposed in connection with any 
federally assisted contract under the paragraph 
herein, the Comptroller General shall be consulted 
to render an opinion as to the propriety of such a 
sanction under applicable federal law. 

5. Order the displacement of non-Navajo employees and 
a replacement therefor of Navajos where a violation 
of the Navajo Manpower Utilization Requirements is 
found. 

6. Order that treble damages be paid to the Navajo Tribe 
in such amount as is equal to the wages, salaries and 
benefits that would have been paid to Navajo employees 
had the contractor complied with its Navajo Manpov;er 
Utilization Requirements, such award encompassing in 
addition all such further sums as and for the damage 
resulting from dilatory conduct in effecting the 
Navajo Manpower Utilization Requirements. However, 
before any sanction shall be imposed in connection 
with any federally assisted contract under the para- 
graph herein, the Comptroller General shall be con- 
sulted to render an opinion as to the propriety of 
such a sanction under applicable federal law. 

7. Order the award of money damages to the Navajo Tribe 
in such amount as to compensate it for such injuries 
as are caused by non-compliance with the Navajo Man- 
power Utilization Requirements. 

8. Order the Navajo Police, after any judicial appeal 

to the Navajo Tribal Court is concluded, to enter the 
job site and seal it off until such time as the con- 
tractor has complied or caused its subcontractors' com- 
pliance with any remedial order by the Office of 
Navajo Labor Relations. 



Contract Administration Fee . 

The Director of the Office of Navajo Labor Relations shall 
seek to have inserted in every contract or agreement within 
the coverage of the guidelines herein a fee to be paid by 
the contractor as and for the costs and expenses which will 
be incurred by the Office in requiring and enforcing the 
Navajo Manpower Utilization Requirements. 

Validity and Enforceability. 

Notwithstanding any other provision hereof, it is understood 
that the United States has exclusive authority to enforce 



810 

conplirnce r-.'ith federal lz'.:c and regulations. If any pre, 
sion of the guidelines herein shall be invalid or unenfor- 
ceable, the validity or enforceability of any other provi- 
sion hereof shall not be affected or impaired thereby. 



These guidelines are effective March 1, 1973 (as amended Sep- 
tember 7, 1973), and until such time as they are superseded 
by other guidelines promulgated by the Office of Navajo Labor 
Relations. 

OFFICE CF NAVAJO LABOR RELATIONS 



By 



George James , Chairman 



James D. Atcitty, 
Vice Chairman 



Leonard Arviso, Secretary 



Thomas H. Lincoln 



T~. Browning Pipestem 



STATE OF ARIZONA ) 

: ss. 

COUNTY OF ) 

On this day of , 1973, before me, the 

undersigned officer, personally appeared GEORGE HAMES, JA>5ES 
D. ATCITTY, LEONARD ARVISO, THOMAS H. LINCOLN and F. BROWNING 
PIPESTEM, known to me to be the persons whose names are sub- 
scribed to the foregoing instrument, and acknowledged that 
they executed the same for the purposes therein contained. 

IN WITNESS WHEREOF, I hereunto set my hand and official 
seal. 



Notary P\iblic 
My Commission Expires: 



811 



SEP 10 1973 



T0.S. DEPARTMENT OF LABOk 

EMPLOYMENT STANDARDS ADMINISTRATION 

Office of Federal Contract Compliance 

WASHINGTON, DC. 20210 



,<r^'<^ 



i 
%. 



I 



-'^lo-^^' 



In Reply Refer To: 4500-5 



Mr. Thomas H. Brose' 
Director, Office of Navajo 

Labor Relations 
The Navajo Tribe 
Window Rock, Arizona 86515 

Dear Mr. Brose': 



Pursuant to your request, we have reviewed the Guidelines 
proposed by the Office of Navajo Labor Relations (ONLR) to 
determine whether they may be properly included in federally- 
assisted construction contracts let by the Navajo tribe, and 
whether any sections are compatible with Executive Order 11246, 
as amended, and Title VII of the Civil Rights Act of 1964. The 
following analysis is in accord tvith OFCC's position that the 
Executive Order program should adopt the Indian Preference 
clause in Title VII as its oum policy in order for the two programs 
to function under consistent standards for contractors operating 
on or near Indian reservations. 

Section 703 (i) of Title VII 1/ provides that the prohibitions of 
Title VII do not apply to the employment of Indians on or near 
reservations. Therefore, the preference for Indian employment 
is an absolute one which may ivork to the total exclusion of all 
non-Indian employees, trainees, apprentices , or other members 
of the work force. The absolute preference for Indians may, 
where Indians and non-Indians are both members of the work force 
on or near a reservation, also extend to promotions , transfers, 
and layoffs, as well as any other benefits of employment. 



RECEIVED 

SEP 14 19/j 

KnC£ OF HAVAIO 
SABOA KIAJIONS 



1/ "Nothing contained in this Title shall apply to any business 
or enterprise on or near an Indian reservation with respect to 
any publicly announced employment practice of such business 
or enterprise under which preferential treatment is given to 
any individual because he is an Indian living on or near a 
reservation. " 



812 



The only application of Title VII on or near an Indian 
reservation would be in cases of discrimination involving 
nan -Indians of different races, color or national origin, or 
between male and female non-Indians. 

Under this interpretation of the Indian preference provision of 
Title VII, and in turn, OFCC's Indian preference policy , it is 
our opinion that the ONLR may legally append bid conditions of 
its own on federally-assisted construction contracts which impose 
upon the contractors a burden of hiring an all or predominantly 
Navajo work force. Although the proposed ONLR Guidelines 
have taken the goals and timetables approach utilized in comparable 
bid conditions , there is no objection to even stronger language 
requiring employment of Navajo s to the maximum extent of their 
availability. The Guidelines already take this approach in requiring 
that all apprentices must be members of the Tribe. 

The same interpretation supports the ONLR 's position that 
foremen should be employed in the same ratio as their are 
Navajos on the job, and that Naijajos receive preference for 
all promotions. Additionally , it allows use of the provision 
which would prohibit laying off any Navajo until all non-Navajos 
in the same craft have been terminated. 

Although the basic premise upon which the Guidelines are based 
is valid under present interpretation of the Indian preference 
policy, there are some changes necessary for the Guidelines to 
fully conform to the requirements of Federal law. 

The major weakness of the Guidelines is that it does mot include 
the goals and timetables in the invitation for bids, but specifies 
that they shall be negotiated between the ONLR and the contractor 
after award. Post-award negotiations for material conditions 
such as the numbers or percentages of required Indian manpower 
utilization would violate the Comptroller -General's opinion 
striking down similar practices in the first Philadelphia Plan. 
The ONLR has agreed to revise the Guidelines in accord with the 
Comptroller-General' s opinion, and has prepared goals for the 
first year the Plan is in effect. A copy of these goals is attached, 
for your information. 



813 



The Guidelines include ivithin its definitions of contractors 
and siib contractors covered under its terms, "government 
agencies. " Since these provisions ivill be included in all 
contracts let by the Tribe, whether or not federally -assisted, 
it is essential to amend that definition to read "non-Federal 
government agencies. " Otherwise the Federal government, in 
contracting for construction on Indian reservations, may be 
required by contract to hire an all-Indian work force, although 
forbidden to do so by Federal laws presently applicable to 
Federal employees. These contracts wotdd most probably be 
with the Bureau of Indian Affairs, whose Indian Preference Law 
was recently struck down by a three-judge District Court on the 
grounds that it violated the 1972 amendment to Title VII, 
prohibiting discrimination in Federal employment. 2 / 

Let us also call your attention to Section J. 6. , which purports 
to provide that the ONLR Guidelines could supersede any 
conflicting provision in a collective bargaining agreement. The 
ONLR Guidelines do not have the force and effect of Federal' law 
or regulations. Therefore , there is some question whether such 
Guidelines could supersede collective bargaining agreements. 

The remaining questionable provisions are both hi the sanctions 
section. 

The first is Section II. 0.2. , which would allow the ONLR, upon 
a finding of non-compliance , to debar the contractor or sub- 
contractor from any future tvork on the reservation for up to five 
years. This action coidd not be taken under Executive Order 
11246 and questions of legality would be, as wotdd the following 
question, more properly addressed to the Comptroller-General 
since both raise procurement law considerations on Federally - 
involved contracts. 



2 / Mancari v. Freeman F. Supp. , 5 EPD 8643 (June 1, 1973). 



814 



Section 0. 6 would allow the ONLR to order a non-compliant 
contractor to pay treble damages to the tyibe based on a sum 
equal to the wages, salaries and benefits that would have been 
paid to Navajo employees had the contractor complied with its 
utilization requirements, plus any other damages arising from 
dilatory action. Since the Guidelines also authorize the award 
of money damages to the tribe for any injuries to it arising from 
the contractor's failure to comply, 3/ and similar damages, in 
accord with the Guidelines , 4/ this section may not serve a 
valid purpose. However, this provision, as well as the provision 
relating to treble damages could not be imposed under Executive 
Order 11246. As indicated in the preceding paragraph, questions 
concerning their propriety on Federally -involved contracts should 
be addressed to the Comptroller-General. 

In conclusion, it should be noted that when a contract is to be 
performed on or near a reservation, it is not a violation of 
Executive Order 11246 if an Indian is given preference over a 
non-Indian for any job or promotion, or on layoffs, or in any 
other aspect of employment. 

If you should have additional questions please do not hesitate to 
call upon our office for assistance. 




Enclosure 



3/ Section 11. 0.4. 
4/ Section 11. 0.4 



i 



I 



815 
Exhibit No. IJf 

18. Employment of Navajos . Lessees agree to give 
preference in employment to qualified local Navajos, it 
being understood that "local Navajos" means members of the 
Navajo Tribe living on land within the jurisdiction of 
the Navajo Tribe". All unskilled labor shall be employed 
from "local Navajos," if available, providing that appli- 
cants for employment as unskilled laborers meet the gen- 
eral employment qualif icati,ons established by Lessees. 
Qualified semi-skilled and skilled labor shall be 
recruited and employed from among "local Navajos." In 

the event sufficient qualified unskilled, semi-skilled and 
skilled local Navajo labor is not available, or the quality 
of work of available skilled or semi-skilled workmen is 
not acceptable to Lessees, Lessees may then employ, in 
order of preference, first qualified non-local Navajos, 
and second, non-Navajos. 




816 
Exhibit No. 15 

THE NAVAJO TRIBE 

WINDOW ROCK, NAVAJO NATION, (ARIZONA) 865)5 



PETER MaeDONALD 
CHAIRMAN, Novoio Tribol Council 



WILSON C. SKEET 
VICE CHAIRMAN, Navajo Tribol Council 



28 JUNE 1974 



Ms. Hester Lewis 
U. S. Civil Rights Commission 
1405 1 Northwest 
Washington, D. C. 

Dear Ms. Lewis: 

I regret that it has taken so long to respond to your request for 
documentation concerning my testimony before the U. S, Civil Rights 
Commission hearings in October of 1973. However, the press of 
Tribal activities prevented earlier response. 

I hope the attached documents will satisfy the needs of the Civil 
Rights Commission. 

Thank you for your patience. 

Sincerely, 




Leonard And so, Manpower Coordinator 
Office of Manpower Planning 
THE NAVAJO TRIBE 



Attachment 



817 

TOTAL ENROLLMENTS 
New Mexico 



1968 - ' 3 Male - 1,054 

1969 - 333 Female- 820 

1970 - 264 

1971 - 449 

1972 - 325 

1973 - 438 



1,874 - TOTAL 



1968 - 39 Male - 1,066 

1969 - 359 Fenale- 759 

1970 - 310 

1971 - 368 

1972 - 348 

1973 - 401 



1,82 5 - TOTAL 



AGREEMENT NfMBER CEF 3614-04 

SlC-t MARY OF PllOGRAM STATISTICr . 

For thc"Perioa01/01/73 Through l?'/31/73 



New Mexico Ari:;ona 

Number Applying: 650 734 

Number Fnrollcd : 438 401 

Number of Dropout: 72 60 

Number In Program: 535 504 

Number Terminated: 393 389 

Number Completing Program: 218 222 



Respectively Submitted: 

Atfted F, Vietri 
Director - Navajo CEP 



818 

27, 1974 



Ifr. L«oBMnl Arvlso 

CaorlcttluB for MAapowcr FlaonlJit 

Office of ProgroB Divlnp— n» 

TlM Navajo Trib* 

HladoH lock» Arlmma 86515 

Daar Mr. AsyIm: 

FurtlMr to our t«l«pho«a eeovwrcatlea ngardlag th* mmbmt of TralaMa 
wbo bcv* baaa traioad uad«r Off lc« of H«vaJo leoaoodc Oppeztiaity • Boa* 
Biy rill— lit Tralalng Prograa and Mavajo Pr«-Voeatloaal Traloiag Pregraa aiae* 
1966, plaaao be advifd that our prograa has laclud«d 5,600 Traia*«a for a 
period of at least fix (6) aootha •ach. H« bar* Mtabllihad prograaa under 
which we hare taught all aapeeta of eowttcuctloa such as Carpentry, Ceaant 
work, riunbiag aad llectrlcitjr aa vnll aa Drafting and Uaayriating. 

Tou no doubt are aware that dne to the Halted tiae our Tralnaea hare 
been under our a^perylaloa that we have been unable to give thae a eoa|^lMe 
eourae in eonatntetion. It nonaally takea about foar (4) yeara to turn out 
a fully qualified Joumeyaan in aaj of the eoaatntetlea tredee. 

liaaerely. 



Lno M. Begay, U^maJLt 

■anraje fre«Vecatlonal Trelnlag Imgra 



eet 

Ua/ad 

lUi/Cknae 



819 



m iraiG £ mift 



HOME OPFICI. 
HKAvv Division 
f. O. BO> 488 

SHIPKCKK, N(W MIXICO 874X0 
IB0B).S8S-8tBI 



(T 



U 



1 



Heavy and Utility Construction 



Please reply to: 

P. 0. Box 456 

Shlprock, New Mexico 87420 

June 27, 1974 



Utilitv Oivicioh 
p. O. Box 848 

FOKT DiriANCi. Amxotu 88804 
(802). 728-2380 



Mr. Leonard Arviso 

Manpower Coordinator 

The Navajo Tribe 

Window Rock, Arizona 86515 

Dear Leonard: 

This letter is submitted in response to your request for data on 
the NECA-MDTA Heavy Equipment Training Program in the following areas: 
1) The numbers of trainees served through 12/31/73, 2) The number of 
trainees placed, divided into those placed with NECA and those placed 
with other employers, during this period. 3) The difficulties en- 
countered by NECA in placing program graduates with other employers. 

NECA-MDTA Heavy Equipment Training commenced July 6, 1973. Through 
December 31, 1973, the program processed 174 trainees. Of this number, 
145 trainees completed training. (The figures submitted are through the 
section completing 1/11/74). 126 of the program graduates through 
January 11, 1974, were initially placed into training related employment 
for a placement figure of 87% for graduates completing during the initial 
months of the program. It should be noted that some of these graduates 
entered employment in the early months of 1974. A list of placements is 
enclosed in this letter. 

Of those 126 placed graduates of the first six months of training, 
approximately 57% or 71 trainees were placed on NECA's own workforces. 
Other significant employers of the program graduates were: 



1. 


Nlelsons, Inc. 


9 


employed 


2. 


Wylie Bros. 


7 




3. 


Utah International 


3 




4. 


Brown Construction 


2 




5. 


Vesper Construction 


3 




6. 


All other employers 


31 





NECA has encountered a number of problems in placing graduates with 
other employers. We have been unable to secure placements through 
union apprenticeship programs. This is due mainly to rigid entrance pro- 
cedures required by these programs . As an example , NECA arranged for 18 



"AN ENTERPRISE OF THE NAVAJO TRIBE" 



820 



Mr. Leonard Arvlso 

Page 2 

June 27, 19 7 A 

program graduates to apply to the New Mexico Operators program on April 30, 
1974. Between the initial application date and the interview date of 
June 18, 1974, sixteen of these graduates had been placed with other 
construction employers. The delay caused by the apprenticeship program's 
intake system meant that no program graduates were able to enter appren- 
ticeship training. 

Another significant barrier to employment of program graduates has been the 
lack of a coiiq)rehensive job development and follow through mechanism on 
the reservation. NECA has directly arranged most of the placements made 
of program graduates. We, however, have been unable to maintain adequate 
contact with many of the construction employers working on the reservation, 
primarily because we do not have a job development component. Thus, NECA 
believes that many placement opportunities may have gone unfilled. This problem 
will be offset by strengthened job development services by Navajo Employment 
Service. 

The last six months of NECA-MDTA training have seen some promising place- 
ment developments. We have enjoyed success with Peabody Coal Company at 
Kayenta, Arizona. The New Mexico Highway Department has employed several 
graduates. Nielsons, Inc. has committed themselves to hire 14 graduates for 
employment on a power plant site in Craig, Colorado, and has enqiloyed a 
significant number of graduates on reservation projects. 

Although our placement results are not fully satisfactory, we have reason 
to believe that a definite job market exists for program graduates. With 
the Tribe's ability to erect a comprehensive manpower network under CETA, NECA 
believes that placements and job retention can climb to a very satisfactory 
level . 

Sincerely, 



C^o^Sn^ 



C. Eastin 

Director of Personnel 



CE:jea 
Enclosure 

cc: Chrono/Files 



ES-285 

Rev. 6/20/73 



821 



Month Ending: December 31. 1973 



REPORTING OFFICE Window Rock Central Office 

MOtiTHLY REPORT OF HITCHHIKE ACTIVITIES 

January 10, 1974 



Date: 





TOTAL 


VFTFRAIIS 


CUMULATIVE 

TOTAI , 


1. Active Files 


622 


158 


i 


2. New Applicotions 


120 


21 


2,600 1 


3. Job Oopninqs Rec'd. 


321 





■ 
2,916 1 


A. Aoricultural 








514 


B. f!onaarici'ltura1 


321 





2,402 


4. Referrals 


101 


17 


1,189 


A. Ariricu'ituid'i 


C 


19Q 


B. Non?.qrici:lt'j-2l 


101 


17 


1,061 


5. Placements 


35 


8 


516 


A. Aqri cultural 








35 


B. tionaoriciilt'jral 


35 


8 


481 


6. Counsel inq 


44 


13 


351 


7. Testinq 








38 


8, Training Referrals 


28 


3 


539 


9. Ernplcer Contacts 


63 





962 


10. Job Dovelopr?ent 


14 


2 


210 


Cctr.nonts: Ganado made (10) rural area contacts. Windov/ Ro 


ck Sub-Office re- 


gistered (21) applicants with Local Union #611 in Albuquerq 


ue, New Mexico for 


T.G.&E.; referred (3) people to Unemployment Compensation D 


ivision and (B) G.A. 


recepients referred from Social Services for employment. 









ES-285 

Rev. 6/20/73 



822 



Month Ending: 



REPORTING OFFIC E Window Rock Central Offic e 

YEARLY 

DCXnKIXX REPORT OF HITCHHIKE ACTIVITIES 

Date: 





TOTAI 


VFTERAriS 


CUMULATIVE 

TOTAI , 


1. Active Files 


XXXXX 


XXXXX 


1 
XXXXXXXXXXXX 1 


2. flew Applications 


2,600 


359 


2,600 


3. Job OpGninqs Rec'd. 


2,916 





2.916 


A. AoricuUural 


514 





514 


B. flonaaricultural 


2,402 





2,402 


4. Referrals 


1,189 


170 


1,189 


A. Ac;rici;lturGl 


1 oo 

■•-'-' 


21 


1?p t 


B. t.'on^nririil tL"'al 


1,061 


149 


1,061 


5. Placements 


516 


74 


516 


A. Aqri cultural 


35 


05 


35 


B. rionaqriciiltural 


481 


69 


481 


6. Counseling 


351 


57 


351 


7. Testing 


38 





38 


8. Training Referrals 


539 


86 


539 


9. Emplo'/er Contacts 


962 





962 


10. Job Development 


210 





210 


Corr.r:ionts: 




Total Active & Inactive ^^,. 
appn 


cants served: 






Window Rock Sub-Office 


1,78S 






Ganado Sub-office 


1,451 






KayeiiLd Sub-ufficy 
Shiprock Sub-office 


■ ■■■ -i-Tets 

1,963 


1 




TOTAL 


6,816 







823 




THE NAVAJO NATION 

WINDOW ROCK, ARIZONA 86515 



26 June 197-^ 



PETER MocDONALD 

Chainnan, Navajo Tribal Council 



WILSON C. SKEET 
Vice Chairman, Navajo Tribal Council 



M E M R A N DUU M 



TO 

FROM 
SUBJECT 



Leonard Arvlso^ Manpower Coordinator 

Jerry Harvey, Coordinator 

Statistic on Placements and Interviews 



This is in regards to our telephone conversation on the 
morning of June 23, 197^: wherein you requested the dividend 
of job placements and non-job placements of Navajo job seekers, 
The following figures are compile from five Job Development 
Offices throughout the reservation since fiscal year 1972. 



FY 72 


INTERVIEWED 
3414 


PLACEMENTS 
944 


NON 


-PLACEMENTS 
2470 


FY 73 


7405 


1247 




6158 


FY 74 


7335 


1560 




6775 



Note that the Fiscal Year 1974 Is the figure for a 11 months 
period. 



X. Jerry " 
^ Job ^ 




nt Coorfit^ator 



824 
Exhibit No. 16 

May 16, 1973 



Dear Sir: 

In my letter of K ay 9, 1973, I promised to provide specific suggestions 
in several areas that the Office of Navajo Labor llelations thinks will 
assist unions, corporations, and the Tribe in resolving problems tliat 
have arisen in the past regarding employment of Navajos on or near the 
reservation. 

As you know, because of the practices of a few unions, many Navajo 
people came to fear unions — to see them as obstacles which had to be 
overcome in order to secure good working conditions, fair wages, and 
a chance at promotion. If we are to eliminate those fears, it will take 
an effort on the part of the unions and the Tribe to demonstrate to the 
Navajo people that unions can serve as a vehicle for better working 
conditions, greater employment, and advancement. These suggestions 
are offered to you as our contribution toward this goal. 

The Navajo unemployment rate of 60 per cent, compared with the 
Arizona State non-Indian figures of 3.5 per cent, is shocking. Our 
experience with the construction project on the reservation, especially 
the Salt Kiver Project has been well documented in the Department of 
Interior Report. This report clearly illustrated the type of difficulties 
Navajo employees find when potential jobs become an illusion since 
most of the positions on the Navajo Power Project were and are filled by 
non-Navajos. We know there are many reasons for this, but we now 
would like to Increase participation by Navajo workers in future projects, 
and to this end, we propose that each union consider the following: 

(1) Each union will recognize Indian preference on the reservation, 
and the guidelines for the utilization of Navajo manpower. 



825 



Letter 

May 16, 1973 

Page 2 



(2) Each union will establish a Navajo list for jobs on the reservation. 
Requests for workers on reservation projects will be filled from 
the Navajo list until such lists contain no Navajo names. 

On off -reservation projects, Navajos would be subject to whatever 
procedures or priority provisions each union establishes for its 
members . 

(3) Each union will insert into Its agreement a section similar to the 
following: 

Either local may make special agreements which apply 
lower wages or more favorable working conditions 
either for a particular job or for a particular area, as 
for example an Indian reservation. Such a special 
agreement shall be a permissible exception to this 
Article if such wages and conditions are publicized 72 
hours in advance of receipt of bids or sufficiently in 
advance of final negotiation of the work covered to 
permit equal opportunity to others, by delivery of the 
relevant Information to the PAC. Any such special 
rates or conditions shall be available to all contractors 
bidding or negotiating on the work covered. Such 
special rates and conditions shall not apply elsewhere 
or on other jobs not covered In the publicized 
announcement. 

(Source: Arizona Pipe Trades Agreement, dated 
June 1, 1972.) 

(4) Each union will recognize the need for the Navajo Tribe (ONLR) to 
be Informed prior to, or at least, simultaneously with notification 
of any local about labor needs on reservation projects. 

These arrangements will assist the Tribe In establishing better 
Information about reservation labor needs and placement of 
Navajo workers on such projects. 



826 



Letter 

May 16, 1973 

Pages 



(5) The union and the Tribe will establish means for the easy trans- 
fer of Navajo workers from projects on the reservation In one 
state to projects on the reservation in another state. 

(6) Each union will arrange for Navajos who are in approved 
training programs in one state to transfer and seek enrollment 
in a local for a jurisdiction under any project on the reservation 
in either Arizona, New Mexico, or Utah. 

(7) Each union will actively strive to enroll Navajos in apprentice- 
ship and training programs clearly related to anticipated labor 
needs on the Navajo Reservation. 

I hope that these requests will be communicated to your membership and 
that each union and the Building Trades Council will attempt to Integrate 
the suggestions made here into new agreements. 

I would like to add that the ONLR is ready to discuss these suggestions 
with each union or with the Building Trades Council in the appropriate 
states, and we will be happy to explain, in detail, our reasons for 
desiring these changes. 

I trust 1 can expect the cooperation of union leaders In all the states 
concerned. Thank you for your consideration of our proposals. 

Sincerely, 



Thomas H. Brose, Director 
Office of Navajo Labor Relations 



THE: lb 



cc: Harper Stewart, Department of Labor 
All Unions 



827 
Exhibit No. 1 7 



u 



cs 



CO 
<NJ 
CO 

»— • 
CO 



o 
U 

Cfj" 

2 

'o 
Q 



00 
CO 

X 

& 

6 






r^ 



8^ 

O f^ 
C\J 
25 



fi) 



to 

^\ 

•r-l 

CO 

a 

0) 
0) 



o 

•H 

-p 
o 

u 

rr> 

c 

o 
u 

CO 
O 

« 



u 

z 

A. 

o 
u 



2 

lU 









c-^ 



=5 8 



c 
1-3 

u 

t 



it 



c « 
o ■ 



>> 

a 

E 



i i 



1 » 

^ 3 



o 
u 



Is 

• '^ 
II 

ss 

Is 



£< 
eU 

-^ 

o c 



^ " •« c ^ 5 

I ^^ I Ml 






c S • • ^« 

3 • *" "oB^ 



Id 



• o ^ 



J» z ** S 



• •/< 



i i £*J 



? I 



C 



I 

fH 

I 

H 

'-1 



O ^ 







•^8 






cb. .. 

^ c — 
•-2 - 

^ • M • 

1^5 



e 

o 
C 8 



828 



if 



2 

c 






i 



3 



re 

6 






c 



E- 
<a 

E- 







829 



0) 

o 










►■ 




i 




B~ 




»>o 




If 


x^ ' 


o»- 


>v 


**! 


>< 


• 5 




:i^ 


•■ 


.z 


V 


o" 


N 


1% 


!; 


n 


^ 




^ 




^ 


i: 


. ^ 


*-x 


Nj 


•I 


. 


• u 


t ^ 


3« 

• ■ 


2\-J 


>0 


*• nJ 


41 


♦.\ 


1* 


•\ 


■ • 


m ] 


S*! 


^ 


Jk 


O 


r? 


•H 


«^ 


<M 


•-0 


•«V-I 




% Q 


He 

> o 


bO 


O" 


S'O 


• Z 


r-i 


40 


c 


M>- 


•H 


ZU 

»-M 


fc 


»• 


1 


o** 




l» 




>• 


Pi 


z 


1-3 


-•z 




••9 


P) 


0*- 


(h 


?>5 


«) 


Oh 


bt 


:s 


O 


s« 


« 






- J 


M 


:< 


-• S 


4* 


K "^ 


k J 


" « 


J« 


4 •— ' 


3« 


" ^ 


»JH 


2 rt 


h;o 


* J2 


i-o 


^ V 


kUU 






rj ' 


li 


c , 




1-4 < 


I 


o ; 




c . 


1 


> 


1 


i''*' 




•v. 


1 s 

. t/3 . 


X \ 






< 


•O 


^ 


'^ 


b. 


^ 




tN 




^^ 


X 


NI , 


■v^ 


N 


:? 


X 








tf 




-^ 


CO 

8 


^ 

^ 

\ 




H 




-rv 


s 


^ 












n 


H 


^ 


tf 


'^ 




**>! 




^ 


d 




O 


^ 






< 


S 


eu 


e- 



830 











_,\ 




1^ 


N 




i . - . : ii - - . - J - . 


1 

.1 


« 1 

-J- -E.J 


1.1 


- I* 


: ^ 


^■■^ 


-^ 


5 

1 


I i^:. : 




i 1 


! 1 








15 


i a' 


"s: 






A^ U 














1 


> 


'o , , 


si 


j 






' i 


I" 

■I 










\ 




SI 


1 




^1 


H 








\ ^ ^' 








\ 










i 


1"^ 




; M 


— ^ 


*^ 


1 


1 1 








1 

1 






1 \ 

1 










P^ 


. !*^' 






^^' 


•" 






















1 







C 1^ 


' ^-=1" 
































\-^S 


«£) 






---- 


-- 


-- 


- '- 


--- 


■- 


_ .. . 


-- 












• : 






4 

X 




^1 

5 \. 


t] 


„ 


— - 





-- 




J- - 










I 


i.... 






1 
{I 










S^ 


S ^^ 


> 














-- 


— - 


- - 




» 






c 


t ^ 






i 

a 

3 




;« 




i» 


















i 


?! 1 


1 

i 


g 


• ^*~ 


'"v. 
























- 




J; ! 


_j" 


i 1 




T. — 
O 


!H 


>• 

n 


lO 


^ 
























5 


«J zl 1 








b 
















k4 

O 

ac} 

>• 
< 


=» d 


! 


H 


•» 


v> 


















— 




1 

i 






i 

s 

5 




C- 


1 














"^ s o 
























S 'T* 


o 

X 


M 


^ 


1 




















- 


J ^1 


l" 1 






1 








1 














J 


5 fni 




a r1 
































' rs, 




i - 


i- 


>4 




! 




















\- 


' Wi 




-1 f^ 

l»8 S 


OH 


«H 


KE- 


|OH 


Kh 


OH,«H 


OH 


tfH 


OH 


eSH 


OH 


«-\ 




■j 


16 


^ 


i 




















'|tl 


V ^ 


'§ 


V 


' t 


















'f rs^ 


i ? 


•< 


^^ 


' 


1 








i 






Is r>< 


olorado 

LESS 


<* 6 




; 




1 1 


1 
1 












i 




tJ IS 




I 


















1 


CO- 5 


1 








1 














■Ki 


2i ,.r y 


i 


1 1 




1 














,5-5kl 


o ,5 O 


z 


• 


1 

1 


t 
















1" \ 


O 2 o 
a: S 


i 


p 


I 
1 1 


i 

1 1 


1 
1 


1 












£ i 5 




o 


1 


1 
1 


1 


1 


1 

! 


1 












"^M 


VI ' a 


3 


o 


1 1 


















1 1 


6'o^ 


g| -^ 


a 


1 m 


1 ; 






! 










1 






1 '^ 


VI O -f 


>-» 


•^ 


1 














1 
1 






3 -"R 


»4 

s 


u 


oo 






CO 


1 


1 
1 

1 
1 . 


1 

1 _ 




i 




t 












f^ 



831 



TM^'^rn^i^ 




832 





833 
Exhibit No. 18 

IN REPi 

Property U Supply 
UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF INDIAN AFFAIRS 
Navajo Area Office 

P. 0. Box 1060 
Gallup, New Mexico 87301 

APR 5 H74 



U.S. Commission on Civil Rights 

Attention: Larry Click, Deputy General Counsel 

1121 Vermont Avenue N.W. 

Washington, D.C. 20425 

Gentlemen: 

Reference is made to your letter of March 25, 1974 and to my letters 
of October 26, 1973 and January 29, 1974. I regret that you did not 
receive my letter of October 26, 1973 as it contained the results of 
a considerable amount of work by myself and my staff which I now must 
duplicate during a very busy period in our work year. 

Taking the requested items in numerical order, following are my 
responses : 

Number 12 Laundry from Tuba City Boarding School is presently 
being handled by Lukee Enterprises, Inc. located in Cortez, 
Colorado, 

Number 17 attached as Exhibit #17 is a copy of a typical con- 
struction contract payroll, for the week ending October 13, 1973. 
Names of Indian employees are underscored in red, 

Number 18 Contractors presently working on Navajo Area Office 
construction contracts report a total of 179 Indian employees 
on these projects. It should be noted that the construction 
season is not yet in full awing in this part of the country 
and this figure may be expected to increase significantly with 
the onset of good weather, 

Number 21 Copy of a contract for fresh produce, dated September 19, 
1973 is attached and identified as Exhibit 21, 

Number 23 as I stated in my letter of January 29, 1974, the BIA 
operates on an annual appropriation and, by law, cannot commit 
itself beyond the period of the currently appropriated funds. 
Also, since our laundry business has been exclusively with Indian 



834 



contractors for several years, any new firm qualifying under 
the "Buy Indian" Act would be afforded an opportunity to com- 
pete with the existing Indian firms for the available business. 
Surely no one seriously suggests that one Indian firm should 
be deprived of an established market and thereby destroyed, 
in order to promote the entrance of a new Indian firm in the 
field. 

Please advise if I can be of further assistance. 

Sincerely yours. 




/Jfea Prope' 
Contracting G 



Enclosures : 



Exhibit No. 17--Nielsons Inc. payroll for week ending 

November 10, 1973 
Exhibit No. 21--Copy of Contract NOO C 1420 5396 dated 

September 19, 1973 




IN REPLY REFER TO: 



835 
Exhibit No. 19 

UNITED STATES DEPARTMENT OF THE INTERIOR 

BUREAU OF INDIAN AFFAIRS 

Ltla 



DIVISION OF ] 

FEDERAL OFFICE BLDG & U S COU 
P O BOX 1248 
ALBUQUERQUE. NEW MEXICO 87I03 



APR 4 1974 



Nr. Lavrence B. Glide 

Acting General Coimsel 

Iftilted States Connlsalon on ClYil Rights 

1121 Vemont Ave., H.W. 

Waahlogton, D.C. 20U25 

Dear Mr. Gllek: 

In reply to your letter of March 6, ISHh, x«questlng documents to 
be furnished for Inclusion In the bearing record, the following are 
enclosed: 



1. Total number of construction contracts for 
schools on or near the Ravajo Indian 
Resenratlon let by the DlvlslcD of Placlllties 
Engineering from the beginning of FT 19^5 
through Ti 1973. 

2. An ethnic breakdown of eaployees by skill on 
each contract. 

Bie source of Inforaatlon for the ethnic breakdown Is dally con- 
struction reports which were prepared by the project Inspectors oc 
each project. Although craftsmen representing other minority groves 
were employed on these projects, records were kept on Indian saploy- 
oent and total number of en^loyees only. 

If ve can be of further assistance, please let us know. 



Sincerely yours. 



' Donald G. Ke 
Acting Chief/ 
Facilities 




B&elosures 



836 



UST OF CXWSTRJCnOH CCWTRACTS FOR SCHOOLS OS OR 

REAR THE NAVAJO INDIAN RESERVATION LET 

BY TSE DIVISION OF FACILITIES ENGINEERING 

FlBceg Year 1963 through Fiscal Year 1973 



Date Project 
Started 

1. Septenber I96h 

2. Aprtl 1965 

3. June 1965 

U. February 1966 

5. March I966 

6. April 1966 

7. September I966 

8. February I967 

9. August 1967 

10. September I968 

11. August 1967 



Amount of 
Project Name and Number Contract 

Rough Rock School $2,129,250 

LD35-732 

Beshblto School 5, 996, 21*5 

LD36-879 

OJo Encino School 486.130 

LD3^-85i» 

Dilcon Elementary School 2,930,848 
LD36-022 

Cottonwood School 1,359,828 

LD35-805 

Sanostee School 3,859,000 

LN32.376 

Eastern Navajo School 2,759,058 

LH3J*-089 

Many Fanns High School 8,288, 5U3 

LR35-026 

Rock Point School 2,052,282 

IJI35-809 

Wlngate Kltchen-Dlnlng 392, '^'«6 

LN3U.069 

Gray Hills High School 7,708,036 
LN33-0'H 



837 



ROUGH ROCK SCHOOL 



Sheet 1 of 2 



Average number of employees each month 



CRAFT 


Oct. 
I96U 


Nov. 
196k 


Dec. 
1964 


Jan. 
1965 


Feb. 
1965 


Mar. 

1965 


Apr. 
1965 


May 
1965 


June 
1965 


July 

1965 


Aug. 
1965 


Asbestos Indian 
Worker Other 























2 


Asbestos Indian 
Iii5)roiver Other 
























Indian 
Carpenter Other 





5 


1 
7 


2 
12 


5 
12 


6 
15 


5 
12 


3 
16 


1 
16 


1 
15 


Catpenter Indism 
Apprentice Other 








1 



2 



1 



1 









Cement Indian 
Mason Other 




1 





1 


1 
1 


h 



1. 



h 



h 

5 


3 


3 
2 


Indian 
Electrician Other 













2 



2 




2 



2 



2 



2 


Electrician Indian 
Apprentl ce Othe r 




















1 



1 



1 


Indian 
Glazier Other 
























Iron- Indian 
worker Other 








1 



2 



2 


I 



10 




6 




5 



2 




Ironworker Indian 1 
Apprentice Other 






















Indian 
Laborer Other 1 




12 

1 


13 

1 


21 
2 


20 
2 


18 

1 


15 

1 


15 
2 


10 
3 


10 
3 


Semiskilled Indian 
Laborer Other 




2 



2 





3 



h 



1» 
2 


5 



2 ' 1 

2 ! k 


Indian , 
Lathe r Othe r | 


















C 1 
3 ! 3 


Indlam 
Mason Other 













3 


2 
k 


3 

h 


2 
5 


1 01 

2 ! 2 1 


Indian 
Operator Other 


2 
2 


t 


3 


3 


5 
5 


2 

U 


3 

5 


3 
7 


3 

1* 


k 

6 


3 
2 


Indian 
Painter Other 



















2 




5 





Painter Indian 
Apprentice Other 
























Indian 
Plasterer Other 























5 


Plumber Indian 
Fitter Other 







2 




2 




1* 




5 



13 



lU 



11 


1 
11* 


1 
11 


Plumber Indian 
Apprentl ce Othe r 












1 


1 
1 


1 
2 


1 
1 




1 







1 


Indian 
Boofer Other 
















1 



2 



2 





9 


Roofer Indian 
Apprentl ce Othe r 






















Sheetmetal Indian 
Worker Other 









3 



2 





2 



2 




3 



3 



3 


Sheetmetal Indian i 
Worker Appren. Other 1 




















! 


Indian 
Tile Setter Other 




















1 


Tile Setter Indian 
Helper Other 






















I 



838 

ROUGH ROCK SCHOOL 



Sheet 2 of 2 



Average number of employees each month 



CRAFT 


Sept 
1965 


Oct. 

1965 


Nov, 

1965 


Dec. 
1965 


Jan. 
1966 


Feb. 
1966 


Mar. 

1966 










Asbestos Indian 
Worker Other 




1 




1 



2 






1 




1 












Asbestos Indian 
luqjrover Other 




1 




1 




1 








1 












Indian 
Carpenter Other 


1 
16 


1 

13 


1 
Ik 


i 
13 




6 



3 


6 
3 










Carpenter Indian 
Apprentice Other 






1 




1 


















Cement Indian 
Mason Other 


3 
2 


5 



5 



3 2 





I 










Indian 
Electrician Other 



2 



2 



3 


i 

5 i 6 




k 




1 










Electrician Indian 
Apprentice Other 




1 




1 




1 


1 












i 


Indian j 
Glarier Other 1 3 


6 
3 




1 












i 


Iron- Indian 
worker Other 2 






6 
2 














Ironvorker Indian 
Apprentice Other 
























Indian 
Laborer Other 


lo 
3 


6 

3 


H 
1 


8 

1 


3 


2 
2 


k 












Semiskilled Indian ! 
Laborer Other 1 1 


1 
3 


1 
5 




6 : ^ 














Indian 
Lather Other 



3 



3 




1 












i 


Indian 
Mason Other 






1 




1 














Indian 
Operator Other 


2 
3 


5 
k 


5 

k 


3 1 
3 1 




1 




1 










Indian 
Painter Other 


1 
3 



6 



10 


1 
k ' 1* 


1 
k 



2 










Painter Indian 
Apprentice Other 








1 


1 





1 














Indian 
Plasterer Other 



2 




5 


1 
3 


















Plumber Indian 
Fitter Other 




7 



8 



9 




8 




8 




3 



2 










Plumber Indian 
Apprentice Other 
























Indian 
Roofer Other 



6 






















Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 




k 



3 




1 


6 
2 



2 



3 2 










Sheetmetal Indian 
Worker Appren. Other 










1 










Indian 
Tile Setter Other 










7 


I i 










Tile Setter Indian 
Helpe r Othe r 























839 



lESHBITO SCHOOL 



Sheet 1 of 2 



Average number of employees each month 



CRATT 


June 

1965 


July 
1965 


Aug. 
1965 


Sept. 
1965 


Oct. 
1965 


Nov. 
1965 


Dec. 
1965 


Jan. 
1966 


Feb. 
1966 


Mar. 

1966 


Apr. 

1966 


Aalsestos Indian 
Worker Other 







3 




3 




3 




5 





3 



2 




1 



2 


Asbestos Indian 
Improver Other 




















1 




1 




1 


Indian 
Carpenter Other 




h 




7 
16 


15 
19 


26 
21 


Ik 
22 


22 

29 


17 
32 


8 
3U 


6 
22 


B 1 
32 ; 


Carpenter Indian 
Apprentice Other 






2 

1 


1 
1 


2 

3 


2 
2 


2 

h 


2 
1* 


1 
2 


1 
2 


i! 


Cement Indian 
Mason Other 




1 







3 

7 


3 
7 


2 
11 






3 




3 
10 


it 


Indian 
Electrician Othe r 








1 



1 







k 




5 



1* 



5 


1 
5 


1 ; 


Electrician Indian 
Apprentice Other 










6 

1 




1 




1 




1 




1 




1 


?1 


Indian 
Glasler Other 



















2 




1 


?l 


Iron- Indian 
vorker Other 



2 



2 


2 
1» 


3 
6 


2 

U 


3 
18 




11 




5 







1 


! 

2 1 


Ironworker Indian 
Apprentice Other 






1 



















Indian 
Laborer Other 


5 

k 


8 
1* 


30 

5 


h3 
6 


50 

6 


1*1* 
9 


27 
1* 


2i* 
3 


9 
1* 


ll* 

8 


6 


Semiekilled Indian 
Laborer Other 




7 



2 

1 


1 
2 


1* 
k 


3 
8 






2 

1 


2 
3 


I* ; 

6 


Indian 
Lather Other 












2 



10 





12 



12 




9 




■ 6 ^ 


Indian j 
Mason Other | 








7 


5 
8 


5 
21 










• 


Indian U 
Operator Other k 


1* 
5 


7 
6 


9 
6 


9 
7 


13 
10 


1 
5 



h 



6 


2 

5 


k 1 


Indian 
Painter Other 












1 



2 






1 



12 


2 
12 


5 
21 


Painter Indian 
Apprentice Other 














1 








1 




1 


l\ 


Indian 
Plasterer Other 






















6 


1 
8 


Plitmber Indian 
Fitter Other 




5 


3 
15 


2 
13 


1 
10 


1 
25 


2 
22 


2 
23 


1 
15 


1 
12 


1 
13 


3 

13 


Plumber Indian 
Apprentice Other 






1 
1 


1 

1 


1 
1 


2 

1 


1 
2 


2 1 3 


1 

1 


1 
1 


Indian 
Roofer Other 











2 


1 



3 
9 


3 1 3 
8 1 11 


2 

6 


3 

8 


Roofer Indiain 
Apprentice Other 
















1 

1 1 1 




1 



2 


Sheetmetal Indian 
Worker Other 







1 




3 



12 



16 




7 



8 


i 
6 1 U U 





SheetmeteJ. Indian i 
Worker Appren. Other 












1 



1 



1 

1 1 




Indian 
Tile Setter Other 














1 i 

1 U 1 6 




7 


Tile Setter Indian 
Helper Other 

























840 



Sheet 2 of 2 



BESHBITO SCHOOL 



Average nvmber of employees each month 



CRAFT 


May 

1966 


June 
1066 


July 
1Q65 


Aug. 
1966 


Sept, 
1060 


Oct 
1966 


Nov. 
1066 










Asbestos Indian 
Worker Other 



2 




2 




? 




1 
















Asbestos Indian 
In?>rover Other 




1 




1 




















Indiam 
Carpenter Other 


6 
31 


5 
20 


8 
23 


2 

7 



3 




3 




3 










Carpenter Indian 
Apprentice Other 


1 

1 


1 
2 


1 




2 




1 




1 












Cement Indian 
Mascn Other 


I 


1 


1 
k 




1 
















Indian 
Electrician Other 


1 
9 


1 
9 


1 
11 


1 
12 


1 
3 



2 












Electrician Indian 
Apprentice Other 




1 




1 




















Indian 
Glazier Other 




k 




1 




1 


















Iron- Indian 
worker Other 




1 




1 




















Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


25 

5 ■ 


31 

12 


30 
6 


15 
6 


5 
1 


2 

1 












Semiskilled Indian 
Laborer Other 


6 
5 


1. 
5 




k 


















Indian 
Lather Other 






3 




















Indian 
Mason Other 



2 






















Indian 
Operator Othe r 


o 


6 
11 


5 
11 


I 

2 


1 
1 




1 




1 










Indian 
Painter Other 


I4 


23 


Q 


8 




3 




1 












Painter Indian 
Apprentice Other 




1 




1 




1 




1 
















Indian 
Plasterer Other 


1 


1 
7 




















Plumber Indian 
Fitter Other 


1 
13 


1 
19 


1 

17 


1 
12 




3 



2 



2 










Plumber Indian 
Apprentice Other 


1 
1 


1 
2 


1 
3 


1 
2 


1 
1 














Indian 
Roofer Other 


3 
8 


1 

9 




















Roofer Indian 
Apprentice Other 




1 






















Sheetmetal Indian 
Worker Other 




1 


1 
12 




7 




1 



3 














Sheetmetal Indian 
Worker Appren. Other 




1 





















Indian 
Tile Setter , Other 




6 



5 




















Tile Setter Indian 
Helper Other 

























841 



OJO ENCINO SCHOOL 



Sheet 1 of 1 



Average number of employees each month 



CRAFT 


Jtay 
1965 


Aug. 
1965 


Sept 
1965 


Oct. 
1965 


Nov. 
1965 


Dec. 
1955 


Jan. 
1966 


Feb. 
1966 


Mar. 
1966 


Apr. 
1966 


ABhestos Indian 
Worker Other 


















1 




Asbestos Indlem 
Ijqprover Other 






















Indian 
Carpenter Other 





6 



7 


I 




6 




h 















3 


Carpenter Indian 
Apprentice Other 






















Cement Indian 
Mason Other 




1 




1 




1 




1 




1 








1 




1 






1 


Indian 
Electrician Other 








1 




1 


, 

1 1 









1 




1 




1 




1 


Electrician Indian i 
Apprentice Other 1 






1 




1 




1 








1 




1 










Indian 
Olasler Other 






















Iron IndlEin 
Worker Other 






















Iron Worker Indian 
Apprentice Other 






















Indian 
laborer Other 






k 




k 
1 


7 



5 





1 




1 








k 


1 

3 


SemiakiUed Indian 
Laborer i' Other 














1 
2 


1 

2 








u 




1 



2 




Indian 
l*ther Other 






















Indian 
Mason Other 









5 




3 












Indian 
Operator Other 




1 



2 












2 







1 




1 







2 


Indian 
Painter Other 











2 









1 


1 
1 


1 
k 




Painter Indian 
Apprentice Other 






















Indian 
Plasterer Other 















2 







2 




Plumber- Indian 
Utter Other 


I 



2 




3 







2 




I 




1 



2 




1 


Indian 
Hoofer Other 














7 



2 






Hoofer Indian 
Apprentice Other 


1 


















Sheetmetal Indian | 
Worker Other ' 














I 






Sheetmetal Indian | 
Worker Appren. Other 




















Indism i 
Tile Setter Other 


1 








i 1 

2-11 




Tile Setter Indian j 
Helper Other 1 


i 






2 1 1 1 ! 1 



i/ Includes powertool operator, pipe layer. 



moter mixer & tender and rodman 



842 



DILCOW ELEMENTARY SCHOOL 



Sheet 1 of 2 



Average number of employees each month 



CRAFT 


Mar. 

1966 


Apr. 
1966 


May 

1966 


June 
1966 


July 
1966 


Aug. 
1966 


Sept. 
1966 


Oct. 

1966 


Nov, 
1966 


Dec, 
1966 


Jan. 
1967 


Asbestos Indian 
Worker Other 










1 


■ 0" 

1 




1 




1 




1 




1 


? 




Asbestos Indian 
Iii?)rover Other 










1 



1 


•0 

1 




1 




1 




1 




1 




Indian 
Carpenter Other 




3 


7 
17 


8 
n 


.1 


3I 


6 
28 


7 
22 


5 
22 


1 

lU 




8 



h 


Carpenter Indian 
Apprentice Other 




1 
2 


1 
2 


2 
2 


2 
2 




1 






1 




1 




1 




1 


Censent Indian 
Mason Other 




3 

1 


3 

1 


3 

3 


1* 

5 




3 


k 

3 


1 




1 




1 




Indian 
Electrician Other 




1 




1 
1 


2 
2 


2 

6 ' 


2 

1 


2 
2 


2 

3 


2 

U 


2 

7 


2 

3 


Electrician Indian 
Apprentice Other 
























Indian 
Glazier Other 



















2 






Iron- Indian 
worker Other 




6 


1 
h 


1 
3 


1 
3 



3 




1 










Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


5 



25 

1 


26 

1 


21 

1 


25 

1 


17 

1 


17 
2 


ii* 

1 


12 



6 ■ 
2 


7 

1 


Semiskilled Indian 
Laborer Other 



2 



2 




1 


3 
2 


3 
3 


1* 


5 
2 


3 









Indian 
Lather Other 










t 




6 



2 










Indian 
Mason Other 











10 








1 



2 






1 


Indian 
Operator Other 


3 
3 


1* 

9 


3 

k 


1 
k 


1* 

6 


3 
6 


1* 


1 

2 



2 




1 




1 


Indian 
Painter Other 









2 



9 


1 
10 


1 
7 



8 


5 
7 


1 


1 
5 


Painter Indian 
Apprentice Other 
























Indian 
Plasterer Other 












2 



7 










Plumber Indian 
Fitter Other 






5 


3 

11 


3 
10 



6 


i 


U 



1* 


1 
3 




1 




1 


Plumber Indian 
Apprentice Other 




1 
1 


1 
2 


1 
2 


1 
2 


1 
1 












Indian 
Roofer Other 











5 




7 



2 










Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 







2 


k 


6 



1* 







5 



2 




3 



2 


Sheetmetal Indian 
Worker Appren. Other 










1 













i 
1 


Indian 
Tile Setter Other 













5 




3 




u 


1 


1 


Tile Setter Indian 
Helper Other 












2 2 

1 1 




3 


i 





843 



DILCON ELEMENTARY SCHOOL 



Sheet 2 of 2 



Average number of employees each month 



CRAFT 


Feb. 
1967 


Mar. 

1967 




















Asbestos Indian 
Worker Other 
























Asbestos Indian 
Improver Other 
























Indian 
Carpenter Other 




3 



2 




















Carpenter Indian 
Apprentice Other 




1 




1 




















Cement Indian 
Mason Other 


1 























Indian 
Electrician Other 


1 
1 


1 
2 






. 














Electrician Indian 
Apprentice Other 
























Indian 
Glazier Other 
























Iron- Indian 
worker Other 
























Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


h 

' 1 


1 
1 




















Semiskilled Indian 
Laborer Other 
























Indian 
lather Other 
























Indian 
Mason Other 
























Indian 
Operator Other 
























Indian 
Painter Other 


1 
2 



2 




















Painter Indian 
Apprentice Other 
























Indian 
Plasterer Other 
























Pluaiber Indian 
Fitter Other 




1 




1 




















Plumber Indian 
Apprentice Other 
























Indian 
Roofer Other 


■ 

1 






















Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 














1 








Sheetmetal Indian | 
Worker Appren. Other 


?: 1 






1 








Indian 1 
Tile Setter Other 1 










1 








Tile Setter Indian 
Helper Other 












1 









844 



COTTONWOOD SCHOOL 



Average number of employees each month 



Sheet 1 of 2 



CRAFT 


Apr. 
1966 


May 

1?66 


June 
1^66 


July 
1966 


Aug. 
1966 


Sept. 
1966 


Oct. 
1966 


Nov. 

1966 


Dec. 

1966 


Jan. 

1966 


Feb. 
1<*d6 


Asbestos Indian 
Worker Other 












1 




1 












1 


Asbestos Indian 
In^j rover Other 
























Indian 1 
Carpenter Other 1 1 




•? 





1 
5 



7 


1* 
13 


2 

11 


2 
12 


1 
8 



8 




6 


Carpenter Indian 1 
Apprentice Other 1 






















Ceiaent Indian 
Mason Othe r 



2 




k 



2 



2 



2 



2 




2 




1 




1 




I 


Indian 
Electrician Other 







2 


, 
2 



2 



2 



2 



2 




k 



3 


Electrician Indian 
Apprentice Other 




i 


















Indian | 
Glazier Other ' 


i 


















Iron- Indian i 
worker Other 


in? 



3 




1 

1 










Ironworker Indian i 
Apprentice Other ' 


? 1 


















Indian , 3 
Laborer Other ' 1 


8 , B 6,9 

1 ! 2 2 11 


11 

1 


T 
2 


6 

3 


5 i 3 





Semiskilled Indian i 1 ^ ' 
Laborer Other ' 1 1 


2 
1 


s 




3 


0,1, 

1 1 1 1 


I 
2 


Indian , j j 
Uther Other ' 1 


i 







3 


?! 




Indian : , 
Mason Other 1 1 1 





10 



10 






1 t 




Indian i l ; 3 j 2 
Operator Other ' 3 1 3 ' 6 




1 



2 


2 







1 


i 

1 1 1 




5 


Indian • , i 
Painter Other ' ' 1 








1 


1 
1 


1 

2 


2 2 1 2 1 
1 2 1 2 1 


Painter Indian : 
Apprentice Other 


j 


1 








1 



2 


Indian ^ j i 
Plasterer Other • 1 i 










u 




V\ i 


Plumber Indian 
Pltter Other ' 


1 
. 1 3 



6 



6 




3 



2 



2 



2 


f 1 


Plumber Indian j | 
Apprentice Other ' ' 3 1 






1 i 






1 


Indian < i 
Poofer Other ' ! 




1 1 
2 1 2 1 3 


i il 1 


Foofer Indian 
Apprentice Other 


i 




1 


1 1 


Sheetmetal Indian | 
Worker Other ' 




j 1 
j 1 i 2 


1 i 

1 1 1 2 1 2 


Sheetmetal Indian ] i 
Worker Appren. Other 1 




1 1 




1 


Indian : i j 
Tile Setter Other 1 1 1 




1 









3 


Tile Setter Indian i 
Helper Other | 










1 








1 



i 



845 



Sheet 2 of 2 



COTTONWOOD SCHOOL 



Average number of employees each month 



CRAFT 


Mar. 

1967 


Apr. 
1961 




















Asbestos Indian 
Worker Other 


u 




■ 
















Asbestos Indian 
Improver Other 
























Indian J 
Carpenter Other 3 1 2 




















Carpenter Indian i i 
Apprentice Other 1 | 




















Cemsnt Indian i o 
Mason Other 1 i 




















Indian ; j 
Electrician Other ■ 2 12 






' 














Electrician Indian i 
Apprentice Other : 




















Indieji . j 
Glazier Other ' i 




















Iron- Indian ; j 
worker Other ' ' 




















Ironworker Indian ; j 
Apprentice Other 1 


















Indian , i 1 
Laborer Other ' 3 ' 3 












1 i 1 


Semiskilled Indian j ; 
Laborer Other ^ 




1 
1 




i ! i 


Indian , j 
Lather Other ' ! 












1 , 
1 




Indian j 
Mason Other '■ i 










i 1 




Indian , 
Operator Other ' 2 i 1 




1 






1 




Indian i 1.0 
Painter Other 1 5 i 2 




1 






1 




Painter Indian | . 
Apprentice Other 1 ! 




1 






i 




Indian , 
Plasterer Other ' ' 


i 1 




1 i 




Plumber Indian , 0,0 
Fitter Other ■■ 3 ' 2 




i 1 1 


! 1 




Plumber Indian . : 
Apprentice Other < 


! 






1 1 1 


Indian , i 
Roofer Other ' I 






1 I. 1 


Foofer Indian j 
Apprentice Other | 


1 






1 1 1 


Sheetcetal Indian o i 
Worker Other 2 • 1 


i 1 




! 1 ' 1 


Sheetr.etal ■ Indian : 1 1 1 1 
Worker Ap-oren. Other ' 1 ' 1 


1 1 ' 1 


Indian , , 
Tile Setter Other ' 1 ! 








1 1 




. Tile Setter Indian j 1 
Helper Other | 1 


1 


1 











846 



SAKOSTEE SCHOOL 



Average number of er.ployees each month 



Sheet 1 of 2 



CRAFT 


May 

1966 


June 

1956 


July 

1966 


Aug. 

lo66 


Sept. 

1966 


Oct. 

1965 


Nov. 

1066 


Dec. 

1056 


Jon. 

1067 


Feb. 

1o6t 


Mar. 

1957 


Asbestos Indian 
Worker Other 











2 




.1 






1 



2 









1 


Asbestos Indlam 
In?) rover Other 
























Indian 
Carpenter Other 









5 


7 
lo 


1*5 


5 
-9 


1* 
'0 




50 


2 

21 



IQ 


2 


Carpenter Indian 
Apprentice Other 










2 















Cement Indian 
Mason Other 






1 


2 
2 


1 

C 


2 
6 


2 

5 


2 

•5 


1 
2 




1 



2 


2 


Indian 
Electrician Other 








1 




3 


. 

h 




k 




6 


°6 




5 




6 




5 


Electrician Indian 
Apprentice Other 










1 


1 
1 


1 






1 


1 





1 




1 




1 


Indian 
Glazier Other 















3 



3 





2 



2 


Iron- Indian 
worker Other 


I 
1 


X 

3 


10 


i 

12 


1 

7 


i 

10 


i 
3 


■ 1" 

1 


u 

2 






Iixmvorker Indian 
Apprentice Other 
























Indian 
Laborer Other 






23 

8 


27 

12 


31 

9 


20 

8 


20 

6 


15 
h 


5 


h 
2 


7 
2 


Semiskilled Indian 
Laborer Other 




3 

1 


2 



2 
2 


1; 
3 


8 
6 


I 


2 

5 





3 




5 


Indian 
Lather Other 











3 




k 




5 




5 




u 




5 



it 


Indian 
MaBon Other 








2 

3 


h 
3 


5 
3 


5 
5 


2 

u 




1 




3 


Indian 
Operator Othe r 


1 
1 


12 

1 


11 
1* 


6 
3 


3 
2 


1 
3 


3 

1 


5 

1 






3 



Indian 
Painter Other 








1 
1 


1 
2 






7 




5 






3 




8 


Painter Indian 
Apprentice Other 












1 













1 


Indian 
Plasterer Other 














u 



3 








5 





Plumber Indian 
Pltter Other 








h 




6 



10 




10 




6 




7 



5 




6 





Plumber Indian 
Apprentice Other 










1 


1 
1 


2 

1 


2 











Indian 
Roofer Other 








2 




3 

1 


2 

2 


2 

1 


1* 
2 


2 
6 


2 
7 


1 
h 


Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 








2 







3 




1 



2 




1 




1 



2 




1 


Sheetmetal Indian 
Worker Appren. Other 
























Indian 
Tile Setter Other 

















2 







3 


Tile Setter Indian 
Helper Other 

























847 



Sheet 2 of 2 



SAN06TEE SCHOOL 



Average ntmiber of employees each month 



CRAFT 


Apr. 
196T 


May 

1967 


June 
1967 


July 
1967 


Aug. 
1967 


Sept. 
1967 


Oct. 

1967 










Asbestos Indian 
Worker Other 



2 



2 



2 



2 






1 













Asbestos Indian 
In?) rover Other 








1 



2 






1 




1 










Indiam 
Carpenter Other 



10 




15 




5 



9 



12 




3 



2 










Carpenter Indian 
Apprentice Other 








1 


















Cement Indian 
Mason Othe r 



5 




8 




6 




3 



2 




1 












Indian 
Electrician Other 




6 


1 
3 




1 



3 


, 
3 




h 



3 










Electrician Indian 
Apprentice Other 




1 




1 




1 




1 




1 














Indian 
Glazier Other 



2 




1 







2 














Iron- Indian 
worker Other 
























Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


10 
h 


11; 
2 


17 

7 


13 

10 


b 
9 


3 
2 


3 










Semiskilled Indian 
Laborer Other 



7 





2 



2 




1 














Indian 
Lather Other 
























Indian 
Mason Other 
























Indian 
Operator Othe r 


1 
2 


1 
3 



6 




5 



2 














Indian 
Painter Other 


3 
13 


1 
10 


1 
11 


I 



2 


1 
3 



2 










Painter Indian 
Apprentice Other 




1 




1 




1 


















Indian 
Plasterer Other 




h 






1 








1 












Plumber Indian 
Fitter Other 



5 




5 




7 




6 




7 



3 



2 










Plumber Indian 
Apprentice Other 








1 



1 















Indian 
Roofer Other 
























Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 



3 


? 




1 




1 




1 




1 


2 










Sheetmetal Indian 
Worker Appren. Other 
























Indian 
Tile Setter Other 






3 



2 




1 
















Tile Setter Indian 
■ Helper Other 

























848 



EASTERN NAVAJO SCHOOL 



Average number of employees each month 



Sheet 1 of 2 



CRAFT 


Oct. 
1066 


Nov. 
1966 


Dec. 

1966 


Jan. 
1967 


Feb. 
IQ67 


Mar. 

1967 


Apr. 

1967 


May 

1067 


June 

IQ67 


July 

1967 


Aug. 

1967 


Asbestos Indian 
Worker Other 


















1 




1 



2 




Asbestos Indian 
Inp rover Other 


















c 

1 




1 




Indian 
Carpenter Other 




1 




h 


2 

8 


1 
8 


2 

ll* 


2 
32 


2 

3h 


2 
27 


2 

30 


1 
16 


1 
7 


Carpenter Indian 
Apprentice Other 




1 



1 



1 



1 
1 


2 
? 



3 


1 
2 




1 



2 



2 


Cement Indian 
Mason Othe r 







2 






1 



k 




7 



k 




5 



3 







Indian 
Electrlciar. Other 










. 

1 




5 




6 


I 


I 




6 




7 


Electrician Indiaji 
Apprentice Other 














1 




1 










Indian 
Glazier Other 

















2 



2 






2 


Iron- Indian 
vorker Other 





3 


§ 



2 




13 


g 




5 



2 



2 






1 


Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


3 



6 

2 


6 
3 


5 
6 


11 

5 


15 
15 


1« 
12 


13 

10 


10 

10 


15 


5 
8 


Semiskilled Indian 
Laborer Other 








1 




2 

1 


5 
2 


1 
6 


1 
5 


1 
12 



7 


1 
2 


Indian 
Lather Other 
















k 




8 




1» 






Indian 
Mason Other 












7 


1 
7 




7 


i 


i 




1 




Indian 
Operator Other 


1 
3 


1 
6 


1 
6 


0^ 

5 









9 



11 




11 




8 


1 
U 



3 


Indian 
Painter Other 














1 




8 


2 

h 


3 


2 

8 


2 
2 


Painter Indian 
Apprentice Other 
















2 

1 


1 
2 


1 
2 



2 


Indian 
Plasterer Other 
















k 



k 



10 



2 




Plumber Indian 
Fitter Other 







3 



2 


1 
6 


1 
10 


1 

12 


1 
lU 


1 
13 




18 


6 

10 


Pltimber Indian 
Apprentice Other 










1 



3 


1 

2 



3 



3 




k 




k 



2 


Indian 
Roofer Other 














6 


2 

6 




3 




1 



2 




1 


Roofer Indian 
Apprentice Other 














2 

1 


1 
3 






1 




1 


Sheetmetal Indian 
Worker Other 












1 




1 



2 




3 




1* 







1 


Sheetmetal Indian 
Worker Appren. Other 
















1 




1 




1 






Indian 
Tile Setter Other 

















2 




u 







1 


Tile Setter Indian 
Helper Other 

























849 



Sheet 2 of 2 



KASTEF!! NAVAJO SCHOOL 



Average number of employees each month 



CRAFT 


Sept. 
1967 






















Asbestos Indian 
Worker Other 



h 






















Asbestos Indian 
Improver Other 



2 






















Indian 
Carpenter Other 



3 






















Carpenter Indian 
Apprentice Other 
























Cement Indian 
Mason Other 
























Indian 
Blectrlclan Other 

























Electrician Indian 
Apprentice Other 
























Indian 
Glazier Other 
























Iron- Indian 
worker Other 
























Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


' 2 

3 






















Semiskilled Indian 
Laborer Other 




1 






















Indian 
Lather Other 
























Indian 
Mason Other 
























Indian 
Operator Othe r 




1 






















Indian 
Painter Other 




2 






















Painter Indian 
Apprentice Other 




1 






















Indian 
Plasterer Other 
























Plumber Indian 
Fitter Other 



2 






















Plximber Indian 
Apprentice Other 



1 






















Indian 
Roofer Other 
























Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 
























Sheetmetal Indian 
Worker Aporen. Other 
























Indian 
Tile Setter Other 
























Tile Setter Indian 
Helper Other 























850 



MAJfy FAFNS HIGH SCHOOL 



Average number of employees each month 



Sheet 1 of 2 



CRAFT 


Apr. 
1967 


May 
1967 


June 
1967 


July 
1967 


Aug. 
1967 


Sept. 
1967 


Oct. 

1967 


Nov. 

1967 


Dec. 

1967 


Jan. 
1968 


Feb. 
1968 


Asbestos Indian 
Worker Other 










1 



5 



.3 




h 




3 




5 






Asbestos Indian 
Improver Other 










1 




1 




1 




1 




1 




1 






Indian 
Carpenter Other 


3 
3 


17 
26 


lit 
U5 


10 
30 


11 
30 


11 

31 


12 
26 


15 


13 


11 


1* 
16 


Carpenter Indiain 
Apprentice Other 




1 


3 
k 


2 
6 



6 



6 


1 
5 


1 
5 



3 



2 






Cement Indian 
Mason Othe r 




1 


k 
6 


1* 
7 


k 
7 


k 
7 


k 
7 


4 
7 


1* 
3 


2 
2 






Indian 
Electrician Other 






2 


1 
12 . 


2 
13 


2 

12 


2 
9 


2 
11 


3 
10 


1* 
10 


3 
12 


3 
9 


Electrician Indian 
Apprentice Other 






1 




1 


1 
2 


1 
2 


1 
2 


1 
2 


1 
2 


1 
3 






Indian 
Glazier Other 









2 



2 











3 



2 






3 


Iron- Indian 
worker Other 


3 
3 


' k 
6 


3 

8 


5 
6 


5 
8 


5 
12 


6 
12 


2 
9 


4 
6 


5 



5 


Ironvorker Indian 
Apprentice Other 




1 


1 
1 


1 
1 




1 




1 




1 




1 




1 




1 






Indian 
Laborer Other 


I 


2h 
15 


21 
17 


22 
18 


32 

5 


26 



30 



2i+ 
10 


2I* 
3 


6 
2 


2 



Semiskilled Indian 
Laborer Other 



2 


1 
2 


2 

2 


7 
11 


5 
3 


iB 

1 


13 



10 

1 


10 
3 



2 


0" 
3 


Indian 
Lather Other 







2 




3 




1* 



7 



7 



12 




11 


1 
5 


I 


Indian 
Mason Other 






1 
7 


1 
9 


1 
11 


1 
21 


3 
13 


1 
7 



3 






1 


Indian 
Operator Other 


I 


8 
8 


5 
10 


1 
8 


6 

7 




10 


12 


2 
2 


1 



1 



Indian 
Painter Other 






1 




5 


9 


1 
15 


i 
21 


2 

13 


1 
10 


1 
7 



2 


Painter Indian 
Apprentice Other 














1 




2 




1 




1 






Indian 
Plasterer Other 









5 




k 




k 






h 








Plumber Indian 
Fitter Other 


1 
3 


1 
22 


2 
27 


3 
20 


3 
22 


21 


26 


3 
15 


3 
9 


2 

8 


2 
7 


Plumber Indian 
Apprentice Other 


1 



1 
1 




1 


1 
2 


1 
2 




1 




1 




1 




1 






Indian 
Roofer Other 








3 


1 
3 




3 




5 



5 



5 






2 




Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 





3 




6 



5 



6 




5 




5 




8 




6 



2 



3 


Sheetmetal Indian 
Worker Aporen. Other 
























' Indian 
Tile Setter Other 














1 




1 



2 



2 






Tile Setter Indian 
Helper Other 














1 




1 



2 



2 







851 



MANY FAI^S HIGH SCHOOL 



Average number of employees each month 



Sheet 2 of 2 



CRAFT 


Mar. 

1968 


Apr. 

1968 


May 

1968 


June 

1968 


July 

1968 


Aug. 

1968 


Sept. 

1968 


Oct. 

1968 


Nov. 

1968 


Dec. 

1968 


Jan. 

196? 


Asbestos Indian 
Worker Other 





k 




k 



2 



2 





2 










Asbestos Indian 
Improver Other 





2 



2 




2 



2 














Indian 
Carpenter Other 


16 


2 
11 


1 
9 


1 
13 


2 
13 


2 
9 


1 



3 


1 
2 




1 




Carpenter Indian 
Apprentice Other 






1 



1 




1 




1 














Cement Indian 
Mason Othe r 




2 


2 
T 



9 


§ 


§ 




1 




1 










Indian 
Electrician Other 


3 
9 


3 
10 


3 
9 - 


I 


I 


I 


2 
9 




1 








Electrician Indian 
Apprentice Other 






1 




1 




1 




1 



2 












Indian 
Glazier Other 



2 






2 




1 




2 














Iron- Indian 
worker Other 


— U~ 

h 


2 
2 




1 


1 
1 
















Ironworker Indian 
Apprentice Other 












1 














Indian 
Ii>)orer Other 


l 


'I 


18 
1 


16 

3 


18 



15 
2 


11 




5 



2 




2 






Semiskilled Indian 
laborer Other 


12 
3 


7 

1 


3 

1 


3 

1 
















Indian 
Lather Other 




12 



9 



6 




3 




1^ 














Indian 
Mason Other 




1 





2 





2 




1 




1 










Indian 
Operator Othe r 


6 
3 


^ 


^ 


I 


§ 


g 



2 






1 


? 




Indiam 
Painter Other 


1 
7 


li 


k 
10 


2 

11 


^9 




§ 




3 






1 




Painter Indian 
Apprentice Other 






1 








1 














Indian 
Plasterer Other 



13 




11 






5 



3 














Plumber Indian 
Fitter Other 


2 
8 


5 


I 


2 

6 


2 

7 


3 
7 


3 

5 




3 






1 



2 


Plumber Indian 
Apprentice Other 






1 




1 




1 




1 



2 



2 




1 








Indian 
Roofer Other 




9 



10 




















Roofer Indian 
Apprentice Other 






















i 


Sheetmetal Indian 
Worker Other 







1* 



12 




13 



12 


^ 




1 




1 








Sheetmetal Indi.an 
Worker Apnren. Other 
























Indian 
Tile Setter Other 



2 


e 




5 





2 




1 












Tile Setter Indian 
Helper Other 



2 


e 



5 






3 




1 













852 



BOCK POINT SCHOOL EXPANSION 



Average number of employees each month 



Sheet 1 of 2 



CRAFT 


Sept. 
1967 


Oct. 

1967 


Nov. 
1067 


Dec. 

1957 


Jan. 
1968 


Feb, 

1068 


Mar. 

1968 


Apr, 

1968 


May 

1968 


June 

?968 


July 

1068 


Asbestos Indian 
Worker Other 
















3 



2 



2 




3 




Asbestos Indian 
Improver Other 


















1 




1 




1 




Indian 
Carpenter Other 


% 


2 

9 


iZ 


ll 


I 


2 
12 


1^ 


2 
10 


iS 


6 
11 


1! 


Carpenter Indian 
Apprentice Other 






1 







1 














Cement Indian 
Mason Other 




1 




3 



2 






1* 



2 



2 






6 




3 


Indian 
Electrician Other 






1 


1 
2 



3 


1 
1 


2 

1 


2 
3 


2 

2 


2 

1 


3 
3 


2 

5 


Electrician Indian 
Apprentice Other 






1 



1 



1 



1 



1 



1 
1 


1 
1 


1 
1 


1 
1 


Indian 
Glazier Other 

















3 




2 




3 



2 


Iron- Indian 
vorker Other 




1 




1 
5 


1 
k 




1 




3 




3 




k 









Ironworker Indian 
Apprentice Other 






1 




















Indian 
Laborer Other 


3 
2 


10 
2 


l6 

1 


13 

5 


3 




ill 

1* 


15 
u 


10 
2 


12 



U 



15 

1 


Semiskilled Indian 
Laborer Other 







1* 

1 


3 

1 




2 
3 


1 

3 


1 

1 


3 

1 


2 
2 


1 
1 


Indian 
Lather Other 













2 



3 


1 
h 




3 



2 


0' 
2 


Indian 
Mason Other 






1 
9 




11 





6 




3 


1 
2 



2 






Indian 
Operator Other 


2 
2 


2 
2 


I 


I 



2 


I 


3 

7 


1 
2 


3 

5 


3 



1* 

5 


Indian 
Painter Other 












1 

7 


2 

1* 


3 

2 


3 
2 


3 

3 




Painter Indian 
Apprentice Other 














1 



1 



1 



1 





Indian 
Plasterer Other 






















2 



U 


Plumber Indian 
Fitter Other 





5 




7 



10 



5 


1 


1 
5 




7 




8 


1 


1 
I4 


Plumber Indian 
Apprentice Other 






1 



1 




1 









1 



1 



1 



Indian 
Roofer Other 















6 




'? 




3 




1* 






Roofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 











2 



2 



3 



3 



3 




7 




3 


Sheetrr.etal Indian 
Worker Aporen. Other 
















1 




1 








Indian 
Tile Setter Other 



















3 



5 




1 


Tile Setter Indian 
■ Helper Other 

























853 



Sheet 2 of 2 



HOCK POINT SCHOOL EXPANSION 



Average number of employees each month 



CRAFT 


Aug. 
1Q68 


Sept. 
1968 


Oct. 
1068 


















Asbestos Indian 
Worker Other 
























Asbestos Indian 
Improver Other 
























Indian 
Carpenter Other 


2 
5 




1 




1 


















Carpenter Indian 
Apprentice Other 
























Cement Indian 
Mason Othe r 



3 






















Indian 
Electrician Other 


3 
3 


2 
2 



2. 


















Electrj-cian Indian 
Apprentice Other 


1 
1 


1 
1 




















Indian 
Glazier Other 
























Iron- Indian 
vorker Other 




k 






















Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


12 



3 

1 


1 



















Semiskilled Indian 
Laborer Other 




1 


1 
1 




















Indian 
Lather Other 
























Indian 
Mason Other 
























Indian 
Operator Othe r 


^ 


5 
2 




















Indian 
Painter Other 


2 

1 


1 





















Painter Indian 
Apprentice Other 
























Indian 
Plasterer Other 


3 
























Plumber Indian 
Fitter Other 




It 



2 




1 


















Plumber Indian 
Apprentice Other 
























Indian 
Roofer Other 
























Hoofer Indian 
Apprentice Other 
























Sheetmetal Indian 
Worker Other 



2 




1 


















, 


SheetT.etal Indian 
Worker Aporen. Other 
























Indian 
Tile Setter Other 
























Tile Setter Indian 
Helper Other 

























854 



WINGATE KITCHEN -DINING 



Average number of employees each month 



Sheet 1 of 1 



CRAFT 


Sept. 
1968 


Oct. 
1968 


Nov. 

1968 


Dec. 

1968 


Jan. 
1969 


Feb. 
1969 


Mar. 

1Q69 


Apr. 

106" 


May 
19 S'' 


June 
19-59 


July 

1969 


Asbestos Indian 
Worker Other 















3 







2 




Asbestos Indian 
Improver Other 
























Indian 
Carpenter Other 






2 




1 




1 




1 



1 




1 






2 



2 




1 


Carpenter Indian 
Apprentice Other 


















1 








Cement Indian 
Mason Othe r 







3 




1 




1 



3 






1 




1 




1 




Indian 
Electrician Other 











2 



2 





2 



2 



3 



2 


Electrician Indian 
Apprentice Other 
























Indian 
Glazier Other 

















2 








Iron- Indian 
worker Other 





1 


3 







3 





3 




1 








Ironworker Indian 
Apprentice Other 
























Indian 
Laborer Other 


3 

1 


h 

1 


3 



k 




3 



3 

1 


3 



3 
2 


3 



3 
2 


2 

1 


SemiskiUed Indian 
Laborer Other 












3 


2 








2 




3 






Indian 
Lather Other 
























Indian 
Mason Other 
























Indian 
Operator Other 




1 




1 






1 




3 






1 











1 


Indian 
Painter Other 





















2 




1 


Painter Indian 
Apprentice Other 
























Indian 
Plasterer Other 


















1 




1 






Plumber Indian 
Fitter Other 








3 




1* 







3 


C 
3 



2 



2 



2 


Plumber Indian 
Apprentice Other 
























Indian 
Roofer Other 















h 



3 








1 


Hoofer Indian 
Apprentice Other 






















i 


Sheetmetal Indian 
Worker Other 

















3 



3 




i 

1 1 


SheetTretal Indian 
Worker Anoren. Other 






















i 


Indian 
Tile Setter Other 



















2 


6 

2 


1 


Tile Setter Indian 
Helper Other 

























855 



GRAY HILL HIGH SCHOOL 



Sheet 1 of 2 



Average number of employees each month 



CRAFT 


Oct. 
1970 


Nov. 
1970 


Dec. 
1970 


Jan. 
1971 


Feb. 

1971 


Mar. 

1971 


Apr. 
1971 


May 
1971 


June 

1971 


July 

1971 


Aug. 
1Q71 


Asbestos Indian 
Worker Other 




















1 




1 




1 




1 




1 


? 


Asbestos Indian | 
Improver Other | 












1 




1 




1 




1 




1 




1 


Indian j 6 
Carpenter Other 1 7 


8 
7 


u 

6 


6 

8 


5 
13 


9 
11 


6 
12 


8 It 
12 10 


3 

7 


Carpenter Indian 1 
Apprentice Other 1 


2 
C 






1 

1 


1 
3 


3 
h 


2 

3 


2 

1 


1 1 

2 1 i 


Cement Indian \ 
Mason Other i 


2 



1 
1 


1 



1 




^ j '- j 1. 
1 ! 


1* 



I4 j 2 , 
1 ' 


Indian | | 
Electrician Other ' ' 


1 2 

2 2 


1 
3 


1 1 1 1 1 
6 5,917 


1 1 

8 1 13 


Electrician Indian i - i 
Apprentice Other 1 ! ' 






1 
1 


1 1 , j 

1 1 1 . 2 . 1 



2 



2 


Indian | i 
Glazier Other ' 1 




I i : \l\ 


Iron- Indian , i i U j It 
vorker Other 1 1^1 


3 3 1 3 1 3 ; 3 , 2 1 1 1 
1 3l2!0i0l0|0i 


Ironworker Indian , 2 
Apprentice Other 1 1 


2 1 3 j 1 i 2 : 1 1 2 1 2 i ! 

oloiooio'oioi 



Laborer 


Indian 
Other 


I 


; 21 
' 1 


22 




12 



! 16 
i 2 


1 21 
2 


19 
h 


16 
2 


15 
It 


11 

1 2 


7 
2 


Semiskilled 
Laborer 


Indian 
Other 




2 



5 
1 



3 


1 I 


7 


13 
16 


e 
10 


7 

1 




1 
1 



Indian 
Lather Other 















2 



2 






Indian < , | 2 
Mason Other 1 1 1 ° 


§ 


8 1 10 1 9 ' 1 j 2 1 1 i 1 i 


Indian 1 2 1 2 110 
Operator Other ' 4 | 1 1 1 


3|3l3lUj2 2il 
3l5l5'2l3 21' 


Indian i 1 
Painter Other 1 1 




1 1 1 1 ' 3 

2 ; 2 ' 6 1 It 817' 


Painter Indian 1 | 1 
Apprentice Other | 1 1 




! 1 


1 i 


Indian 1 j 1 
Plasterer Other 1 ' 1 




1 ! ? 


2 

1 


1,1, 
1 1 


Plumber Indian i 1112 
Fitter Other | 1 1 1 


2 
5 


1 1 1 i 2 j 1 
7 i lU 1 18 '21 


1 

2it 


1 1 1 

2U ' lU 


Plumber Indian | 
Apprentice Other 1 


1 


1 
1 


1 
1 


1 
1 


2 i 2 
2 1 1 


2 2 
2 2 


2 
2 


Indian j 
Koofer Other ' 










1 ? 



3 




3 


1 
2 1 


Roofer Indian 1 
Apprentice Other 1 














1 




1 


1 

1 1 u 


Sheetmetsd Indian 
Worker Other 


j , 1 ; 1 . 1 1 

1 ' It ' 6 6 16 5 


1 1 ■ 

5 5 6 • 


Sheetraetal Indian 
Worker Appren. Other 


i , 


1 



1 1 1 1 1 1 

1 1 1 ! 1 


1 111' 

1 ill! 


Indian 
Tile Setter Other 


1 I 


1 ! 1 1 1 ? 1 i! 


Tile Setter Indian 
Helper Other 




















I 



856 



Sheet 2 of 2 



GRAY HILL HIGH SCHOOL 



Average number of employees each month 



Sept. Oct. Nov, 
1971 1971 1971 



Dec. Jan. 
1971 1972 



Feb. Mar. 
1972 1972 



Apr. 
1972 



May 
1972 



Asbestos Indian 1 
Worker Other 1 1 1 










1 








Asbestos Indian | 
Inprover Other 1 1 



















Indian 
Carpenter Other 



9 




8 



7 




7 



7 




2 




1* 






Carpenter Indian | 
Apprentice Other ' 






















Cement Indian I 2 
Kason Other i ° 


a 


^ 














Indian j 1 
Electrician Other 1 1** 




12 



3 




1* 




h 2 




1 




1 


? 


Electrician Indian 
Apprentice Other 1 2 
















Indian | 
Glazier Other 1 








1 








Iron- Indiein i 
worker Other 1 






i 










Ironworker Indian 
Apprentice Other 
















1 

1 


Indian 
Laborer Other 


.7 




8 
2 


9 
1 


3 ! 3 1 3 
1 1 


3 



3 




h 1 
1 


Semiskilled Indian i 
laborer Other i 


: 

1 1 


i 



i 

1 1 


. 


Indian 
Lather Other 








1 




! 




Indian 
Mason Other 




















Indian 
Operator Other 


1 
3 


1 

5 


1 1 

2 1 


1 




1 









Indian 
Painter Other 


7 
12 


6 

1 


3 



3 3 



1 



1 








2 



Painter Indian i 1 j 1 
Apprentice Other 1 1 1 


1 



1 1 




1 




1 








2 



Indian , 
Plasterer Other i 


















Plumber Indian i ]_ 
Fitter Other 1 ^]^ 


1 
12 


1 
i6 


1 

16 


1 

■5 


1 

2 


1 
I 


1 

2 


1 
1 


Plumber Indian | 2 
Apprentice Other 1 3 


2 

3 


2 1 2 j 2 
2 1 2 1 1 


2 



2 



2 



2 



Indian | 
Roofer Other | 2 



2 


° 1 i 
2 1 1 










Roofer Indian o 
Apprentice Other 1 h 



2 


° 1 ! 

1 1 










Sheetmetal Indian i § i 1 i ' | 1 
Worker Other ' 6 : ■ 1 1 


Sheetmetal Indian , ■■■ , ^ 1 ' 
Worker Aooren. Other 1 1 i 


Indian , , i i 
Tile Setter Other 1 


Tile Setter Indian ; i ' , 
Helper Other : 1 ' , ' ' ' 



857 

PERCENTAGE OF IimiAJl E:-TLO»'i;OT BY CKAi'T 



o c c 

I ,C ■H O 



o o 



V 

C ,-i 


C CH 


?^ 




E 


Or^ 




O OJ o 


o o 


<0 O 


(1) 


■no 






■P o 


o o 




01 O 


O J= 


rH 01 J3 


*> J= 


C J3 


Cfl 


> -c 






o o 






(Tl t) 


O CO 


Q W to 


O CO 


00 en 


Cd 


2 'n 



0) U O 'tH 01 c ^ 



O c 

j<; o (tf 

o o S< 

cc en M 



4-> OJ bo a; to 



Asbestos 
Vorter 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


Asbestos 
Iinp rover 


0.0 


0.0 




0.0 


j 0.0 


0.0 


0.0 


0.0 




0.0 


Carpenter 


13.6 


31.9 


3.0 


19.7 


10.1* 


11.5 


7.5 


25.7 


23.2 


0.0 


30.1 


Carpenter 
Apprentice 


ll.k 


37.0 




28.6 




75.0 


35.0 


11*. 3 


50.0 


0.0 


1*1*. 1* 


CcBKnt 
Mason 


75.'* 


21.6 


0.0 


58.0 


0.0 


18.2 


0.0 


28.8 


3.3 


0.0 


97.1* 


Electricia-, 


0.0 


8.0 


0.0 


38.5 


0.0 


1.6 


0.0 


21.1* 


1+0.8 


0.0 


l*.8 


Electrician 
Apprentice 


0.0 


0.0 


0.0 






21.1* 


0.0 


22.2 


6i*.7 




11*. 3 


Glazier 


0.0 


0.0 




0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


Iron- 
vorke r 


0,0 


13.5 




16.7 


11*. 3 


lif.O 


0.0 


33.3 


6.5 


1*6.2 


75.0 


Ironvorrier 1 
Apprentice 1 


100.0 






0.0 






16.7 


0.0 


1 100.0 


laborer 


86.0 


81.5 


67.7 


93.3 


68.1* 


70.3 


53.'* 


78.3 


86.3 


81.0 


90.0 


Semiskilled 
laborer 


1*8.1 


1*7.3 


15.1* 


1*5.8 


55.5 


36.9 


22.9 


71.7 


61.5 


20.0 


58.7 


lather 


0.0 


0.0 




0.0 


0.0 0.0 


0,0 


2.1 


5.9 




0.0 


Kason 


25.0 


20.8 


0.0 


0.0 


0.0 


1*7.5 


3.7 


9.2 


5.7 




36.8 


Operator 


U8.0 


1*3.9 


0.0 


35. »♦ 


23.5 58.0 


5.5 


1*0.7 


1*1.7 


0.0 


1*3.3 


l>8lnter 


6.ii 


11.1 


20.0 


17.1 


36.0 


10.2 


23.1 


13.6 


1*1*. 1 


0.0 


1*0.0 


Painter 
Apprentice 


33.3 


0.0 






0.0 


0.0 


33.3 


0.0 


100.0 




90.0 


Plasterer 


6.3 


9.1 


0.0 


0.0 


0.0 0.0 


0.0 


0.0 


23.0 


0.0 


66.7 


Plumber 
. Ktter 


1.6 


8.2 


0.0 


16.1. 


0.0 


0.0 


5.3 


15.1* 


5.7 


0.0 


10.0 


Plumber 
Apprentice 


27.3 


1*0.5 


0.0 


38.5 


20.0 


70.0 


1*.2 


17.1* 


100.0 




58.9 


Itoofer 


0.0 


23.8 




0.0 


0.0 


1*3.9 


9.5 


2.0 


0.0 


0.0 


0.0 


Roofer 

Apprentice 




0.0 










33.3 








0.0 


Sheet-etal 
VorV:er 


0.0 


1.1 


0.0 


0.0 0.0 0.0 


0.0 


0.0 


0.0 


0.0 


10.5 


Sheetzs-.ai 
.Vory°r A-:3ren. 




100.0 




50.0 






0.0 




0.0 


61*. 3 


^Wle Setter 


0.0 


0.0 


0.0 0.0 


0.0 0.0 


0.0 


0.0 


0.0 


0.0 


0.0 


••Tile Setter 
Belc-r 






0.0 


80.0 


1 






0.0 






t 1*0.0 




858 
Exhibit No. 20 



IN REPLY REFER TO: 



UNITED STATES DEPARTMENT OF THE INTERIOR 

BUREAU OF INDIAN AFFAIRS 

Facilities Engineering 

DIVISION OF m tL Ut i nc »<a«e— apt— 3MwaaMfati» 

FEDERAL OFFICE BLDG a U S COURTHOUSE 

P O BOX 1248 

ALBUQUERQUE. NEW MEXICO 87103 



OCT 2 6 1973 



Mr. Larry Glich, Deputy General Counsel 
U. S. CoBondssion on Civil Rights 
1121 Vermont Avenue, N. W. 
Washington, D. C. 20^2^ 

Dear Mr. Glich: 

The following documents are enclosed pursiumt to the request made at 
the hearings conducted at Window Rock, Arizona, on October 23, 1973: 

Contract and Specifications for construction of 
Phoenix Gymnasium, Phoenix Indian School, Phoenix, 
Arizona, Project No. LH56-1»2 

Contract euid Specifications for construction of 
Sherman School Fcwsilities (Phase II ) , 'fl^erman 
Indian High School, Riverside, California, Project 
Ho. LH6O-IU7 

The Division title was changed by administrative procedure effective 
August 23, 1973, from Plant Design emd Construction to Facilities 
Engineering to which I was named Acting Chief. 



Sine 




Robert A. Dudley 

Acting Chief, Division of 

Fausllities Engineering 



Enclosures 



[Following is the affirmative action clause from the BIA contracts 
for the gymnasium at the Phoenix Indian School and construction at 
the Sherman Indian High School. Complete contracts and specifications 
are on file at the Commission on Civil Rights.] 



859 

BID COX'DinOK'S 

AFHRMATIVZ: ACTICM RIQUIRZ.V.ENTS 

EQUAL E.'vlPLCV.VE.N'T OPPCRTUXITY 



For all Non-Z:-:enpt Fed ere 1 er.d Federally-Assisted 
ConstrJCticp. Cbntrecrs to be Awarded in 



Part I: The provisior.s of this Part I apply to bidders, con- 
tractors and s'jbccntractors with resoect to those construction trades 
for which they are parties to collective bargaining agreements with a 
labor organization or organizations and who together with such labor 

organizations have agreed to the Area Construct; o:-. 

Program for equal opportunity (but only as to those trades as to which 
ther.= are comm.itrr.ents by labor organizations to specific goals of 
minority manpower utilization) bet\veen fnemes of oa-ties . e.c. 
EuildincT and Ccnstrv-cticn Trac.^s Counnil. Gen?ral and Ssecialtv 
Contractors Associations, representatives of the mincntv co-n-.-jnitv ) 
together with all irr.plementing agreements that have been and may here- 
after be developed pursuant thereto, all of v/hich documents are incor- 
porated herein by reference and are hereinafter cumulatively referred to 
as the Plan. 



Yi.--:i '■■^■' 



Attachiiicfit 112 to Addendum //I 



860 

Any bidder, controctor or subconiractor using ono or more trades 
of construction employees must comply with either Part I or Fart II of 
these Bid Conditions as to each such trade. Thus, a bidder, contractor 
or subcontractor may be in compliance with these conditions by its in- 
clusion, with its union, in the Plan as to trade 

"A", provided there is set forth in the Plan 

a specific commitment by that union to a goal of minority manpov/er 
utilization for such trade "A", thereby meeting the provisions of this 
Part I, and by its commitment to Part II in regard to tiade "B" in tlie in- 
stance in v/hich it is not included in the Plan and, 

therefore, cannot meet the provisions of this Part I. 

To be eligible for award of a contract under Part I of this invita-r 
tion, a bidder or subcontractor must execute the certification required 
by Part III hereof. 

Part II : A. Coverage . The provisions of this Part II shall be 
applicable to those bidders, contractors and subcontractors, who, in 
regard to those construction trades to be utilized on the project to 
which these bid conditions pertain: 

1. Are not or hereafter cease to be signalorics to the 

Plan referred to in Part I hereof; 



861 

2. Arc signatories to the Plan but are 

not parties to collective bargaining agreements; 

3. /vre signatories to the Plan but are 

parties to collective bargaining agreements with labor organizations 

who are not or hereafter cease to be signatories to the 

Plan; 

4. Are signatories to the Plan but as 

to which no specific commitment to goals of minority manpower utiliza- 
tion by labor organization have been executed pursuant to the 

Plan; or 

5. i'SG no longer participating in an affirmative action plan ac- 
ceptable to the Director, OFCC, including the 

Plan. 

B. Requirement -- An Affirmative Action Plan . The 
bidders, contractors and subcohtractors described in paragraphs 1 
through 5 above v/ill not be eligible for award of a contract under this 
Invitation for Bids, unless it certifies as prescribed in paragraph 2b 
of the certification specified in Part III hereof that it adopts the minimum 
goals and timetables of minority manpov/er utilizatiorui/, and specific 



J/ "Minority" is defined as including Negroes, Spanish Surnamed 
Americans, Orientals and American Indians, and includes both 

moa i:nd v/o.-acn. 



Paee 3 of ].9 



862 

affirmative action steps set forth in Section D. 1 and 2 of this Part II 
directed at increasing minority manpov/or utilization by means of 
applying good faith efforts to carrying out such steps; or Is deemed to 
have adopted such a program pursuant to Section B. 3 of this Part II. 

1, Goals and Timetables . The goals of minority manpower 
utilization required of t)ie bidder and subcontractors are applicable to 
each trade not othcrvvise bound by the provisions of Part I hereof which 
will be used on the project in 

{hereinafter referred to as the area): 



Goals of Minority Manpower 

Utilization Expressed in 

PercentacjG Terms 



UnUl 




From 


to 


From 


to 


From 


to 



In the event that under a contract .■■'hich is r.ubjcct to these Bid 
Conditions any work is performed in a year later than the latest year for 
which acceptable goals of minority manpower utilization have been deter- 
mined liorcin, tl.c goals for .shall bo app]ic.;!;le to suci^. wcrk. 

Pnf^e '( of ].9 



863 

Tlie percentage goals of minority manpower utilization above are 
expressed in terms of manhours of training and employment as a propor- 
tion of the total manhours to be worked by the bidder's, contractor's and 
subcontractor's entire work force in that trade on all projects (both federal 

and non-federal) in the Area during the performance 

of its contract or subcontract. The manhours for minority work and training 
must be substantially uniform throughout the length- of the contract, on all 
projects and for each of the trades. Further, the transfer of minoiity 
employees or trainees from employer-to-employer or from project-to- 
project for the sole purpose of meeting the contractor's or subcontractor's 
goal shall be a violation of these conditions. In reaching the goals of 
minority manpower utilization required of bidders, contractors and sub- 
contractors pursuant to this Part II, every effort shall be made to find 
and employ qualified journeymen. Provided, however, and pursuant to 
the requirements of Department of Labor regulations, 29 CFR 5a, appren- 
tices or trainees shall be employed on all projects subject to the require- 
ments of these Bid Conditions and, where feasible, 25 percent of appren- 
tices or trainees employed on each project shall be in their first year of 
apprenticesnip or training. 

In order that the nonv/orking training hours of trainees may be 
cov.n'ccd in iMccting \he goal, raich trainecr, murA be employed by the 

Puce 5 of 19 



864 

contractor during the training period, the contractor must have made a 
commitment to employ the trainees at the completion of their training 
subject to the availability of employment opportunities and the trainees 
must be trained pursuant to established training programs which must 
be the equivalent of the training programs now or hereafter provided 

for in the Plan with respect to the nature, extent 

and duration of training offered. 

A contractor or subcontractor shall be deemed to be in com- 
pliance v/ith the terms and requirements of tliis Part. II by the employ- 
ment and training of minorities In the appropriate percentage of his 

aggregate v.-ork force in the area for each trade 

for which it is committed to a goal under this Part II. 

However, no contractor or subcontractor shall be found to be 
In noncompliance solely on account of its failure to meet its goals 
within its timetables, but such contractor shall be given the opportunity 
to demonstrate that it has instituted all of the specific affirmative action 
steps specified in this Part II and has made every good faith effort to 
make these steps v/ork toward the attainment of its goals v/ithin its 
timetables, all to the purpose of expanding minority manpower utiliza- 
tion on all of its projects in the area . 



865 

In all cases, the compliance of a bidder, contractor or subcon- 
tractor will be determined in accordance with Its respective obligations 
under the terms of these Bid Conditions. Therefore, contractors or sub- 
tontractors who are governed by the provisions of this Part II shall be 
subject to the requirements of that Part regardless of the obligations of 
Its prime contractor or lower tier subcontractors. 

All bidders and all contractors and subcontractors performing or 
to perform work on projects subject to these Bid Conditions hereby agree 
to Inform their subcontractors of Iheir respective obligations under the 
terms and requirements of thesb Bid Conditions, Including the provisions 
relating to goals of minority employment and training. 

2, Specific Affirmative Action Steps . Bidders, contractors and 
subcontractors subject to this Part II must engage in affirmative action 
directed at increasing minority manpower utilization, which is at least 
as extensive and as specific as the following steps: 

a. The contractor shall notify community organizations that 
the contractor has employment opportunities available and shall maintain 
records of the organizations' response. 

b. The contractor shall maintain a file of the names and 
addresses of each minority worker referred to him and what action was 
tci'tcn with rc'Spcci lo o'lch r.uch referred wrvkor, and if ll".e workr,;- was 

Page T of 19 



866 

not employed, the reasons therefor. If such worker was not sent to 
the union hiring hall for referral or if such worker was not employed 
by the contractor, the contractor's file shall document this and the 
reasons therefor. 

c. The contractor shell promptly notify the (acencv) 

when the union or unions with whom the contractor has a collective 
bargaining agreement has not referred to the contractor a minority worker 
sent by the contractor or the contractor has other information that the 
union referral process has impeded him in his efforts to meet his goal. 

d. The conti-actor shall participate in training programs in 
the area, especially. those funded by the Department of Labor. 

e. The contractor shall disseminate his EEO policy v/ithin 
his own organization by including it in any policy manual; by publicizing 
It in company newspapers, annual reports, etc. by conducting staff, 
employee and union representatives' meetings to explain and discuss 
the policy; by posting of the policy; and by specific review of the policy 
with minority employees. 

f. The contractor shall disseminate his EEO policy externally 
by informing and discussing it with all recruitment sources; by advertising 
in news media, specifically including minority news media; and by noti- 
fying iind dicc\.\r.::y,\'-j itv/i'h all subcoatrciCLors c:i:d suppliers. 

PtiGC C of 19 



867 

g. The contractor shall make specific and constant per- 
sonal (both written and oral) recruitment-efforts directed at all minority 
organizations, schools with minority students, minority recruitment 
organizations and minority training organizations, within the contractor's 
recruitment area. 

h. The contractor shall make specific efforts to encourage 
present minority employees to recruit their friends and relatives. 

I. The contractor shall validate all man specifications, 
selection requirements, tests, etc. 

J. The contractor shall make every effort to promote after- 
school, summer and vacation employment to minority youth. 

k. The contractor shall develop on-the-job training oppor- 
tunities end participate and assist in any association or employer-group 
training programs relevant to the contractor's employee needs consistent 
wltli its obligations under this Part II. 

I. The contractor shall continually inventory and evaluate 
all minority personnel for promotion opportunities and encourage minority 
employees to seek such opportunities. 

m. The contractor shall make sure that seniority practices, 
job classifications, etc., do not have a discriminatory effect. 

II. \Uc cor.la.ctor 'Sr.c.l] r:u";kc ccit.iin l!".aV ;ill f:;cill!ios ?.r.(\ 

company activities are non-segregated. _ ^ ^ ,« 

^ ' Pngti 9 of 19 



868 

O. The contractor shall continually monitor all personnel 
activities to ensure that his EEO policy is being carried out. 

p. The contractor shall solicit bids for subcontracts from 
available minority subcontractors engaged in the trades covered by these 
Bid Conditions, including circulation of minority contractor associations. 

3. Contractors and Subcontractors Deemed to be Bound by 
Part II . In the event a contractor or subcontractor, v/ho is at the time 
of bidding eligible under Part I of these Bid Conditions is no longer 
participating in an affirmative action plan acceptable to the Director 

of the Office of Federal Contract Compliance, including the 

Plan, he shall be deemed to be committed to Part II of 



these Bid Conditions, he shall be considered to be committed to the 
minority manpower utilization percentage goal of the minimum range for 
that trade for the appropriate year. 

4. Subsequent Sicnatorv to the Plan . Any 

contractor or subcontractor subject to the requirements of this Part II 
for any trade at the time of the submission of his bid who together with 
the labor organization with whom it has a collective bargaining agree- 
ment subsequently becomes a signatory to the Plan, 

either individually or through an association, may meet its requirements 
i\'Klcr ihc".!? ('id Gor.clitioMr, kyr r.uch tracic;, if r^icli contractor or .subcon- 

tractor executes and submits a new certification committing himself to 

PoGC 10 of 19 



869 

Part I of these Bid Conditions. No contractor or subcontractor shall be 
deemed to be subject to the" requirements of Part I until such certifica- 
tion is executed and subir.ittcd. 

5. Non-discriininat'cr'. . In no event may a contractor or subcon- 
tractor utilize the goals, timetables or affirmative action steps required 
by this Part II in such a manner as to cause or result in discrimination 
against any person on account of race, color, religion, sex or national 
origin. 

Part III: Certifications 

A. Didders' Ce'lificalicns . A bidder, will not be eligible 
for award of a contract under this Invitation for Bids unless such bidder 
has submitted as a part of its bid the foUov/ing certification, v/hich v/ill 
be deemed a part of the resulting contract: 

BIDDERS* CERTinCATION 

certifies that: 



(Bidder) 
1. it intends to use the foUov/ing listed construction trades in 
the work under the contract 



; r.rd 



Pace 11 of 19 



870 

2. (a) as to those trades set forth In the preceding paragraph 
one hereof for which it Is eligible under Part I of these Bid Conditions 

for participation in the Plan, It will comply with 

the P.Ian on all construction work (both federal 

and non-federal) in the area within the scope of 

coverage of that Plan, those trades being: 

, and/or 

Cb) as to those trades for which it is required by these Bid 
Conditions to comply with Part II of these Bid Conditions, It adopts the 
minimum minority manpov/er utilization goals and the specific affirmative 
action steps contained in said Part II, for all construction v.'ork (both 

federal and non-federal) in the area subject to 

these Bid Conditions, those trades being: 



J and 



3. it will obtain from each of its subcontractors and submit to 
the contracting or administering agency prior to the a^vard of any subcon- 
tract under this contract the subcontractor certification required by these 
Bid Conditions. 



(Signature of authorized representative of bidder) 

Ptifie 12 of 19 



871 

B. Subcontractors' Certifications . Prior to the nward of 
any subcontract under this Invitation for Bids, regardless of tier, the 
prospective subcontractor must execute and submit to the Prime Con- 
tractor the following certification, which will be deemed a part of the 
resulting subcontract: 

SUBCONTRACTORS' CERTIFICATION' 



certifies that: 



(Subcontractor) 
1. it intends to use the following listed construction trades in 
the work under the subcontract 



2. (a) as to those traces set forth in the preceding paragraph 
one hereof for which it is eligible under Part I of these Bid Conditions 

for participation in the Plan, it Vw-ill compiy v/ith 

the ,„_Pl3n on all construction work (both federal 

and non-federal) in the area subject to these Bid 

Condi tier..':, thocc trades being 

, and/or 



Pace 33 of 1^ 



872 

(b) as to those trades for which it Is required by these 
Bid Conditions to co.Tiply v/itli Part II of these Bid Conditions, it adopts 
the minimum minority manpower utilization goals and the specific affir- 
mative action steps contained in said Part II for all construction work 

(both federal and non-federal) in the area subject 

to these Bid Conditions, those trades being: 



; and 



3. it will obtain from each of its subcontractors prior to the 
award of any subcontract under this subcontract the subcontractor 
certification required by these Bid Conditions. 

(Signature of authorized representative of bidder) 

In order to ensure that the said subcontractors' certification 
becomes a part of all subcontracts under the prime contract, no sub- 
contract shall be executed until an authorized representative of the 

(agency) had determined, In writing, that the said 

certification has been incorporated in such subcontract, rcv^ardlccs of 
tier. Anysubconlract executed v/ithout such written approval shall be 
void . 

Puije 1'* or 19 



873 

C. Motcriolitv and Responsiveness . The ccrUfica- 
tlons required to be made by the bidder pursuant to these Bid Conditions 
Is material, and will govern the bidders performance on the project and 
will be made a part of his bid. Failure to submit the certification will 
render the bid nonresponsive.. 

Part IV : Compliance and Enforcement . Contractors arc respon- 
sible for informing their subcontractor (regardless of tier) as to their 
respective obligations under Parts I and II hereof (as applicable). Bid- 
ders, contractors and subcontractors hereby agree to refrain from entering 
into any contract or contract modification subject to Executive Order 
11245, as amended, of September 24, 1965, with a contractor debarred 
from, or who is determined not to.be a "responsible" bidder for. Govern- 
ment contracts and federally assisted construction contracts pursuant to 
the Executive Order. The bidder, contractor or subcontractor shall carry 
out such sanctions and penalties for violation of the equal opportunity 
clause including suspension, termination and cancellation of existing 
subcontracts as may be imposed or ordered by the administering agency, 
the contracting agency or the Office of Federal Contract Compliance pur- 
suant to the Executive Order. Any bidder, or contractor or subcontractor 
who shall fail to caiTy out such sanctions and penalties shall be deemed 
to ho in iicnr:c:r.p]ic";ncc wiili t!:e:'.e r.id Condi tit)n:i i-.-id 'L:<ocv.'d-vn Crc'c.r 

11245, as amended. 

Tapfi 15 of 19 



874 

Nothing herein Is Intended to relieve any contractor or subcon- 
tractor during the term of its contract on this project from compliance 
with Executive Order 112'1G, as amended, and the Equal Opportunity 

Clause of its contract, with respect to matters not covered in the 

Plan or in Part II of these Bid Conditions. 



Violation .of any substantial requirement in the 



Plan by a contractor or subcontractor covered by Part I of these 



Bid Conditions including the failure of such contractor or subcontractor 
to make a good faith effort to meet its fair share of the trade's goals of 
minority rnanpov.-er utilizcticn, or of the requirements of Part II hereof 
by a contractor or subcontractor who is covered by Part II shall be deemed 
to bs noncompliance by such contractor or subcontractor with the Equal 
Opportunity Clause of the contract, and shall be grounds for imposition 
of the sanctions and penalties provided at Section 209(a) of Executive 
Order 1124 5, as amended. 

Each agency shall review its contractors' and subcontractors' 
employment practices during the performance of the contract. If the 
agency determines that the Plan no longer repre- 
sents effective affirmative action, it shall so notify the Office of 
Federal Contract Compliance which shall be solely responsible for any 
.(inc-1 dctcr:nin.:.iion o.C that <i'uf;r/i.ion ond l!u; ccaf;cqi.;cncys thercc:. 

POKC 16 of 19 



875 

In regard to Part II of those conditions if the contractor or sub- 
contractor meets its goals or if the contractor or subcontractor can 
demonstrate that it has rnade every good faith effort to meet those goals, 
the contractor cr subcontractor shall be presumed to be in compliance 
with Executive Order 1124G, as amended, the implementing regulations 
end its obligations under these Bid Conditions and no formal sanctions 
or proceedings leading toward sanctions shall be instituted unless the 
agency otherwise determines that the contractor or subcontractor is not 
providing equal emplo^inent opportunities. In judging whether a con- 
tractor or subcontractor has met its goals, the agency will consider each 
contractor's or subcontractor's minority manpower utilization and will not 
take into consideration the minority ma-npower utilization of its subcon- 
tractors. Where the agency finds that the contractor or subcontractor 
has failed to comply with the requirements of Executive Order 11245, as 
emended, the implementing regulations and its obligations under these 
Bid Conditions, the agency shall take such action and impose such sanc- 
tions as may be appropriate under the Executive Order and the regulations 
When the agency proceeds with such formal action it has the burden of 
proving that the contractor has not met the requirements. of these Bid 
Conditions, but the contractor's failure to meet his goals shall shift to 
him tl-.c rccuirorricnt to come forward witli evidence to r,l;ov/ thi;t he has 

Pace 17 of 19 



876 

met llic "good faith" rcqulrcincnts of these Bid Conditions by instituting 
at least the Specific /Jffirniativc Action steps listed above and by making 
every good faith effort to make those steps work toward the attainment 
of Its goals within its timetables. The pendency of such formal proceedings 
shall be taken into consideration by Federal agencies in determining whether 
such contractor or subcontractor can comply with tlie requirements of Execu- 
tive Order 112-io, as amended, and is therefore a "responsible prospective 
conti'octor" within the meaning of the Federal procurement regulations. 

It. shall be no excuse ihat the union with v/hich the contractor 
has a collective bargaining agreement providing for exclusive referral 
failed to refer minority employees. 

The procedures set forth in these conditions shall not apply to 
any contrac: v-fhen the head of the contracting or administering agency 
determines that such contract is essential to the national security and 
that its av/ard Nvithout following such procedures is necessary to the 
national security. Upon making such a determination, the agency head 
will notify, in writing, the Director of the Office of Federal Contract 
Compliance within thirty days. 

Requests for exemptions from these Bid Conditions must be made 
in v.'rlting, with justification, to tlie Director, Office of Federal Contract 

Page 18 or 19 



877 

Compliance, U. S. Department of Labor, V/ashlnglon, D. C. 20210, 
and shall be fop>vardcd through and wiih the endorsement of the agency 
head. 

Contractors and subcontrcictors must keep such records and file 
such reports relating to the provisions of these Bid Conditions as shall 
be required by the contracting or administering agency or the Office of 
Federal Contract Compliance. 

For the information of bidders, a copy of the 

Pla.i JTiay be obtained from the contracting officer. 



Puee 19 or 19 



878 
Exhibit No. 21 



sia'nd«»d 'Ot.A jj. JUlr irj} 

(to "pC t!C '«! en 1 "0 U . 


SOLICITATION, OFFER, 
AND AWARD 


3 C(tT""D «0» NATIO-^A'. Df'ENSE UWDE« i * ^*&E C- 
.. 0,A..O.0-S.E., ^ 

«AtlK5 1 


N04 C 1420 5396 


j" SOllCI'.IiON NO js 0«II ISSUED 1 6 «0UISII10N/fu«CK»5S «EOUfSI NO 

NA6C0- 539f i | 
S "Xif " i_l ■■"r?,",'"° Sept. 6, 1973 


7 )S5UcO »Y 


Lonf ■ 


t ADDKESS OFFf« lO llf -ih,- ik^^ l,l..k -j 


U. S. Department of the Interior 
Bureau of Indian Affairs 
Navajo Area Office 
Gallup, New Mexico 87301 


BIA-Navajo Area Office 
Branch of Property and Supply 
P. 0. Box 1060 
Gallup, New Mexico 87301 



SOIICITATION 



5f jlfd or 
block 



jlcd orivrs m orivinjl .XXXXXXXXXXX. T .■■jr!:i<r,'i -he surpiiti it srrvno Jes>riStJ .n ihi SvhtJult kjM ht rt.tmj j: :hc P'^J-At'' "S'V" 
xk 8. OR IF HASDCARKILD. IN THE DtPOSlTARY LOCATED IN _E£DF.RAT, BIIILDIXG- u:-.;;. IQ-lOO A.M.. ,' ' 

GALLUP^ NEV; MEXICO LOCAL"'"'^-" ■""'""" 1973 

If this is an Jj>cnistd soiiotjin'n. j-rrrs «.l. St- publulv .-ipcncj dt thji tTSit: V-\tTlwN-T.-\ . r OrfhRj ^<-c pjr K t.r vol.oution lns:rua;ons 
jnd ConJit.urs AM oners Jrt v..S,j.. lo .h- rollo^.nii j ^^^ SihtJult n.li.ricj hc!o«. and or dtu.ht.i htrclo 

1. The JirachfJ S.)hurjf,in ■'^'"•'if^^^/gi ^■""''■■•■"'* ^^ '■^^ A Suih orhcr rr.^''i"'ns rtrr<:stnrjr,ons ctfruuj!...ni. jnd spri.n>.ai...r. 

2. The Oenerjl Provisions, SK ..■ J U.M:./ at tj„,„n *h,.h .> altj^hed ,, ^.^ jru.heJ ,.r In.orpo.-jr.d hrrein h> leler.n.e. , Aiuchmenrs 
cr incorporateJ herein b;. rerereme a,, |,s,ed m ihe Khedule l 

FOR INFORMATION CALL / v,/./, WT.-- .- \» . -Vm., 7,,;. ■!//. ^^g_ TERESA H ■ MADRID. (505) 863-9501-Ext . 262 



FRESH FRUITS AND VEGETABLES 



FOR THE MONTH OF 



OCTOBER, 1973 



F.O.B. GALLLT SUPPLY CENTER, GALLLT , NEW MEXICO 

TELEGR.-'J'HIC OFFERS: TELEGRAPHIC OFFERS ARE NOT 

AUTHORIZED U^.'DER THIS SOLICITATION FOR OFFERS. 



FOR SHIPMENT TO. I 

BUREAU OF INDIAN AFFAIRS 
GALLUP SUPPLY CENTER '. 
CONTRACT NU:gE R NO/1 C 1420 5396 
GALLUP, NF.>' MXICO 87 301 



)n T I C E ^ 
THIS IS A TOTAL SMALL BUSINESS 
SET-ASIDE' (SEE- SPECIAL PROVISIONS 
SECTION) ■ 



OffER r\07E Rti,' 



In comrliance »irh [he ahoie. tre unjersijnto oners jnj agrees u rhi. oner 'S ai^p'fJ »irhin calendar dais : 00 calendar Jays ur.le>> a dirtcrenr 

period IS inserted b\ rhe on'eror) trom the dut lor receipt ot otters speoficd aho\e, :t) lurnish an\ or al! items upon i^hich pr;ccs are onered- at tpc 
price set-opposite each item Jei.vereJat the desienated pointi,s). within rhe time specined tnthe Schedule 


16 Discount for peoMpr pavm^nt 

XyxxxTrici<nrvTnrrvrTi.nic -. 5o calenoah days ••. 30 calenoaj oats •'. caiendai days 


" OfFEIiOR i'ir>t[ 1 1 iULITY <.unF \ 


1« NAUE ANO TITIE O' PESSON AJThOSiZE2 
10 SIGN OffEn 1 l,p, «r P„„l) 


NAME 4 aOdsess /)^ J /-WcJcC a- Cci^f.lNy 
iSf'«i <.i, P L' /7.' » /£ jl, 

TTip "("j,i ^ /y A A .y>. At W Aj/t x 1 1- i' 
*... 0^, ^..j /.lipli' -- y(s--/',i3 'Jryy 


l» SlCNAruPE JO 0"£1 DATS 



AWARD ' 7-> /;. 



II ACCEPTED AS TO ITEMS nomEEPED 

1. 2, 3, 4, 5, 6, 7 and 



(Estimated) 
$32,776.76 



N06 -01 4 1740 1710 



SuaMiT INVOICES '- •■■P',- "«/.■■ '.rA,r„,., .;i..,ft„/< IQ *DO«ESS ShQW 

iicirit 26 (ALSO SEE PARAGRAPH 13 - PAGE 4) 



23 NEGOTIATED | | 10 U s"c 3304lal( ] 

PURSUANT TO 1 — I 

Q 41 use ;sii.ii 1 



" SUBMIT INl.'OICES TO : ' 
BUREAU OF INDIAN AFFAIRS 
GALLUP SUPPLY CENTER 
P. 0. BOX 1060 
GALLUP^ NEW MEXICO 87301 




fAYME-^t Will BE MADE BY mm \ 

BUREAU OF INDIAN AFFAIRS 
INDIAN AFFAIRS DATA CENTER 

GpLD, S. W., P. 0. BOX 2026 
$UERQyE_^,lI£W-«e«JCO 87101 
ITlEO SIAttS 



879 



, REPRESS .TIONS, CERTIFICATIONS. AND ACKNC EDGMENTS 

IIh Oriiior rcprc.'.nis jnJ uri.hii ,ii pjn oi hn utru ihj( /cA.,i -^ ,..»//i/,;, .,// .i,-,pl,,.,l-l, *.,„, „, /,/..,li ; 

1 SMALL HfSIM >S 'Srryijr UaiiSbi\Al 

Hi gis n " "'" J *'"i'l ''"li"'" lonttm. It clitror i< > ^mall hutincM lOottrn jnJ is nol the tnjnuliaurcf of tht !urplif> I'l^i 
ht ilsn riTtntnis ih.ii .ill si.ppl'is to Str turnnhcj hinunJir gj will. Q »ill m.t. be injnuliiturtJ or pniJuitJ b> J sm-ll husineSN i.nu 
.n the LnitiJ Siiiii iti poss.«ii.ni. oi Fucrto Riio 

2 RECL'LAR DFALl R-MANLF.^OURER c SffluMi /.«/) /o j»/>/>/i ....»r.<,/j ,\,njinx iW.UOOj 
He IS 3 g ft>:uljr dr.ilcr ifi. □ fnjnufictufer of. the supplies ofitTeJ 

( CO.NTINGI-NT lt£ iS.lfur l\ ,,,, it il.)/ 

(i» He n has. S has fiot. etnplavej Of ret.tifieJ jni ».<)mpjti\ or persofl '"//■('//■./«./ /"//-/'w?. *6Mj ^</r rw/>/''»» »T.f*/Mj( jo/r/i '<*#■ 
tttiirtir I to solicit or stLure this toniraLt and i bi he ^ hjs. S hjs not, paid ur ac-feed to pay an% compan\ of person i otljtr tl^it ./ r'ulll 
•'■■ii.i .'-.i.'i r*;//»/'.irr ii;itiii;^ n,ltl\ f-i . ' t '■I'li-f , .\n\ Itc commission. peficntaj;e. af bf^kefage Ice toniin»;ent upoft Of fesulliflff IfOfP .he •■* 
iH this lonira.l and .letees to lurnish inloimatuin rel.iunt to lai and ihi above, as fequcsted bv the Gmtiaaini: Othief. ' /•'" w/r<,v, 
ti„}i ..' //t r,j<i,i,,il.it,;ii. imlii.hiutt I't l,n,, h,„i.i /i,/, „„pl„\,. Jrt tW. ../ /■„/...</ R,:iil.i:i«iil- JllU 41. Slik/ljn /-;.! ; 

4 TYPE OF BLSlNtSS ORGANIZATION 

He opefares as G an in*di\idual. □ a pannefship. □ a nonptofii orjtanization j2 •* iorporation. incorporated under the laws of the Sijk 

/ ■=■' h /% II <■ I! . 

•> AITtLIATION ASD IDKNTIF^'l.SC DATA ( .[/•J<lu.M, uiil: l; .i.hrrtn,J „.li,ii.'n.m' 

r.iih i.netor shall tofurleie (aiand ibi it aJ^plKahle,and ul bi-lo« 

I.I I Hv O "■ D '* not, owned or iOntrolk.J b> a parent unnpani 'U, r" "' "" i^ • •' -t ) 

( b( It the I'ffefor is owned ur tonlfclleJ b\ a parent compans he shall enter in the blinks below the natr 
patent ..,mpan\: ' 



iin otfice addrt 



FiCE *00"eSS Ihi. 



, tmplove, 


5 Idrnt.nra 


tion \u 


mber t 


"A" ■■ 


■» SF Ui , 






o"e«o« s t 


1 NO 










r*llfNT COMPANY S 
1 


f. NO 1 

1 



1) LgLAL OPPORl LNIT^' ^,^ -^ 

He n has, nhas not paniopated m a rreMO,is .. :ia» ■ffoN-jIxor.iraa supitM' enter t.. the Ku..a: li>^-\''> clause herein or the ilau' 
oni.in7n> .i.niaiiid inj.cti.'n -"l .t l.^iuiiiv^i^'^ .Nt.,..-V»).>V or the il-.use o|c:..:r.vJ in ^er^.-O^l-Ne^-atiie Order N.. i.in- 
iIlii he □ h.!S, [j h.1% 11.11 Ha.l ill riM. -i-J a.r:T^i^.v «T""». Jl>>l ihj! tiprevr.ia:. .1.- .r,>l.nr \;'"^.l«'ii'i> "' resiuired iotrp1i.in.e ttpi-tt 
sif!ned bv proposed subtontravtors -v^.te i^rvr,iij'pruT to subcontract awards • T'.^V \ :\^^:i ■» i/it./ «'.; fit ..«4«arr«/ /« .-.■«..,■/- 

""" '•*"" ■' -'"■""■'*" "j^X^'^ '" " "■• "'■""* ' <ri^^ "* 

- BLY AMI RICAV CEKTIM^^IV-^ " VV"^^ 

^ :Vtt t..vli end proJutt, txiepi the enJ pmJuccs IiitfJ -reKt*. is .1 Jomestit. source cnJ prtxluct (« dtiineJ 1 

^.jn \kx. t: ;inj :hjt components ot unkrutwn origin hjve bcrn lonsiJcrrJ 10 hwtr betrn mmeJ. prinJuceJ < 



The ofieru 
ihc s/'/'i. trntitltrJ Buv Am 
manur^iiurtJ outside the I 1 



tXCll/OEO tND PBODuCTS 


COUNTIT 0» 0«lCiN 



b CfcRTIFICATION Of INDtPENDlNT FfllCt DtTERMI.S'ATlON (Su p^f 18 en iS.i i 

iji Bv subiTuss'on of this oritr the otu-riw ccrtifit-s, ;inJ in' the usr ot i joint oner, each p^rt) thereto cernhes as to its own orpjn 
thjt m connection «ith ilin protufcfrwnt 

M ) the pfACs in this ouer have btxn ^rrneJ J( mJeprndentlv. wiihtiuf iOnsultation (nmmunK.ition. or agreement, tor the purpose ot 
restriainc ^ompt(it,.in ji to an* T.itier rel.itmj: to \ui.h ^twts with M\\ ,xhvr »>rrcror or »ith jnv mmi'viitor; 

' * 1 unless i'fheriMsc rtou feJ S\ <j« . the prui* whah h.i^e S^n <{'u>>tcJ in this oner hj»e not Keen kn^winicU diStrk-scJ hv the oiicror 
and v»ill not knnuuKix be ^lix<ioied b* the oiitfi-r pnur i.» npenmi: in the CJsr ol .m jd^vrTistd proCLremcnt of pnur to jm .ir J in the vaM of 
a ne(:'»ttJird prfKurt.ntnt .!irt<tK .-r inJiri.t'* l^^ .in\ <<iher .inriror or H' .111 v ,ompeiitor. and 

I J ) no .ttttmpt til* Ken nude or uill Ik ir.-ide b> ihi i/iivfor t4i ind'ue J0> other per*.>n -'r lirm to «ubniit irf ntn 10 submit an oliter lor 
the purr..\e Of ^rM^l.^.n^ iomrtiition 

{b) Ejth person si>:nin^' tSij ortcr leri-hrs ih^t 

( 1 1 he IS tht, person m the orieror * .ifj:jnii.iti«m rcspiinsible viuhin that orfianuatum ii»f the decision .11 to thi prices bemjjorterevl hertin 
jnd that he Sa< not |Mt(ii.ip;)ted jnd ui|) n.>i p.trtKipjte m 3n\ action contrjrv '.o 1.11 1 1 i lhrout.*h l.n) ( }l abo^i* <>r 

1 I) II ) He IS n< 'I the pervr-n m the o:rcror v or;:.triiituin respt>n>ibU Miriin th.it or.:jni^jtion lor tSt dtuMon i* to the- prices Kmp 
ohi-red herein but thjt ht h.ts bec-n authorised m witing to i^t as a>:tnt tor the rcr>ons responsible \<m >uc'h dei ision m tcTtitvinit that such 
fwsons h.ive not participjted. a\\s\ wiM not pjrucip.ite m *t\\ .ution loniran i.. i.ii 1 I ) ihfou*;h tai 1 * • .ibo\e, and as lhe>r a^ent does 
hc-rebv so ccrt.ev and 1 n t lie h.iv not parncipjted jn^l will not particip.itc, m .\\\\ .iciion vontr,ir\ tu • a I ( I » throu>;h < a 1 * 1 above 



acknowleocment of amendments 



AMENDMENT NO 



AMENDMENT NO DATE 



,./ h\ ihn Ul,ulMi-M I tn,l,>J.uM jltMl>muitj TU r,u.i/n 



880 



100-18. EQUAL OPPORTUNITY 



During the performance of this contract, the Contractor agrees as 
follows: 

(a) The Contractor will not discriminate against any employee or 
applicant for employment because of race, creed, color, or national ori- 
gin. The Contractor will take affirmative action to ensure that appli- 
cants are employed, aid that employees are treated during employment, 
without regard to their race, creed, color, or^national origin. Such 
action shall include, but not be limited to, the following: Employment, 
upgrading, demotion, or transfer; recruitment or recruitment advertising; 
layoff or termination; rates of pay or other forms of compensation; and 
selection for training, including apprenticeship.' The Contractor agrees 
to post in conspicuous places, available to employees and applicants for 
emplojTient, notices to be provided by the Contracting Officer setting 
forth the provisions of this Equal Opportunity clause. 

(b) The Contractor will, in all solicitations or advertisements 
for employees placed by or on behalf of the Contractor, state that all 
qualified applicants will receive consideration for employment without 
regard to race, creed, color, or national origin. 

(c) The Contractor will send to each labor union or representative 
of workers with which he has a collective bargaining agreement or other 
contract or understanding, a notice, to be provided by the agency Con- 
tracting Officer, advising the labor union or commitments under this 
Equal Opportunity clause, and shall post copies of the notice in con- 
spicuous places available to employees and applicants for employment. 

(d) The Contractor will comply with all provisions .of Executive 
Order No. 11246 of September 24, 1965, and of the rules, regulations, and 
relevant orders of the Secretary of Labor. 

(e) The Contractor will furnish all information and reports re- 
quired by Executive Order No, 11246 of September 24, 1965, and by the 
rules, regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to his books, records, and accounts by 
the contracting agency and the Secretary of Labor for purposes of inves- 
tigation to ascertain compliance with such rules, regulations, and orders. 

(f) In the event of the Contractor's noncompliance with the Equal 
Opportunity clause of this contract or with any of the said rules, re- 
gulations, or orders, this contract may be canceled, terminated, or sus- 
pended, in whole or in part, and the Contractor may be declared ineligible 
for further Government contracts in accordance with procedures authorized 
in Executive Order No. 11246 of September 24, 1965, and such other sanc- 
tions may be imposed and remedies invoked as provided in Executive Order 
No. 11246 of September 24, 1965, or by rule, regulation, or order of the 
Secretary of Labor, or as otherwise provided by law. 

20 



881 

(g) The Contractor will include the provisions of paragraphs (a) 
through (g) in every subcontract or purchase order unless exempted by 
rules, regulations, or orders of the Secretary of Labor issued pursuant 
to section 204 of Executive Order No. 11246 of September 24, 1965, so 
that such provisions will be binding upon each subcontractor or vendor. 
The Contractor will take such action with respect to any subcontract or 
purchase order as the contracting agency may direct as a means of enforc- 
ing such provisions, including sanctions for noncompliance: Provided, 
however. That in the event the Contractor becomes involved in, or is 
threatened with, litigation with a subcontractor or vendor as a result 
of such direction by the contracting agency, tlie -Contractor may request 
the United States to enter into such litigation to protect the interests 
of the United States. 



[Remainder of this contract is on file at the Commission on 
Civil Rights. ] 



21 



/Jin »'• 



882 
Exhibit No. 22 

U.S. DEPARTMK.N'T OF LABO:< 

0:':!-i: 'T rMP. Soi.irnoR 



AL'^i 1 7 *i£/3 WASIllNOTON, D C. 

cc 



Si.iiu; Guidelines for Establishment of Navajo Manpower Utilization 

Requirements in Construction Activity 

7V Philip J. Davis 

Director, OFCC 



Pursuant to your request, we have re\'iewed tlie Guidelines proposed 
by the Office of Nav.-ijo Labor Relations (ONLH) to determine v/hcther 
tliey mfiy be properly i.iclucicd in federally-assisted construction 
contracts let by the Navajo tribe, and whether any sections are com- 
patible with Execiitive Order 11246, as amended, and Title VII of the 
Civil Right.s Act of 1964. The follov.ing analysis is in accord with 
OFCC's po.sition that the Executive Order program should adopt Uie 
Indian Preference clause in Title VII as its own policy in order for 
the tv/o programs to (unction under consistent standards for contractors 
operating on or near Indian reservations. 

.Section 703 (i) of Title VII 1/ provides that the prohibitions of Title 
VII do not apply to the employment of Indians on or near reservationc. 
Therefore, the prcfcrr.nce for Jndic-n employment is an absolute one 
which niay work to uie uolal uxclusioii of all uuii-Inuldii cnjployoea, 
trainees, apprei'itices, or other members of the work force. The 
absolute preference for Indians may, where Indians and non-Indians 
are boUi members of ihe work force on or near a reservation, also 
extend to promotions, transfers, and layoffs, as well as any other 
b'encfits of employment. 

The only application of Title VII on or near an Indian reservation would 
be in cases of discrimination involving non-Indians of different racfs, 
color or national origin, or between male and female non-Indians. 

TJ ^Molhing contained in this Title shall apply to any business or 
enterprise on ox near an Lidian reservation witli rer.pcct to any 
publicly arinoui.ced employment practice of such business or enter- 
prise under which preferential treatment is given to any individual 
because he is an Lidian living on or near a reservation. " 



883 

- 2 - 

Under this interpretation of the Indian preference provision of 
Title VII, and in t\irn, OFCC's Indi?_n preference policy, it is 
our opinion that tlie ONLR may legally append bid conditions of 
its own on federally-assisced construction contracts which impose 
upon the contractors a burden of hiring an all or predominantly 
Navajo work force. Although the proposed ONLR Guidelines have 
taken the goals and timetables approach utilized in comparable 
bid conditions, there is no objection to even stronger language 
requiring employ)-nont of Navajos to the maximunn extent of their 
availability. The Guidelines already take tliis approach in requiring 
that all apprentices must be members of the Tribe. 

The same interpretation supports the ONLR's position that foremen 
should be employed in the same ratio as there are Navajos on the job, 
and that Navajos receive preference for all promotions. Additionally, 
it allows use of the provision wliich would proliibit laying off any 
Navajo until all non-Navajos in the same craft have been terminated. 

Although the basic premise upon which the Guidelines are based is 
valid under present interpretation of tlie Indian preference policy, 
there are some changes necessary for tlie Guidelines to fully conform 
to the requirements of Federal law. 

The major weakness of the Guidelines is chat it does not include the 
goals ajid timetables in the invitation for bids, but specifies that they 
shall be negotiated between the ONLR and the contractor after award. 
Post-award negotiations for material conditions such as the numbers 
or percentages of required Indian manpower utilization would violate 
thfc Comptroller-General's opinion striking down similar practices 
in the first Philadolpliia Plan. The ONLR has agreed to revise the 
Guidelines in accord with the Comptroller -General's opinion, and 
has prepa?.-ed goals for the first year the Plan is in effect. A copy 
of these goals is attached, for your information. 

The \^iuidelines include witliin its definitions of contractors and sub- 
contractors covered under its terms, "government agencies." Since 
these provisions will be included in all contracts let by the Tribe, 
v/hether or not federally-assisted, it is essential to amend that 
definition to read "non-Federal government agencies. " Otherwise 
the Federal government, in contracting for construction on Indian 
reservations, may be required by contract to hire an all -Indian 
work force, althougli forbiddeai to do so by Federal laws presently 



884 



-3 - 



applicable to Federal employees. These contracts would most 
probably be with the Bureau of Indian Affairs, whose Indian 
Preference Law was recently struck down by a three-judge District 
Court on the grounds Uiat it violated the 1972 cunendment to Title 
VII, prohibiting discrimination in Federal employment. Zj 

Let us also call your attention to Section J. 6. , which purports to 
provide that the ONLI\ Guidelines could supersede ajiy conflicting 
provision in a collective bargaining agreement. The ONLR Guide- 
lines do not have the force and effect of Federal law or regulations. 
Therefore, there is some question whether such Guidelines could 
supersede collcciive bargaining agreements. 

The remaining questionable provisions arc both in the sanctions 
section. 

The first is Section II. 0. Z. , which would allov/ the ONLR, upon a 
finding of non-compliance, to deba.r the contractor or subcontrrictor 
from any future work on the reservation for up to five years. This 
action could not be taken under Executive Order 11246 and questions 
of legcJity would be, as would the following question, more properly 
addressed to the Comptroller-General since both raise procurement 
lav.' considerations on Federally-invol\'ed contracts. 

Section 0. 6. would allow tlie ONLR to order a non-compliant contractor 
to pay treble damages to the tribe based on v. sum equal to the wages, 
salaries and benefits that would have been paid to Navajo employees 
had the contractor complied with its utilization requirements, plus 
any other damages arising from dilatory action. Since the Guidelines 
also authorize the award of money damages to the tribe for any injuries 
to it arising ixom the contractor's failure to comply, V and similar 
dainages, in tlie form of restitution, to ariy Navajo not hired or pro- 
moted iri accord Vv-ith the Guidelines, 4/ this section may not serve a 
valid purpose. Hov/ever, this provision, as well as the provision 
relating to treble damcigcs could not be imposed under Executive Order 
11246. As indicated in the preceding paragrapli, questions concerning 
their propiiety on Federally-involved contracts should be addressed to 
tlie Comptroller -General. 

27~ T^fancari v. Freeman " F. Supp. , 5 EPD 864 3 (Jvme 1, 1973). 

3/ Section U. 0.4. 
4/ Section II. 0.4. 



885 



- 4 



In conclusion, it should be noted that when a contract is to be 
performed on or near a reservation, it is not a violation of 
Executive Order 11246 if an Lidian is given preference over a 
non-Indian for any job or promotion, or on layoffs, or in any 
otlier aspect of employnnent. 




Ronai 

Actin" Associate Solicitor 



Attachment 




886 
Exhibit No. 23 

UNITED STATES P^°PCJ^ty & Supply 
DEPARTMENT OF THE INTERIOR 

BUREAU OF INDIAN AFFAIRS 
Navajo Area Office' 

P. 0. Box 1060. 
Gallup, New Mexico 87301 

JAN 2 9 1974 



U.S. Commission on Civil Rights 

Attention: Larry Click, Ceputy General Counsel 

1121 Vermont Avenue N.W. 

Washington, D.C. 20425 

Gentlemen: 

Reference is made to your letter of January 24, 1974 and to my letter 
to you of October 26, 1973 (copy enclosed). 

I have reviewed the transcript of my testimony at Window Rock, Arizona 
on October 23, 1973 and the list of exhibits which I was charged with 
furnishing to the Commission. I believe my letter of October 26, 1973 
covered all except the comments which I was to furnish regarding the 
prcpcscd laundry at Tuba City, A_rizopj». 

The question of a three year (or any multi-year) contract with the pro- 
posed laundry had not previously been discussed with me; however there are 
obstacles to such a proposal, e.g. 

(1) The Bureau of Indian Affairs operates on annual appropriations and 
therefore cannot committ itself beyong the period of the currently appro- 
priated funds; 

(2) Since our laundry business presently and for the past several 
years is, and has been, exclusively with Indian firms, we could offer to 
any newcomer to the field only what we offer the existing firms -- the 
right to compete among Indian firms. This is in accordance with 20 BIAM 
5.14A.(2) "When the products of Indian industry to be contracted for are 
available from more than one Indian contractor, competitive negotiations 
are conducted with each Indian contractor within the normal competing 
area." 

I'm sure you would agree that even without the above stipulation, no 



887 



useful purpose would be served by committing our future business to a 
new or proposed Indian finr at the cost of the destruction of existing 
Indian businesses. 

I trust these comments help clarify the position of the Bureau and 
myself in this matter. If I can be of further service, please advise. 

Sincerely yours, 

y^ Area Property & Supply Officer 
Contracting Officer - 

Enclosure 



888 



Ilir. Tl-.oi:as G. Brnndt 

Chief 

Area Prop<?vty r-iw 'Ju;\"ly Offic« 

Bvvcu of TrJ5.an Af^Iciirr^ 

Ciliap, liew Ijeriico 

De^ir Mr. Brandt: 

In your tettiTnony boforo :.na United S':.-.L(:'S C-./ . -laaion ori Civil 
Riciits on October 23, 1973, a nunbcr o£ docuT';e:-!ts v.'orc tclor.ti- 
fied as ej«nibit5 to le sub.niuuou .'or the wrli-.v-cn racotu. teverat 
of those c.or.un-onuo vvora tiot ir-ivic 'iatoly aviiilr.blG at thfe ttr.e of 
the haaring, but v?ftr.» to ba Eub;:iJttad at a la'cc;;: date. 

A doRcripClcn is eaci.csd of thor;;; ilocvznents vrVilch are available 
thvoii^.h yo>:r »£[.1.<:^ iu {-■j.llnp, tcr-.c-'Ciiyr with !>r<-.Q rafcrsnoes to 
tho rclev-'-.i': por'-loriS ril tlie ur;;;d:.f-.'iJ lic-r;i:iiig f^'cucuiripC. I 
haV€. enclosf;d fof your couvOiiiGrjce all of thr; iAsHuLwrtuy jtlvait by 

£rori the previous day v:hich rfslai:;;: to the fundii'.s>. oroblerr.s of 
the proposed laundry at Tuba City, en \'h:lch you vsica aslced to 
couiiueni;. (S'jg onnlcsed descriptioa of ouiibit tiunberj25). 

Yotir esslecavscs in eupolylng thir. inlor.r.ation l"or the hearing 
record is very Kuch appreciated. 

rincerely yours. 



L/iVTREKCE B, OLICK 
Acting General Counsel 

Enclosure 

cc: VOfficeXchrop/OSD/ogc 

HLewiB/PAlo •rnr'er/LBGlick/t jg/l-23--74 



889 

:hibit3 Ko3. 17. 17. 18. 19. ?1, ?3 



(1?) Where is tl>o Imncry from the Tuba City Ji-o.-r-lin^ i^clu-iol 

pret-^uutly beins hciidlGcl? O'.iefM.-ioi'i a'jl'.ed c£ Hi*. 'Jood, r.IA 
Crc'lit orricer for tho Navajo -/'Voa, by Acuinj Chairiv.n Horn, 
«t pago 246. 

(17) E>:r.Tnple of typlcol payroll shcpt frcri any bL'i contractrcr on 
the Navajo Reservattou., b'uowii"';;,, if. [yo-M^i-hlr^, frcbuic b-oak- 
dox-m by t;?till lavontory. ThliJ exliihit roi>^rrecl to ft pafQ 
305. 

(13) The number of Mnv.TJos e.:iployed by contractors under tli.i juris- 
c!ictlo!\ of the LLK Cop tv acting', Off.icir (1 r. Tlnvnan G. Uii'ndt) 
for the l\.:ivajo Arci. Th'l3 e::liiblt roforic?d to at p3f?G 308. 

(19) The totnl iuir"bsr oC contr.Tcta let for school conntruction by 
the Nevr.jo Area Oifice since 1S''.5, anJ ellinic brr.-:i!iuo-.*ni of 
employees by okill Lax ench. of -these coiii;r;>cts. This infor- 
mation to be provided by lir. L'lL'JlGy at tlic; request of Acting 
Chairr.an Hora, rsicrrcd to at pa:;e 3IC. 

(21) Copy of contract r -lue ian^iiiji r..-..\rcr<i j'r->n "rowrty ?nd Tupniy 
Officer tc auppiy i"-".i.n produce. Ucicrrei to at i-'i-ic: :')lo. 

Cj) Invccl:i^-:t:ic'^ Co It c ;.-'-h'Ct;; i V.y ■:•;. ::•-:;!-. pf vb- •• ,i,v.;e^' 
laundry at Tuba Ci'cv vhich war: usinbla to obtain f uiid J.u:]; from 
the Small Bvisinesu A'Jv'luistration .'>.lln,';jc01y becTUoO th-j EIA 
l^avajo Area Office rGlutisd to r.ive .\ contn'.izt ;;\.u-rr.iiCcoinj^ 
BIA utie of that Inunory for a 3-year periou. Diu the Area 
Office in fact roiuae to undercni.e this 3-yoar c''''i^''^teG, 
and if r>Oy what io Die Area Office's position an to x'ly 5t 
refused that guarantee x;hlch SPA clai',:,o v/ould have \i.a,ie the 
loan poasible? Thin err'iibit referred to at pa^o 33^. 



rcievaat mater tal i& 
(pp. 7/7-.'.wj) o_> .,.. 



ijicl'.iofcd j.iO'.i i^roviouii tiay't; LCiLiti.nOiiy 

of the Small Businose A'?'-ti!irtr;'.tlon, ilr. E.E, V.'ood , hZ\ 
Credit Officer for the IJavnJo Area, and Stf^nley Goldberj:, 
Small Business Administration District Director. 



890 

:iarch 25, 1974 



Mr, T:'-C.:'?3 C. Fr^uidt 

CliUP- 

Prc.'ijTty end fuooly Office 

i>ujrr2u cf Injir.n .-'if ;;'■!. rs 



TliJLfi is in i-cn-.rra.oe to yvr.-- lettei: ct .t-jh/ivv 29, 1974, in vbich 
you InJicat!? V.hrA: r^o-'i of. ':]ift i^'rva jo ' .-.r.-flu,'; e>'hi"i:Jt T.iacsrialr. 
rdqu-^"teJ by |^^ in our ]..ii;.:.ir<r of JVcnuMy ;;^''<, 1>74, hecJ been sent 
by yc>u to th^ CoiTDissloiri jur.u follcvrirt'v tha haarius in Octobar 
1973. I a:>pref:iate your nrc-ir^t attiS-iioa to oiinplyiag us t:ith the 
B~e-j£d c!ocu::?i*ts. and wiiih fcliat ve ii-'i-i recaived Ll;;;ii. 1'nfoirtui.^atelyj 
your Ifcttsr did not recch u3. H.jy I j sk thaC ycu iiend ua replace- 
r-n^l cc-^lsn (^r tho ntt^clrvints rof^rrcj ;:«? in you" i^ittsr cf Cctobtjr 
26, i:.?3. 

":• - ■l'.':i- ■> . '"•• T i^=- '- - -^ r'^- •'■• ,:--;;^ (;^;, -^ -^ t."-i-»v c'siMblt': 
(ni-IjC-tii 1?. and 23) rc-i'.i- •' •JftU in ou/: jic^ivioua iciter to you. Bx'iibit 
23 Is v.'aant to present thz- potiiticn taken by tha liTA Area Office on 
SE\*s reduce t thst the BIu fui^.iantoo by ccal-ract to uL;r! the proposed 
InJira ovncd lauudry facility at Tula City for a ti.ree year period. 
You ver? requcQt'jd (pnge 1532 of tbo transcript) to invest: ie-- to that 
situation, to review the yrnvlous u.iy'a tcstiwjny as to SliA'e- yosl- 
tloti, find to report the results of Li-it ii'.vc£3ti<;u£ion and review to 
us. 'i?ie BIA area cnntraccins office allej^ectly turned down this 
r-'-ivpt -'or ri 3 Vf-r-? '^vrr-^-^^'::^^. . end t.lK^s* 'ho ■r'.u-.! that d^icislori 



You notfe in your letter tliot your office has contracted cxcXudively 
with Iniiicn n-;i-<f?'J Ir.ur.Jry rj.rsiis in the nnat several years, and give 
that as a noenible rea?.cn for not awarding a 3 year contract to the 
proposed Indirn cv;ned iaunJry at Tuba City. le r.viy one of those 
Indian lanndiy flims, with w'lich your office contracts, located within 
tr^'.vel distance of Tuba Ciiy so that it could be considered coiripeti- 
tlve with the subject Indian owned Lundry ["ronoF-'^d for location In 
that city? Yc'jr response, dealing V7ith the Tuba City laundry siLua- 
ticn, v/ill a,-,car in ti;c vo.~'-.<rd as c::hibit 23. 



891 

Er:hibit 12 Is a requost for tliu riaria and lcca£j.t;n oi; t;vs flrn 
v;liich preseiiLly hol'.'-i Lh^ concract for hnrj'alinji the laundry from 
Tuba City f!onrJing Schoc-i. This infin-r-atton t.-as not ir.ciu;!-v:a in 
your response to us. 

Tliank you asain for your assifitance in helping us to coiipleta the 
record of the 'Javajo hearlns. 

Sincerely, 



LA.V!^".-C!i 3. CLICK 
/Vcting coaerai Countsei 

Enclosure 

cc: office/OSD/Chron/OGC 
KLEV7IS : PALEXAMDER : t j g/3 /7 /74 



892 

Number 23 as I stated in my letter of January 29, 1974, the BIA 
operates on an annual appropriation and, by law, cannot commit 
itself beyond the period of the currently appropriated funds. 
Also since our laundry business has been exclusively with Indian 



contractors for several years » any new firm qualifying under 
the "Buy Indian" Act would be afforded an opportunity to com- 
pete with the existing Indian firms for the available business. 
Surely no one seriously suggests that one Indian firm should 
be deprived of an established market and thereby destroyed, 
in order to promote the entrance of a new Indian firm in the 
field. 

Please advise if I can be of further assistance. 

Sincerely yours. 




Contracting Of±±cvnr 



/Y y)^:^^ OJ 



. Pirope'rty 6c Supply Of ficer 



(Excerpt from letter dated April 5, 1974; see Exhibit 
No. 18 for full text.) 




893 
Exhibit No. 2U 

United States Department of the Interior 

BUREAU OF INDIAN AFFAIRS 

WASHINGTON, D.C. 20242 ^Z9 2 5 x;72 

■N .Ei-LV HEFER TO: -^S\LAU OF INDIAN AF" 

Contractlng Services -- ^, ,„,_,,.„ . 

SEP 2 2 137Z 

Mr. Browning Plpestem 

Office of Frograji Development 

Havajo Nation 

Window Rock, Arizona 86515 

Dear Mr. Plpestem: 

On September 9, in a telephone conversation with Ifr. A. 0. Allen 
of this office, you requested copies cf a draft of a proposed 
clause that had been In the process of developnent a few years 
back, dealing v.'ith Indian ijnploynent Preference In construction 
contracts. 

There is quite a file on this subject. The enclosed material 
includes Draft Kunbers 3 end y and a summary of a meeting held in 
fhoenix on December k, iyyO. Also enclosed is a ccpy cf the 
Solicitor's memorandum of April 27, 1971, subject "nsgotiablllty 
of Construction Contract Under the 3uy Indian Act cf June £5, 1^-10. " 
These documents ■will give you an idea of the scope and purpose of 
the intended clause. As hir. Allen advised you, it was the intent 
in developing the proposed clause to use that part cf the Buy 
Indian Mt which reads "So far as may be practicable Indian labor 
shall be employed..." as the author Ity for promulgation of the 
clause. With the issuance of the Solicitor's neaorandua of 
April 27, 1971 which stated that the Buy Indian Act " confers ao 
substantive authority to contract for anything" it was the feeling 
that the T)asrs fnr the authority for the clause no longer existed. 
That plus the fact that about that tine contracting in the i!ur'=;au 
became an xirgent issue v/hich consujaed and continues to consume all 
of the time of the staff that devcted its attention to this matter 
has resulted in no further action being taken. 

Since the rhoenlx meeting the Department cf labor has released 
several "Hometown Flans," in keeping with their attempts to ^et more 
mincritles enpl.yed in the ccnstruction trades. Cne of the "Home- 
town Flans" covers the entire State of Arizona. These plans end 



894 



the recent announcement by the President that he no longer 
favored "quotas" (we haven't seen anything official on It yet), 
vhlch seems to counteract the past efforts to provide pro- 
cedures and policies for Increasing minority workers into the 
construction industry, would appear to leave the whole matter 
up in the air. 

We, of course, are very much interested in the development and 
use of such a clause In our construction contracts, but we also 
must be certain that proper authority exists for the use of such 
a clause. 

We would be interested in what your explorations develop. If we 
can be of any assistance, feel free to call upon us. 



Sincerely yours, 

(sgd) Donald F. Asbra 



Donald F. Asbra, Acting Chief 
Division of Contracting Services 



Enclosures 

cc: ID&C, Albuquerque 



895 




UnitcJ States Department of the Interior 

Ol I ICl: (>| I III. si CRI lAKN 
\V.\MII.\(. II 'N, I) (. .'IIJIII 



JA\ : 1 1^^' 



Dear Mr. SicLgor: 



Tlinnk you for furnishiiiR us widi a coi)y of Mr. Morrell K. Sexton's 
letter of December 9, 1970 to you. 

The meeting which Mr. Sexton rcforrcil to was sponsored by officials 
of the Bureau of Indian Affairs and its purpose was two fold. Its 
primary purpose was to discuss a draft of a contract clause entitletl 
"Indian ['.mployment Preference". Tlic development of this rlauL,o aiid 
its application has been under consideration by the bureau for many 
months. Prior to the Phoenix meeting an earlier draft of the clause 
was reviewed by Mr. Sexton and others. 

At present the llureau is in the process of computing what will probably 
emerge as the final draft of the clause. 

ic second purpose of the Phoenix meeting was to explore in a preliminary 
./ay the possibility of entering into some type of training contract with 
one of tlie contractors doing construction work on the Navajo reservation. 
Under such a contract a certain numhcr of Indians would be given on-the- 
job training in different crafts, with the end result qualifying them 
as skilled journeymen. This proposed program has only. reached the 
discussion stages and considerable study, review and evaluation will be 
required before it can be put into operation - possibly as a pilot 
undertaking, preferably on the N.Tvajo reservation. 

The Bure.iu and the Department are optimistic about the possibilities of 
these two proposals which are designe<l to provide more employment fur 
Indians on the various reservations. 



We liavc discussed the status of the Tuba City Hospital with the Indian 
Health Service and they report that only design funds are available at 
present. They anticipate an award of a contract for A-E services within 
a oionth and completion of this work early in 1972. It will be necessary 
for them to obtain construction funds sometime after tliat period. 

The role you have pl.iyed in tliis matter is appreciated ami your continued 
support Is anticipated. 



Sincerely yours. 



'■• Secretary cif the Interior 






Honorable Sam Steigcr 
House of Representatives 
Washington, U. C. 20515 



896 

INDIAN APPRENTICESHIP 

•n the 

ARIZONA CONSTRUCTION INDUSTRY 



FOREWARD 



The success of this program will depend, to a large degree, upon the 
Bureau of Indian Affairs including a workable Indian preference clause In 
Contracts for construction. This clause should, in part, refer to apprenticeship 
with contractors employing and training the full ratio of apprentices as determined 
by the respective trade apprenticeship standards with the number of apprentices 
in each contract being agreed to by the respective Joint Apprenticeship and 
Training Committees at pre-job conferences. 

The Indian Apprenticeship Program in the Construction Industry Is Arizona's 
solution to the problem of Indian employment in the Construction Industry. The 
Program Is so designed that ongoing groups, associations, agencies. Joint 
Apprenticeship Committees and unions skilled in training and presently involved 
in training will include this very program of bringing Indians Into apprenticeship 
and will not be replaced or confused by new and overriding committees or programs 
operated outside of existing practices. 

These currently operating functionaries will take on this Program, and the 
organized team work already prevailing in Apprenticeship and Training in Arizona 
wMI continue. Yearly planned input of Indians will be established. Adequate 
financing will be requested of the Bureau of Indian Affairs to assist industry. 
Otherwise the general promotion and maintenance of training programs in Arizona 
will not be changed substantially -- just broadened. 



897 



INDIAN APPRENTICESHIP 

IN THE 

ARI20NA CONSTRUCTION INDUSTRY 



■ I. PURPOSE : 

To obtain maximum input of Indians into the Construction Trades, and 
To provide adequate training 

To enable the resulting craftsman obtain steady employment both on 
and. of the reservat'-^ns. 

"2. C ONCEPT 

The benchmark of this program is the on-going apprenticeship system in the 
Construction Industry in Arizona. 

This program will not replace or be run counter to ^ny existing program or 
system but will augment present efforts. 

Training Is provided by labor and nana^erent through Joint Apprenciceship 
and Training Committees, (JATC) administratively financed by Trust funds. 
;pr; <?./ *lj} so, this Program will be channeled through thpse JTACs in order to 
provide diversified training and reasonably continuous training. 

3. PROGRAM DESCRIPTION 

The Bureau of Indian Affairs will be requested to enter Into a contract with 
the Western Apprenticeship Coordinators Association (WACA) to provide the financial 
assistance necessary. WACA will maintain strong liaison with supporting JATCs 
and a very simple process of reimbursing the JATCs for this ^dded expense. 

These added expenses are for extra travel of JATC st^ff, extra meetinos, 
extra time -- and for that extra effort vital to the promotion of hiring and 
Ining Indian apprentices. 



898 

The Program would be for 18 months with a goal of placing 100 Indian 
apprentices into construction trades. 

ADMINISTRATION 

WACA will administer the program with one coordinator and one secretary. 

They will be housed with the present WACA-MDTA staff and the Coordinator will 

be under the direct supervision of Morrell Sexton. Contacts with JATCs will be 

In unison with the present program -- thus not increasing the calls on JATCs by 

another or separate program. This will avoid confusing points of view and be 

In keeping of this new Program being quickly and easily integrated into the 

present team-work concept of apprenticeship in Arizona. The Coordinator's 

selection will be based upon knowledge and experience in apprenticeship, 

acceptance by the Apprentice Coordinators, background In cons tructiori. and , 

his ability to take this program and make it work. ureCanu-t- LI ^ ' • 

to InUiati applica;.t.s. VACA will .e rei.r.i urst-.l f.l'.0,00 'per i.ucih for 
rent,ph<');ic, admii.LsL.'-atiori eic. 

Funds reallocated to JATCs will be on the basis of Indian apprentices' 
hours or work. These funds will give impetus to JATCs to spend the extra time, 
travel, etc., necessary to screen, examine, indenture, place on-the-job and 
Into related instruction in sometimes Isolated areas. 



SCOPE 



The program will be Statewide aiid for all Indians. It will include 

V 

partially trained journeymen as outlined in Arizona Affirmative Action Progranv.- 
In fact, these partially trained Journeymen will be served first preferably. 
They will be evaluated and indentured, and paid an apprentice wage scale 
commensurate with their skills. For this reason, employers will not be reimbursed. 
Present Indian apprentices will benefit by this program, however, JATCs will not 



899 

be reimbursed for any presently indentured apprentices. 

'I 

Employment will not be limited to PIA construction but also on any and all 
construction in Arizona. 

6. BIA PARTICIPATION 

B|A In addition to financing the Program can be expected to aid in 
recruitment, testing and transporting applicants, and, at times, registered 
apprentices who may have lost contact with their JATCs. BIA may provide 
classroom space on reservations where apprentices will carry out the provisions 
of the related instruction requirements. 

7. B REAKDOWN OF EXPENSES 
Salaries 

Coordinator g $15,500 per year ^ li years---^ — -- -=rr $23,250.00 

Office secretary @ $7,200 per year - li years ^^r 10,800.00 

Relrn..urs'Tent to WACA & .JlyO.OO p«;r 

nonth fo.-- iii months , , . 2,'/X),00 

f**^ oer trainee hour worked x 2,000 hours per year 

(m^xim"pm of one year) 
1, >00 "3 '^ '00 trainees - -O-'W^^-OO 

Travel 

Coordinator § 1,000 miles per month 3$. 12 per mile 

5120.00 X 18 ,,,,,,,,-.,,. .,,^,,-^--. $2,160.00 

Per Diem @ $25.00 per day - 10 days 

per month It, 500 .00 



this is .t203'..00 pe.' '^raluee 
- — .-w f/ci Trainee. 



6,660.00 
203, iO.O_'« 



900 

JAN 25 1971 

Eoeineerli^ Coatr&et Adviser 

Cblcf , DlTisloo of PlDitt Desl^ and Construction 

Zndlajt Eoployiaeat Preference Clause for Coostructloa Contracts 



Taer« is enclosed a nesiorandua corerlng tne conference held in F^oeolx, 
Arizona, Deceaber k, 1970, on tne above sv.bject. Also enclosed Is a 
copy of Mr. Allen's draft clause iiunber 0, dated October 26, 1970, 
revised to include tae conference su^eotions, and a copy of Division 
of Plant Desii;n and Construction's draft ifuaber 9, vaica includes tie 
conference suggestions to^^etner vitti additionaj. reorgaoizatioa and 
editorial c::&ui^es. 

As noted in tte conference eeaorandues, several suggestions were offered 
as to an appropriate title for tt.e appointed representative of Indian 
lAbor and t:ia.t tbe tera "Indian eoployee representative" appeared to 
te fbvored. We feel, ftovever, that tae conference suggested tara does 
not adequately apply to off -reservation projects and nave offered, in 
rose draft NuBiber 9» the tera, "Indian employ-'eent coordinator," as a 
■or* appi^priate tera for identification purposes in ti::e clause itself. 

Renumtering of paregrapos for better organization occurs in both of the 
enclosed drafts. In t-'.e PDSC draft Naoiber 9, ve have suggested uekin^j 
tvo paragraphs from tne original first parsgrapa for the jxirpose of 
identifying t^ie applicable lavs in paragrapa one and for setting forta 
the purpose of tee clause as peragrapi tvo. TjIs seems to .-lave facili- 
tated ore^anizatiui to accossaodate lan<^uage added to parograpu tvo directed 
toward avoidance of lavlng tl.e Tribe or its designated Indian efflployaent 
eoordinatar being construed as an extension of Ve contracting officer. 

Also enclosed are tvo brief aeooranda, dated December 22, 1970,and Jan- 
nary 7, 1971, recounting contacts witn Mr. Franlc Benites, ftiildlng and 
Construction Trades Bepresentative, Pioenix, Arizona, and Mr. Fred Davis, 
Assistant Regional Director, NLHB, Albuquerq e, Kew Mexico, recpectlvely. 
Tnese oeaoranda relate to pora^rapa 6 of t.ie conference meiiomndun and 
Mr. Benites* coocacnt concerning possible conflict vita the provisions of 
the Taft-iiartley Act. 

Contributions such as those oade by tee participants in t.s Pr.oenix 
conference are considered valuable in rccor;ni2iag potential problems 
and pro<QOting acceptance of t e proponed ludiau esploysient preference 
clause. Ue are proceeding wit^i distrlbutlcm of t e P..oenix conl'ercnce 
■•aiorandum to conferees. Any cosuasnts received vill be forvarded for 
your consideration towards deriving the final clause. 



Robert A. Dudley 

Enclosures 

cc: 

File ^^ 

Contract Branch ^ 
Labor Compliance Section 
CWEvans :bld :l/20/71 



901 



UNITED STATES GOVERNMENT 

Memorandum 



TO : File 



FROM : Chief, Lator Compliance Section 



date: December 22, I97O 



subject: Indian Enployment Preference Clause for Use in BIA ConstrLiction Contracts. 

On Friday, DecenTDcr h, I97O, a scheduled second conference on the subject 

contract clause \.us held in the offices of the Phoenix Area Director, 

"IZk v.. Thomas Road, Phoenix, Arizona. Those in attendance were as follows: 



1. Art Allen 

2. Robert A. Dudley 

3. Terry Ortega 
h. W. G. Lavell 
5.- Charles Lembke 

6. Stan Borthwick 

7. Albert Lass iter 

8. J. S. Dunn 



Engineering Contract Adviser V.'ashington D. C. 

Albuquerque, N. M. 



Chief, Division of Plant 
Design and Construction 

Field Solicitor 

Field Solicitor 

General Contractor 

General Contractor 

Assistant Area Director 

Contractina Officer 



9. Arnold M. Lehlback High'.'fay Engineer 

10. Janes G. Gilbert Area Employment 

Assistance Officer 

11. Ford Benhatn Plant [•^nageQeat 

12. Donald A. Humste-u Branch of Heads 

13. George S. Overby Branch of Roads 
lU. Vernon ?al,T.er Branch of r^oads 

15. T. G. Brandt Contracting Officer 

16. Chester G. Vilson Area Finance Officer 



Albuquerque, N. M. 
Phoenix, Arizona 
Albuquerque, M. M. 
Albuquerque, N. M. 
Phoenix Area Office 
Phoenix Area Office 
Phoenix Area Office 
Phoenix Area Office 

Phoenix Area Office 
Phoenix Area Office 
Phoenix Area Office 
Phoenix Area Office 
Navajo Area Office 
2favajo Area Office 



902 



17. Mark LaFollette 

18. Frankie Ifarianito 

19. George L. ^tye^s 

20. Robert Martin 

21. Ambrose I'cCabe 

22. Frank Peres 

23. Harper C. Stewart 



2k. 
25. 
26. 
27. 



Al Llndstrom 



Frank G. Benites 



^k^rrell R. Sexton 



Earl D. Ratliff 



28. Clair M. Evans 



Area Employccent 
Assistance Officer 

Personnel Director - 
Navajo Tribe 

Labor Relations Repre- 
sentative - Kavajo Tribe 

Ifeivajo Tribe 

Apprenticeship & Training - 
Kavajo Tribe 

San Carlos Reservation 

Bureau of Apprenticeship 
and Training 

Biireau of Apprenticeship 
and Training 

Building & Construction 
Trades Council 

Program Director, Western 
Apprenticeship Association 

Chief, Contract Branch 
Division of Plant Design 
and Construction 

Division of Plant Design 
and Construction 



Navajo Area Office 

Window Rock, Ariz. 

Window Rock, Ariz. 

Window Rock, Ariz. 
Window Rock, Ariz. 

San Carlos, Ariz. 
Phoenix, Ariz. 

Phoenix, Ariz. 

Phoenix, Ariz. 

Phoenix, Ariz. 

Albuquerque, N. M. 

Albuquerque, N. M. 



Following registration of participants at 9:30 a.m., the welcose and intro- 
ductory retr^rks concerning the background of the current local residents 
clause vera given by Vx. Dudley, Chief, Divi«i''-in of Plant Design and Con- 
struction. 

Mr. Allen of the Central Office reviewed the changing patterns in Indian 
employnent preference, citing tae applicable provisions of t.ie Civil Sights 
and Buy Indian Acts and t.ieir preceder.ca over the provisions of Zxecutiva 
Order 112^6. '■^. Allen briefed the conferees on the history and purpose of 
the proposal Indian e:;ployrrent clause and idantified problai araas axpaotad 
to be encountarad. ?!a also explained that the latest draft proposal on the 
contract clause, together with i.r.placanting instructions, vara not to ce 



903 

vleved as a final product, 'out vere being offered for further discussion, 
comments and suggestions for developing a final contract provision. There 
follovcd considerable open discussion concerning the proposed clause and 
Its Implementation. Suggestions, comments and inquiries from participants 
are briefed belov. 

1. Several Inquiries were directed tovard tne concept of a "tribal etnploy- 
ment officer" (TjIO). Included were questions concerning the role of the 
TEO in referral of workers, ability of sorre tribes to establish and finance 
such a position, the means of determining the T30 on off -reservation proj- 
ects, the Bureau's responsibility for the total referral effort and whether 
the Bureau should finance a tribal appointed TSO. In general, the inquiries 
made on the TSO were already well covered in the draft rremorandun (draft 
No. 3) B'tid in further discussions thereon references were xs.de to applicable 
portions of the draft. It was generally agreed that a tribal appointed TSO, 
contact, coordinator, employment representative or appropriate tribal repre- 
sentative, re4;ardless of formal title, was desireable to bring about tribal 
involvement. Further, that the tribs itself would be the preferred contact 
for referral of ^rorkers and would be in the best position to develop the 
necessary employment data, labor rosters, etc., necessary for prompt refer- 
ral of workers when requested by the contractor. It was also observed 
during the discussion of the TSO concept, tliat for the Bureau to assume 
this role would expose the Government to potential dacage claims in its 
relation as administrator of the Government construction contract. Although 
the contracting officer would remain available for any needed assistance 
and full use would be made of the preconstruction. conference in resolving 
administrative problems, it was suggested that the clause should avoid 
making the TEO an extension of the contractlOj officer. Of several sug- 
gestions for an appropriate title for the tribal appointed labor contact, 
the term, "Indian employee representative" appeared to be favored. 

2. Inquiry vas made as to the desirability of a single clause applicable 
to all areas of Bureau construction, or several clauses to be used indi- 
vidually in different areas of union organizational status, etc. The gen- 
eral consensus of opinion on this subject was to retain a single clause, 
the objective of which would acnieve the desired Indian employment pref- 
erence. Some aspects of the clause would necessarily be broad encug.-: to 
fit the varj-ing circuxstances. In lieu of tailoring tr.e clause for each 
contract a-»-ard, problem areas would be handled administratively, •.•ith 
empliasis placed on use of tne creconstructio.i conference. .A. suggestion 
■vas cade that t'le clause itself cake reference to the benefits of a pre- 
construction coaferei^ce. 

3. A consent as to who is qualified for euiployment preference as an 
Indian related to the current local residence clause and the contractor's 
problems in dsteriulning preference in hirir.g. Again, it was agreed that 
the proposed use of a tribal or Indian employment representative (T20) 



904 

In the proposed referral systera vould substantially eliminate problems 
as to an applicant's preference status. It \ns pointed out that under 
the current local residents clause, the employer could only rely on 
addresses to detennine an applicant's residence and that he may or may 
not be able to detercnine the lineage of an applicant. 

k. A cotmaent vas made that through early adoption of the proposed Indian 
employment preference clause, the Bureau could be setting up a hierarchy, 
possibly subjecting tribes to an unvanted situation. After considerable 
discussion on the merits of the proposed clause, its backt,round, EEO 
legislation, etc., t'ae comment evolved into a proposal that a draft of the 
clause be circulated for coMuents of those tribes not represented at the 
Phoenix meeting. Although adoption of a contract clause could thus be 
delayed indefinitely, pending approval of approxiirately 200 Indian tribes 
or as an alternative, those tribes prioarily concerned witii Bureau con- 
struction programs, it vas agreed that t/^e proposal vould be given full 
consideration by Central Office. The objections of TCavajo Tribal repre- 
sentatives to any delay in adopting an Indian preference contract clause 
could only be weighed against objections that the clause had not been 
subjected to the coai;r.ents of all Indian tribes. 

5. Considerable discussion was liad concerning hiring hall procedures, 
referral systems, vorking agreeraents and other arrangements directly 
related to t'ae effect an Indian employn;ent preference clause vould have 
on those contractors subject to labor -aianage me nt agreements. Generally, 
the comments involved administrative procedures to be worked out bet'v/ean 
all parties involved, rather than tne provisions of the clause itself, 
provided t.-.e clause retained enough flexibility for implementation. 
Representatives of the tlavajo Tribe, labor and aianagecent expressed some 
concern over f.ie '/--ording of paragrap.; 2, suggesting a rev/rite to more 
adequately provide for competitive bidding by closed shop contractors. 
Their proposed rewrite follows: 

"The contractor shall make known to the Indian employee 
representative, t.ie labor requirements of the contractor, 
indicating at the same time, such contractual obligations, 
if any, as to the source of suci labor supply (union hiring 
ball obligations) at least four days in advance." 

For the sac^e reasons, and to protect t:;e contractor froj violations of 
hiring hall provisions, it v,^s suggested that paragrapn 3 also be rewritten 
to allovf tns contractor to recruit fro.a other sources if the union, 
through the Indian eniployee representative, is unable to supply t.ie con- 
tractor's needs. 

A suggi:=,i,i.on for better organization of the total clause vas to combine 
paragraphs 2 and 3> ifi rewritten forn, to be nu.abered paragrap.i 3* -!^- 
to renumber paragraph k in its presjnt fcrr. as paragrap.-. 2. 



905 

It vas also suggested that paragraph 5 te revised to the following: 
(changes underlined) 

"The contractor shall be responsible for determining whether 
an Indian possesses the skills required and is capable of 
performing the work, e xcept under a registered training pro- 
gram . The contractor's decision shall be final as to whether 
or not an Indian other than a registered apprentice , possesses 
the skills ..." 

6. Representatives of the Kavajo Tribe, labor and the Bureau of Appren- 
ticeship training reviewed past experiences in working out problems in 
preference referral of Indians. It was noted that througa mutual agree- 
ment, most Arizona locals were giving preference to registered Navajos, 
tut that under the local residents clause currently in use, there was 

no contract requirement compelling contractors and/or unions to reach 
to the bottom of the union referral lists for Indian labor. It was felt 
that the proposed clause would also avoid forcing unions to violate pro- 
visions of the Taft-Hartley Act (National Labor Relations Act). Methods 
of the employer contacting the Indian employee representative direct \-rere 
also discussed and, it was felt a workable arrangenent could be developed 
between tlie tribes and unions which would centralize and simplify recruiting. 

7. Representatives of labor and the Bureau of Apprenticeship training 
suggested that in the interest of fairness to all bidders, the clause be 
■worded so as to require enploytient of the full ratio of apprentices to 
Journeymen. In this respect, it was pointed out- that full consideration 
vould be given to the individual caught in the so-called "grey area". 
I.e., a person who is not of Journeyman caliber and is too old to normally 
qualify for apprenticeship training. Such individuals vould be rated 
according to their present skills in the apprenticeship program, and vrLth 
training, could progress through the usual apprenticeship training periods. 
Without a program of registered apprentices, the employer would 'ca compelled 
to classify all employees as journeyiien or be subject to violations of t.ie 
Davis -Bacon Act. 

8. The remainder of the conference related to a proposed on-the-site 
training prograa for Indians. Included v=re discussions on funding, who 
•would be trained, how training vould be acco-nplished, and the relationship 
of such a program to current aporenticeship ::ro^rar.s. 

7/ 



o'hm..^ 



Clair ^T. Evans 



Earl D. Ratilfi 
Chief, Contract Branch 



906 

Art Allen's 

Craft No. 8 

10/28/70 

Bevlsed To Include Phoenix Conference ouj^^esrlons 



INDIAN Et-gLOYMSNT PREFEREMCE 

1. It is the purpose of this clause to give Indians preference in 
employment to the greatest extent possible in the perforcnance of the 
work under this contract, pursuant to section 23 of the Act of June 25, 
1910 (36 Stat. 861, 25 use hi) vhich provides that so far as practicable 
Indian labor shall be employed and sections 701(b)(1) and 703(i) of 
Title VII of the Civil Rights Act of 196k (78 Stat. 23I-258, k2 U.S.C 
2003) vhich provides that preference in employment may be given to 
Indians living on or near an Indian reservation, thus improving their 
skills thereby providing an opportunity for future employment. To the 
extent the Equal Opportunity provisions of Executive Order 112U6 and 
Clause 21 of the General Provisions of this contract are in conflict 
vith the above laws, they are inapplicable to this contract. 

2. The contractor will advise his normal employment recruiting sources 
Vlth \Ailch he has an agreement or understanding in writing of his 
cocnmitment to give Indians preference in employment under this clause. 
A copy shall be posted at the site of the work along with the Wage 
Determination issued by the Secretary of Ia.bor applicable to the work 
under this contract. 

3. The contractor shall make known to the Indian employes repre- 
sentative the labor requirements of the contractor, indicating at the 



907 

sacne time, such contractual obligations, if any, as to the source 
of such labor supply (union hiring hall obligations), at least four 
days In advance of their need. If the Indian employee representative 
Is unable to supply the contractor's labor requirements or can only 
supply a portion of the requirements by the dates indicated, the con- 
tractor may recruit the uniixled labor needs from any other sources, 
consistent with the Equal Employment Opportunity regulations appli- 
cable to this contract. 

h. The contractor shall be responsible for determining whether an 
Indian possesses the skills required and is capable of performing 
the work except under a registered training program. The contractor's 
decision shall be final as to whether or not an Indian other than a 
registered apprentice possesses the skills required and is capable of 
performing the work subject to the conditions in paragraph 9 below. 
An Indian who is determined by the contractor not to possess the skills 
required or is not capable of performing the work shall be informed 
of the contractor's reasons in writing with copies to the Indian 
employee representative and the contracting officer. 

5- Tne contractor shall also give Indians wr.o are employed preference 
In promotion and retention as warranted by their skills, perforcan.ce 
capabilities and attitudes. The contractor, when requested by the 
contracting officer to do so, shall furhish the contracting officer 
In writing with the reasons for not proaoting or retaining any Indian. 



908 

6. The contractor s'r'.all require each of his subcontractors to 
expressly indicate in their employment recruitment policies that 
preference must be given to the employment of Indians on this con- 
tract vho possess the skills required and vho are capable of per- 
forming the work. The contractor and each subcontract shall also 
include the Indian Employment Preference clause verbatim in each 
subcontract regardless of tier. 

7. The contractor shall report to the contracting officer at the 
close of each month following the start of work the full name, job 
classification, hourly rate of pay and address of each Indian 
employed at the site. 

8. General supervisory personnel and the contractor's superintendent 
referred to in Clause 11 of Standard Form 23-A are exempt from the 
provisions of this clause. 

9. In the event of noncompliance with this clause, the contractor's 
right to proceed with the work may be terminated in whole or in part 
by the contracting officer and the work completed in a manner deter- 
aiined to be in the best interest of the Government. Failure to make 
the determinations required In paragraph four objectively and in good 
faith shall be for consideration by the contracting officer in deter- 
mining whether the contractor Is in substantial compliance. 



909 

Draft No. 9 

Division of Plant Design and Construction 



INDIAN EMPLOY^tEWT PRSFERSWCE 

1. Indian employment preference is authorized pursuant to section 23 
of the Act of June 25, I9IO (38 Stat. 68l,25 U.S.C. !+7) which provides 
that so far as practicable, Indian labor shall be employed and sec- 
tions 701(b)(1) and 703(i) of Title VII of the Civil Rights Act of I96U 
(78 Stat. 231-258.1+2 U.S.C. 2003) which provides that preference in 
employment raay be given to Indians living on or near an Indian reser- 
vation, thus improving their skills thereby providing an opportunity 
for future employment. To the extent the Equal Opportunity provisions 
of Executive Order 112^^6 and Clause 21 of the Contract General Pro- 
visions are in conflict with the above laws, they are inapplicable to 
this contract. 

2. It is the purpose of this clause to afford Indians preference in 
employment on the site of the work to the greatest extent possible, 
subject to limitations imposed by availability of qualified Indian 
laborers, mechanics or apprentices and Tribal cooperation. The Govern- 
ment, by reason of this clause, cakes no representation as to the 
availability or qualification of such personnel, and all recruiting 
relations shall be carried out, directly or through his normal 
recruiting sources, between the contractor and the Tribe or sucn 
Indian Employment Coordinator as tae Tribe may desigr.ata. 



910 

3'. The contractor, shall give written notice to his normal employ- 
ment recruiting sources with wnich he has an agreement or understanding 
of his commitment to give Indians preference in employment under this 
clause. A copy shall be posted at the site of the work along vith the 
vage determination issued by the Secretary of Labor applicable to the 
vork vinder this contract. 

k. The contractor shall make known to the Tribe or its Indian Employ- 
ment Coordinator (if one has been designated) the labor requirements 
of the contractor, indicating at the same time, such contractual 
obligations, if any, as to the source of labor supply (union hiring 
ball obligations) at least four days in advance of their need. If 
the Tribe or the designated Indian Employment Coordinator is unable 
to supply the contractor's labor requirements or can only supply a 
portion of such requirements, the contractor may recruit the unfilled 
labor needs from any other sources, consistent with the Equal Employ- 
ment Opportunity regulations applicable to this contract. 

5. Except as to persons recruited for work for which they are enrolled 
In a registered training program, the contractor shall be responsible 
for determining whether an Indian possesses the skills required and 
Is capable of performing t.-ie work. Subject to the conditions In para- 
graph 10 below, the contractor's deterialnatlon shall be final. An 
Indian determined by the contractor to be deficient in the skills 
required or capability of perforalng the work, shall be informed by 
the contractor In writing, with copies furnished to the Tribe or 



911 

:Indlaa Employment Coordinator and to the Contracting Officer. 

6. The contractor shall also give Indians who are employed pre- 
ference in promotion and retention as varranted by their skills, 
pefforaiance capabilities and attitudes. The contractor, vhen re- 
quested by the contracting officer to do so, shall furnish the con- 
tracting officer in writing with the reasons for not promoting or 
retaining any Indian. 

7» The contractor shall require each of his subcontractors expressly 
to Indicate in their employment recruitment policies that preference 
must be given to the employment of Indians on this contract who possess 
the skills required and who are capable of performing the work. Tne 
contractor and each subcontractor shall also include the Indian Employ- 
neat preference clause verbatim in eacn subcontract regardless of tier. 

8. The contractor shall report to the contracting officer at the close 
of each month following the start of work the full name, Job classifi- 
cation, hourly rate of pay and address of each Indian employed at the 
■ Ite. 

9« The provisions of this clause do not apply to employcent of the 
contractor's superintendent referrsd to in Clause 11 of Standard 
Forn 23-A or to other supervisory personnel on the site of the "rfork 

10. In the event of noncompliance with this clause, the contractor's 
right to proceed with the work aay be ter:Liaatad In wnole or in part 



912 

by the contracting officer and the work completed in a manner deter- 
(olned to be in the best interest of the Government. Failure to make 
the determinations required in paragraph five objectively and in good 
faith shall be for consideration by the contracting officer in deter- 
mining whether the contractor is in substantial compliance. 



913 

Memorandum December 22, 1970 

To: LCS File 

•Prom: Chief, Labor Compliance Section 

Subject: Telecon - Indian Preference Clause 



On December 22, 1970, the undersigned telephoned Mr. Frank Benites,, 
Building and Construction Trades Council, Phoenix, Arizona, concerning 
the December U, 1970 meeting on Indian preference and his comment con- 
cerning possible violations of the Taft-Hartley Act. Mr. Benites 
explained his comment stemmed from a case in his area where members 
of a union had filed unfair labor charges with the National Labor 
Relations Board alleging the employer and the union failed to comply 
vlth the provisions of a labor-management agreement requiring the 
union to dispatch members from the top of the unions referral list. 
In this case the contractor had requested workers by name and the 
union had dispatched the requested members regardless of their priority 
rating on the referral list. Although the NLHB ruled that referral by 
name was permlssable, it was Frank's concern that referral by name 
did not necessarily cover referral of Indians and that the Indian 
preference clause was necessary to strengthen the cause and to protect 
both labor and management. 

Frank did not have a copy of the NLRB case on file although he believed 
it was referred to as the Mountain-Pacific case and could be obtatnef 
through the Phoenix office of the NLS3. 

Clair W. Evans 



914 

Msmorandum 

To: LCS File January 7, 1971 

From: Chief, Labor Compliance Section 
Subject: Indian Employment Preference Clause 



On January 7, 1971, the undersigned contacted Mr. Fred Vf. Davis, 
Assistant Regional Director, National Labor Relations Board, Albu- 
querque Office, concerning possible conflicts between the Bureau's 
proposed Indian employment preference clause and provisions of the 
Taft-Hartley Act. 

Mr. Davis vas briefed on the prupose of the proposed clause and of 
the cOTjnents of I'x. Frank Benites, Building and Construction Trades 
Council representative, during a oeeting held in Phoenix, Arizona, 
December k, I97O. (See attached aeno, dated December 22, 1970.) 

I-lr. Davis did not recall the Mountain-Pacific case referred to by 
Mr. Benites. He did, hovever, describe a case involving strip 
mining operations in the Farinington, Ifev Mexico area in which the 
employer was charged with unfair labor practices for requesting 
Indian labor, regardless of their status on tae union referral list. 
The charges were dropped when the labor -rranagerient agreement was 
revised to permit preference referral of Indians by the union. 

Mr. Ifevis stated he could offer no legal advice in the area of pre- 
ferential hiring. He did, however, acknowledge the Civil Rights Act 
of 196'v as the recognized basis for providing Indian preference in 
employxent and indicated a clause such as that proposed for Bureau 
construction projects should eliminate any questions concerning pre- 
ference referral of Indians wrien requested by the err.ployer without 
altering the labor -icanagement agrasT.ents. 






Clair W. Evans 



915 
ADDITIONS TO STANDARD FORM 23-A, 

GENERAL PROVISIONS 



THl fOUOWlNG OAUSES ARE ADDED TO ST }:UA.CENUtAL PBOVISIONS: 
CIVIL RIGHTS ACT OF 19G4 CLAUSE: 

The Equal Opportunity clause of this contract applies 
except where it conflicts with Sections 701(b)(1) and 
703(i) of Title VII of the Civil Rights Act of 1964, 78 
SUt. 253-257, 42 U.S.C. 2000e, which pertains to Indian 
tribes as employers and to preferential treatment in 
employment given to Indians residing on or near a 
reservation. 

* * « « * 

PREFFRENCE TO LOCAL RESIDENTS 
I5IA-PDS.C (October 1968) 

_Preference in employment (or all work to be per- 
formed under this coiUiact, including subcontracts 
^hereunder, shall be given to local residents subject to 
the provisions of Clause 21. EQUAL OPPORTUNITY . 
« * * * * 



916 
Exhibit No. 25 

OPENING STATEMENT OF CHARLES W. LACE Y 

My name Is Charles W. Lacey and I am the- 
Deputy Division Manager of Construction for the Los Anneles 
Division of the Bechtel Power Corporation. I would 
like to make a brief opening statement on behalf of the 
Company as I feel it will assist the Commission in under- 
standing not only what the Bechtel Corporation is, but also 
why we have been requested to testify at this hearing. Also, 
I believe that this statement will measurably expedite this 
proceeding as these remarks are directed to areas which 
the Commission's counsel, Mr. Alexander, has indicated are 
of concern to this hearing. 

The Bechtel Corporation is an international 
engineering and construction firm with offices around the 
world. The Company's headquarters are located at 50 Deale 
Street in San Francisco, California. The Bechtel Power Corporation 
is a wholly owned subsidiary of the Bechtel Corporation and 
is engaged primarily in the design and construction of 
electrical generating stations, both nuclear and fossil-fueled, 
and also substations, transmission systems and related facilities. 

The Los Angeles Division of Bechtel Povjer Corporation 
is located in Norwalk, California, and has primary responsibility 
for Bechtel Corporation projects in the south-western nortlon 
of the United States. 

One of the projects of the Los Angeles Division 
of the Bechtel Power Corporation is the Navajo Generating Station 
located on che Navajo Reservation near Page, Arizona. When 
completed, this facility will be Arizona's single largest 
electric generating station and will consist of three steam 
electric generating units each capable of generating 750,000 KW 
of electricity. 



917 

Construction of the Navajo Generating Station 
began on 1,100 acres of land leased from the Navajo Tribe 
in the summer of 1970 and is scheduled for completion in 
mid-1977. 

Ownership of the Plant will be shared by the 
participants in the Navajo Project^ 

These participants are: The Los Angeles Department of 
Water and Power; Arizona Public Service; Nevada Power 
Company; Tucson Gas and Electric; the U.S. Bureau of 
Reclamation of the Department of the Interior; and the 
Salt River Project. Salt River Project is the project 
manager of the Navajo Project and as such is responsible for 
construction management and eventual operation of the Plant 
for the participants. Bechtel Power Corporation's contract 
is with Salt River Project and it is for the engineering, 
construction and procurement of the Navajo Generating Station. 

By v;ay of background, as the Commission may be 
aware, the Bechtel Cornoration is a union contractor and all 
of the Company's projects in the United States and Canada 
are constructed with union labor. As a union contractor, 
the Company has entered into agreements with the inter- 
nationals of the building trades' unions. 

Under these contracts, or "national agreements" as 
they are commonly known, the Company recognizes the 
international unions as the representative of its manual 
employees. As a general proposition, these national agreements 
provide that wages, hours and working conditions for Bechtel 's 
manual employees v/ill be determined in accordance with the 
terms and conditions of the local collective bargaining agreement 
in effect for the jurisdiction within v;hich the Company 
performs work. These agreements, therefore, have the effect 



918 

of making all of the ComDany's projects "union jobs" and as 
such they provide that the local hirinc hall of the various 
unions shall be the exclusive source of manpower for the 
company's projects. As applied to the Navajo Generating 
Station, this has meart that with minor exceptions all of 
Bechtel's manual employees are hired from union hirinp; halls 
which are located either in Phoenix or Flagstaff, Arizona. 

As the Commission is aware, the indenture of 
lease between Salt River Project and the Navajo Tribe 
provides that preference in emnloyment shall be given to 
qualified local Navajos at the Navajo Generating Station. 
This portion of the lease. Section 18, is known as the 
preferential employment clause and the lease further 
provides that this obligation shall be passed on by Salt 
River Project to all contractors at the Navajo Generating 
Station. In fact, this obligation has been passed on by 
Salt River Project to Bechtel and is Sections 32 and 33 of 
the Company's contract with Salt River Project. Bechtel, in 
turn, has made the preferential employment clause part of 
all of its subcontracts for work on the Navajo Generating 
Station. 

At the time the contract with Salt River Project 
v/as negotiated it was our understanding that the preferential 
employment clause meant just what it said — preference in 
emnloyment v/ould be given to qualified Navajos. Also, it 
was the contractor's understanding that this preferential 
clause would be implemented v;ithln the Company's previously 
existing contractual obligations — specifically its union 
agreements. Therefore, it was the Company's understanding 
that when orders were placed with the hiring hall 
the Navajos would be asked for in preference. 



919 

However, since construction has begun on the 
Navajo Project, there has been a substantial and significant 
change in the interpretation given to the preferential 
employment clause. I will outline briefly the events 
which have led to this change in interpretationj but in 
summary the preferential employment clause is now interpreted 
to extend not only to employment, but also to other personnel 
actions, including locating, tenure, promotions, termination cind 
training. Additionally, tlie clause has also been 
extended to the establishment of a separate grievance 
procedure for Navajos at the Project. 

After the contract betv/een Salt River Project and 
Bechtel had been negotiated, Bechtel notified all of the 
local unions with jurisdiction over work at the Project 
that Navajos would be given preferential employment at 
the Project. As I previously stated, it was understood that 
this preference would be given within the Company's other 
contractual commitments. This notification was formalized 
at the prejob conference which occurred on June 17, 1970, and 
all of the unions have been reminded of this obligation each time 
a call for craftsmen or laborers is placed. 

In July of 1970, construction began on the Navajo 
Generating Station and the work force, both manual and non- 
manual increased slowly at first and thenmore significantly 
as the work areas were expanded. I think it may be fairly 
stated that this increase in the work force was accomplished 
substantially without incident insofar as the preferential 
employment is concerned until approximately September of 1971, 
at which time the contractors on the Project were notified by 
Tribal representatives that the Tribe did not feel that they 
were fully living up to the obligations of the preferential 



920 

employment clause as it was not being applied to the general 
terms and conditions of employment. 

This notification formally came to Bechtel by the 
Tribe requesting that the Department of the Interior investigate 
the employment practices of the contractors at the Project. As 
a result of the Tribe's request, an investigation was conducted 
during January of 1972 at the Project by representatives of the 
Equal Employment Opportunity Commission, Department of Interior, 
and the Office of Federal Contract Compliance, as the Project 
is partially federally funded. 

In May of 1972, a meeting was held at the request 
of the Department of Interior in Denver with representatives 
of the Tribe, Salt River Project, Morrison-Knudsen and Bechtel, 
to discuss the results of this investigation. At that meeting, 
rather than argue about past practices, it was agreed that the 
parties would get together and attempt to resolve their 
differences as to the implementation of the preferential employment 
clause. A series of meetings were then held which resulted in 
what is commonly known as the August 1, 1972, Navajo Preferential 
Employment Program. This Agreement has been implemented to the 
extent possible by the contractors and negotiations are 
continuing in an effort to further refine it. 

The August 1 Agreement is the document which best 
represents the change in the meaning given to the preferential 
employinent clause since the inception of the Project, and as 
I previously stated it now extends not only to employment, but 
also to other personnel actions, including tenure, promotions, 
termination, training and the establishment of a grievance 
procedure for tJavaJos at the Project. 

Just prior to and during the jobsite investigation 
in January, 1972, the Salt River Project and the contractors 



921 

were served with numerous individual Equal Employment Opportunity 
Commission charges of discrimination. It should be noted, 
however, that the purpose of these charges was to get the 
contractors' attention in an effort to work out problems which 
had developed in the implementation of the preferential 
employment clause. As we have discussed with the counsel of 
the Commission, these charges have been investigated by the 
EEOC and, at this time, they have been tentatively conciliated 
by Bechtel. The Civil Rights Commission has been given a copy of 
the Company's proposed conciliation agreement which has been 
accepted by the EEOC and the DNA. 

We understand that the Commission is interested in 
what efforts have been made by the Company regarding the preferential 
employment obligation and I would like to briefly summarize 
some of these efforts. 

^irst, one of the primary areas of discussion at the 
Denver meeting was the availability of qualified local Navajos. 
In an effort to determine how many qualified Navajos were 
actually on or near the Reservation and interested in 
employment with contractors on the Project, two manpower 
skills surveys were conducted on the Reservation. The 
first survey was performed in September, 1972 and the 
second in May of this year. The efforts of the Office of 
Navajo Labor Relations, Morrison-Knudsen, the Salt River 
Project and Bechtel were combined in these surveys. During the 
first survey, interviews were conducted at 25 Chapter Houses 
and approximately 5^10 Navajos were interviewed. Considering 
the efforts which preceded the Interview trip, the results 
were extremely disappointing. Upon the request of the 
Office of Navajo Labor Relations, a second skills survey 
was conducted in May of this year. The results were even more 



922 

disappointing than the first survey as less than 70 Navajos 
showed up for interviews. 

Second, when corBtruction began at the Project, 
the various unions followed their normal practice of 
requiring that out-of-work craftsmen report to the hiring 
hall in person to slp;n up on the out-of-work lists. As 
these hiring halls are all in either Phoenix or Flagstaff, it was 
difficult for many Navajos to get in to sign up. Through the 
Company's efforts, this procedu.^e has been modified and now the 
Navajos may keep in contact with the various hiring halls 
by either telephone or mail. While this may not appear to 
be too significant to persons not familiar with construction 
it, in fact, is an important departure from established 
union procedures. 

Third, a Jobs Entry Program, underwritten by the 
National Alliance of Businessmen and the United States Department 
of Labor, has been established at the Jobsite. Thfe program 
is exclusively for Navajos and the intent of this program 
is to prepare Navajo youths for entry into indentured apprenticeship 
programs in skilled crafts. It is in essence a pre-apprenticeship 
program and would normally last nine months, but is being accelerated 
to six months. 

Fourth, apprentice training accounts for the largest 
permanent training activity on the Project. A total of 127 
apprentices are currently employed — 12^ of which are Navajos. 
It should be noted that Bechtel employs three times more 
apprentices on the Navajo Project than on an similar project- 
past or present. 

We understand that the Commission is also interested 
in the types of problems Bechtel has encountered in the implementation 
of the preferential employment clause. The following 



923 

represents some of the major problems the Company and other 
contractors on the Project have incurred: 

(1) One of the primary problems eoncountered on 
the Project by all contractors has been finding qualified 

Navajos vvho are interested in employment. As I have 

O 
indicated, twice skills surveys have been conducted 

and on both occasions the results have been disappointing 

not only to just the contractors but also to the 

Tribe as well. 

(2) Another problem has been in the area of 
recognizing and accommodating certain Navajo cultural 
differences as applied to employment. These differences 
have required that the Company modify many of its 
established personnel practices. As an example, in the 
area of absenteeism it is established Company procedure 

that an employee is discharged and made ineligible for rehire 
after three unexcused absences. For Navajos, this 
procedure has been changed and Navajos are first given 
warnings and then consulted with prior to termination. 
Finally, such terminations do not make the Navajos ineligible for 
rehire. Another area is discharge for cause as Navajos are 
very rarely, if ever, marked ineligible for rehire as 
non-Navajos are when they are discharged for cause. 

(3) Also, continual dissatisfaction has been 
expressed by non-Navajo members of the building trades' unions 
as a result of preferential treatment given Navajos. This 
dissatisfaction has had an effect on productivity and morale 
and culminated in a plant-wide wildcat strike, which lasted 
for five days in May of 1972. This lost time has never been 
recovered. 

(4) Another related problem is that as a result 



924 

of implementing the preferential employment clause, the 
Company has been served with numerous individual charges of 
discrimination by other minorities. The substance of these 
charges is that these other minorities were discriminated 
against in favor of Navajos. 

In closing, we feel that definite progress has been 
made in the employment of Navajos at the Navajo Generating Station. 
Presently, over 500 Navajos are employed — v/hich is approximately 
25% of the work force. This has been accomplished through a 
concerted effort of many groups and individuals all 
operating in a good faith effort to promote employment 
opportunities for members of the Navajo Reservation. 



925 

Exhibit No. 26 



■;,, ,•)'• 



,- C E I V E D 

-■'^D STATES 

FEB - 8 1972 

'.'.'SSIERIl !'S-10ll 

lii-J 1^:/ i. V . ij'>^- A J / v. i i s_/-' i •■< a.. 



29 November 1971 




William H. Brown, III 

Chairman 

Equal Employmc-nt Oppoi'tunily Commission 

1300 "D" Street, N\V 

Wn«hin2<on V. C, •Jrinnr! 

Dear Mr. Hrown: 

As Chairman of the Navajo Tribal Council, it has 
recentlj' been called lo my allcT.tion that in A-J^i;:;; of 1971 
several Navrijo Indians filed a complaint v/ith 'ha IJcnial 
Opportunity Commission, alleging that certain unions an.d 
companies engaged in v.-ork on the Navajo Power Project 
in tlic Navajo Nation near Page, Arizona, "have excluded 
Indians from jobs on or near t!ie Reservation by giving 
prcfoience to non-Iridians v.lio are members of the union. . . 
and have refu:;cd to hire hidians. " While 1 am not per- 
sonally familiar v.ith all of tlic fact.s upon which ihe com- 
plaint is based, I do know tliat a recent report derrionsirs,le: 
that Navajos reprcvenl only 2Ci")'i of the v.oi-!; force on thiii 
project de~pitc the fact that (i) applicable contracts require 
that Navaioa be givcil preference in onpioyniont a:xl (ii) 
Navajos make up nearly lOOVo of the population in ti-.c area 
surrounding Page. 

I understand tliat iiiese com;>L->.!nlK pre .jfien lost 
and forjjotten in ih.e Inirei'.ucratic ma>-.o. l'iCco;-r:;v;)ng. Die 
scrioufiness of the problem aiid t!ie (jr'o.'it r.u'r)i;cr of people 
involved, 1 woi'.ld liojie that the licariiiy oji tliis complaiui 
could Ik- cx;);:clilcd. 



Thank you very much for your attention to this 



matter. 



Very truly yours, 

^•pker Mac (Donald 

Chairman I 

Navajo Tribal Council \ 



926 
Exhibit No. 27 

IN THE MATTER OF: 



U.S. EQUAL EMPLOYMENT 
OPPORTUNITY COMMISSION 

and 

CASE NO. YPX2 038 
FRANK BIGMAN, et al 

CHARGING PARTIES 

CONCILIATION AGREEMENT 
and 

BECHTEL POWER CORPORATION 
Page, Arizona 

RESPONDENT 



jjc >'f ;;<*:{:*** >;; * 



Charges having been filed under Title VII of the Civil Rights Act of 
1964, as amended, with the U. S. Equal Ennployment Opportunity 
Commission, by the Charging Parties against the Respondent, the 
charges having been investigated, and the Commission having gathered 
all relevant facts in the matter, the parties do resolve and conciliate 
this matter in the following extent and manner; 



927 

Case No. YPX2 038 



LIST OF CHARGING PARTIES INCLUDED IN THIS AGREEMENT 



Frank Bigman TPX2 0014 

Nelso.i Williams TPX2 0015 

Henry Sloan TPX2 0016 

Ray B. Bryant TPX2 0017 

Andrew N. Begay TPX2 0018 

Tom Benally TPX2 0019 

Harry R. Begay TPX2 0020 

Charley Emerson Young TPX2 0021 

Robert Dejolie TPX2 0330 

Eskie Saliego TPX2 0331 

Claw Tsinnigine TPX2 0332 

Joe Littleman TPX2 0333 

Richard Sage TPX2 0334 

Albert Dele TPX2 0335 

John Scott TPX2 0336 

Charlie Homer TPX2 0337 

Duke Yazzie TPX2 0338 

Nick Yazzie TPX2 0339 

Kee Chee Littleman TPX2 0340 

Robert Dejolie TPX2 0341 

Tully Tsinnijinnie TPX2 0342 

Jimmy Mexicano TPX2 0343 

Stephan Tsinnijinnie TPX2 0347 



928 

I. GENERAL PROVISIONS 



A. Bechtel Corporation, the Respondent nanried in the charges 
herein, on January 1, 1973, assigned all of its right, title, 

benefit and interest in its Agreement for the Navajo Generating Station 
Project near Page, Arizona ("Project") to the Bechtel Power 
Corporation. The Bechtel Power Corporation, a wholly owned 
subsidiary of the Bechtel Corporation, accepted this assignment 
and agreed to perform all obligations and assume all liabilities of 
the Bechtel Corporation at the Project. Bechtel Power Corporation 
is referred to hereinafter as the "Respondent". 

B. The Respondent agrees that the Equal Employment Opportunity 
Commission (hereinafter the "Commission"), on request of 

any Charging Party or on its own motion, inay review compliance 
with this Agreement. As a part of such review, the Connmission 
may require written reports concerning connpliance, may inspect 
the premises; exannine witnesses; and examine and copy documents. 

C. It is understood that this Agreement does not constitute an 
adnr^ission by Respondent of any violation of Title VII of the 

Civil Rights Act of 1964. 

D. The Charging Parties and the Commission agree and covenant 
not to sue the Respondent with respect to any matters which 

were or might have been alleged as charges filed with the Commission, 
subject to performance by the Respondent of the promises and repre- 
sentations contained herein. .The Connmission shall determine, 
pursuant to the terms of the Administrative Procedure Act, whether 
the Respondent has complied with the terms of this Agreement. 

E. All hiring, assignments, promotions, transfers, dismissals, 
and other conditions of employment shall be maintained and 

conducted in a manner which does not discriminate on the basis of 
race, color, sex, religion, or national origin in violation of Title VII 
of the Civil Rights Act of 1964. 

F. The Parties agree that there shall be no discrimination or 
retaliation of any kind against any person because of opposition 

to any practice declared unlawful under Title VII of the Civil Rights 
Act of 1964 or because of the filing of a charge, giving of testimony 
or assistance, or participation in any manner in any investigation, 
proceeding or hearing, under Title VII of the Civil Rights Act of 1964. 



-1. 



929 

G. The Respondent agrees to report in writing to the Director, 

Equal Employment Opportunity Commission, Suite 601, 112 North 
Central Avenue, Phoenix, Ariz.ona 85004, when it has completed the 
Undertakings outlined in the following paragraphs of this Agreement. 
The report will describe the manner in which the undertakings were 
carried out. This report shall be submitted not later than 90 days 
from the date of this Agreement. 



n. HIRING AND REINSTATEMENT OF CHARGING PARTIES 



A. Respondent's review of its records discloses the following 
information as to the Charging Parties: 

(1) Some of the Charging Parties are currently, and have 
been for some time, employed by Respondent; 

(2) Some of the Charging Parties have, subsequent to the 
filing of the charges herein, worked for Respondent 

but have since either voluntarily quit or been terminated 
for cause; 

(3) Some of the Charging Parties have worked for other 
contractors on the Project; and 

(4) Respondent has no information as to the remaining 
Charging Parties nor is Respondent able to determine 
whether these individuals have ever been employed by 
other contractors on the Project or, in fact, ever 
sought employment on this Project from Respondent 
or any other contractors. 

As to all of the Charging Parties, the Respondent agrees to review each 
case individually with the Commission and, if appropriate, offer employ- 
ment to all Charging Parties or reinstatement to employment to those 
Charging Parties who previously worked for Respondent but may have 
left Respondent's employ. In this regard, the Respondent agrees that 
the reinstatement of the Charging Parties shall, wherever practicable, 
be to the same job classification they held on the dates they were 
terminated. 



-2- 



930 

B. After this review with the Commission, the Respondent will offer 
employment to all qualified Charging Parties in the following 

manner: 

(1) The Respondent shall imnnediately notify the Charging 
Parties by Certified Mail Return Receipt Requested of 
the offer of employment pursuant to the above paragraph. 
The Charging Parties shall, within ten days after receipt 
of said letter, report for work or notify the Respondent 

of their decision to decline employment with the Respondent. 
The ten-day period can be extended if reasonable cause is 
offered by the Charging Parties. 

(2) Should the Charging Parties accept employment, the Res- 
pondent shall provide a reasonable period of training and 
orientation on the job to which they are assigned, consistent 
with the training and orientation given other new employees. 

C. In the event reinstatement to the job classifications held on the 
date of termination by the Charging Parties is not possible, the 

Respondent agrees that the Charging Parties will be offered employment 
in such job classifications as their experience, and ability to perform 
the job may have entitled them on the dates they were terminated. 

D. The Respondent is prepared, upon review with the Commission, 
to pay each qualified Charging Party backpay sufficient to make 

each Charging Party whole, less interinn earnings, such deductions as 
may be required by Federal Laws and other mitigating factors. 



III. PROMOTION AND TRAINING 



A. The Commission and the Charging Parties acknowledge that pro- 
motions with the Respondent are based exclusively on individual 
merit or capabilities without regard to the race, religion, national 
origin or sex of the individual involved. Seniority is not a factor in 
Respondent's employment practices. 



931 

B. Respondent agrees to review the records of the Charging Parties 
presently employed, as well as those who will be reinstated under 

this Agreement, in an effort to determine those who are eligible for 
promotion. 

C. Respondent agrees to promote the qualified Charging Parties to 
the next promotional opportunities when such opportunities arise. 

D. Respondent agrees to: 

1. Subsidize any reasonable training necessary to prepare 
Charging Parties for promotions, including, if 
necessary, instruction in the English language; 

2. Allow Charging Parties sufficient time off without 
penalty during normal working hours to attend such 
training. 

E. The Respondent will not require the Charging Parties to spend 
any period of residence in any job which exceeds the period 

factually necessary to qualify for movement to a higher rated job. 



IV. DISCHARGE AND DISCIPLINARY ACTION 



A. The Respondent agrees that the Charging Parties shall not be 

discharged, disciplined, laid off or downgraded except in 
accordance with the provisions of this Agreement. The Respondent 
agrees that its Project Equal Enriployment Opportunity Officer will 
determine the following when any of the Charging Parties are 
discharged: 

1. Whether sufficient cause for discharge exists; 

2. Whether applicable provisions of the collective 
bargaining agreement were complied with; 

3. Whether the employee's innproper conduct was 
in any way caused by misconduct on the part of 
his foreman or other supervisor; 



932 

4. Whether other non-minority employees have been 
discharged for similar conduct; and 

5. Whether mitigating circumstances or the employee's 
previous record indicate that the penalty of discharge 
is overly harsh. 

B. The Respondent agrees that when a Charging Party is to be 
downgraded, the Respondent's Project Equal Employment 

Opportunity Officer will examine such action in order to determine 
whether it is warranted by the facts. When a Charging Party is 
downgraded because of alleged failure to perform properly, the 
Project Equal Employment Opportunity Officer will examine the 
situation to determine: 

1. Whether the downgraded Charging Party received an 
adequate length of time to learn the job properly, and 

2. Whether the Charging Party has been given adequate 
assistance to enable him to learii the job. 

C. The Respondent agrees that when a Charging Party has 
voluntarily agreed to be downgraded. Respondent's Project 

Equal Employment Opportunity Officer will make an examination 
'Similar to that which would have been undertaken with regard to an 
involuntary downgrading in order to determine whether the Charging 
Party has been given adequate assistance in learning his new job. 
If it appears that he has not had such assistance, the Charging Party 
will be encouraged to remain in the higher grade position and all 
necessary assistance should be given to aid him in acquiring the 
skills necessary for such a job. 

D. Respondent agrees that any discipline of any Charging Party 
shall be reviewed by the Respondent's Project Equal Employ 

ment Opportunity Officer in a manner similar to the review given 
in instances of discharge or downgrading of the Charging Party 
as set out herein. 

E. Respondent agrees that when it is necessary to reduce its 
forces at the Project the Charging Parties shall be given 

preference for continued employment consistent with the terms of 
the Program for Preferential Employment of Navajos at the Navajo 
Project which is part of Appendix 1 (see V(A), infra ). 

F. The Respondent further agrees where appropriate to remove 
from its records and files any notations, remarks, or other 



933 

indications evidencing that the services performed by the Charging 
Parties prior to termination were other than or anything less than 
satisfactory. The Respondent further agrees that, in furnishing 
oral or written reference concerning the Charging Parties as may 
be requested by same or by prospective future employers, it will men- 
tion only the nature and duration of Charging Parties' employment, 

G. The Respondent agrees that where appropriate it will eliminate 

from the Charging Parties' personnel records all documents and 
entries relating to the facts and circumstances which led to the Charging 
Parties' filing of their charges herein. In addition, the Respondent 
affirms that the Charging Parties will not be penalized in future con- 
siderations for transfers, promotions or upgrading because of said 
circumstances and that no other employer, union or potential employer 
of the Charging Parties will be advised in any fashion of the facts or 
circumstances involved. 

H. The Respondent agrees that if it is required or requested to 

evaluate the services performed by the Charging Parties, that 
any such evaluation shall be based on the period of employment ante- 
dating the beginning of events which led to the subject charges. 

I. Respondent agrees to notify the District Director of the District 

Office of the Commission of any proposed personnel actions ad- 
versely affecting the Charging Parties. Where possible, such notice 
shall be made prior to the contemplated effective date of said person- 
nel action and shall be within sufficient time for Commission response. 

J. Respondent will submit to the Commission any written warnings 

or reprimands given to the Charging Parties during the next year. 

K. Respondent will not discharge the Charging Parties without just 
cause. 

L. Respondent agrees not to engage in or allow any of its employees 

to engage in any conduct against the Charging Parties or any 
party to or participant in these proceedings the nature of which conduct 
might be construed as retaliatory. 

M. Respondent agrees that it will inform all of its supervisors of 

the terms of this Agreement and instruct them as to its 
performance. 

V. RESPONDENT'S AFFIRMATIVE ACTION PROGRAM 

A. At the Project the Respondent has established and implemented 
an Affirmative Action Program which is attached for the 



-6- 



934 

convenience of the Commission to this Agreement as Appendix 1. This 
affirn^ative Action Program has been filed with the Western Regional 
Manager, Office of Equal Opportunity, United States Department of the 
Interior, Denver Federal Center, Denver, Colorado, 80225, under the 
authority of Presidential Executive Order 11246. 

B. This Affirmative Action Program reflects the preferential hiring 
treatment which Respondent has agreed to give to Navajo Indians 
at the Project. It is agreed that said preferential treatment for Navajos 
is not violative of Title VII of the Civil Rights Act of 1964. 



935 

SIGNATURES CASE NO. YPX2 038 

I have read the foregoing Conciliation Agreement and I accept and 
agree to the provisions contained therein: 

DATE 



CHARGING PARTY 



DATE 



RESPONDENT 



I recomment approval of this Conciliation Agreement: 



DATE 



CONCIUATOR 

I concur in the above recommendation for approval of this Conciliation 
Agreement: 



DATE 



SUPERVISOR OF CONCIUATIONS 



APPROVED ON BEHALF OF THE COMMISSION: 



DATE 



EDWARD VALENZUELA 
DISTRICT DIRECTOR 



936 
Exhibit No. 28 

JOBS 70 PROGRAM 



MORRISON-KNUDSEN COMPANY, INC. 
LAKE POWELL-BLACK MESA NAVAJO COAL HAUL RAILROAD PROJECT 



PAGE, ARIZONA 



I 



937 

Training S Employee Develop<ent 

At the inception of this project Morrison-Knudsen Company, held a M.A. 6 
JOB '70 Training Contract with the U.S. Department of Labor Manpower Ad- 
ministration. This Contract provided for the utilization of this program 
in areas where Manpower shortages prevail. The program was presented and 
explained to the respective craft Unions Phoenix Building Trades Council 
and Arizona Apprenticeship Coordinating Committee. After a series of 
meetings with the parties involved we received concurrance and a declaration 
of support. From January 1971 to June 197 2 when the Department of Labor 
discontinuied the MA. 6 JOBS '70 Training Program 88 Navajo employees re- 
ceived training on this project, with approximately 60% completing. D.O.T, 
classifications included (manual) Construction worker I Laboers, Heavy 
Equipment Operator, Heavy Truck Driver, and Engineering (Field Surveyors) , 
(Non-manual) Clerical, time-keepers, veighman and duplicating machine opecatevs. 

Phases of the construction where we were particularly successful in imple- 
men ting the progreun was on our field survey crews, erection of multi-plat« 
culverts, fencing, sub-ballast haul. Programming and guidelines were pre> 
pared by M-K Labor Relations Department and instructors selected from 
project personnel. Navajo concentrated employment program assisted in re- 
cruiting and certifying the applicants. In moat instances applicants cosi- 
pleting the progrun vNure retained and tr«nsfsrr«d to othsr phssss ot con- 
struction. 



938 

('.<»NTUAtT«>Ks - J-^\<iixi;i:i<s - 1)i:vi:i.oi*i:k.s 



executive Office 

400 BROADWAY 

P.O. BOX 7808, BOISE, IDAHO 83707 



March 26, 1974 



Mr, Jim Brewer 

Box 1980 

Phoenix, Arizona 85201 

Dear Jim: 

Pursuant to our phone conversation on Friday, I have dug into our 
Jobs '70 file and have found the following answer to the questions you 
posed. 

1. As reported on the Monthly Progress Report and Invoice, 
we had 65 authorized training slots in Page, Arizona. 

2. As of June, 1972, we had employed 81 trainees, 100% of 
whom were Navajo. 

3. The breakdown by classification, number authorized, and 
number completing training is shown below. 







No. 


Completi 


ing 


Tot 


. Emp. 




Auth. 


Tra 


in. to Date 


Io_ 


Date 


Rodman 


12 




5 






16 


Construction Worker 


23 




14 






33 


Gen. Office Clerk 


5 




2 






3 


Instrument Man 


1 




-0- 






1 


Heavy Equipment Oper. 


5 




3 






6 


Duplicating Mach. Operator 


1 




-0- 






1 


Truck Driver - Heavy 


18 




13 






21 



TOTALS 65 37 81 

4. The training rates of pay for all trainees during the life of 
the project was equal to the applicable labor rates of the 
local unions. 



i 



I 



939 



Page Two 
Jim Brewer 
March 26. 1974 



5. After completion of training, all the trainees were hired 
full-time, through completion of the project. 

I believe this answers all of the questions asked of you by the 
U. S. Civil Rights Commission. Please feel free to call again if you 
need further assistance. 

Yours very truly. 



David S. Harris 

Assistant Director of Labor Relations 



940 

JOBS ENTRY PROGRAM 



BECHTEL POWER CORPORATICW 

MAVAJO GENERATING STATION PROJECT 

PAGE, ARIZ(»<A 



941 



Program Objective: 



Contracting Agency: 



JOBS ENTRY PROGRAM 



Preparatory training of Navajo Indian 
personnel for entry into indentured 
apprentice programs in skilled mechanical 
trades. 

National Alliance of Businessmen (NABS) and 
U. S. Department of Labor. 



Length of Contract: 
Authorized Number of Trainees: 



Number of Trainees Hired: 



Recruiting Agencies Utilized: 



Nine months. 

Total 25 

15 Pipefitter Trainees 

5 Boilermaker Trainees 

5 Millwright Trainees 

15 Pipefitter Trainees 
5 Boilermaker Trainees 
2 Millwright Trainees 

Navajo Tribal Apprenticeship Office 

Navajo Concentrated Employment Program (CEP) 



Comments: Trainees, upon successful completion of the program, will be 

indentured into the respective craft union apprentice programs. 
Employment as apprentices will be provided on the Navajo Generat- 
ing Station Project or with such other employees as the respective 
union may designate. 

Trainees receive compensation for time spent in training. The 
hourly rates are established by the terms of the contract and 
are comparable to rates paid indentured apprentice personnel. 



942 




Salt River Project 

P.O.BOX 1980 
PHOENIX. ARIZONA «8001 



TELEPHONE 873.5B00 

April 1, 1974 



Mr. Lawrence B. Click 

Acting General Counsel 

United States Conunission on Civil Rights 

Washington, D. C. 20425 

Dear Mr. Click: 

Attached is the additional information requested in your 
letter of March 12, 1974 on the JOBS ENTRY PROGRAM and the 
JOBS 70 PROGRAM conducted by Bechtel Power Corporation and 
Morrison-Knudsen, Inc. , respectively during construction 
of the Navajo Generating Station and Black Mesa and Lake 
Powell Railroad at Page, Arizona. 

The 81 Trainees reported by Morrison-Knudsen, Inc., in 
their attached correspondence during the period January 
1971 and June 1972, does not coincide with the 88 Trainees 
reported previously. The source of the attached information 
is from Morrison-Knudsen ' s Monthly Progress Report and In- 
voice which would appear to be the correct information. 

In the event further information is desired, please advise 
the undersigned or feel free to contact Morrison-Knudsen, 
Inc., or Bechtel Power Corporation direct. 



AJP/JB/ss 
attachments 




eneral Mgr. -Power 



I 



943 



BECHTEL ra.v'ER CORPORMION 
JOBS ENTRY PROGRAM 
NAVAJO GnM;R.\TlNG STATION PROJECT 
PACE, ARIZONA 



Contract Award Date: Jupp 19, 1973 
Authorized I.enytli of Con', rsct: 9 months 
Authorized number of Trainees: 25 

Breakdown 15 Pipefitter Tralnef.s 

5 Boilermakers Trainees 
5 Millwright Trainees 

Date training commenced: Ar.gust 13, 1973 

Total number of Trainees enrolled on contract: 21 

Program completion date: January Id, 1974 

Number of Trainees completing Program and entering craft union apprenticeship: 17 

Breakdown 13 Pipefitters 

3 boJ leri.iakcrs 
1 Millwiii;ht 

Wage rates earned by Trainees upon entering Into apprenticeship: 

Pipefitter: 5.40 hr. 
Boilermaker: 5.57 hr. 
Millwright: 7.05 hr. 

Recruitment of Trainee personnel for this Program was conducted through the 
Navajo Tribe Apprenticesliip Coordinator's Office with the assistance of the 
Employment Assistance Branch of the Bureau of Indian Affairs and the Navajo 
Concentrated EraplovTnent Program. The Jobs Entry Contract provides that re- 
cruitment and enrollment nay be conducted only during a ninety-day period 
following award of a contract. 



R. D. Fountain 
Project Superintendent 
P. 0. Box 1565 
Page, Arizona 86040 



944 
Exhibit No. 29 



Bechtel Corporation 

Engineers— Constructors 



Fifty Beale Street 

San Francisco, California 

Mall Address: P. O. Box 3965, San Francisco, CA 94119 

March 18, 1974 



La-wrence B. Click, Esq. 

Acting General Counsel 

United States Commission on Civil Rights 

Washington, D. C 20425 

Re: U. S Civil Rights Hearing 
Window Rock, Arizona 

1974 

Dear Mr. Click: 

Enclosed please find a memorandum dealing with 
union hiring halls and their validity vmder Arizona's right 
to work laws and the compatability of Bechtel Power 
Corporation's international \inion agreements with a direct 
hire policy. 

You will recall in your letter of January 18, you 
requested that we address these issues. Unfortunately, I 
have been out of the office and unable to prepare the answers 
to your questions and, therefore, offer my apologies for the 
delay in submitting this memo to you. 

Should you have any questions after reviewing the 
enclosed memo, please do not hesitate to call me. 

Very truly yours, 

BECHTEL CORPORATION 



57VL^\)'EcjtL^ 



Stephen D. Butler 
SDB:cs 



945 

MEMORANDUM 



ARE UNION HIRING HALLS INCOMPATIBLE WITH ARIZONA'S 
RIGHT -TO- WORK LAW? 

The Arizona right-to-work law provides, in relevant part, that: 

"No person shall be denied the opportunity to obtain or 
retain employment because of non-membership in a 
labor organization, nor shall the state or any subdivision 
thereof, or any corporation, individual or association of 
any kind enter into any agreement, written or oral, 
which excludes any person from employment because 
of non-membership in a labor organization. " Arizona 
Revised Statutes §1301, et seq. 

The constitutionality of this right-to-work law was upheld in a 
decision which carefully pointed out that the statute was intended 
to prohibit union membership as a condition of employment and 
was not intended to otherwise curtail or abridge an individual's 
right to join a union or a union's right to represent its members. 
AFL V. American Sash &t Door, 335 U. S. 538(1949). See also, 
Arizona Flame Restaurant v. Baldwin , 31 3 P. 2d 759 ( 1957). 

In Arizona Flame , supra , the hiring hall agreement between the 
union and employer required that the employer hire only union 
members. The Arizona Supreme Court found that this type of 
arrangement clearly violated the statute because it required union 
membership as a prerequisite to employment. 

The hiring hall in operation at the Navajo Generating Station, 
however, does not violate the right-to-work statute because it is 
operated equally for the benefit of union and non-union workers. 
Union membership is not a prerequisite for use of the hall, nor is 
it a consideration when job referrals are filled from the hall. 
Bechtel Power Corporation's use of the hall, therefore, does not 
deny employment to workers because of non-membership in a 
labor organization since union and non-union workers are required 
to be treated equally by the hall for the purpose of filling job 
orders. 

Although there are no Arizona decisions dealing directly with the 
legality of a non-discriminatory hiring hall vis-a-vis the state's 
right-to-work law, other jurisdictions having right-to-work 
statutes similar to Arizona's have held that the operation of a 



946 

non-discriminatory hiring hall is not a violation of the right-to-work 
statute. See eq. , NLRB v. Houston Chapter, Associated General 
Contractors of America, 349 F. 2d 449 (1965), Cert, den. , 382 US 1026 
(1966). 

The Houston AGC decision stated that the operation of a hiring hall 
which did not require union membership as a prerequisite to its use 
did not violate the Texas right-to-work statute. The rationale for this 
holding is based on the premise that state right-to-work laws are 
sanctioned by Section 14 (b) of the National Labor Relations Act which 
provides: 

"Nothing in this Act shall be construed as authorizing the 
execution or application of agreements requiring member- 
ship in a labor organization as a condition of employment 
in any State or Territory in which such execution or appli- 
cation is prohibited by State Law. " (29 USC Section 164 (b)). 

The court in the Houston AGC case held that the authority granted to 
states by Section 14 (b) is limited to state prohibition of agreements 
requiring union membership as a condition of initial or continuing 
employment. The court found that the statutory grant of authority 
provided by 14 (b) does not, however, give states the power to prohibit 
hiring halls which do not require union membership as a prerequisite 
to their use, and which do not distinguish between union and non-union 
workers for the purpose of filling job referrals. 

The rationale of the 5th Circuit in the Houston AGC case is equally 
applicable to the use of union hiring halls at the Navajo Generating 
Station. The use of these hiring halls is not because of a "loophole" in 
the Arizona right-to-work statute. Rather, as the rationale in the 
Houston AGC decision makes clear, a hiring hall which is non- 
discriminatorily operated for the benefit of union and non-union workers 
alike does not violate, or even come within the auspices of state 
right-to-work laws. 

Therefore, the hiring halls in operation at the Navajo Generating 
Station are not incompatible with Arizona's right-to-work law. Bechtel 
Power Corporation's use of the halls does not deny to any person the 
opportunity to obtain or retain employment because of membership in 
a labor organization since the halls are operated for the benefit of 
union and non-union workers alike, without regard to union or non-union 
status. 

II. IS IT COMPATIBLE WITH BECHTEL POWER CORPORATION'S 

INTERNATIONAL UNION AGREEMENTS TO HIRE AT THE JOBSITE 
RATHER THAN THROUGH THE HIRING HALLS? 

Each international union agreement to which Bechtel Power 



947 

Corporation is a party provides, in essence, that the Company 
will conform its hiring practices to established local lonion 
procedures. Such established local union procedures generally 
require the use of hiring halls in obtaining craiftsmen. The 
hiring provisions in the international union agreements further 
stipulate that local hiring procedures will be used unless 
inconsistent with applicable law. 

The use at the Navajo Generating Station of hiring halls does not 
violate Arizona's right-to -work law because they are operated 
equally for the benefit of union and non-vinion craftsmen alike, 
without the requirement that their use be conditioned on union 
membership. As such, the hiring hall clauses in the Company's 
national agreements are valid and lawfiol in Arizona since they 
do not, by their terms or operation, make \inion membership a 
condition of employment. 

Therefore, if the Company were to hire workers at the gate, in 
direct contravention of the hiring hall provision contained in its 
agreements, it would be in violation of the terms and conditions 
of its agreements. Such action on Bechtel's part would not only 
expose it to liability for any damages incurred by the unions 
fronn Bechtel's breach of contract, but such action wovild also 
be violative of the National Labor Relations Act. 

This is because if Bechtel were to unilaterally initiate a gate- 
hiring policy in violation of its collective bargaining agreements 
it would commit an unfair labor practice by violating Sections 8 
(a) (5) and 8 (d) of the National Labor Relations Act. 

In the Houston AGC case, supra , the Fifth Circuit held that a 
hiring hall provision is a nnandatory subject of bargaining, 
notwithstanding state right-to-work laws. The hiring hall 
clauses in question are a legally established part of Bechtel's 
union agreements, and under Section 8 (d) of the National 
Labor Relations Act, they may not be unilaterally terminated or 
modified. 

The establishment of a gate-hiring procedure by Bechtel Power 
Corporation at the Navajo Generating Station would, therefore, 
be incompatible with its international union agreements and 
wovild expose the Company to liability for breach of contract 
and for violation of the National Labor Relations Act. 



948 
Exhibit No. SO 



SA^AJO AREA INDIAlf HEALTH SERVICE 

INFORMATION ACT) DATA 
SUPPORTING F.Y. 197^ INDIAN HEALTH SERVICE BUDGET 

DECEMBER. 1972 



949 

NAVAJO AREA INDIAN HEALTH SERVICE 
DECE^BER, i972 

Director - --'- ------------- George E. Bock, M. D. 

Executive Officer ------------ Ralph A. Lauxman 



NAVAJO AREA INDIAN HEALTH BOARD 
Chairman - - - - Benjamin J. Hogue 
Vice Chairman - - - - Frank Luther 



MEMBERS 



Wilmer Benally 
Chavez Coho 
Wayne Free land 
Lillian George 
Ben Gilmore 
Sallie Lester 
Paul Maloney 



Robert Pino, Sr. 

Leonard Pinto 

Elvood Saganey 

Jimmie Store 

Dr. Annie D. Wauneka 

Jack White 

George Young 



-fl- 



950 

NAVAJO AREA INDIAN HEALTH SERVICE 
DECEMBER, 1972 



GOAL OF THE MVAJO AREA IIOIAN HEALTH SERVICE ; 

TO PROVIDE THE PEOPLE SERVED BY THE MVAJO AREA INDIAN HEALTH 
SERVICE THE HIGHEST QUALITY HEALTH SERVICES POSSIBLE WITHIN 
AVAILABLE RESOURCES, AND WITH THE ACTIVE PARTICIPATION OF THE 
KAVAJO PEOPLE, CONTINUE TO DEVELOP A HEALTH DELIVERY SYSTEM 
WHICH RESPONDS TO THEIR NEEDS. 



-Ill- 



951 

NAVAJO AREA INDIAN HEALTH SERVICE 

INF0RI1ATI0N AND DATA 
SUPPORTING F.Y. ig?'* INDIAN HEALTH SERVICE BUDGET 
DECEMBER, 1972 
TABLE OF CONTENTS 

yAGE 
INTRODUCTION -- 1 

RESOURCE SU>q^RY REPORTS 

F.Y. 1973 Base Program --------------------------- 6 

F.Y. 1973 Current Program Increase --------------------- 7 

Total Unmet Need ----------------------------- 8 

F.Y. 197*+ Increase as Increment of Unmet Need --------------- ^ 

CATEGORICAL BUDGET WORK SHEETS - DIRECT PATIEriT CARE 

HOSPITAL SERVICES 10 

Hospital Nursing ----------------------------- lU 

Physical Therapy and Rehabilitation -------------------20 

Social Service ------------------------------ 2U 

Nutrition and Dietetics -------------------__-_-■ 28 

Pharmacy Services ----------------------------31 

Health Records ------------------------------ 3U 

Maintenance and Repair ---------------------------37 

Equipment ---------------------------------38 

Mental Health - Hospital Services ---------------------39 

Medical Supplies ------------------------------1+2 

Consultants -- ---------------------------- --U3 

Medical Laboratory --------------------------- --I46 

Training and Development --------------------------51 

-IV- 



952 

lABLE OF coirrEriTS - coimriUED 

aTEGORICAL BUDGET VfOPX SPIEETS - IIIDIRECT PATXEIIT CAKE 

PAGE 
All Other - Dental - Otitis Media - 55 

Contract Health Services Funds Memo Oct. 13, 1972 --- -59 

Migrant Health Prograa - Unmet IJeeds ------ ----------62 

Skilled rJursing Home Care ----------------------63 

Increased Contract Health Service-Chinlc Nursing Home Memo ----- 6U 

Increase in Ambulance-Transportation Service ------------68 

Dental Care for Children - Unmet Needs ---------------69 

Dental Care for Adults - Unmet Needs ---------------70 

Eyeglasses for Adults -----------------------71 

Physical Therapy and Rehabilitative Needs -------------- J2 

Memo February 6, I97O -----------------------73 

High Incidence of Head and Spinal Injuries -------------76 

Increase in Otitis Media Treatment -----------------82 

Mental Health - Alcoholism ---------------------8U 

Mental Health - Adolescent Treatment ----------------85 

Kidney Dialysis and Transplant -------------------86 

Renal Transplant Committee Meeting - September 1, 1972 ------ 8? 

Navajo Tribal Resolution-Contract Health Services Funds -------89 

Estimated Budget Needs for Student Eyeglass Program - F.Y. 1973 - - - 93 
Proposal for Additional Contract Medical Care Funds-Memo Nov. 9,1972- 9U 



953 

lABIJE OF CONTENTS - CONTINUED 

CATEGORICAL BUDGET WOPK SHEETS - FIELD HEALTH SERVICES 

PAGE 

FIEID MEDICAL 
Field Medical Preventive Health and Ambulatory Care --^------ 98 

School Health 103 

Nutrition and Dietetics -107 

Mental Health 110 

Consultants ----------------------------- 113 

Trachoma ------------------------------ II5 

Maternal and Child Health II8 

Comminity Health Representatives - — --------- — ---- 122 

Equipment ---------------------- -------- 125 

Medical SuppUes - 126 

Otitis Media 127 

Eye Care 130 

Office of Environmentai. Health -------------------- 13U 

Dental 139 

public Health Nursing - iWi 

Health Education ----- --------150 

CATEGORICAL BUDGET WORK SHEET - AREA OFFICE SERVICES -----153 

Contracts with Tribal Group ----*------------------ 156 

Tuberculosis Control Program --------------------- 157 



-VI- 



954 

NAVAJO AREA INDIAN HEALTH SERVICE 

INPORMATIOM AND DATA 

SUPPORTING F.Y. 197'+ INDIAN HEALTH SERVICE BUDGET 

DECEMBER, 1972 

INTRODUCTION 

Area memorandum of January 2U, 1972, reflected the problems 
in F.Y. 1972 created by large withdrawals of funds by higher 
echelons of the Department of HEVJ. This memo reflected a need 
for $911 J 900 in mandatory increases against an actual increase 
in funds of $651,900 for a loss in base of $260,000. 

The Gallup inpatient mental health vard was initiated in its 
infancy with 8 positions in F.Y. 1970, however the Headquarters 
additional allov;ance of 15 positions in F.Y. 1971 and F.Y. 1972 
did not reflect the 8 positions from F.Y. 1970. Area memo of 
January 2k, 1972, indicates the need of $66,000 additional to 
the $228,000 allowance, to support a total of 23 positions rather 
than 15. 

Bie third problem in the F.Y. 1972 budget was the expected 
annualization for 6^ new positions added in F.Y. 1971 with 
$485,000, a portion of which was to be used for supplies. 
Although Headquarters did not specify how much should be used 
for supplies, it was strongly indicated at the Area Director- 
Executive Officer meeting that all Areas were expected to use a 
reasonable portion of the increase for supplies. The Navajo Area 
followed these instructions and utilized $l8l,000 for supplies. 
Since the average annual salary was approximately $8,836, the 
Area expected annualization of S26l,500 to a total of $565,500 
in F.Y. 1972, which did not occxir. Headquarters later indicated 
that we should not have expected annualization and therefore 
should not have added or expected to add the full 6U positions. 
However there was no formal indication of this received by the 
Area, and in a telephone conversation with Headquarters on or 
about May 2k, 1971, they requested information as to annualization 
needs for the positions added in F.Y. 1971 for both hospital and 
field health. The annualization allowed in field medical service 
of $269,000 approximated the amount requested by the Area in that 
telephone conversation, but the $261,500 requested in the same 
conversation for annualization of hospital positions did not 
materialize, leaving another hole in the budget balancing process. 
This series of events left the Area a total gross deficit of 
approximately $538,000 which was covered in various ways including 
non-recurring funds the Area gratefully received from Headquarters 



955 

3. 

and economies initiated by the «rea. 

This reduction in base in F.Y. 1972, amounted to $U3U,000in 
hospital health and field medical services combined. It was the 
first time the Area was aware of such drastic cuts, in base, since 
the pre-/ious year, F.Y. 1971, a cut of $lUO,000 was. made, and prior 
to that we operated on a fairly stable base from year to year 
except for the inefficient and uneconomical freezes in positions 
that took place in F.Y. I968 and 1569. We apparently must take 
such large reductions in our base into serious consideration in 
the future since we lost another $!+00,000 in the F.Y. 1973 base. 
Added together, the tJavajo Area has suffered a loss of almost 
$1,000,000 in base since F.Y. 1971. 

A look at the tabulation of positions authorized by Headquarters, 
and Area utilization of the positions, provides some additinal 
insight into budget base deterioration. 

a. The position allowance of 150 positions in field medical 
services in F.Y. 1968, deteriorating to 107 in F.Y. I969, 
due partially to the I968-I969 freezes but also a result 
of the Department of HEW withholding $3,000,000 of IHS 
funds much of which was later released under Congressional 
pressure. Hov;ever, when released it was non-recurring 
and was therefore not available in the future years' base. 

b. The position allowance of 150 in field medical services in 
F.Y. 1968 as compared to the F.Y. 1973 allowance of 173 
positions in spite of adds of 28 positions in F.Y. 1971 
and 10 in F.Y. 1972. Furthermore, with the present funded 
base in field medical sei-vices, the Area projection indicated 
only 155 positions can be supported this fiscal year, or 

5 more than the F.Y. I968 authorized. 

c. The 830 positions authorized in hospital health in F.Y. I968, 
as conipared to 907 in F.Y. 1973, in spite of position adds 

in F.Y. 1971, of 83 positions and in F.Y. 1972 of 29 
positions plus 31 additional positions funded but not included 
in ceilings. These 31 positions are: 

8 long-term training replacements, 
17 Family Practice Residency positions added in F.Y. 1973, 
U in the Pneumococcal Research Program, and 
2 positions formerly supported by Department of Labor 
Training funds. 

Thus the total positions added since F.Y. I968 would have 
resulted in an authorized ceiling of 973 (830+83+29+31) 
rather thaji 907. Furthennore, with the present funded base 
in hospital health, the Area projection indicates only 885 
positions can be supported this fiscal year, or 55 more 
than in F.Y. I968 but 88 less than the adjusted authorized 
ceiling of 973- 



956 



Navajo Area Population 9'+i055 
Adjusted Navajo Area Population 130,0CX) 



Wavajo Area Average Daily Patient 

Load 395 



Navajo Area Outpatient Work Load 



U5J+,291 



Navajo Area Outpatient Work 

Load - Hospitals only 292,003 




3% ofl Adjusted Total Indian 
Pobulation of 



5. 

= 2^ o^ Total Indian Population of kTI,3^ 

513,U91 
1,626 

2,235,881 



/2U^ of Total Indian Health 

A' erage Daily Patient Load 



20^ o r Total Indian Health 
Oitpatient Work Load 



Navajo Area Admissions 




18,127 


Navajo Area Newborns 




3,161 


Navajo Area Budget 


$ 23,131,900 


Excluding CMC - 
Navajo Area Budget 


$ 20,203,800 


Navajo Area CMC Budget 


$ 


2,928,100 


President's Budget 
CMC Increase 


$ 


2,225,000 


Navajo Area Budget 
CMC Increase 


$ 


131,000 


Navajo Area Positions - 




1,39* 



23^ o ' Total Indian Health 
Oitpatient Work Load - 
H >spitals only 

2k% ojr Total Indian Health 
Lssions 

= 32^ />f Total Indian Health 
lewborns 




of IHS Budget of 

=\15^ of IHS Budget - Excluding 
CMC - of 

=9.k<f, of ms CMC Budget of 
=7.1^ of IHS CMC Budget of 



1,275,726 

76,05U 

9,923 

$l66,5iiO,000 

$135,632,000 
$ 30,908,000 

$ 30,908,000 



5^ of IHS CMC Budget Increase$ 2,225,000 
= 18.5^ of IHS Positions of T.Wl 



In the discussions at Headquarters the last of October, it was 
indicated that one reason the Navajo Area could not expect a 
larger increase than $131,000 in CMC funds was because we are the 
largest Direct Service Area in IHS. This being true, the percentsige 
of resources for direct patient care allocated to the Navajo of ik^ 
appears to be significantly low when compared to our inpatient and 
admission work load of 2h<f:, and hospital outpatient work load of 23^. 



957 

6. 

Thus, vhile percentage-wise we may have received our equitable share 
of the Presidential budget increase of OK funds, it would appear an 
argument could be made to provide the Navajo with a larger portion 
of the total ClAC funds to offset the lack of sufficient resources 
to take care of the direct patient care load. 

All of the above leads to a further philosophic question relating to 
programs needed in Indian Health yet increasingly difficult to justify 
in view of declining availability of positions. The Navajo Area 
produces 2 Social V/orker Associates each one to two years through 
training programs; also Nutrition-Technicians, X-ray and Laboratory 
Technicians, etc., and the latest training progran of all, - the 
Community Health Medics. 

All of these programs train Indian people in health professions but if 
positions are not going to be available to hire these people upon com- 
pletion of training, then other steps should be taken to assure them 
of positions or decrease the volume of people being trained. Attrition 
and turnover has in the past made positions available for many trainee 
program graduates, but not all of them. In addition, the Navajo Health 
Authority with its $5,000,000, 5-year grant to train Indian people in 
health careers, will promote additional pressure on IKS to supply jobs, 
which in view of past experience and future outlook would indicate are 
difficult to come by. Can we then use the funds for training programs 
to provide additional positions, and allow the Navajo Health Authority 
and other agencies to provide the training? In the Navajo Area alone, 
excluding the Community Health Medic Training Program, funds in excess 
of $200,000 could be transferred to the operating program from training 
programs . 



^Ge^l^e EVBock. M.D- 
^\^^ickl Otirector, USPHS 

Director, Navajo Area Indian Health Service 

end. 



958 

Resource Summary 
FY 1973 Base Prograrr 



Positions Dollars 


P^ee Mo, 


880 


$ 11,496,000 


10 




552,100 


37 
33 


15 


228,000 


39 
42 




87,000 


43 


8 


115,000 


46 


U 


43,000 


51 


3 


2,774,100 


55, 5( 




154,000 


n II 



I. Patient Care 

A. Direct 

1. Hospital 

2. M & R 

3. Equipment 

4. Mental Health 

5. Medical Supplies^ 

6. Consultants 

7. Medicai Lab 

8. Training^ 

B. Indirect 

1. All other 

2. Dental 

3. Otitis f/edia^ 

II. Field Health Service 

A. Field Medical 

1. Pre. Health 

2. Mental Health 

3. Consultants 
U' Trachoma 

5. Mat. and Child 

6. Alaska Native 

7. Comm. Health Rep. 

8. Training^ 

9. Equipment 

10. Medical Supplies^ 

11. Otitis ^:edla^ 

12. Eye Care^ 

B. OEH^ 

C. Dental 

D. PHN 

E. Health Education 
III. Area Office Services 

1 Included in total 

2 PH LPM School at Shiprock only, see pages 51-54 for other training 

3 Social Worker Assoc. Training Program only, see pages 51-54 Tor other training 

4 Includes Plague 



159 


2,286, 


,000 


98 


28 


462,000 


no 




17. 


,000 


113 


13 


147, 


,000 


115 


11 


94. 


,000 


118 




1,050,700 


122 


3 


22, 


,000 


51 
125 
126 
127 
130 


72 


953: 


,000 


134 


82 


1,065,000 


139 


63 


737,000 


144 


16 


228, 


,000 


150 


37 


621, 


,000 


153 



959 

Resource Summary 



FY 1973 Current Program 
Increase 



1, 


Pat 


lent 


Care 










A. 


Direct 


Po 


sitions 


Dollars 






1. 
2. 
3. 

u. 

5. 
6. 
7. 


Hospital 

M & R 
Equ ipment 
Mental Health 
Medical Supplies 
Consultants 
Medical Lab 




-22 


-250,000 






8. 


Tra i ning 










B. 


ind 


irect 












1. 
2. 

3. 


All other 
Dental 
Otitis Media 




1 


15,000 



II, Field Health Service 

A. Field Medical 

1. Pre. Health -18 -200,000 

2. Mental Health 

3. Consultants 
4-. Trachoma 

5. Mat. and Child 

6. Alaska Native 

7. Comm. Health Rep. 

8. Training 

9. Equipment 

10. Medical Supplies 

11. Otitis Media 

12. Eye Care 

B. OEH 6 90,000 

C. Dental 

D. PHN -7 -70,000 

E. Health Education 

III. Area Office Services 37 621,000 



960 



1. Pat 


lent 


Care 


A. 


Direct 




1. 
2. 


Hospital 
M & R 




3. 


Equipment 
Mental Health 




5. 
6. 


Medical Supplies 
Consultants 




7. 


Medical Lab 




8. 


Training 


B. 


Ind 


irect 




1. 


All other 




2. 


Dental 




3. 


Otitis Media 



Resource Summary 
Total Unmet Need 

Posit i 



II. Field Health Service 
A. Field Medical 



Dolh 



Page No . 



383 


4,063,932 


18, 22, 26, 


29,30,3: 


54 


703,200 


37 






759,513 


38 




9 


66,109 


41 






443,300 


42 






210,630 


45 




59 


1,185,000 


49 






3,636,030l 


53 






1,671,000 


57 






190,000 


57 






250,000 


57 







1. 


Pre. Health 


70 


662,953 


102, 106, 109 




2. 


Mental Health 


8 1/2 


70,909 


112 




3. 


Consultants 




46,000 


114 




4. 


Trachoma 


1 


60,000 


117 




5. 


Mat, and Child 


51 


510,000 


120 




6. 


Alaska Native 










7. 


Comm. Health Rep. 


17 


153,000 


124 




8. 


Training 




(See Pg. 51) 


51 




9. 


Equ ipment 




277,844 


125 




10. 


Medical Supplies 




162,000 


126 




11. 


Otitis Media 




600,000 


129 




12. 


Eye Care 


19 


425,000 


133 


B. 


OEH 




11 


170,000 


137 


C. 


Dental 


54 


914,986 


143 


D. 


PHN 




28 


230,956 


149 


E. 


Hea 


1th Education 


8 


86,000 


152 



Area Office Services 



22 



300,000 



154 



includes total Unmet Career Development Requirements 



961 

Resource Summary 
FY \91U Increment of Unmet Need 



1. Pat 


ient 


Care 


A. 


Dir 


ect 




1. 


Hospital 




2. 


M & R 




3. 


Equipment 




u. 


Mental Health 




5. 


Medical Supplies 




6. 


Consultants 




7. 


Medical Lab 




8. 


Trahing 


B. 


Ind 


irect 




1. 


All other 




2. 


Dental 




3. 


Otitis Media 


11. Field 


Health Service 


A. 


Field Medical 




1. 


Pre. Health 




2. 


Mental Health 




3. 


Consultants 




u. 


Trachoma 




5. 


Mat. and Child 




6. 


Alaska Native 




7. 


Comm. Health Rep, 




8. 


Training 




9. 


Equipment 




10. 


Medical Supplies 




11. 


Otitis Media 




12. 


Eye Care 


B. 


OEH 




C. 


Den 


tal 


D. 


PHN 


1 



Positions Dollars- Page No. 



138 


1,380,000 


13 


7 


90,000 


13 




169,700 


38 


9 


66,109 


L\ 




U9,800 


uz 




210,630 


45 


12 


225,000 


13, 49 


53 


310,000 


54 




1,671,000 


57 




190,000 


57 




250,000 


57 



51 


622,951= 


102, 


8 1/2 


70,909 


112 




4.6,000 


lU 




35,509 


117 


26 


260,000 


120 


17 


153,000 


124 




(See Pg. 51) 


51 




52,600 


125 




162,000 


126 




600,000 


129 




355,000 


133 


7 


116,000 


138 


38 


798,986 


143 


28 


230,956 


149 



106, 109 



E. Health Education 4 40,000 152 

III.- Area Office Services 22 150,000 154 



962 
Exhibit No. 30 



(UEP:mcm 10-19-73) 



NAVAJO AREA IIIDIAH IffiALTH SERVICE HJDGEIARY TIEEDS 











^^F.Y. 'Ih 


*F.Y. '7'+ 


Total 




F 


■.y. '73 


*F.Y. '7'+ 


Required 


Increment 


Required for 




Revised 




To Maintain 


Of Unmet 


Comprehensive 




Allowances 


Proposed 


F.y. '72 Level Needs 


Program 


DIRECT PATIEUT CARE 














Hospital Services 


$ 


12,651,000 


$ 11,807,1+00 $ 12,658,000 


$ll+, 1+57, 000 


$ 17,23'+,UOO 


Meetings 




2,000 


2,000 


2,000 


2,000 


2,000 


Maintenance & Rep. 




526,600 


539,000 


6oi+,ooo 


69l+,000 


1,307,200 


Family Prac. Res. 




3^9,000 


3^9,000 


31+9,000 


390,000 


390,000 


Med. Lab Program 




115,000 


115,000 


125,000 


125,000 


125,000 


Pharmacy Residency 




31,000 


31,000 


33,200 


33,200 


33,200 


Consultants 




87,000 


87,000 


93,000 


185,600 


185,600 


Inpatient Ment.Hlth 




228,000 


228,000 


302,200 


368,100 


368,100 


PHN School 




1+3,000 


1+3,000 


1+5,200 


1+5,200 


1+5,200 


Reimbursements 




108,600 


67,000 


92,600 


92,600 


92,600 


Lab . Improvement 




32,000 


32,000 


32,000 


257,000 


1,217,000 


Less Taps 


$ 


(Uoo,ooo) 
13,773,200 


(l+2l+,000) 
$12,876,1+00 


-0- 


-0- 


-0- 


TOTAL DIRECT 


$ll+,336,200 


$16,61+9,700 


$ 21,000,300 


IliDIPUC'T' PATIENT CARE 














Dental 


? 


i6it,ooo 


$ 169,000 


$ 169,000 


$ 359,000 


$ 359,000 


Medical 




3,U73,ico 


3,075,000 


!+, 01+6,100 


5,967,100 


5,967,100 



TOTAL INDIRECT 



I 3,638,100 $ 3,2l+l+,000 $ 1+, 215, 100 $ 6,526,100 $ 6,326,100 



TOTAL PATIENT CARE $ 17,1+11,300 $16,120,1*00 $18,551,300 22,975,800 $27,325,1+00 



963 



(HEP:mem 10-19-73) 



F.Y. '73 

Revised 
Allowances 

FIELD HEALTH SERVICES 

Sanitation $ 991,200 

Dental 1,148,500 

Public Health Nurse 7^6,600 

Health Education 232,400 
Field Medical Svcs. 

Ambulance Care 2,975,300 

Mental Health 542,200 

Consultants 17,000 

Commun.Hlth.Reps. 1,050,700 
Social Wkr. Assoc. 22,000 

Trachoma 156,400 

Plague 02,000 
Maternal & Child Hlth.94,000 

Otitis Media 100,000 

Less Taps (76,000 ) 



*F.Y. '74 



Proposed 



*F.Y. '74 
Required 

To 
Maintain 

F.Y. '72 

Level 



$ 946,000 1/4 970, 
998, 400K 1,091, 



752,000 
233,000 

2,400,800 2 

350,500^^ 

17,000 

1,274,700 ] 

22,000 

132,300 

62,000 

94,000 

200,000 

(70,000) 



000 
000 
819,700 
240,900 



,684,500 

376,500 

20,000 

,274,700 

23,200 

181,000 

107,600 

99,200 

200,000 

-0- 



*F.Y, '74 
Increment 
of Unmet 
Needs 



^, 086, 000 

1,890,000 

1,050,600 

280,900 

3,902,100 

447,400 

66,000 

1,427,700 

23,200 

246,500 

107,600 

359,200 

800,000 

-0- 



Total 
Required 
for 

Compre- 
hensive 
Program 



^1,140,000 

2,006,000 

1,050,600 

326,900 

3,902,100 

647,400 

56,000 

1,427,700 

23,200 

271,000 

107,600 

609,200 

800,000 

-0- 



TOTAL FIELD HEALTH $ 8,102,300 7,412,700 8,088,300 11,687,200 12,377,700 
AREA OFFICE SERVICES $ 647,300 629,000 677,400 827,400 977,400 



EQUIPMENT REPLACEMENT $ 367,000 



222,300 1,037,300 



Sub total $ 26,527,900 

Less Non-recurring ( l,6l8,700 
TOTAL AREA $ 24,909,200 24,162,100 27,317,000 35,712,700 4l,7l8,800 

W^ Mobile Dental Unit Purchased F.Y. '73 Not Included F.Y. '73. 
iJ*' Transfer of Headquarters Mental Health Personnel to Albuquerque Area. 
* Does Not Include October Pay Raise. 



-2- 



964 
Exhibit No. 31 

[i'.s ??■. 07Z^Ti ::.-■■'; AGt:!ENT ''a::di:to:< part vtti extnpiT ::"•••'.-.•'> 89 

1. Piirpose 

This docv."5.nt prescrl'bos the procedures to bo follo-rso. in eubnitbin; 
th^ cr.niiol equipment bv/Jset plr.n. 

2. RgfcrrT.Cfo 

}~v/ri:.3 F..:;cn?J. Property Manc^crtnt l-r^TASslj Chapter 3-30, Use f.' rjvlr-rdc; 
Chapter 3-":0, Kcplj:cc--.?nt Stcivd'rJs; HZ-.'-SS )'ara'al CircL-lar - G'---r-.-l 
A'^d-nictr^ticr.; cr.d rn:"r-13 Mcnv.-l Circular - Fortoat-.l JVcp'-rty I j.r.i.';--2i-.2r.t 
luust be cc. plied vit-i prior to the- acquisition of cnuiii;ent. 

3- rtc-fir-i^LtJ c:-.- 

a. Equi: ..■-■:itv 

/ti erticle of p?v£cnsl property vhicli is conp.lctc in itsoiV; i?; of 
durslO.c nritvro vlt":i en orpccfccd service lire of o;-;c yefv cr; -^.-Ej 
end d.:'-r. rot orcJir,:rily lore iis idei.tity or oeco;!C; £ cc-'o: :;■.'• 
part c.T another c: Licle when i-ut into use. 



(1) 



/r.o p.rtj cle 1-rvin- r. vr.i.t cost cf Icr.c, than ilCO or r.cc-!.".--; 
t.'.? critcricii of KJr; Plii;, cl.aptcr l?-10-3:.".2. 



(2) Crr^t-nzoa 

An trticlc !-.-.vjt,3 a unit cor-t of :-lCO or r.-.-ro or r.octi:,-, thi 

ciitcrion of i.Ld Pi^::, ci.'ipter 12-10-:^OA2. 

(3) i::r-.:r.ic:.l 

Z^-- crviclo cT in ad.^i::5rl.;-p.tivSj tec-L"lcaj., n::':ical, or 
fcic.-.t-jfic r.v'-Vj'o vhic'i rr-\\ztz'z,z ol -■•■. rl.ir.-: r'?-.vS r-.-.: t "Jv 
rc-uives preventive lluIuI;-:?-:;;:, ?; c^ :-v^ct ii'i' inventoried '" 
a':.\--iny i:\ c-ccrd^::co vit-i IIT/ P>::: cho^^cr 1?-.1.0. 



CO r 



A^Mtic-T- cf en r''-Li.l'.;:vtivo, tccv licr? , r^vlcal, cr 
Lcici'tific r.rti.-.vc •.•■..- cl: ■f:cr. not :;-...;:'o.Tly iv-.v-'rc prcv....i:-, 
r-ii-tcri-nco. nt Dear:; b:i tro s;;/^ c:::.:-:-t ai: c?i:;teJ v: ;:h 
r.ichrnjc;! c';;-iT:-ont; r^c. rh:?;. ::,■-::, i.c inv<:--;;c-.ird tric.:^:: 
"xcAr. b^tvp 2:v]udv::, bvl :;; re-- li; l^ d to, r.-Liclcs of c: ■■.■. 
J-.:-rt ruoh j: C-rY", c). <-r, d-vcri :.r;.r,, boc::r^-^-, ho-;v:v:"l 
f-\^:ii-ri-, cv : qv:r;,c::: :■;•.: it\-.rf:. 



:x;ii;;-v :.-.;--.i -:? 3/71 



PRnpEP.-r/ :'A!iAG:cir.iT h'.ndbook 



965 

PART VTii EXHIBIT ::r arti 89 _ 



a. The annual tv.d-et plan for equip:nc-r.t uill te cutoitted in occordcncc 
* vith LVniLil- IIo. 1 by D.e fc.llo-..i..i cetcGories: 

(1) F.et>lr.crr-'::.t.--/a'ticl0 3 of c?pi-:-lized ecuir-cnt having a unit 
Bcqui5"iL;'.c:i cos'c cf vlOO or core. 

(2) RenlEcrv-nt crj^drHticnnl.— /.rticlcs of 'ncncapitalized equlp.-.crrt 
h?/Tn:ri;iI^it acrAi'iri^'.Ui'oa ccol, of Ioeg then $1C0, 

(3) Ac lditic :.^! . — Ar Licle.s of eqi.ui:.-'-nt vhich, if acquirer!, vrould 
Fave o xurCt r.cquir.ition cost cf $100 or ncrc. 

b ?ii- rcner!.';ior:oic Eoui-:--it Ccntvol 3Vo-rr-i (lI^iCOF) yrovx&riz sn 
srinual couir..o-.t replac2.-.:2it report. The report is dovc.1;ca-d fror: 
tho Ccn:iJl:.^r-:.c;i l'c-Drrn^v:a Rcceip:- K:cord File (CIlTi;) :.;f -i.tea 1-y 
ecc'n area cffitc to tho Antcatic Iita Precrr.:,i!C Stuoy Center, 
/O-buqi^orcAie, 1:'-.; Ilor.ico. 

(l) Tlic file vill he fcin.-^rded aiv/Jolly to tho ADPSC to >- rive no 
later th;n the third ;:-ndry in l'z:y. 

' ■ t^:o vco::r tfccr rcccivl; of th:; C.:^ file and fon-rifcd i-i-O" 
diateli' to the appropriate arc;, cffice. 

c. An anf(]ysiE of the report rupt be r:c?s proi^iptly in order^thet the _ 
cr.nv.^.1 cquii^int hr-Js'^^t pl'^n noy he cc plctcd rr.a foi-.-ertca .o arr^.-e 
in Hi Iloedctuar Lc-rs no later thsa July 15- 

Th^. r^rcrt received frcr: tiie A^FSC vill be prepared to pjace the 
rc^l-l- -it valr3 for nc:v::ech^nicrl c-..iir::cnt, (3^(^0) r^^^ve, cut- 
side cf the 5-yc^r budc^t pica rc^^ai^Jer^s of the replacer-at year 
carried in thu CIZ-Ii. 

(1) T- tot:l c oiler v:-lue in the "yrior" year cola.::i zivz^ be reauyi. 
to zero.- i:ie r^-orendu.:- for.r^rd-- the rn^.ur^l cq^^:; :':t .yccc. 
pl--n LVJ.Gt c;icloi;c t:\ cnclysi.? ihrct (r::nruj.t ^o. 3; i' - i-i^'l-^ 
the v^lu;.3 oL' the aetlor.3 tc-hr,.: to acccrr-lich thJ.s r:q.': re .:r:^;. 
Tne actions nay reprecent cse cr nore of the fo32c;:-n- ror.nona: 

(a) /j-tDcles have been ordered, but nob -delivered; 

(b) Articles to be ordered pr:"er to JvOj' 1} 

(c) Aroiclo- vill be p.irchac-;^ in r.ext Ii (this vould indicate 
top priority rcovJrcrci.t); 



Jur.e 1, If.'^S 



i;<3 



EXiIIBlT NUMoEH o9 



966 

^K>PERTV^tAr.^cn,ENT^,AN^.onK part VIII .v^t^t. ,i;^,bER 89 



i 



e. 



1, 1^:3 



(d) /-^ticle^^ hcve been rescheduled for a specific year(s) - 
icientil^/-; and 

(c) /j-ticlc.3 h-r/c been clESsifici - not to b= replaced. 

(2) ^i-^'i- ch^:>-e^in the rchedulcd yoe.r of replacc.-ent for on article 

r^nr- r^^"" iv; ^'=-''- ^'^ ^"O coli:^n5 of the report and the 
v».-^u» ^Ti vr.c file . 

(3) F.'?l^=e.-c:vb yc?r chn-.-os to c;;tor.d the life expectance- of an 
erocle -.ntl-.in the ran-e of tr.; 5-yeEr budcet plan shoi-Jd rot 
be r.'.ac .o extend the £cti6n ca a. year to year basis. For 
e^c..,p_e, v;:^nz i.>:nio:t f.o. 2 sc a cuide, Rn article j.chr.d'iLcd 
for rcplGoc-ent in :970 should not bo ex-tcndcd to 107I fo- th- 
cvrren'; £;vl:-icsio:i cu<i then e:-.-^:rccd for oro vocr on cech 
sucECvuei'.b cuh.r:icsicn. Such sctlcn vovild not be iiidicctive of 
Eouna I :i;ii:;c:;int practices. 

CO T5-p re:;lr-cc-:-nt v^^v^:-, cf erticlcr; rovir,- into the bv^r- vc- 
coir-. (15VU for iMhibiv ;;o. ?) r:i:st be reevaluated to^det^-^- 
\,/:av^tr:7 repcceiit the Istcot c;,ti-?itc for rcplfccr:e;:t co^t. 
i«.e laf.v.rc £icv.ld iv.cOu'e c22. cr.:r-.-is reouiie.i fci' s^'ir- ---t .' 

the re£;.,cr..';. 



ii..:.wiiy 



(5) l.hen it has b::cn detcr-i^,ed that capitalized no"echrnical 

cci.up.,v.--.t r.aets hSn rcplrcer.ant criteria, the reT^lcccv rvL v-i^-p 
v^.Ll be depleted frc:a tha "Afier" colvla tnd ^.iA:^ to t;.e co^v-^ 
for t:-_bv;.-ct ysar. Tr^ C?^H fo- tJye crtic3o- vriU be cc-r-ct-^ 
by cl:^->intii.G the alpaDbetic^.l ='L" in colxia In a^d -c-^i"--^- ~ 
X'c vith o nv- eric "3." The ierlGcc:::ont yenr vill al£o i.o"cl:Vn--2 
to correcpc;.d to the budget yer.r. 

The vr.jucc to be reported on the crji-il budset vlc.n for a-t^cl-s c-" 
rcpleee;-;it cr cddlticn:;! t-Mip-ont h-vinj a un^t acu-isit^c^ c-^' 

rCi>or(,..i u:>wcr ^.a^jj eloV'i. 

The reouir^-it for articles of additional couip-ont esti^aLcd to 
h-vc rn ce<-r-ulsitioii cost of $1C0 cr r.^To (hr.D) above) r.vst be 
Justxord en a lit;e itcn basis, tha d:c;.::sntction for vhieh vxU c« J 
ctorch^u uo .no annual cou^pr^nt cu^c:t T^lan. This vill bo a r-^->r.. i 
t-ent 7;o tna addHicn^l cr,uir--nt recvirer.ents included in the ezli^-z,- 
for the .?jj 5-yfar plr.a. 



EXHIBIT tiL-^ZR 89 3^^^ 



967 

,.....>-^>....r:,.,r::T HANDBOOK ItliLILll , EXHIBIT KU>;BER 89 



Funfls fcr the- p-^^-cl^^r.e of crtic3c= of cqui-r.ent vill tc located 
ly^^. Bdvic. o> allotr..nt. Thi. advice vill identilY the 3:.ounts 
aJr-licnrTo to the crtc^.-irG cvrtlincd in l.a ebove. CTolieatior.r. are 

Prcca>-e.--'-a files raiot be proi^orly docvrented to support the anions 
taken. 

a. EguiT-. c-it P.cT >l?c:-.r_tvt 

Life e-p--ctr:rLcy t'.bles identify by bread catecories of c-Tair-ent 
th" c'/tir-ated i^vr.bar of years of urc-ol life. The replccc-cnv, ^ 
of 'dp. article is r.ot .iu.-.tificd o.n the sole bnr.is thut it ^]^^ J-^ 
this cri-cerion. Ur^e ar.cl replaccr.;int star.dr.ra.s ei^ablishoc. by tu-./ 
tUKt be adhered to. 

(1) Articles r.:-.y bo replaced prior to the scheduled ye?.r vuide^r 
the follo..'ir2 coiislilican: 

(c) Vraen t'le itc;n i~ dcnosed b-ycnd cco^.c•..^ic repair; 

(b) V:hei\ ccatinuca operatic;; c:-p:;nd& vpon con5tc^nt, 
e>:ccsrivQ repair or opsrilir-G co-Ls; or 

(e) n-on 0'>t'.-Jt reovirer.entr. or the wliclc ere not c-_'.- 
^ ^ patiblcrith th. cvailcble level c: staff caprbllities. 

(2) Thu use of eouiprent rep] J.cc;.;-t funds dictate that the article 
scheduled fo^ replacc.;ant r^u.t be rc^nved frcn u.c ^'^■^\^:^^ 
n.cets en rc;.1acc.;ent standj^rdt. Thf cc:.tl».ued use- o. ^uch ... 
article vilf be col.^ider^d c --^^=!^,f ,^^'^f !, f ;!„^;/;^^' ^= 
condoned c:;ccpt as aul^horized i:i (3) (a) csA (b) beic. . 

(■^) Th- cortirucd urc of the rcplreed iter, v:;5-r the condition 
^^^ ouuSd ir. 5a(l)(e) above is p:r.ic.ible u.dcr the f«llo.zns 
conlit^c--: (O Vhen thcj rcpl"ccd itc:n is ucod to replace 
enihcr li^e itL looted in the area co.cer.ed or vxth.n tne 
indisn Health prc-rcn and th.t replaced i.cr, is sc^.^..... -^-^ 
replacer^Dut; or (b) vh.n prior ■:: I;=ac^qu-..ers ^.i^;-;;^.^^:^;- 
upon a detailed docu-cntation cf ovs:txlicat.on to ....jy.T..ae 
rcpro-ra::.:dr3 of fund", is obl:ain:d end used to svpi"... wi. 
acquisition. 

M V'-' co-.tinv.ed use cf a replaced c.rticle is condoned v-d_i:r 
{3)( = ) or (b) above, it c^ust h.vo been determined ^h;^. -^ 

co-.iditicn of th-j replaacd art-c'-, cs vell^ ... .ne c-cn 

and tr.nnp-rLrticn co:,!;, justi-i:- ru;h cc.ioa as v2^u^ 
eeoner.ierl sr.d proper. 



Jur.e 1, lS-3 



t.>:ui3j.T ni;mui:k 89 ^^^^ 



968 

iHS pi>o?:;:'.TY M.ANAGr;::NT iiamdsoo'; t'=T viii eottkit Nf-irir 



6. Dir/oocr.! cf r"-"l.;cc3 Sniu j -cnt 

a. Ai-'i-icle.- of tquir.v.ent schedule:! I'r.r replc'cerxnt viLl not be retained 
in use oi" in reserve by activiLicr. of the- Divicicn of Indian Kccltli 
ofter rccc:pt r.iul ir.ritillstici of the rcplr.ccasnt article uiilcoG 
BUthorizccl by 5s C^) ebove. 

t. Articles of equip..:Ci;t replpcc:'' p-'ior to the schedulfd year in 
eccorc..-::>ce with ^t{l)ic) by &rtic3.cs p-Ji-cliasod witli rddiltion?! 
ecvii.:-ciit funds ray b3 re3ssi£;.ned first to an act5.vJty vithin the 
11I/..0 '.:". cro the Ect.i.oy\ too!', plrcoj Dnd secC''.-"TIy to o! hor cctivities 
vithiii the- DiviEio.i providing scch acticr. fulfills pro^>-cJ,uDsd 
edditional enuip:::cr!t roovirciicjits. 

c. Ai-ticles of fcciuiprziit transferred to acco'.iit 137.2, "Fcrl.-.cnal 
Fi-opcity (other th_n stores stcch) Far.di:.:; Disposal" £h?ai not 
be retuTiicd to use in the Indian Hoalth prc;>r£:;.i except in cesoa 
cf-extrc:.c- cr.ei-sciicy or in acccrdunee vith ^a(';) tbovc. 

d. If the couJx:,rnt ce-r.c-t be utilir.'d vithin the lndi:.a IHrxth 
pro^rtr;, it vrill be c"ir;r3scd of in eccorc'::;co \-ith cVditicrs h t:' 

7. P--oci'rc--.''nt. .Vnles 



Ti;0 p'iocrrc:-.-.i;t file vhicJi coiitsiij'; the recuxJ-ition for pvrdhero of 
crt-icles of c.-v.ivn,rnt vith replace :::;it f;.'^.d3 iv:-t bo swp^ioricd by r 
doevj.;ant ir.clicatin^ the fir.al diE:Jc:.al action of the replr.Cvfd iter.;. 



j:.ArilbIT M;.;.>„t 89 3/71 



969 



O l'^ <-' O On 

r'1 CJ UA t- O 



|0 OD 
ftp ^? 



o f\i o c 

C) a' i-'N o 

,-s CO L^ u^ 






1-1 o o o 

ir\ o c> p 

, J- W VO L- 






t'i 


t 


f4 


(-1 


I-; 


;q 


t>. 


f> 




B 




p:) 


^ 




cj 




t: 




< 





oH 



O O O '-! ">0 
c- c ■/^ l■^ oi 

C\! J- r-l (.0 ^-^ 



o o o ir\ 
l/N o c> i--\ 
t^ ^ ii^ i.~ 



8888 



H 



o o o o 
^.■^c;) f> O 
cvj o o o 



o o o o 

O Cn O &\ 



^1 






'-c' T^ .. 


DJ 


1-l-J- 


O O r- 


r 1 


.-1 r-i 



970 







□ D D tJ r n D 






-J >■ _j 2f r u tv. 

Ui UJ I 

G. a e t-: o 
a. r X 11 ii li I. 

IJ u- O I- K I- 1- 

< <_,..,... 
2; v:- 5. re c r r 

i' i ?■ ■-. "i- 

U — W 1. U 1 LJ 1 

-J C .J a r, .; f. I 

< C < >- > ; i- 

U < >.' K f 1- »- I 



-» c^ <r ir 



>ii C r, c 



t e. v^ c 



«. c o c c c c c 



r-^- 



?^l 




•C C C O i'^ O' U-. > 
if> cc <.- <•• (A 1-- cr. I 



l< 



i/-. ;< a 



— > ■ l; < c - ^ 

>- CI r. _) Cr ij :• o «.'. c- 

c ;' r- t- X < u ^ r- r . - 

< < o — > n. < c c r 

X 1 T (-' IC UJ h- t/*- C' C:. u'* 



ir c o < I - ^ r- o » ■ c ■ c 

r- t- r '-. = c- o. ir r- ,.- ,>• 

<^ c c r <■- c I.' u'> (.- <: *r 

«^ r". r r^ tr. f<. r^, fo , - , - ^ 



- 




■ 


CD 




' 


r^ 






0- 






c 













J VIC 1. JA.'C 



'r 



971 



yi 



V 






^ 



^ 



<J 



<! ^ 



■-^i 



972 

Exhibit No. 32 

PROFESSIONAL SERVICES p^^^ ^ 

CHAPTER 9 
ANCILLAR Y CLINICAL SERVTCFS 



3-9.1 PURPOSE 

This chapter sets forth the Indian Health Service policy regarding 
various ancillary clinical services which are not otherwise covered 
under Part 3, Chapter 1. 

3-9.2 FAMILY PLANNING 

A. Purpose. To establish policy, program objectives and proce- 
dures for the Indian Health Service Family Planning activities 
in accordance with Health Services and Mental Health 
Administration Family Planning Policy Guidance, Circular 
No. 72.1, February 17, 1972 and HSMHA Policy on Abortion, 
Circular No. 72.2, February 17, 1972. 

B. Indian Health Service Policy on Family Planning. Family 
Planning assistance is one element of comprehensive health 
care. Family planning, as one phase of the total health and 
welfare program, is much broader than "birth control" and in- 
cludes increasing fertility as well as the promotion of education 
for responsible parenthood. It is an essential element of the 
Maternal and Child Health program. The Indian Health Service 
activities concerning family planning are similar to those 
carried out in the normal course of any patient- -physician 
relationship. The goal of th^ IHS is that each child ahall be a 
wanted one. The purpose of the Indian Health Service in the 
area of family planning is to provide all Indians and Alaska 
Natives with the freedom to choose or not to choose family 
planning and, in addition, the freedom to choose among all the 
alternative methods of family planning, if they so desire. 
Individuals lacking adequate information on family planning 
cannot exercise intelligently their freedom of choice to deter- 
mine the spacing of their children and the size of their families. 
Consequently, family planning information will be volunteered 
as an integral part of the comprehensive health program, with 
particular emphasis to mothers. It is IHS policy that Indian or 
Alaska Native families requesting assistance on family planning 
should receive it, irrespective of the reasons for the request. 
This information must be of a type that can meet the individual's 
needs, desires, and religious beliefs. Where, in medical 
judgment, a future pregnancy would be detrimental to the life or 



Indian Health Manual (3/28/72) TN No. 72.2 



973 

Page 2 PROFESSIONAL SERVICES 

CHAPTER 9 
ANCILLARY CLINICAL SERVICES 



3-9.2 (Continued) 



health of the mother, the physician in attendance will volunteer 
advice, guidance and services on appropriate methods of fami- 
ly planning. Medical reasons include not only many disease 
entities but psychological factors as well. Spacing of pregnan- 
cies, for instance, may be important for the well being of 
mother and child. Married and unmarried women are eligible 
for services. In the case of minors the provision of family 
planning services shall conform with appropriate state laws 
concerning parental (or legal guardian) consent for medical 
treatment of minors. If a tribal or community group wishes a 
family planning program instituted, the IHS, upon request, will 
provide this. Activities conducted by the IHS shall guarantee 
freedom from coercion or pressure of mind or conscience. In 
no case should a family be told how many children they should 
have, except for sound medical reasons, and no single 
procedure should be forced on any individual seeking assistance. 
Indian Health Service personnel, particularly physicians, nurses, 
social workers and health educators, will cooperate actively 
with the Bureau of Indian Affairs and local boards of education 
in implementing and improving in the school setting programs 
on family life and sex education. 

C. Voluntary Character of Services . Indian Health Service physi- 
cians may abstain from providing birth control services if they 
have any moral or ethical objections to it. In these circxim- 
stances, they should withdraw from the case after making 
arrangements for the patient to be under the care of another 
qualified physician. If for medical reasons, a physician refuses 
to provide requested or medically indicated family planning 
services, he shall obtain and place in the record written 
concurrence or another qualified physician that such services 
would endanger the physical or mental health of the patient. 

D. Indian Health Service Program Objectives. The Indian Health 
Service has as its program objectives concerning family 
planning the following: 

(1) To improve the health of mothers and children, 

(2) To provide information concerning the maternity cycle 
and its relation to health. 



TN No. 72.2 (3/28/72) ^"^^^"^ "^^^^ ^^'^"^^ 



974 

PROFESSIONAL SERVICES Pagg 3 

CHAPTER 9 
ANCILLARY CLINICAL SERVICES 

3-9.2 (Continued) 

(3) To provide information to families in order to let them 
make use intelligently of their freedom to choose the 
size of their families and the spacing of their children. 

(4) To provide family planning services, when medically 
indicated or requested. 

E. Procedures . In the implementation of the Indian Health Service 
Family Planning program, services may include the prescription 
and provision of contraceptive drugs and devices, instruction in 
the rhythm method, abortion, sterilization, infertility treatment, 
and counseling as appropriate. 

F. Birth Control Methods Other Than Abortion and Sterilization . In 
the implementation of the program IHS physicians are free to 
recommend oral or parenteral contraceptive drugs, intra- 
uterine or other mechanical device, the rhythm method or any 
other scientifically recognized contraceptive method according 
to their own medical judgment and the desires and religious 
beliefs of the patient. When for personal or social reasons the 
individual decides that pregnancy is to be avoided and requests 
assistance, the Indian Health Service will provide medically 
accepted anti-conceptional methods of birth control to. the extent 
of available resources. The Area offices will take the necessary 
steps to assure that in each IHS hospital and health center at 
least one physician will have the necessary training for the use 
of the intra-uterine devices. Eligible patients delivering in IHS 
or contract hospitals will be advised by the physician in at- 
tendance that information and services on family planning are 
available on request. Indian Health Service Public Health Nurses 
and Social Workers in their home visits will give similar advice 
to mothers and will refer them to the physician if information or 
services are requested. 

G. Abortion and Male or Female Reproductive Sterilizations . 

(1) Policy . The performance of abortion procedures in IHS 
facilities shall be in accordance with the laws of the state 
where the procedure is to be performed. The decision for 
a surgical sterilization is a matter between the physician 
and patient. Each Indian Health Service Area Director will 



Indian Health Manual (3/28/72) TN No. 72.2 



975 

Page 4 PROFESSIONAL SERVICES 

CHAPTER 9 
ANCILLARY CLINICAL SERVICES , 

3-9.2 (Continued) 

designate the facilities, under his jurisdiction, adequate for 
the performance of abortions and/or surgical (male or 
female) sterilizations. Facilities lacking the capability of 
providing these services shall refer eligible patients to the 
nearest facility having such capability, or will arrange for 
the services if funds are available, under customary 
contract medical care. 

(2) Abortions . 

a. Although the doctrine of Federal supremacy provides that 
state and local laws shall not be binding on Federal offi- 
cers and employees acting within the scope of their office, 
it is Presidential policy that abortion procedures in 
Federal medical facilities be made to correspond with 
the laws of the state where those facilities are located. 

b. No funds appropriated under Title X — of the Public Health 
Service Act will be used in the provision of abortions as a 
method of family planning. This restriction applies 
irrespective of state laws. 

c. A policy on abortion shall be established by the Indian 
Health Area Director for each qualified facility to conform 
with state and local laws and with usual and customary 
practices within their respective geographical areas. In 
states where two or more HSMHA facilities are located 
the policy on abortions shall be developed jointly. The 
Regional Attorney may be consulted in the preparation of 
such policy . 

(3) Sterilizations. Male or Female. The performance in IHS 
facilities of male or female sterilization procedures as a 
method of family planning is a matter to be decided between 
the patient and the physician, irrespective of state laws. No 
concurring medical opinions are necessary unless medically 
indicated because of known or suspected complications. 



1/ 
"~ "Family Planning Services and Population Research Act of 1970, 

PL 91-572". Title X does not apply to the Indian Health Service 

as it does not receive funds under this Title. 



TN No. Indian Health Manual 



976 

PROFESSIONAL SERVICES Page 5 

CHAPTER 9 
ANCILLARY CLINICAL SERVICES 

3-9. 2 (Continued) 

Indian Health Service regulations concerning surgical 
procedures - including informed patient consent - will be 
followed. The physician must be assured that the patient 
has been provided the necessary information to allow him 
or her to arrive at an informed decision. The written in- 
formed consent of the patient will be obtained before 
performing the procedure and placed in the patient's medical 
record. If the patient is married, the written consent of the 
spouse should be obtained also. There may be cases where 
the spouse is unavailable or refuses to give consent and the 
indications for the procedure are, in the judgment of the 
physician, critical to the physical or mental health of the 
patient. In these cases, the informed consent of the patient 
will be sufficient. The patient's record should show clearly 
why the consent of the spouse could not be obtained, and 
state the medical necessity and justification of performing the 
sterilization operation without the consent of the spouse. If 
the patient is a minor or otherwise incompetent to consent, 
the signature of the parent or legal guardian shall be obtained, 
but in such cases the consent of a minor who is sufficiently 
mature to understand the nature and consequence of the treat- 
ment shall also be obtained. The operation shall not be 
performed over the objection of the minor. 

(4) Abortions and Sterilizations Outside of IHS Facilities. The 
performance in a non-IHS facility of abortion and male or 
female sterilization procedures on IHS recipients of health 
care may be paid for with IHS funds, subject to their availa- 
bility, if it is authorized within the applicable state law. 
IHS regulations relating to the provision of care under 
Contract Health Services will be adhered to. 

(5) Legal Consultation . The HEW Regional Attorney serving 
the areas where the IHS facility is located should be consulted 
as to the applicable state law, and when necessary his advice 
requested regarding any legal problems relating to abortions 
or reproductive sterilizations. 



Indian Health Manual TN No. 



977 
Exhibit No. 33 




U.S. DEPARTMENT OF COMMERCE 

Social and Economic Statistics Administration 

BUREAU OF THE CENSUS 
Washington. D.C. 20233 



February 5, 1974. 



Mr. Lavn-ence B. Glick 
Acting General Coiansel 
United States Commission 

on Civil Rights 
Washington, D. C. 20^25 

Dear Mr. Ca.ick: 

This is in reply to your letter of Jamiary 25 requesting information 
about the Census Bureau' s identification and classification of the 
American Indian population. 

The data on the American Indian population in the 1970 Census of Popu- 
lation were derived from question 4, color or race, which was asked 
of all persons. The question on race was as follows: 



4. COLOR OR RACE 

I 

Fill one cirelt. 

Ij "InJun (American):' flio (ive irihe 

If 'Olhtt," aUa I"' ""• 



O WhKe 



O Japanese O Hawaiian 



Negro 
or Black 



O Chinese 
O Filipino 



O Indian (Amer.) ] 
^ frim Iriht -»- 



O Korean 

O Other- frim 

rtee 

/ 



The concept of race as used by the Bureau of the Census does not denote 
any scientific definition of biological stock. Rather, it reflects 
self -identification by respondents. Since the 1970 census obtained 



978 



2. 



djaformation on race primarily through self -enumeration, the data represent 
essentially self -classification by people according to the race with which 
they identify themselves. For persons of mi:xEd parentage who were in 
doubt as to their classification, the race of the person' s father was to 
be used. Information on tribal affiliation was obtained through write-in 
entries made by persons who responded that they were American Indian. 

The following factors should be considered when comparing census data and 
Bureau of Indian Affairs estimates: 

1 . Bureau of Indian Affairs estimates are made annually whereas the census 
figure refers to those Indians counted in 1970. Since there would be 
some natural increase, it would seem reasonable to assume that estimates 
made for 1973 or 1974- vovCLd be larger than a figure for 1970. 

2. Estimates made by the Bureau of Indian Affairs are based upon tribal 
rolls, which may not employ the same definitions as the corresponding 
census figures. For example, many tribal rolls include members of the 
tribe who have moved away from the reservation or State. The census 
figures refer to the Indian population actually living on the reserva- 
tion or in the State on April 1, 1970. 

3. Inasmuch as race was generally reported by the household members them- 
selves in the 1970 census, the classification of persons as American 
Indian or of other race would be correct in terms of the preference of 
the respondent. This classification may differ from that of the Bureau 
of Indian Affairs or that recognized by various Federal and State laws 
but, of coiirse, several bases of classification may be appropriate 
depending on the uses of the figures. 

Referring to the hearing transcript (page AA5) , the Bureau does special 
censuses at the request and expense of the local cammunity. Enclosed is 
a copy of the procedures to follow in requesting a special census. 

If you wish to request a special census, or if we can be of further assis- 
tance to you, please let us know. 

Sincerely, 

MEYER ZITT^ 

Chief, population Division 

Bureau of the Census 

Enclosure 



979 



SC-1 

(3-22-73) 



U.S. DEPARTMENT OF COMMERCE 
Social and Economic Statistics Administration 

Bureau of the Census 



FEDERAL SPECIAL CENSUSES 



The Bureau of the Census stands ready to 
assist cities, towns, villages, counties, town- 
ships and school districts which need up-to- 
date census figures by taking a special census 
at their expense. Such a census, taken under 
Federal supervision, is consistent with the 
Federal censuses taken each 10 years. Many 
States recognize only Federal censuses for 
distribution of tax funds and other matters. 
If there is any doubt whether a special census 
would be recognized for the purposes the local 
government has in mind, it is suggested that 
the matter be cleared up with the appropriate 
State authority. 



When the community desires to have a 
special census taken, an authorized official 
of the community should write a letter to the 
Director and request an estimate of the cost. 
He should indicate his estimate of present 
population. The community will then receive 
information regarding costs and maps needed 
by the Bureau. The present Corporate limits 
and any annexations since the last Federal 
census must be shown on one of the maps, and 
must be certified as correct by an appropriate 
official. 



If the community sends payment and maps 
to the Bureau to proceed with a census, norm- 
ally the census will be scheduled within 60 to 
90 days. A cost estimate which has not been 
accepted within 90 days by local officials is 
subject to revision to take into account any 
changes in wage rates or other costs that may 
have occurred. 



CONDITIONS 

The community agrees to pay all necessary 
expenses. These may exceed the estimate, 
particularly if the number of persons enumer- 
ated exceeds the expected population on which 
the cost estimate was based. The community 
agrees to provide suitable office space equip- 
ped with furniture, telephones, typewriters, 
and other equipment necessary for the suc- 
cessful completion of the census. The com- 
munity should make available qualified, 
mature persons who are able and willing to 
work full time as enumerators in the special 
census. The census supervisor will interview 
and test these people and select those he con- 
siders suitable for the work. The decision of 
the supervisor in such matters is final. 

A special census is undertaken only on the 
authorization of the appropriate local govern- 
ment. A countywide census must have the 
approval of the governing board of the county. 
After the final count has been tabulated, an 
official statement of the population will be 
issued to State and local officials unless the 
Bureau receives a written request that no 
official statement be released. However, the 
results of a completed census will be made 
available to the public by the Bureau in pub- 
lished form. Once the field work for the census 
has begun, the census can be stopped only with 
the approval of the Director. 

The individual returns from a special cen- 
sus remain the property of the Bureau of the 
Census. Special tabulations at additional cost 
may be made available in the form of statis- 
tical summaries, provided that no information 
is released which might disclose the identity 
of any person. Special tabulations must be 
requested within three months of the date on 
which the special census count is finalized. 



980 



THE E^4UMERATION 



THE COST 



The special census supervisor, who will 
be an experienced employee of the Bureau of 
the Census, will make the necessary arrange- 
ments for the selection, appointment, and 
training of the staff, and the conduct of the 
enumeration. The standard schedule includes 
for each resident of the community, his name, 
relationship to head of household, age, sex, 
and color or race. Under certain circum- 
stances, questions may be added, provided 
that additional lead time is allowed for pre- 
paring a new schedule and additional estimated 
costs are agreed upon. 



The enumeration is conducted under the 
same rules as those which govern the Federal 
Decennial Census. Members of the Armed 
Forces living and stationed in the community 
are included in the enumeration, but persons 
who have entered the Armed Forces from 
that particular city or town and who are now 
stationed elsewhere are not included. Visitors 
who are staying in the area for the summer 
only or the winter only are not enumerated 
unless they are working in the area or have 
no usual residence elsewhere. Persons en- 
rolled in colleges or universities are enumer- 
ated at the place where they stay while 
attending college. 



At the conclusion of the enumeration, a 
preliminary count will be made by the super- 
visor and the results will be submitted to the 
local officials requesting the census. The 
census supervisor may also release prelim- 
inary figures to officials of the political sub- 
divisions of the area enumerated, to news 
media, and others who are interested. 



The cost of a special census if based on the 
estimated population and the type of area to be 
enumerated. Special census cost in urban 
areas are slightly higher than the costs for 
areas which are essentially rural. Total 
estimated costs for special censuses of se- 
lected populations are as follows: 

Population Estimated total cost 

100 $620 

500 $840 to $850 

1.000 $1,000 to $1,020 

5.000 $2,180 to $2,300 

10.000 $4,390 to $4,680 

20,000 $7,165 to $7,795 

30,000 $10,175 to $11,165 

40,000 $12,880 to $14,200 

A part of this cost, the Bureau fee, will be 
paid directly to the Bureau, and the remainder 
will be paid locally on certification by the 
Bureau's representative. Local officials 
should not send any money to the Bureau until 
they have received an official cost estimate. 

The final Bureau fee wUl be determined on 
the basis of the total population reported in 
the census. If the census count is less than 
the figure on which the initial fee was based, 
an appropriate refund will be made; if it is 
greater, the community will be billed for the 
difference. 

A standard Bureau charge is not used for 
communities of 50,000 population and over and 
for most counties. An individual estimate of 
the total cost, including the amount to be sent 
to the Bureau and the local cost, will be pre- 
pared for each such place. Separate accounts 
will be maintained and the final charges will 
be based on the actual cost incurred. 



For areas of 50,000 or more inhabitants 
in which census tracts have been delineated, 
a tabulation of sex and race by age for tracts 
is published in a separate census report. 
Summary data for all special censuses are 
published in quarterly and annual reports 
issued by the Bureau. 



The Bureau of the Census is authorized to 
conduct Federal special censuses by Section 
8(b) of Title 13, U.S. Code. The Bureau can- 
not attest to the results of any census not 
taken under its direct supervision, nor will it 
accept volunteer, unpaid help for the enumera- 
tion in a Federal special census. 



SC-l 
(3-22-73) 



981 



of the enclosed Bureau report explains 
The cover page ^^ ^'^^/^^^J.^i^mg the BIA population 
some of the Procedures underlying ^^^ ^^^^ estimates, 
and labor force statistics, ines^^^ reservation 
the exact procedure varies from res ^^ ^^^^^^ ^^^^^^ 
depending upon the ^f ^^^^f °^^Son. The BIA does not 
available at the particular ^f ^f °";^^ar basis because 
conduct house to house purveys on a reg ^^^^^ ^^^.^^^ 
this is very expensive , and there ar 
needs which take priority. 

Sincerely yours, 

commissioner of Indian Affairs 



Acting Deputy 

Enclosure 



(See Exhibit No. I2c for the full text of this letter.) 



982 

Department of the Interior StatlsticB 

BUREAU OF INDIAN AFFAIRS June 1973 



ESTIMATES OF RESIDENT INDIAN POPULATION AND LABOR FORCE 
STATUS; BY STATE AND RESERVATION: MARCH 1973 



Coverage . The tenn resident Indian means Indians living on or near Federal 
reservations. It also includes Indians living in former reservation areas 
of Oklahoma, and all Indians and Alaska Natives in Alaska. 

Trital members may live anywhere and still be members of the tribe. It 
appe6u:s that the figures being reported for some reservations include some 
members living away, and thus correspond more to tribal membership than to 
resident Indians as defined above. The New Mexico pueblos in the Southern 
Pueblos Agency fall into this category, and probably the Navajo reservation 
also. 

Labor force status is not estimated for over 30,000 Indians, mostly the 
rural California group. Infonnation is lacking. 

Estimated figures . The local Agency offices of the Bureau of Indian Affairs 
estimate the figures using whatever information is available. Accuracy 
varies from place to place; it is particuleurly difficult to estimate for 
Alaska, Oklahoma, and the Navajo reservation where Indians are scattered 
over enormous geographic areas . 

Figures are reported to units, even though they are estimated, because of 
the many small figures which would not sidd to totals and subtotguLs if 
rounded. 

Labor force status . The labor force reported here Includes all persons l6 
years and older except those who cannot work because they sire attending 
school, caring for children, or are unable to work by reason of disability, 
retirement, or age. Unlike the national statistics, we include persons not 
seeking work, because of difficulty in estimating this group without expen- 
sive surveys. There are also problems in developing a useful concept of 
those seeking work In places where few jobs are available, as In many of 
the reservations. In any case, to Include persons not wanting work in the 
labor force results in a higher unemployment rate than would be found in a 
standard household survey such as the Current Population Survey. 

Employment is defined according to national standards, and refers to the 
third week of March, or a nearby week. The term "temporary employment" 
means jobs which are seasonal or peirt-tlme. 

Age and sex . The total population distributed by broad age groups and by 
sex is given on the following page. Labor force status is not known for 
the various age groups. 



983 



ffl 


CO 


f) 


h- 


•H 




■f H 


01 




•H 


0) 


1;i 


g 


t?^ 



fH CO 

<I> K 

+J M 

a < 



Z 5, 
O W EH 

'-' ^ :^ 



ED -^ CO 

ex, w 

O o8 S 



Pi ^( 
0) 4) O 



oooo CT\t— ij\C\J ir\oo 



m 


J- 


CM 


u^ 


irv 


ir\ 


t- 


J- 


J- 
H 


^ 


^ 


^ 


CO 


ir\ 


-* 


o\ 










CVl 


H 







l/N^ OJ CO C\J OJ POVO 



rn H rOONCO O OJ f- 
HCKfOCVJCOMD ifNoo 



VD OJ m O MD OJ 00 VO ^^d'SL 
CO CJnP^ O O i^vS CO CO 



g. 



°^ 

■p o 
Gd a 

■3 



crt 


^ 


crt 


o> 




0) 


^ 


1 


^ 


fi 


fn 


I) 


n) 


a) 


A) 


(U 


a 


^ 


fH 


3 


T) 


0) 


^ 


(0 



k 05 

cd CO f-( cd 

0) -H < <U 

■3 o 0) -3 

p ft <i> 

r 3 cs M o 

I 0) 0) O "-a 

I c S 3 > 



,3 to 

U Ch 

P< Fh 
(U O 



^/^ OJ oo 
OJ O OJ 



o, -p 3 

? (0 
rH P 

ed _, <u 



S^g ^ m^:^ 



<u 3 a) -p ^< 3 <" 

j5 O O O 0) p O 
S &, H CXh CO P^ H 



984 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION 
(prepared by Dr. Theodore W. Thpburn, 10-20-72) 

(tcrrea-tad 3 ■ ia-'>3) 

The following sources of data are available: 

1) The BIA maintains a population register of all Navajo s living 
on or near the Reservation. This is updated by: a) Birth and Death 
Certificates; b) School Enrollments - either in BIA schools or 
public schools (the public schools get Johnson-0 'Malley Funds for 
Indian students); c) Requests for service from the BIA; d) Tribal 
(and other) Court actions such as marriages, divorces, adoptions; 

e) Employment surveys, particularly in Eastern Navajo. 

This register has been maintained for some time, with particular 
emphasis on bringing it up to date since 196^. Several items of 
information have been dropped because it caused too great problems 
in updating. This is the source of the population figures used by 
the BIA and Tribe. 

2) In 1968 the Tribe made a survey of population by Chapter in 
connection with work programs. The general criteria used were 
Chapter members living in the Chapter area, but members not living 
in the Chapter area who might be eligible for work were often 
included. The BIA Vital Statistics Office compared these figures 
with their register and then arrived at Chapter population estimates 
by expanding the Chapter figures on a prorated basis to make the 
total equal their total. This expansion has been revised each year 
but no new survey has been made. For the past three years increases 
have been added on an agency by agency basis. Comparisons with 
voter records from the 1970 Tribal Election showed all Chapters to 
be within plus or minus one standard deviation of the expected 
population except for St. Michaels Chapter which was considerably 
over . 

Chapter membership has traditionally followed that of the mother. 
It is not definitely determined until a person tries to participate 
in Chapter affairs. The only Chapter significantly departing from 
the tradition is St. Michaels Chapter which is Inclined to accept 
Navajos on a residency basis. 

3) NTUA has estimates for the population of larger, on-Reservatlon 
communities for which they provide utility service. As this can 
include water, sewer, gas and/or electricity, estimates were avail- 
able for all agency headquarters. 

^) 1970 census figures are available for Indians. Enumeration 
Districts on-Reservation did not follow any other boundaries making 
comparison with Chapter estimates difficult. Also, locally many 
instances of under-enumerat ion are known. These figures were, 
however, used as a source of data for Indians living In bordertowns. 
These were obtained from the local Chambers of Commerce for New 
Mexico and from Arizona Department of Economic Planning and 
Development for Arizona. 



985 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page 2 

5) Several local estimates made by the Service Units have 

suggested that In the more distant Chapters, not as many people can 
be found as are shovm in the Tribal estimates. In Lower Greasewood 
only about 75? of the Chapter members were in residence. A study 
by Gallup utilizing family folders suggested that the more distant 
Chapters had less residence than called for with the Chapters 
closer to the trade centers having more. 

In arriving at Service Unit populations the following assumptions 
have been made: 1) Our total Area population is similar to BIA ' s 
and Tribe's except for the Chapters of Ramah, Canonclto and Alamo. 
The population figures for these three Chapters have been subtracted 
from the Tribal figures to get our Total Population. 

2) Most Chapter figures should be reduced by 1/^ to get actual 
residents. The exceptions are those Chapters surrounding border- 
towns, those Chapters on a major highway (I-^O), and those Chapters 
with a significant community not separately estimate'^. 

3) NTUA community estimates should be reduced by 1/2 to allow for 
non-Indian residents and local Chapter members. Navajo, New Mexico 
was reduced by only 1/3 as there are only minimal numbers of non- 
Indian residents. 

4) Of f -Reservation 1970 Census figures where used were taken at 
full value. 

5) Tuba City Service Unit estimate was used for Moencopl Village. 
Attached is an initial comparison of several population estimates 
for the Navajo Area for 1970. As a result of this the Navajo Area 
Indian Health Board passed a resolution recommending to IHS Head- 
quarters that the Tribal Census figures be used as a basis for 
our population estimates. 

In using the data, although Chapter estimates are developed, it is 
suggested that age and sex breakdowns be limited to the Service 
Units as a whole. 

6) According to BIA Vital Statistics Office, the January 1, 1971 
figures were the most accurate and should be projected both forward 
and backward at 2.3% change per year. This was done for the over-all 
figures. For individual figures the following changes were used: 

a) Where NTUa estimates were used, their estimated growth rate 
was used. 

b) For Urban areas where 1970 Census figures were used a growth 
rate of 3% was used. Also for Moencopi Village. 

c) Elsewhere a rate of 2.3% was used. 



986 



POPULATION ESTIMATES FOR THE NAVAJO RESERVATION 
(Corrected 2-12-73) 



Page 3 



Tabulated below are population estimates by Service Unit for the 
past four Fiscal Years based upon the April 1, 1971 Tribal Census 
Estimates. This is in keeping with a resolution passed by the 
Navajo Area Indian Health Board. These figures should be used 
with the data now being generated by the data system in program 
planning and evaluation both internally and when dealing with 
other groups. Re-visions have been made as a result of more 
careful study of Service Unit and Chapter boundaries. 



SERVICE UNIT 



FY 1969 FY 1970 FY 1971 FY 1972 (Provisional) 



Chinle 20,750 21,350 21,900 

Crownpoint 10,550 10,800 11,100 
Fort Defiance 17,000 17,950 18,850 



Gallup 
Kay enta 
Shiprock 
Tuba City 
v; ins low 



18,000 18,450 18,950 

8 ,850 9 ,100 9 ,350 

25,900 26,900 27,950 

11,150 11,1+50 11,750 

9,050 9,300 9,550 



2 2,450 

11 ,400 
19 ,800 
19 ,450 

9 ,550 
28 ,95(5 

12 ,050 
9 ,800 



Total Area 121,250 125,300 129,400 133,450 



Total Navajo Census 128,123 

(Less Ramah , Canoncito, Alamo) 135,853 (Including Ramah , 

Canoncito £ Alamo) 



987 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page k 



COMPARISON OF THE 
SEVERAL POPULATION FIGURES FOR 
THE NAVAJO RESERVATION 
1970 
(Ramah, Canonclto, and Alamo excluded) 



Dr. Thoburn's 

Tribal Initial Revised U. S. 

Service Unit Census Estimate Estimated 1970 IHS Census 

Chlnle 19,796 19,373 19,^*00 13,600 12,301 

Crownpolnt 12,963 11,258 11,300 8,600 8,732 

Fort Defiance 17,230 20,771 19,200 liJ,000 11,210 

Gallup 19,^97 19,322 19,500 17,000 17,876 

Kayenta 9>309 8,79^^ 9,100 7,200 5,301 

Shiprock 26,819 25,721 25,700 20,500 22,092 

Tuba City 10,376 10,906 10,900 10,900 5,990 

Winslow 8,858 9,856 9,900 9,^00 8,051 

Totals 124,81j8 126,001 125,000 101,200 91,553 



988 



POPULATION ESTIMATES FOR THE NAVAJO RESERVATION 
(Correct 2-12-73) 



- Page 5 



CHINLE SERVICE UNIT 

Ti- 


1971 
ibal Census 


Factor 


Estimate 


H-1 


Forest Lake 


1601 


0.75 


1,201 


'1-2 


Hard Rock (1/2 of 2l89) 


1095 


0.75 


821 


14-4 


Pinon 
Tah Chee 
Low Mountain 


319'! 

16'4G 

963 


0.75 
0.75 
0.75 


2,396 

1,234 

722 


9-3 


Rock Point 


1233 


0.75 


925 


10-1 


Chinle 


3996 


0.75 


2,997 


10-2 


Many Farms 


1^57 


1.00 


1,'^57 


10-3 


Nazlinl 


1631 


0.75 


1,223 


10-iJ 


Rough Rock 


851 


0.75 


638 


10-5 


Tselani 


1713 


0.75 


1,285 


11-1 


Lukachukai 


12iJ2 


0.75 


932 


11-2 


Round Rock 


1006 


0.75 


7 5^1 


11-3 


Tsailee-Wheatf ields 


1288 


0.75 


966 



24 ,562 



17 ,551 



CHINLE ESTIMATED POPULATION 



1969 
1970 
1971 
1972 



8,177 
8,iJ30 
8,683 
8,936 



0.50 
0.50 
0.50 
0.50 



ij,088 
'4,215 
'J,3t2 
1,'468 



CHINLE SERVICE UNIT ESTIMATED POPULATION 



1969 
1970 
1971 
1972 



20 ,761 

21 ,327 
21,893 
22,458 



989 



POPULATION ESTIMATES FOR THE NAVAJO RESERVATION 



Page 6 



CROWNPOINT SERVICE UNIT 

15-1 Becentl 

15-2 Crownpoint 

15-3 Lake Valley 

15-^* Little Water 

15-5 Nahodlshgish 

15-6 Pueblo Pintado 

15-7 Standing Rock 

15-8 Torreon-Star Lake 

15-9 White Horse Lake 

15-10 White Rock 

16-1 Baca 

16-3 Casamero Lake 

l6-8 Mariano Lake 

16-12 Smith Lake 

16-13 Thoreau 

19-2 Nageezi (1/3 of 2187) 

19-3 OJo Encino 



1971 
Tribal Census 


Factor 


Estimate 


5iJ8 


0.75 


411 


769 


0.75 


577 


551 


0.75 


413 


811 


0.75 


608 


i)78 


0.75 


3 58 


8il7 


0.75 


63 5 


829 


0.75 


622 


1,53 


0.75 


1,148 


860 


0.75 


64 5 


355 


0.75 


266 


822 


1.00 


822 


658 


0.75 


494 


722 


0.75 


54 2 


67 9 


0.75 


509 


844 


1.00 


844 


1 729 


0.75 


547 


688 


0.75 


516 



12,770 



9,957 



CROWNPOINT ESTIMATED POPULATION 



1969 


2,153 0.50 


1,076 


1970 


2,220 0.50 


1,110 


1971 


2,287 0.50 


1,144 


1972 


2,354 0.50 


1,177 


CROWNPOINT SERVICE UNIT 


ESTIMATED POPULATION 




1969 




10,541 


1970 




10,818 


1971 




11,101 


1972 




11,381 



990 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page 7 



FORT 


DEFIANCE SERVICE UNIT 


1971 
Tribal Census 


Factor 


Estimate 


16-H 


1 Tsyatoh (l/'4 of 783) 


196 


1.00 


196 


17-1 


Cornfields 




971 


0.75 


728 


17-2 


Ganado 




937 


1.00 


937 


17-3 


Greasewood 




1,265 


0.75 


949 


17-^* 


Kinllchee 




1,595 


0.75 


1,196 


17-5 


Klagetoh 




1,352 


0.75 


1,C14 


17-6 


Steamboat 




1,198 


0.75 


898 


17-7 


Wide Ruins 


(3/'< of 967) 


725 


1.00 


725 


18-1 


Crystal 




793 


0.75 


595 


18-2 


Fort Defiance 


3,071 


0.75 


2,303 


18-5 


Oak Springs 




767 


0.75 


57 5 


18-6 


Red Lake 




i)69 


0.75 


352 


18-7 


St. Michael 


s 


8i<l 


0.75 


631 


18-8 


Sawmill 




988 


0.75 


741 




15,168 


11,840 


FORT 


DEFIANCE 


1969 
1970 
1971 
1972 


3,750 
if, 050 
^,350 
4,650 


0.50 
0.50 
0.50 
0.50 


1,875 
2,025 
2,175 
2,325 


NAVAJO, NEW MEX. 


1969 
1970 
1971 
1972 


3,000 
3,500 
i^jOOO 
1,500 


0.67 
0.67 
0.67 
0.67 


2,000 
2,333 
2,68 
3,000 


WINDOW ROCK 


1969 
1970 
1971 
1972 


3,750 

4,050 
4,350 
4,650 


0.50 
0.50 
0.50 
0.50 


1,875 
2,025 
2,175 
2,325 


FORT 


DEFIANCE SERVICE UNIT ESTIMATED POPULATION 
1969 
1970 
1971 
1972 




17,005 
17,927 
18,870 
19,786 



991 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page 8 



GALLUP 


SERVICE UNIT 


1971 
Tribal Census 


Factor 


Estimate 


lH-l 


Coyote Canyon 


1,137 


0.75 


853 


lij-2 


Mexican Springs 


1,051 


0.75 


788 


lti-3 


Naschlttl 


1.372 


0.75 


1,029 


m-k 


Tohatchi 


1,207 


1.00 


1.207 


m-5 


Twin Lakes 


1,33'» 


1.00 


1,331 


16-2 


Bread Springs 


931 


0.75 


698 


l6-'< 


Cheechilgeetho 


1,119 


0.75 


1,087 


16-5 


Church Rock 


1,186 


1.00 


1,186 


16-6 


lyanbito 


951 


1.00 


951 


16-7 


Manuelito 


716 


1.00 


716 


16-9 


Pinedale 


1,315 


0.75 


986 


16-10 


Red Rock 


1,601 


1.00 


1,601 


16-11 


Rock Springs 


778 


1.00 


778 


16-11 


Tsyatoh (3/1 of 


783) 587 


1.00 


587 


17-7 


Wide Ruins (1/1 


of 967) 212 


1.00 


212 


18-3 


Houck 


1,321 


1.00 


1,321 


18-1 


Lupton 


687 


1.00 


687 



18,198 16,381 

GALLUP ESTIMATED POPULATION 



1969 


2,235 


1.00 


2,235 


1970 


2,301 


1.00 


2,301 


1971 


2,373 


1.00 


2,373 


1972 


2,172 


1.00 


2,172 


SOUTH OF I-IO 1969 


169 


1.00 


169 


(Arizona) 1970 


173 


1.00 


173 


1971 


177 


1.00 


177 


1972 


181 


1.00 


181 


GALLUP SERVICE UNIT ESTIMATED 


POPULATION 






1969 






17,979 


1970 






18,151 


1971 






18,931 


1972 






19,117 



992 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page 9 



KAYENTA SERVICE UNIT 

2-1 Inscription House 

2-2 Navajo Mountain 

2-3 Shonto 

8-1 Chilchinbeto 

8-2 Dennehotso 

8-3 Kayenta 

8-1 Oljato 



1971 
Tribal Census 


Factor 


Estimate 


1,161 


0.75 


871 


951 


0.75 


716 


1,^4 60 


0.75 


1,095 


909 


0.75 


682 


2,075 


0.75 


1,556 


2.118 


0.75 


1,588 


l.i^Gil 


1.00 


l,i4 6iJ 



10,141 



7,972 



KAYENTA ESTIMATED POPULATION 

1969 2,575 

1970 2,650 

1971 2,725 

1972 2,800 

KAYENTA SERVICE UNIT ESTIMATED POPULATION 

1969 
1970 
1971 
1972 



0.50 
0.50 
0.50 
0.50 



1,288 
1,325 
1,362 
1,^400 



8,866 
9,098 
9,33t 
9,571 



993 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page 10 



SHIPROCK SERVICE 


UNIT 


1971 
Tribal Census 


Factor 


Estimate 


9-1 


Mexican Water 


792 


0.75 


591 


9-2 


Red Mesa 




1,316 


0.75 


987 


S-k 


Sweetwater 




1,37'* 


0.75 


1,030 


9-5 


TeecNosPos 




1,561 


0.75 


1,173 


\2-l 


Aneth 




1,^5S 


0.75 


1,092 


12-2 


Beclabito 




867 


0.75 


650 


12-3 


Red Rock 




2,152 


0.75 


l,6l'< 


12-'< 


Sanostee 




2,103 


0.75 


1,577 


12-5 


Sheep Springs 


1,306 


0.75 


980 


12-6 


Shiprock 




6,270 


0.75 


1,702 


12-7 


Two Grey Hills 


2,338 


0.75 


1,751 


13-1 


Burnhams 




1,102 


0.75 


826 


13-2 


Fruit land 




863 


1.00 


863 


13-3 


Nenahnezad 




l.fJO 


0.75 


1,080 


19-1 


Huerfano 




2,71'« 


1.00 


2,711 


19-2 


Nageezl (2/3 of 


2187) 1,'*58 


0.75 


1,091 








29,115 




22,730 


SHIPROCK 


1969 
1970 
1971 
1972 


7,700 

8,560 

9,500 

lOjiJOO 


0.50 
0.50 
0.50 
0.50 


3,850 
1,280 
1,750 
5,200 


FARMINGTON 


1969 
1970 
1971 
1972 


'♦27 
110 
153 
166 


1.00 
1.00 
1.00 
1.00 


127 

110 
153 
166 


SHIPROCK SERVICE 


UNIT 


ESTIMATED POPULATION 










1969 
1970 
1971 
1972 






25,885 
26,882 
27,933 
28,961 



994 

POPULATION ESTIMATES FOR THE NAVAJO RESERVATION - Page 11 



TUBA 


CITY SERVICE 


UNIT 




1971 
Tribal Census 


Factor 


Estimate 


1-1 


Coppermine 






1,220 


0.75 


915 


1-2 


Kalbeto 






999 


0.75 


749 


1-3 


LeChee 






412 


1.00 


412 


1-4 


Red Lake 






1,951 


0.75 


1,463 


3-1 


Bodaway 






1,120 


0.75 


84c 


3-2 


Cameron 






1,336 


0.75 


1,002 


3-3 


CoalMine Mesa 




1,129 


0.75 


847 


3-4 


Tuba City 






2,125 


0.75 


1,594 


4-2 


Hard Rock (1/2 of 


2189) 


1,094 


0.75 


820 



11,386 



8,642 



TUBA CITY 


1969 
1970 
1971 
1972 


4,475 
4,613 
^,751 
4,889 


0.50 
0.50 
0.50 
0.50 


2,238 
2,307 
2,376 
2,444 


MOENCOPI 


1969 
1970 
1971 
1972 


699 
721 
743 
765 


1.00 
1.00 
1.00 
1.00 


699 
721 
743 
765 


TUBA CITY SERVICE 


UNIT ESTIMATED 

1969 
1970 
1971 
1972 


POPULATION 




11,152 
11,454 
11,761 
12,067 



995 



POPULATION ESTIMATES FOR THE NAVAJO RESERVATION 



WINSLOV/ SERVICE UNIT 1971 

Tribal Census 



5-1- 
5-2 
5-3 
7-1 
7-2 
7-3 
7-5 
7-6 



Bird Springs 
Leupp 

Tolanl Lake 
Dilkon 
Indian Wells 
Jeddito 
Teesto 
White Cone 



WINSLOW 



HOLBROOK 



SOUTH OP I-iJO 



1969 
1970 
1971 
1972 

1969 
1970 
1971 
1972 

1969 
1970 
1971 
1972 



879 
l,i426 
1,029 
1,091 

878 

850 
1,297 

979 

8,'<29 

1,080 
1,113 
l.lilD 
1,179 

516 
532 

566 

785 
805 
825 
8'<5 



Fac 


:tor 


1. 


00 


0. 


75 


0. 


75 


1. 


,00 


1, 


,00 


0, 


.75 


0. 


.75 


0, 


.75 


1, 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 


1 


.00 



WINSLOW SERVICE UNIT ESTIMATED POPULATION 

1969 
1970 
1971 
1972 



Pag 


;e 12 


Estimate 




879 


1, 


,070 




772 


1; 


,091 




878 




638 




973 




73') 


7 


,035 


1 
1 

1 
1 


,080 
,113 
,1^46 
,179 




516 
532 

566 




785 
805 
825 
8i<5 


9 
9 
9 
9 


,069 
,309 
,55^) 
,801 



Area Totals 

(Corrected 

2-12-73) 



1969 
1970 
1971 
1972 



121,258 
125 ,266 
129 ,380 
133 ,475 



996 



Director 

Division of Resource Coordination 

Indicin Health Service Headquarters 



August 3, 1973 



Director 

Navajo Area Indian Health Service 

WXNSLOW SERVICE UNIT 



In response to your memo of July 6, 1973, I totally concur 
with the desirability of resolving population differences and 
reconciling Area geographic boundaries. For some time my 
staff has been attempting to resolve the complex problem of 
population differences between the Office of Progrcim Statistics, 
IHS and the Bureau of Indian Affairs - Navajo Tribal population 
register. 

Although this activity is continuing, we recognized the 
immediacy of the Winslow Service Unit situation. At your 
request, therefore, we have made a concerted effort to 
reconcile geographic boundaries with the Phoenix Area generally, 
and specifically regarding Winslow Service Unit. 

After engaging in dialogue with Phoenix Area, reviewing written 
agreements between Navajo Area and Phoenix Area, reviewing 
maps provided by Headquarters , and reviewing other pertinent 
data, the attached memo was prepared. 

This memo and its supporting data delineate the Navajo Area's 
perception of its geographic boundaries contiguous to the 
Phoenix Area. In the immediate future v/e will follow this same 
process in regard to the Albuquerque Area. 

As you will note, my staff has also attempted to rationalize 
the population within the defined boundaries. 

Please advise me of any questions you may have regarding this 
matter. 



George E. Bock, M. D. 

Medical Director, U.S.P.H.S. 

Director, Navajo Area Indian Health Service 



Subject file 
Chrono 
JKnight/drc/8-3-7 3 



997 

Director August 3, 1973 

Navajo Area Indian Health Service 



NAIHS/HIB 

WINSLOW SERVICE UNIT 



In reply to Dr. Lindsay's memo of July 6, 1973, the Enumeration 
Districts listed below belong in the Winslow Service Unit. 
This is based on the Agreement between the Navajo and Phoenix 
Areas, a copy of which is attached. 

CCX:ONINO COUNTY: Cownt Total Age 5-14 

SED 11 (Leupp) - All 1,415 449 

SED 12 (Disputed Land) - 1/4 313 102 

(3/4 goes to Tuba City) 

(NOTBj SED 13 is a corner of the Hopi Reservation in 
Land Management District 6) . 

ED 31-49 (Flagstaff) - All 1,324 301 

ED 53 (NE of Flagstaff) - 1/2 33 3 

(1/2 goes to Tuba City) 

ED 54 (Immediately N of Flagstaff) - All 

ED 56 (M of Flagstaff) - 16 1 

(1/6 goes to Tuba City and 2/3 goes to Phoenix Area) 

ED 60 (SE of Flagstaff) - 1/2 12 2 

(1/2 goes to Phoenix Area) 

3,098 85T 

(NOTE: ED 50-52 (Sedona) ; ED 55 (S of Flagstaff) ; 

ED 57, 5G, 59; and ED 61 (Navajo Amy Depot) all 
lie either South or VJest of Flagstaff and so 
belong in Phoenix Area) . 



998 

Memo to Director, NAIHS , August 3, 1973 - - Page 2 
re: V7INSL0W SERVICE UNIT 



NAVAJO COUNTY: 

SED 9 (Disputed Land) - All 

SED 10 (Greasewood and South) - 1/4 
(3/4 goes to Fort Defiance) 

SED 11 (Dilcon) - All 

SED 12 (Bird Springs) - All 

ED 13-16 (Holbrook) - All 

ED 17-24 (Winslow) - All 

ED 25 (NE of Holbrook) - All 

ED 26 (N and S between Holbrook 
eUid Winslow) - All 

ED 27 (N and S of Winslow) - All 

SED 28 (Petrified Forest) - All 

ED 29, 30 (Snowflake) - All 

ED 34 (NE of Snowflake) - All 

ED 35 (NW of Snowflake) - All 

ED 36 (Western part of Sitgraves Nat'l 

Forest, including Heber) - 1/3 32 9 
(2/3 goes to Phoenix Area) 

5,398 1,618 

Note ; According to the Agreement, Phoenix Area would get: 

ED 31 (Taylor) - All 
ED 32, 33 (Showlow) - All 
ED 36 (See above) - 2/3 
ED 37 (S of Snowflake) - All 
ED 38 (S of Showlow) - All 
SED 39-41 (Apache Reservation) - All 



Count Total 


Age 5-14 


1,947 


612 


246 


78 


836 


247 


212 


69 


532 


155 


1,113 


293 


5 


1 


47 


8 


280 


83 








123 


55 


3 


1 


22 


7 



999 

Memo to Director, NAIHS , August 3, 1973 - - Page 3 
re: WINSLOW SERVICE UIIIT 



APACHE COUNTY: Count Total Age 5-14 

SED 15 (Steamboat) - 1/5 248 85 

t2/5 goes to Chinle and "2/5 goes to Fort Defiance) 
/ a 

Total Count for Winslow Service Unit according 
to 1970 U.S. Census 8,744 2,560 

On Reservation 5,217 1,642 

Off-Reservation 3,527 918 



However, we do not feel that this figure is correct. In keeping 
with a resolution passed by the Navajo Area Health Board, we 
feel we should be basing our population estiirates on the BIA 
Population Register. If we compare comparable geographic 
areas, the 1970 U.S. Census is 26.2% belov; the BIA Population 
Register over-all and 20.8% below the Register in the 5-14 year 
old age group. Unfortunately, it is impossible to directly 
transpose BIA Agencies into Service Units. The most reliable 
residence data available besides the U.S. Census to aid in 
this distribution is the BIA School Census. After eliminating 
those children identified as living "Off-Reservation" and 
those for whom no information was available, there are still 
9.7% more children in the 5-14 year old age group than show 
up in the Population Register. The comparison of figures is 
attached as an appendix. It would seem that a reasonable 
population estimate would be to accept the BIA Population 
Register for "On Reservation" and "Checkerboard" residents 
and the 1970 U.S. Census for "Off-Reservation" residents 
lying within our Service Area. This would count double any 
persons still carried on the Register, but who were actually 
living immediately "Off Reservation". However, this would 
not count any non-Navajo eligibles living on the Reservation, 
for example, the Hopies at Moencopi. In view of the even 
larger number of children in the 5-14 year old age group 
identified in the School Census, we feel that this is a fair 
trade-off. The added advantages to us of using the BIA 
figures is that once the boundary equivalents are worked out, 
we have a ready method updating our figures , and of estimating 
locations within the Service Units. 



1000 

Memo to Director, NAIHS , August 3, 1973 - - Page 4 
re: WINSLOW SERVICE UNIT 



Age 5-14 

Adjusted Ratio 

School Ratio to Pop. 5-14/ Total 

School Census District Census Sch/Reg . Register Total Pop . 

Port Defiance Agency: 

Dilcon 1,195 

Greasewood (1/4) 127 
Toyei (1/3) 268 

1,590 0.8257 1,313 0.2773 4,734 

Tuba City Agency: 

Sand Springs 120 

Tolani Lcike 230 

Leupp 630 

980 0,8882 870 0.3083 2,823 

Total "On Reservation" 7,557 

From 1970 U.S. Census - Total "Off Reservation" 3,527 

Total S.U. Population 11,084 



Theodore W. Thoburn, M. D. 
Chief, Health Information Branch 

APPROVED : 



Mr. Jack Knight 

Chief, Office of Planning and Program Development 

Attach lents 

cc: r irvice Unit Director, PHS Indian Hospital, Winslow 
Mr. Gordon Aidr, Phoenix Area Office 



1001 



U-l o 




o en 




a 




• M 


o> VO 00 


(0 OS 


a\ rr a\ 


r-t a J.J -o 


VO tN CN 


a e: o u 


•• ^ 


■P 1 o « 


iH iH 


o c x: o 


"T 


£-< o u ja 




s 




* 1.' 




C >-i 




J^ O OJ = 


m o iH 


O-n^ -a 


T r« r~ 


*J C3 O U 


rr iH 


01 > O 13 


^ 



VO M 



O r-i 



«3 Id £ Q 

u ss u jS 



•P C (U 

o o « 


5 5^ 
£ -p 


0.M 
^ O 

w u 


■p • 

O «) 
h Q 



i-t ^r 0\ 
iH o o 
VO in rH 



o ^ o 

VO <N 



'*■ d« 










\ 






»H c 






■>» 




Vi 


• 


'T C 


1 -W 


n 




r-l 




0) u 


0. 


M o 


m +»-H 


D 




1 




*» a 





1 -H 


« 4J 


n 


M in 




eg a 


\0. 


in 4J 


(U > « 


c 


0) 






•H C 


^ 


« 


D'M e 


o 


■p 


o 




0^ tt) 


r-l r-l 


•• © r^ 


< o u 


o 


m 


CP 




(U u 


C 1 ID 


01 tr 3 


n o 




•H < 




o: 


o »n +) 


3 < a 


O <M 


rH 


tr. 






f-4 


•W 


01 O 


a o: c 





(1) 






c o 


■P V {-• 


C 0. 


3 H 


o 


Pi 






O 


« Ov 


o 


(0 <M 


JZ 








•H j: 


H < 


o >-« 


C M-l o 


u 


c 






4J o 


3 


« 


OO 2S 


(0 









ns w 


a 


+1 


U» s 




•H 






tH 


•• 


u o 




■p 


4J 






3 


P< 


• H 


fH m 01 


o 


Id 




•• 


a 


■H 


9 


O 01 u 


2 


r-t 







o 


rH .P 




o o <u 




s 




-H 04 


« « 


o 


j: ►J ►J 




a 




■p 




+J « 


r» 


o 




o 




K 







Ot 


u 




CU 




tn 




H 


•-I 



« 
•a 

3 
f^ 
o 

X 

« 

c 

V 
9 

> 



1002 



MEMORANDUM 



DEPARTME.NT OF HEALTH, EDUCATION, AND WELFAR 

PUBLIC HEALTH SERVICE 

HEALTH SERVICES AND MENTAL HEALTH ADMINISTRATION 



Director 

Division of Resource Coordination 

Indian Health Service Headquarters 



DATE: September 6, 1973 



FROM Director 

Navajo Area Indian Health Service 

SUBJECT: NAVAJO AREA SERVICE UNIT BOUNDARIES 



Enclosed are the boundary materials you requested in your 
memo of July 31, 1973 as prepared by Dr. Thoburn. Included 
are maps, and copies of agreements betv/een our Area, Albuquerque 
and Phoenix Areas. Ke still feel there is ample evidence that 
the BIA Population Register is more accurate than the 1970 
U.S. Census and that v,-e should follov/ the recommendation of our. 
Health Board and use it as the basis of our population estimates. 
It has the further advantage that there is a constant effort to 
increase its accuracy, v/hereas the 1970 U.S. Census v;ill not 
be corrscted for another six years . 

It is of note that the difference between the Population 
Register and the U.S. Census is not uniform. In the 
"Checkerboard" in New l-'exico the Census wss 89* of the Population 
Register, whereas for the "On Reservation" portions (mostly 
Arizona) it was only 69% of the Register. As ths Register is 
run by a single, local Agency and the Census was dohe by 
several different non-contin"inc groups, it appears reasonable 
that the Register is fairly consistent in its accuracy. Even 
allowing that the Census might be right in the "Checkerboard" , 
it would still appear that the Census was 20% low "On Reserva- 
tion" . 

^^—George \e . Bock, M. D. 
tV-^lreptoV 

Nava^ ) Area Indian Health Service 

ESiclc 3ure 



1003 



MEMORANDUM 



DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE 

PUBLIC HEALTH SERVICE 

HEALTH SERVICES AND MENTAL HEALTH ADMINISTRATION 



Director 

Navajo Area Indian Health Service 



DATEiSeptember 6, 1973 



FROM : NAIHS/HIB 



SinUECT: SERVICE UNIT AND AREA BOUNDARIES 



As requested by Dr. Lindsay in his memo of July 31, 1973 we 
have defined our boundaries and correlated them with enumeration 
districts. Attached are maps for detail, and copies of boundary 
agreements between the Navajo Area and the Phoenix and Albuquer- 
que Areas. Also attached is the justification sheet used in 
our discussion with Albuquerque on fixing the boundary. 

A few special comments: 

1. Winslow Service Unit has been again included for complete- 
ness. It has been necessary to change the split of Navajo 
County ED 35, between the Navajo and Phoenix Areas after study 
of a more detailed map then the ones supplied from Mr. Specter's 
office. This resulted in a loss of seven persons to the Navajo 
Area. Also, although there has been no change in Winslow 's 
split of Apache County ED 15, there has been a change in the 
split between Fort Defiance and Chinle. 

2. Again I have included a comparison with the BIA figures as 
I still feel they are the more accurate. As stated in the 
Winslow write-up, it appears that the "Off Reservation" figures 
in Arizona should be in addition to the BIA figures. Although 
this should possibly be so in New Mexico as well, after counting 
Gallup and Farmington in, there really aren't that many living 
outside the "Checkerboard" as shown on the Tribal Chapter maps. 

3. In obtaining the 5-14 year old age group from the 1970 
U.S. Census runs, I took the same portion of the 5-14 year old 
age group of "Other Races" (not White or Negro) as Indians 
accounted for in all age groups. In distributing the BIA 
Population Register between Service Units, I used School Census 
District figures, reduced them to Population Register levels 
and then expanded them from 5-14 year old age group to total 
population. The figures so developed are only 0.11% below the 
figures taken straight from the Population Register for the 
Area as a whole. It should be mentioned here that I have 
learned that Ramah is not included in agency figures so I am 
not subtracting it as I did in previous presentations . 



1004 

Memo to Director, NAIHS, September 6, 1973 - - Page 2 
re: SERVICE UNIT AND AREA BOUNDARIES 



4. Unfortunately part of the confusion in Headquarters was 
a misreading of a previous presentation where I tried to group 
together blocks of land in which I could get fairly compareible 
boundaries for Enumeration Districts on the one hand and 
Chapter boundaries on the other. Unfortunately, such blocks 
of land had to cross State, County and Service Unit borders. 
Headquarters mistakenly lined up EDs with Chapters and Service 
Units within these blocks . 

Theodore W. Thoburn, M. D. 
Chief, Health Infoirmation Branch 

Attachments 

cc: Mr. Jack Knight, Navajo Area 

Mr. Don Bergs trom, Albuquerque Area 
Mr. Gordon Aird, Phoenix Area 



Service 
Unit 



1005 

SUMMARY COMPARISON BY SERVICE UNITS 



Total Population 
U.S. BIA 
Census Register 



Age 5-14 
U S. Adjusted School 
Census to Reg. Census 



Chinle 

On Reservation 12,45/ 

Crownpoint 

On Reservation 
Checkerboard 

Totals 

Fort Defiance 

On Reservation 11,94-3 

Checkerboard ^^^ 

Totals 12,239 



Gallup 

On Reservation 
Checkerboard 

Sub-Totals 
Off Reservation 
Totals 



20,963 





(16,651) 



4,031 



180 

2,697 
2,877 



3,799 

97 

■3,6^6 



1,870 
2,886 
4,756 
62 
4,819 



6,269 



3,858 
3,858 



4,605 
4, go's 




6,518 



4,053 
4,053 



(4,832) 



Kayenta 

On Reservation 

Shiprock 

On Reservation 
Checkerboard 

Totals 



7,543 



16,749 

4,413 

21,162 



9,187 



24,731 

3,904 

28,635 



2,541 



5,461 
1,366 
6,822 



2,832 



7,669 
1,165 
8,834 



3,189 



7,650 
1,224 
8,874 



Tuba City 

On Reservation 7,155 

Off Reservation 34 

Totals 7,189 

Wins low c on 

On Reservation b,/i' 

Off Reservation 3,520 

Totals 8,737 

Area Totals c-7 7i9 

On Reserv tion b/,/i^ 

Checkerboard 23,231 

Sub-Totals 90,943 

Off Reservation 3,724 

Totals 94,667 



11,730 
(34 ) 
(11,764) 



7,557 
( 3,520 ) 
11,077 



97,920 

26,165 

124, 08 5' 

(3,724 ) 

(127,809) 



2,395 

3 

2,398 



1,642 

916 

2,558 




3,611 

ij) 

(3,614) 



2,183 

(916 ). 
3,099 



29,151 

7,810 

36,961 

(982 ) 

(37,943) 



4,045 



2,570 



31,949 

8 ,204 

30,153 



%* m 
OK 



1006 





r-t m V 


s 


0\ u> 00 


Q 


la v xv 


Ol V CT> 


g 


4J K o 


k4 


VO (N CM 


O 1 <u 


10 


* * 


CO 


t" c x: 


o 


■Hi-I 


^ 


o o ja 


» 


h 


E 






< 


« 1 






« 


c u 






H 


V4 (U 


s 


ID O i-l 


H 


«)-r-,J<; T3 


•T t~ J^ 


CO 


•P « 


u 


^ rH 


H 


m > (U 


« 


^ 




« nl£ 


o 


CO 


S 


H S U J3 

c 




§ 


•H » 




<■ «) r- 


H 


« «> 




in r- oj 


i^ 


■p£ 




tS r-l iH 


^ 


g& 




n-i 


D 


o 




m 


1 








« >i 




i-H V ON 








■H O O 


iH 




vc m iH 


r> 


H u 




- 



O (M 



0» CN 



in N n 
in o 



.H C = 

I o c 
in -H o 

v Id -p 

D> > <8 

«< u E 
(U u 

10 O 
0) U-l 

m b: c 

3 H 
» <H 
C<M O 

oo z 

or s 

•H (A M 

to in 

O (U 0) 



h 0) 


o 


•<r 


4) D 


0< 


•-I 0< 


■U Ul 


\ 


1 


0) C 


«T I-l 


in iH 


•H 0) 


■-I (0 


(d 


0>(J 


C 1 -P 


n (U -p 


(U 


in 


D cno 


05 rH 


•H H 


Bl < E-i 


O 


4J 9) 


C 


C O 


(8 01 


(1> 


£ 


-f < 


CJ 



10 10 



I 



o^^^^V% 




BOARD OF REGENTS 

VAZZIE BEGAY 
JOHN C. MARTIN 
GUY GORMAN 
HOWARD GORMAN 

petER McDonald 



1007 
Exhibit No. SU 



% NATIONAL INDIAN LEADERSHIP TRAINING 

SPONSORED BY 

NAVAJO COMMUNITY COLLEGE 

227 TRUMAN STREET N.E. o ALBUQUERQUE, NEW MEXICO 87108 



August 23. 1972 



BOARD OF REGENTS 

DiaON PLATERO 
WItSON SKEETS 
STUDENT 3O0Y PRESIDENT 
CARL TODACHEENE 
CHESTER YEILOWHAIR 



REPORT 

To: All persons concerned with Indian Education 

From: Earl J. Waits and other NILT Staff members 

Subject: The use of Johnson O'Malley funds for basic support in Arizona 



We have on several occasions asked why Johnson O'Malley money is used 
for basic support in Arizona. The standard ansvver from State and local 
school authorities has been that JOM money is necessary for basic 
support because the enrollment of Indian students from non-taxable lands 
creates a financial burden upon the district. They contend that it is 
necessary for them to use JOM in this was in order to keep their schools 
open. 

In reviewing the statistics on public school finance for the fiscal year 
1970-71, the only year for which we were able to get complete statistics, 
we find some MGvy interesting facts. Our figures were compiled from the 
publication, "ANNUAL REPORT OF THE SUPERINTENDENT OF PUBLIC INSTRUCTION, 
Statistical Section, for the Fiscal Year 1970-71," published in compliance 
with Arizona Revised Statutes § 15-123, by the office of the Superintendent 
of Public Instruction, State of Arizona. Our figures represent those 
reported to that office, and any errors, other than typographical errors, 
in our figures result from errors in reporting to or compilation by that 
office. 

We now refer the reader to attachments A, B, and C, to this report. We 
find that in all con'mon size groups, with the exception of the elementary 
schools of ADM (average daily membership) 10,000-20,000, those districts 
that receive Johnson O'Malley funds receive more money without JOM than 
the districts which do not subsequently receive any JOM aid. In that 
one large grouping we find that the per pupil receipts in the JOM district 
is only $17 per pupil less than in the comparably sized non-JOM districts. 
This difference is not significant in light of the size of these districts. 
In all other cases, the difference ranges from a low of $34 per pupil in 



1008 



the large hich school districts (v;hich muy or may not be signiiicant) to 
a high of $845 3er ouoil in the smallest elementary districts (ADM 0-150). 
All of these averages ira higher in the districts that subsequently receive 
Johnson O'Kalley money. 

It is interesting to note that the non-JOM elementary districts in the ADM 
range of Q-150 receive an average of only $1,354 per pupil, v/hile the JOM 
districts in that group receive $846, or 63% more money per pupil before 
JOM is added. When JOM is added the difference is then $1,362 per pupil, 
or 101" more. It is also significant to note that, in all cases, these 
are the amounts received before P.L. 89-10 (Title I, etc.) or other cate- 
gorical aid is received. They represent only that money which is consi- 
dered operational funding by the State of Arizona. 

Therefore, v;e fail to see how the enrollment of Indian students creates 
any financial hardship on the district which receives these students. The 
reason that the districts which enroll Indian students do so well, finan- 
cially, is readily apparent. While the parents of most of these students 
pay no property taxes, the children do make the district eligible to receive 
general aid from Public Law 81-874 (Impact Aid). In every case we have 
found, and it seems to hold true in Arizona, the district receives more, 
in some cases two or three times more, money for each child from P.L. 874 
than it would if that child lived on taxable land and paid property taxes. 

It seems to us absurd to say that a district which has a greater financial 
base to start with can successfully argue that it needs additional money 
to keep its schools open, when the poorer schools which cannot qualify 
for JOM are able to operate. This then brings us to the next topic. 

When confronted with the above statistics the school officials contend 
that in their district there are certain "hidden costs" which make it 
necessary for them to use JOM for basic support. When we asked them why 
these Kidden costs would not be reflected in our analysis, they maintain 
that we did not have the correct statistics in the beginning. As stated 
previously in this report, our figures were taken from an official report, 
compiled pursuant to an Arizona State law. 

If our figures are not correct, the two questions must be asked: 1. "Why 
were not the correct figures reported to the State Department of Public 
Instruction?" and 2. "What are the correct figures?" 

If th.e correct figures were not reported to the State Superintendent, was 
it because of error or misrepresentation? If the cause was an error in 
reporting, more care should be taken to insure that such errors are not 
repeated. If the cause was misrepresentation, a violation of the law is 
then apparent. In either case something should be done to correct the 
problems . 

We are then faced with another problem. If there truly are "hidden costs" 
that would make basic support from JOM funds necessary, but they are not 
reported to the Bureau of Indian Affairs, Phoenix Area Office, why has 
the BIA consistently approved the use of JOM for basic support? If our 
figures are correct, there can be no possible justification for the use 
of JOM for basic support, and if the districts do not supply additional 



1009 

-3- 

infomation, '.•;hich is documented, then the BIA is wrong in approving 
funding for those districts. If this other information is docui-nented 
to the BIA, v.'r.-j is it not documented to the State of Arizona? There 
must be a uniforrin reporting requirement so that all the facts can be pre- 
sented. V.'e are not dealing with the accounting of a fev/ dollars but 
rather a large sum (several million dollars) of money. And even beyond 
pure monetary considerations, we are dealing with the quality of education 
for the children, especially the Indian children, of Arizona. 

As we delve further into the situation in Arizona, we are faced with deter- 
mining v/hat a basic school program is. V/hen we asked if Arizona had minimum 
standards for public schools, we were told that they did not. How then does 
one determine what is considered to be a basic school program? Further, 
how does one determine whether a specific instructional program is a basic 
one? Is undenvater basket-weaving a basic program? How about English as 
a second language or hogan-building, or speech and debate, or Kindergarten, 
or remedial math and English? The list of programs goes on and on. In 
one school a program is considered basic; in another the same program is 
a supplemental one. 

The districts which receive JOM and subsequently use it as basic support 
claim that they have as a part of their basic school curriculum, certain 
programs that are designed for their Indian students. Can the school's 
officials tell anyone exactly how much these programs cost? The answer 
is n£. There is no separate accounting of program costs by source of 
funds v/hen that program is considered a basic school program. 

When it is suggested that JOM money be restricted solely to supplemental 
programs for Indian children, the school officials say that if this happens 
they will have to cut certain programs for Indian children out of their 
curriculum. This simply is not the complete truth, for some of these 
programs are supplemental in nature and could still be funded by JOM. The 
districts do not want to have to account for their JOM money separately 
because they could not then use part of their JOM funding for other pro- 
grams that do not benefit Indian children. Their statements are simply 
half-truths designed to keep the Indians in their place, out of the de- 
cision making process which directly affects their children. 

Since there is no separate accounting of JOM funds, parents of Indian 
children, and even Federal government officials are forced to accept the 
word of the local school officials when told that JOM is used only on 
Indian children. It is impossible for anyone, even the best auditor in 
in the world, to determine vjhat the school district is really doing with 
the money. If the districts really are using the money for their Indian 
children, v;hy do they seem so afraid of having anyone check on them? 

In summary, it seems absurd to us to believe that all school officials 
in Arizona are so honest and well meaning that they would not try to get 
as much money as possible to use in general school operation. It cer- 
tainly makes their chore much easier if they can use JOM for any purpose. 
No other place in the country is so willing to trust its school officials 
this much, so why is Arizona? Maybe the clear Arizona air has the effect 
of making an honest person out of anybody. If this is the case, maybe we 
should consider sending all the dishonest people in the United States to 
Arizona for reform. Much has been said about the benefits of living in 
Arizona; this is one aspect we have not yet heard about. So endeth this 
long dissertation. PEACE . . . 



1010 



(F.y. 1970-71 Co-osrisor. of JO;.' vs. llan-JO!'. District 



Attachinent A 



DT5-rcr 


Total Ad:::. 


Oper- Budget 
Receipts 
i//o Jo:-i 


Per Pupil 
Receipts 
m/o JOM 


JOM 
Receipts 


Oper. Budget 

Receipts 

w/ JOH 


Per Puoil 
Receipts 

w/ 30y. 


:■;■! "districts 














VDM 0-150) 














young- 


33 


216,415 


5,695 


9,000 


225,'415 


5,932 


Hoccssin 


11 


18,026 


1,639 


368 


18,39 4 


1,672 


Vale.-TiLLr.s 


13 


25,261 


1,403 


1,125 


26,386 


1,466 


."s==s C^nyo= 


117 


145,046 


1,240 


84,348 


229,394 


1,951 


0:i RvszB^es 


184- 


404,748 


2,200 


94,841 


499,729 


2,716 


on-^JOH -Districts 








\ 1 


\ 1 


\ 


Alpine 


35 


26,292 


751 


\ 1 


\ / 


\ 


Concho 


31 


18,404 


594 


\ / 


\ / 


\ 


AshCreek 


47 


45,059 


980 


\ / 


\ / 


\ 


Bcr-fls 


115 


139,957 


1,217 


\ / 


\ / 


\ / 


CodhSsa 


35 


114,977 


3,285 


\ / 


\ / 


\ / 


Double Adobe 


5S 


95,216 


1,718 


\ / 


\ / 


\ / 


HdlSBl 


35 


60,466 


1,680 


\l 


\J 


\ / 


Ponerens 


71 


85,939 


1,210 


\ 


y 


y 


Pins 


47 


87,254 


1,855 


l\ 


A 


/\ 


Aguils 


78 


122,524 


1,571 


1 \ 


/ \ 


/ \ 


Haxristawn 


46 


55,826 


1,235 


/ \ 


/ \ 


/ 


tlackberry 


13 


28,312 


2,173 


/ \ 


/ \ 


/ \ 


Litilefiald 


14 


17,150 


1,225 


/ \ 


/ \ 




Pinsdale 


21 


23,003 


1,095 


/ \ 


/ \ 


1 


San Fernando 


30 


39,051 


1,302 


/ \ 


/ \ 


1 


Coirbs 


100 


104,739 


1,047 


/ \ 


/ \ 


1 


Lacl-.iel 


12 


10,250 


854 


/ \ 


/ \ 




Uerzden 


89 


103,992 


1,225 


/ \ 


/ \ 


1 


on-JC:f Averages 


875 


1,185,421 


1,354 








Vl DISTRICTS 














,J1. 300-999) 














fc. Tr.c-as 


320 


201,507 


630 


109,227 


310,734 


971 


::o:'iave Valley 


323 


373,650 


1,168 


8,000 


381,650 


1,193 


Puercii 


5iS 


415,303 


762 


11,313 


425,615 


783 


P.o-jr.d Valley 


713 


505,457 


710 


2,000 


508,467 


713 


Pugs 


oD3 


1,352,084 


1,671 


5,040 


1,357,124 


1,673 


■'.ice 


S74 


1,059,913 


1,213 


79,380 


1,139,293 


1,304 


I-.ciar. CasLs 


723 


754,990 


1,044 


122,886 


877,875 


1,214 


/ayer.ta 


904 


801,990 


887 


311,472 


1,113,467 


1,232 


..ssiaiaa 


isa 


.._526.Zc2 


22Z 


.2^2iG5fi._. 


e.ii.^s.zi.... 


i^2da_- 


--jo:; Averages 


5,SB3 


5,082,667 


1,033 


889,375 


6, 972, .0 4 3 


1,134 



1011 



y.ohswk Valley 

Ce^p Vexds 

Caiztor.woad-Oak CsesJc 

?.pa.chs Juncrtio-T 

Oracle 

CatsZica Foothills 

SncxflOf 

Bivsssids 

Kicksriiuxg 

Gilbert: 

Tftatcnar 




1012 



^ttac^-ent C Pace 1 



(F.Y. 1970-71) Sumn:ary of Attachments A and 



DISTRICT 


lotil Adn. 
All S-udents 


Opar. Budget 
Receipts 
w/o JOM 


Per Pupil 
Receipts 
w/o JOM 


JOM 
Receipt; 


Oper. Budget 
Receipts 
w/ JOM 


Per Pupi 
Receipt 
w/ jon 


Elemantarv 
ADM 0-150 

JOM Districts 
fiOfl-JOM Districts 


184 
875 


404,748 
1,185,421 


2,200 
1 ,354 


94,841 
-0- 


499,729 
1,186,421 


2.716 
1,354 


Elementary 
mi 300-999 

JOM Districts 
rJON-JOM Districts 


5,888 
7,575 


6,082,657 
6,217,432 


1,033 
810 


889,376 
-0- 


6,972,043 
6,217.432 


1.184 
810 


Elem.entary 

ADM 1,000-2,000 

JOM Districts 
r;0N-J0M Districts 


9.543 
21,951 


8,409,892 
14,775,614 


872 
673 


1,823,945 

-0- 


10,233,838 
14.775,614 


1.061 
673 


Elementary 

ACM 10,000-20,000 

ilON-JOM Districts 


14,828 
82,908 


9,707,616 
55.. 708, 804 


655 
672 


5,000 
-0- 


9.7't2,616 
55,70^,804 


655 
672 

















lOl.S 



Attachment C Page 2 



AKIZO'IA PUBLIC iCriOOLS (High Schools) 
(F.Y. 1970-71) Summary of Attachments A & 



DISTRICT 


Total Adm. 
All Students 


Oper. Budget 

Receipts 
w/o JOM 


Per Pupil 
Receipts 
w/o JOM 


JOM 
Receipts 


Oper. Budget 
Receipts 
w/ JOM 


Per Pupi' 
Receipt: 
w/ JOM 


Hi gh School s 
ADM 100-499 

Jtt'1 Districts 
MOiN-JOM Districts 


1,271 
1,389 


1,516,214 
1,473,977 


1,193 
1,061 


420,743 
-0- 


1,936,957 
1,473,977 


1,524 
1,061 


High Schools 
ADM 500 -9C" 

JOM Districts 
NON-JOM Districts 


1,358 
6.59? 


1,859,713 
6,046,600 


1,369 
917 


24,513 
-0- 


1,884,226 
6,046,600 


1,388 
917 


,,.4M schools 
ADM 1000-2000 

JOri Districts 
liul-JOM Districts 


3,055 
12,701 


3,258,892 
11,972,592 


1,06b 
943 


7,558 
-0- 


3,266,450 
11,972,592 


1,065 
943 


Hiqh Schools 
ADM Over 5,000 

JOM Districts 
liOM-JOM Districts 


6,541 
53,897 


5,881,201 
46,598,813 


899 
865 


9,500 
-0- 


5,890,701 
46,598,813 


901 
865 

















1014 



;j;r?o.vA 




F.y 


1970 - 2971 


yrc- f;^-rnrs 




zr;-j 


icn-1'^9 ^n^! "ior 


C3.y?.3j?r5C.v OT 


jo:'. 


VS 


.VO.'i-ja-; DISTRICTS 





ratai 


Oper Bud 


Per Pupil 


J '0:1 


Oper Bud 


Per Pupil 




Aia 


Rscslpts 


Receipts 


Receipts 


Receipts 


Receipts 


DISTRICT 


All Sf^er.t 


il/o J'0:t 


'.1/0 j'o:i 




(7/ J'OM 


w/ a' on 


.-.::■! 100-499 














:o:i DISTPSCT5 














~ t . Tho-f^ 


111 


•> 110,949 


1,000 


S 65,962 


? 176,911 


1,534 


:iarlcopa 


137 


172/710 


1,261 


1,984 


174,694 


1,275 


T-jJa CxlTj 


43J 


443,033 


1,023 


85,315 


523,348 


1,243 


.-Ichsssy 


273 


356,376 


1,305 


161,480 


517,856 


1,897 


.Y3.i:i==-nt Vslls*/ 


317 


433,146 


1,365 


106,002 


539.148 


1,701 


ja-i Augs 


1,271. 


1,516,214 


1,193 


420,743 


1,936,957 


1,524 


:tai-Jon DXSxpjccTS 














Si. David 


ISl 


117,155 


894 








rs=bstons 


223 


284,907 


1,256 








Willisas 


261 


316,59 7 


1,213 








:-:=yd3n 


235 


253A2S 


1,078 








T^.stc±3r 


237 


228,041 


962 








:,i ckssibuurg 


300 


274,050 


914 








:;z:i-JOH Augs 


1,389 


\, 473,977 


1,061 








r-J3:i 500-939 














so:-! DISTTilCrS 














.-.p^chs Catinfj 


759 


1,016,681 


1,340 


16,000 


1,032,681 


1,351 


■.■. yiiira Caur.tg 


599 


843,032 


1,407 


8,513 


851,545 


1,422 


jC:; Augs 


1,353 


1,859,713 


1,369 


24,513 


1,884,225 


1,338 


::o:i-jon distpscts 














Sisbsa 


902 


893,345 


990 








Glabs 


873 


668,964 


766 








y.oser.cj. 


546 


460,333 


843 








3'^cy.sgs 


659 


723,359 


1,093 








DyssLrt 


721 


813,344 


1,129 








Sr.crjflake 


819 


715,307 


873 








.-.jo 


538 


480,317 


846 








Zoolidga 


595 


640,365 


921 








'.'ir.slov 


809 


650,750 


804 








:.-?.•/ jav Aags 


6,592 


5,045,500 


917 









1015 



-:j?rzc.V.: 




r.r. 1970 - 1971 


h:icH sa-:zz:s 




AD:i 1000-2000 and 


cc-?x?.-sc:'- OT 


JO:i 


vs no:i-Jo:-! districts 





Total 


Oper Bud 


Per Pupil 


j'o:i 


Oper Bud 


Per Pupil 






aeosipts 


Receipts 


P.P'Teipts 


Keceipts 


Receipts 


DISTRICT f-llSZudasts 


■I/O JOH 


W/O JOH 




w/ aoH 


»/ J0» 


AD:4 1000 - 2000 












JO:i DISTSXCTS 














Cass. Grands. 


1,341 


1,250,738 


933 


300 


1,251,038 


933 


Mohavs Vslley 


1,725 


2,003,154 


1,164 


7,258 


2,015,412 


1,168 


JCIi Aire- 


3,066 


3,258,892 


1,063 


7,558 


3,266,450 


1,065 


tion-jai DTSEiTCEsr 














Bueca 


1,292 


1,1P.J,695 


914 








Doaglss 


1.329 


1,241,180 


934 








f.qaa. Fjd.& 


1,039- 


1,048,060 


1,009 








Char.dJ.ST 


1,541 


1,530,856 


993 








ParsdJ.se V&llstf 


1,842 


1,875,914 


1,018 








Flowing Wells 


i,i5S- 


1,031,938 


893 








Stmayside 


1,862 


1,718,649 


923 








.'logales 


1,023 


336,455 


818 








Prescott 


1,618 

ii,ydl 


1,508,845 


933 
943 








//av-jcw nvas 


11, i 7 2, 59 2 




AD.V Ovsr 5,000 














JOn DISTRICT 














L'eSA 


6,541 


5,881,201 


899 


9,500 ■: 


■\ 5,890,701 


901 


UO^-JOS DISTPJCCTS 














Glendale 


10,935 


8,769,093 


802 








Scotitsdale 


9,163 


7,911,610 


863 








Yus-Jt 


6,497 


3,290,251 


506 








Phoenix 


27,297 
53,857 


25,627,859 


975 








!!0!f-JOff AVGS. 


46,i58,8l3 











1016 



Q ^ o r^ ^ -« 






^oc^o^r-a-^^co. 



rv CO CO o - 



■ O O^ CO -c < 






■B^f 



^ o o o I 



r^OOvDa*oovo<rcooooo oo-^vro«ncN.-<vomp--oi 






I O CM O OD O ^ I 



^ O n£> ^ I 



lOOOCT-omo^m ^ 



— * CNl O O ro 



, CO CO -^ o 



O O t^ -^ e 



o o r- o o o 

vj O r- o O O 



o n o O O O 1 



O "-H O CO CO 



O vJ --4 O CO 






E- H 

o < 



<o<rmom oo— <aDinmco.-"e><jmmr^or*. <rncNi^o*nr*-co--icoi-'-iocNcovDvDO 

pn\Opn.-4cn m>3■tDO-a■c^rsio^ooo<ro^n.-^ r*psico.-i— ta*OP*i^>or*sD— •coo^-^pm 

^^r»t'-<o»o \Dmr*<i"'-'or-mvomr-«— tvop^-o u-i^-ivDfnfnu^eNt*ioc»jf^*^)Ocot.'>n^ 

c^iTi-j-oco o<sinrsj-3-CT'oonoof^'-^<j'«Jo m^^^o^OlOcoo^^^o^oc^^-<^ao^o-^ 

.-ir-cou-t(M .mcr.comirir-*coootMcoCT*>3'in(sj cooovomofnorsj^^cr*ocom«j'.-<fn 

o^^-.r-^m<I• fscoCT*r^NOr-.-tr-ivDfMCOcO'J-J-cn c>sOOOor-»rsicoocooo^corMr^-^ 



o m r^ o^ o* 
rsi u-j <T n m 



a» -a- 00 o o o I 

o 'T) r^ — 4 .H o» I 



t ^ ^ <N -d- < 



nd o o ^^ ^ tn 



r-» o CO -3- < 



O* CM O n \0 ) 



. ^ u-i ^ CO 



o <r o o -3- 



l-^OC*c0OOr-cMO-^«*l< 



ir^^^mcooO'*'-*' 



< s 

n t-« 



»-i o c^ 00 o^ 00 



O -H O r-i I 

o^ <r en "-« I 



I o CO <T <r o ' 

I CO •— • CO r^ ^ ' 



^ m o ^ r* so CO t 
CO O 03 r- -3- o O ' 



( >3- a. fs ^ 



► to c 

I • O I 



PC O *J 

<U O S C E- 

-H -D o <a o 

C « -O -4 H 

U O 3 •-• t/3 



■ — ex 

-tH O O 



e c c 
I (J J= 



> "a o 
■ o >, c 



o = a -I J! 



c < 

o u 

• c a 

• lO 3 3 

• X • - 

•" (J J 
n. o ra f- 
E P 



<{-t.i-OZZ<EtJUZO.Z 



ZT-S 



ZT-e 



>, CO 

o C 

re ■" EC c D. c 

> ■-• oo -«u;-io 

0305— *o*J-^>sreocoo(^o c 
ci:&.&.Hc:>-t«-t3:)<:^E32;c>:z :>; 



p. •- 



1017 



.J ^ 

cu fcJ r- CO 



r«-co^«*o*Ocnoor*eoco»on» 



-4 (O p 
r^ CO CO < 



r«.r*ooo*o^»A<r'OoeMtoc>i 

.^c^ir^ococoo^O'^*'^ r* oi 
cMCicDO-*M»nr^c0kn-^-0 



SS 



a< z 



Ig 



I O O -tf *^ o o 



. .o o o -o o 



> in CM <n o -^ eo o^ 






72 



or^'^'Oi^oc**^*** 



*^ M c<4 <s en 






I «* O -T O •« 



_coo-»-»i„_, 



u < 
< o 






c o c 5 

O > « ?[. g_ j; "m 

p *J o ^ -• « C 

s -< M o b u a 

:^ S t-> <-> Z tn « 



o < 

tig 



< z 



cue. 

Q apaif) u3nox*4.l. 



a o 



1018 



2 C 0^ W I 



O O O* •—'•—< r^ I 



»-< •^ CO €o I 



CQ *-* 

■•ecu o*comoor^o %o 

HCb oocOu^cQcoootO rs. 



<r 00 *n p** m c 00 
O O <r in r^ <r r^ 
*» in o sD u-t 00 -^r 






E m ^ . 



O o 

^ OS 



^ -^ 60 2: «U 

<8 »*-< c a. w 

*^ O e ^ * O T» 

c O ^ -^ ^ ^ U) 

u o cs. e-lf-^u X 



1019 

ARIZONA JOHNSON-O'NIALLEY PLAN 



PURPO-SS: The purpose of this plan is to define an objective basis on 
which Johnson-O'Malley contract funds may be prograircned to eligible school 
districts participating under the program. This prograni of funds will be 
in accord with the contract signed by the Bureau of Indian Affairs and the 
Arizona State Board of Education. 

.VdTHORITY: The Act of June 4, 1936, popularly called the Johnson-O'Malley 
Act. The contract authority under which funds are provided states, has been 
delegated by the Secretary of the Interior to the Coirjnissioner of Indian 
Affairs and redelegated to the Area Director. 

POLICY: It is the intent of this plan to be in coinplete harmony with 
(1) State laws pertaining to the education of all children and (2) Secre- 
tarial policy pertaining to the Johnson-O'Malley Act program (Part 33, Title 
25, Code of Federal Regulations). .Ml coirjnizments under this plan are subjeci; 
to funds available to the Bureau of Indian Affairs for this purpose. It is 
intended further that the revisions to this plan be made in harnony with the 
principles expressed in the March S, 1968 letter of the Commissioner of 
Indian Affairs to Senator Paul Fannin of Arizona. 

The special program provisions of this plan are intended to foster the closest 
possible involvement of the Indian patrons and local tribal leaders in the 
development of school programs responsive to the needs of Indian children. 

NEED CRITERIA ON WHICH COKTR.ACT BUDGET IS BASED 



I. The Bureau will provide funds in a budget and will pay an 
amount equal to the full per capita cost of the school 
attended for those children who will_be boarded by, the 
Bureau for the purpose of attending public schools. 

It is mutually understood that these dormitory children, 
Eccom-Tiodated under an emergency program, are not counted 
presently for P. L. 874 purposes (U. S. Office of Education 
Bulletin 49, revised). 

1. Prior to the 20-year e.xpiration of the agreements made 
with local school districts, a joint study will be made 
as to the feasibility of incorporating the dorratized 
students within other provisions of the State Plan. 

II. The Bureau will pay a share of the cost of education of 
children of one-fourth or more degree Indian blood, residing 
on Indian reservation land. 



1020 

Eligible districts fall into two types: (1) Major Impact 
Districts, (2) Minor Ixpact Districts. A Major Impact 
District is one located on or principally on an Indian 
Reservation and/or hs-s 60% or more of its enrollment com- 
posed of Reservation Indian children. These districts are 
characterized by the lack of or a small minority of resident 
real property taxpayers who are electors. 

All other eligible districts are Minor Impact Districts and 
have local resident real property taxpayer control. 

Major Impact Districts - Funds otherwise justified and to the 
extent available will be provided on the basis of the total 
deficit need after receipts from all other sources of revenue 
to which the district is entitled including (but not exclusive 
of) balances forward, state and county apportionments, state 
financial assistance, equalization funds, P. L. 874 funds, 
and "funds raised from a local tax levy based on an average tax 
rate (prior year) in comparison with similar type districts in 
the state. 

For this purpose, the proposed budget submitted by the districts 
which anticipate Johnson-O'Malley Act funds that exceed the -orior 
year allotment plus funds for the percentage of increase in .A.DA 
nay be reviewed by a committee appointed by the State Board of 
Education prior to publication. This committee will consist of 
a representative of the Bureau of Indian Affairs, State Indian 
Education Division, and one or more m.embers of the staff of the- 
State Superintendent of Public Instruction. 

Minor Impact Districts - Funds will be provided on the basis of 
cost to the district for the education of the eligible Indian 
children after crediting all outside sources of revenue and in- 
cluding the tax revenue derived from the taxable assets located 
on the reservation portion of the school district. 

To compute the tax revenue, information supplied -by the State 
Office of Appraisals will be used. 

For this purpose, prior year per capita costs will be used. 

III. The Bureau will reimburse the counties for a proportionate share 
of Teacher Retirement payments, and County apportio.nment costs 
($17.50) v;hich are raised from local property taxes, provided the 
ADA. of eligible Indian children equals 3% or more of the total 
ADA of all public school children of the county. 

The eligible counties will be reimbursed an amount of funds paid 
to the Teacher Retirement Fund and County Aid apportionment costs 
in proportion to the ratio of reservation district pupils to all 
pupils in the public schools of the county less a credit for the 



1021 

taxes collected from the taxable assets on reservation lands. 
The ratio will be based on the ADA figures of the county. 

For this purpose, the amount of the taxes collected 
will be determined by the tax rate needed by the 
county to raise funds for Teacher Retirement and 
County Aid apportionment payments for all county 
children, multiplied by the com.bined taxable evalu- 
ations of the reservation districts, (prior year) . 
In computing this aid for counties with Minor Impact 
Districts, only the eligible Johnson-O'Malley ADA 
shall be used. 

In county situations whore there are sizeable taxable assets 
within the reservation school districts and the county still 
has a financial problem resulting from 'relative higher educa- 
tion costs, and a lower am.ount of assessed evaluation behind 
each child in school, only one-half of the taxes collected 
from taxable assets on reservation lands will be used as a 
credit. 

IV. The Bureau will provide funds in the budget for special services 
on a need basis for Indian pupils and for extraordinary needs re- 
lated to the education of eligible Indian children as are mutually 
determined by the State and Bureau personnel. 

1. UTien special services are provided in Minor Impact Districts, 
per capita costs on which Johnson-O'Malley payments are made 
will exclude these special service costs. 

2. For this purpose, special services will mean generally the 
cost of school lunches when neither the family nor the 
school district can meet or absorb the cost. It is recog- 
nized that the cost of providing special teachers, unusual 
transportation, or other school employees may be paid from 
this fund. 

3. Additional education programs that will upgrade the quality 
of education. 

V. The Bureau v.'ill provide funds for the normal administrative costs 
necessary to carry out this program and promote the_ orderly adjust- 
ment of Indian children to public schools when the funds are not 
available from other sources. The amount will be mutually deter- 
mined by the State Board of Education and the Bureau of Indian 
Affairs . 

VI. ifcere an approved amalgamation of a federal and public school is 

in operation, the Bureau of Indian Affairs vvill provide the budgeted 
share of the cost of operating the public school that is administra- 
tively determined by the State, school district involved, and Bureau 
reoresentatives . 



1022 

VII. Funds nay be proviJ-^H ^-^ meet other needs as may be mutually 
determined by the State and the Bureau of Indian Affairs. 

BUDGETS : The basis of the contract will be a budget submitted by the 
State, reflecting application of the preceding criteria. 

FURTHER PROVISIONS AND DEFINITIONS: 



1. Eligible District - A school district having Indian 
reservation lands and/or educating out-of-district 
eligible Indian children. As an exception due to 
temporary large impacts of migrant Indian children, a 
district is eligible to participate when 3% of the 
total ADA of the school district is composed of migrant 
children whose permanent residence is on an Arizona 
Indian reservation. 

2. Local Tax Effort - (a) To qualify. Major Impact Districts 
must levy an average tax rate in comparison with similar 
type school districts in the State as grouped for P. L. 874 
purposes, (b) Since there are so few districts in the 
category of elementary districts teaching high school 
subjects, to qualify this rate must equal or exceed that 

of the average for elementary districts in the State as 
grouped for P. L. 874 purposes. (The tax rate is the 
District tax rate as used on line 74 of the annual report 
of the State Superintendent of Public Instruction) . 

3. Eligible Indian Child - One-fourth or more degree Indian 
blood and whose parents reside on Arizona Indian Reservation 
lands. 

4. Residence - The residence of an Indian child is to be in- 
terpreted by districts in the same way that residence is 
generally interpreted for non-Indian children attending 

a public school under the same circumstances. 

5. Average Daily Attendr.nce - Is the actjial ADA. for the first 
six months of the current year in the computations involving 
funds for non-budget review districts. 

6. Indian Education Records - A participating school district 
must subm.it the follov^ring to the Indian Education Division of 
the State Department of Public Instruction. 

(a) An application to participate in the Johnson-O'Malley 
fund on an application form provided by the Division 
of Indian Education on or before the date designated 
on the form. 



1023 

(b) Enrollment card (in quadruplicate) of each eligible 
Indian child enrolled each year. Record of non-eligible 
Indian children not required. 

(c) Average Daily Attendance in keeping with Item 5. 

(d) Number of eligible Indian 8th grade and 12th grade 
graduates each year. 

(e) Report to the Division of Indian Education total 
enrollment of Indian students by grade and age in 
all Johnson-O'Malley participating schools, 
(kindergarten through grade 12) . 

(f) Report number of dropouts and transfers by grade 
and age, including reason for leaving school. 

(g) Total school enrollment including Indian and non- 
Indian students (last column of State Summary Report) . 

(h) A State Summary Report form will be supplied to the 
Johnson-O'Malley schools for reporting the enrollment 
data. 

7. Relating Children to Proper School Districts - The State 
Department of Education will make every effort to relate 
Indian children to proper school districts in keeping with 
.Arizona School Laws. 

8. Unused Funds - As funds provided the State are partially 
based on best available estimates, unused funds in application 
of this plan will be carried forward as a credit to the sub- 
sequent year's contract. 

9. Changes in this Agreement - This Plan may be altered or 
amended by mutual consent of signed parties. Changes in 
either State or Federal law pertaining to aids' ih'financing 
public education will be cause to alter this Plan. 






.'Arizona State Soard of Education Bureau of Indian Affairs 



/ 



October 6, IQSq 
(date) (date) 



1024 

NATIONAL INDIAN LEADERSHIP TRAINING 
Evaluation of Arizona State Plan 

Before Johnson O'Malley money can be contracted to a State, the Bureau 
of Indian Affairs requires that there be a State Plan which will spell out the 
conditions and limitations for use of the JOM Federal funds. The Arizona Plan 
seems to be v/ritten primarily to serve the financial needs of the school districts 
and not to the special needs of Indian students. 

On page 2, Section 4, Operational costs , the Arizona Plan says: "to enable school 
distxicts in higher cost areas to operate an 'adequate school program' in keeping 
with regulations of the Secretary of Interior, Johnson O'Malley will supplement 
all other appicahle funds for actual operational costs not to exceed a total oper- 
ation cost (including Capital Outlay) as follows: 

(a) Elementary Districts — State average per capita cost plus $215 

(b) High School Districts — State average per capita cost plus $315 

(c) Elementary Districts teaching high school subjects — State average 
per capita cost plus $240" 

It goes on to say that if the District is unable to operate an "adequate school" 
at this level of financial assistance, the District may submit a justification 
to the State for consideration of emergency Johnson O'Malley funds. 

NOTE: This is the only time that Federal Johnson O'Malley regulations are re- 
ferred to in the entire State Plan; and then the regulations are not quoted 
exactly; they are taken out of context. 

We are reproducing here, word for word, sections from the existing 
Code of Federal Regulations as they apply to Indian students in Public Schools. 
VJe are also including sections of additional Bu'-eau regulations from the Indian 
Affairs Manual, dated September 25, 1969, titled: "Revision of 62 lAM 3." 

CODE OF FEDERAL REGULATIONS : 

§ 33.4 — CONTRACTS WITH PUBLIC SCHOOLS 

(c) flhen school districts educating Indian children are eligible for Federal aid 
under Public Law 874, 81st Congress (64 Stat. 1100), as amended, supplemental 
aid under the Act of April 16, 1934, supra, will be limited to meeting educa- 
tional problems under extraordinary or exceptional circumstances . 
[22 F.R. 10533, Dec. 24, 1957, as amended at 23 F.R. 7106, Sept., 13, 1958} 



GENERAL REQUIREMENTS FOR CONTRACTS 



I 



(a) STATE PLAN . To become eligible to participate in contract funds a State shall 
formulate a plan for the distribution of contract funds to local school units, 
which shall be acceptable to the Commissioner of Indian Affairs or his autho- 
rized representative . 

(b) BUDGET ESTIMATES AND REPORTS . Each State having a contract covering education 
in accordance with this part shall submit such budgets, estimates , emd reports 
as may be required by the Commissioner of Indian Affairs or his authorized 
representative . 

(c) EQUAL EDUCATIONAL OPPORTUNITIES . Contracts shall specify that education for 
Indian children in public schools within the State shall be provided upon the 



1025 "^^^ ' 



same terms and under the same conditions tliat apply to all other citizens 
of the State. 

(d) UNIFORM APPLICATION OF STATE LAM . States entering into a contract under the 
provisions of this part shall agree that schools receiving Indian children, 
including those coming from Indian reservations, shall receive all aid from 
the State, and other proper sources other than this contract, which other 
similar schools of the State are entitled to receive. In no instance shall 
there be discrimination by the State or subdivision thereof against Indians 
or in the support of schools receiving such Indians, and such schools shall 
receive State and other non-Indian Bureau funds or aid to which schools 

are entitled. 

(e) EDUCATIONAL STANDARDS . The State shall provide in all schools that have 
Indian pupils adequate standards of educational service, such standards to 
be equal to those required by the State in respect to professional prepara- 
tion of teachers, school equipment and supplies , text and library books, 
and construction and sanitation of buildings . 

(f) FEDERAL COOPERATION AND INSPECTION . Schools in which Indian children are 
enrolled shall be open to visits of observation and consultation by duly 
accredited representatives of the Federal Government. 

(g) INSPECTION OF PROGRAMS . Each State having a contract covering education in 
accordance with this part shall make available to duly accredited employees 
of the Bureau of Indian Affairs such records and reports as may be necessary 
to enable them to conduct inspections of the school program related to the 
contracts . 

B.I. A. — INDIAN AFFAIRS MANUAL Release 62-27. "Revision of 62 lAM 3," September 25, 
1969. 

3.2 — NEGOTIATION AND EXECUTION OF CONTRACTS 

3.2.11 — Indian Participation in School Affairs . Eligible school distnczs 

shall, through local Indian representation, provide opportunity for 
Indian people to be consulted on matters pertaining to school curri- 
culum, special programs, and other matters related to the education 
of their children. 

3.2.12 — Budgets and Reports 

A. Budget Requests . A State qualifying for aid from the Bureau of Indian Affairs 
shall submit to the Area Director, a budget request and justification on or 
before March 15, each year for the second succeeding fiscal year. For 
example, the budget request for FY-1970 shall be submitted to the Area Director 
on or before March 15, 1968. Budget requests by school district shall be 
itemized to indicate cash on hand, income expected from the State, County, 
District, Federal Agencies, and the proposed expenditures broken down into 
the major categories used by the State. The amount requested from the Bureau 
of Indian Affairs shall be determined and justified under provisions of the 
approved State Plan. Each State Plan must provide, however, that any unused 
funds from the previous year shall be used as a credit to the ijudget request 
for the next fiscal year. 



1026 



Budget requests and justifications are to he submitted in duplicate by the 
States to Area Directors of the Bureau of Indian Affairs. One copy shall 
be transmitted by the Area Director to the Central Office, attention Divi- 
sion of Education. 

B. Annual Report . Follo^/ing the close of the local school year on or before 
October 15, the State shall furnish the Area Director a detailed report 
describing the accomplishments during the previous school year. The Annual 
Report shall consist of: 

1. Narrative Section . This shall include the accomplishments , difficulties 
encountered, and plans for next year plus other pertinent facts and 
details. 

2. School Enrollment Data . This shall include the following information 
for each school: 

a. Total enrollment and dropouts of Indian children by age and grade 
(kindergarten through grade 12) . 

b. Total school enrollment including Indian and non-Indian students 
(Last column of JOM Summary Report) 

c. Average daily attendance of Indian students . 

d. Reasons for dropouts. 

e. A sample JOM Summary Report form is attached (Illustration I) for 
reporting the above enrollment data. 

3. Financial Section . A summary of the expenditures made during the pre- 
ceding year shall be included in this section. Include amounts expended 
for instruction, special transportation, lunches, pre-school programs , 
special and remedial programs, and other special services . In addition 
the report should include (1) rate of local taxes, (2) expenditures for 
State administration and supervision, and (3) average rate of school 
taxes for all school districts in the State. 

4. Miscellaneous Section . The report may include other pertinent information 
such as Indian participation in school affairs, awards for accomplishments , 
results of special achievement and accomplishments of Indian students , and 
steps being taken to improve education of Indian children in public schools. 

Release 62-27, 9/25/69 



MJ/lrc 



1027 



QUEST lO.'iS CI STATE PL AM 



DOES Tllg PLAM PROVIDE THAT JOHNSO:: O'KALLEY CA.'I BE USED FOR BASIC SUPPOR T? 
If so, to what extent, and under what circumstances? 

JO':: funds may be used to provide basic support. This may he done due 
to wording of the state plan which, in meaning, is very similar to the 
Alaska State Plan, although so:r,e attempt is mcide to hide this fact with 
very flowery wording. This is tru in both Major and Minor Impact Dis- 
tricts as defined by the state plan. 



(2) IS THERE A PROVISION FOR PAREMTAl IflVOLVEi!ENT AMD CONTROL? 

"Indian Participation in School Affairs . Eligible school districts shall, 
through local Indian representation, provide opportunity for Indian people 
to be consulted on matters pertaining to school curriculum, special programs, 
and other matters related to the education of their children." (iMDIAfI 
AFFAIRS KAMUAL RELEASE 62-27, dated September 25, 1969) 

Wo specific provision is provided here. Under the heading of Policy , 
the plan states, "It is the intent of this plan to be in complete har- 
mony with .... (2) Secretarial policy pertaining to the JO'H Act pro- 
gram". This is probably an attempt to preclude any argument against 
the state plan based on the fact that the plan does not conform to 
Bureau Regulations, and should be regarded as such. 



C3) DOES THE PLAM raiTIO.N THE B.I.A. RESTRICTION OF JOM IN RELATION TO P.L. 87 4? 

"(c) liken school districts educating Indian children are eligible for Federal 
aid under Public Law 87'!, 81st Congress (64 Stat. 1100) , as amended, supple- 
mental aid under the act of April 16, 1934, supra, will be limited to nesting 
educational problems under extraordinary or exceptional circumstances." 
(CODE OF FEDERAL REGULATIONS, 22 F.R. 10533, Dsc. 24, 1957, as amsnded at 
23 F.R. 7106, Sept. 13, 1958) 

As in question '?) above, the answer would be ths*- xundc ^irom JO'H may 
be used to "fill in the gaps" in school budgi^ts rspard.less of 874 funds 
recei ved . , 



C 4 ) DOE_Sj '^ STATE REQUIRE PROOF OF UllD FOR PROGRAM PARTICIPATION. PAREflTAL 
CO'STS, ETC. ? 

The only n-?ed mentioned is the need of the districts. 



1028 



Q'JESTIOiNS, cont'd Page 2 

(5) DOES THE SiHfE HAVE RESTRICTIOMS OM ELIGI BlLin v^m ^r, IHAM THOSE rKtSCKlDED 
BY THE BUREAU ? IF SO, IS THE VARIATION BASED Oil STATE LAW? 

The state plan says that students mast be front families who live on 
Arizona Indian Reservations. 



(6) DOES THE STATE PLAN REQUIRE EVALUATIONS AND REPORTS? DOES IT REQUIRE PROGP.AM 
DESCRIPTIONS? 

"B. Annual Report . Following the close of the local school year on or befor<s 
October 15, the State shall furnish the Area Director a detailed report des- 
cribing the accomplishntents during the previous school year. The Annual 
Report shall consist of: 

1. narrative Section . This shall include the accomplishments , difficulties 
encountered, and plans for next year plus other pertinent facts and details. 

2. School JCnrollmsnt Data . This shall include the following information for 
each school: 

a. Total enrollment and dropouts of Indian children by age and grade 
(kindergarten through grade 12) . 

b. Total school enrollment including Indian and non-Indian students. 

c. Average daily attendance of Indian students. 

d. Reasons for dropouts. 

3. Financial section . A summary of the expenditures made during the preceding 
year shall be included in this section. Include amounts expended for 
instruction, special transportation lunches, preschool programs, special 
and remedial programs, and other special services . In addition, the 
report should include (1) rate of local taxes, (2) expenditures for 
State administration and supervision, and (3) average rate of school taxes 
for all school districts in the State. 

4. miscellaneous Section . The report may include other pertinent information 
such as Indian participation in school affairs, awards for accomplishxen'r : , 
results of special achievement and accomplishments of Indian students, and 
steps being taken to improve education of Indian children in public schools. 

(lAf'l Release 62-27. dated September 25, 1969) 

The state plan requires reporting of all the information above an in 
this area conforms to Bureau Regulations. 



(/ ) DO ES THE STATE PLAN CALL FOR CONTRACTS BETHEEM THE STATE AND THE DISTRICTS? 

No. The only contracts are those between the Bureau and the State cr 

its political subdivisions . 



1029 

QUESTIC^IS Cont'd Page 3 

(8) WH O SIGHS THE STATE PLAfl ? ANY IflDIAN EDUCATION COMMITTEES OR TRIBAL LEAOERS? 
KHE.'I Iv'AS IT LAST REV i' SED ? ~ 

The state plan is signed only by representatives of the Arizona State 
Board of Education and the D'jreau of Indian r-.ffairs. This plan went 
into effect July 1, 1969. 



{ 9 ) ARE THERE AMY SPECIAL CONDITIONS LAID OOMN FOR THE USE OF FU.'IDS ? 

In Minor Impact Districts some conditions are stated covering special 
services to Indian children, however, the wording again is unclear as to 
what is actually meant by thess conditions. No specific limitation is 
placed on the use of JO '11 funds. 



(10) IS THE JOM RELATIO^ISHIP TO TITLE I OR OTHER FEDERAL AID ON FUNDS SPELLED OUT? 
Wo. No mention is made here. 



(n) ARE THERE ANY PRIORITIES OR SPECIAL EMPHASIS MENTIONED FOR USE OF JOM? 



(12) V.'HAT PROVISIONS ARE HADE FOil UNUSED JO.'-i FUNDS? 

" Unused Funds — As funds provided the State are partially based on 
best available estimates, unused funds .... will be carried forward 
as a credit to the subsequent year's contract." (Further Provisions and 
Definitions, Paragraph 8, Arizona State Plan) 



1030 



QUESTIOMS Cont'd Page 4 

(13) DOES THE STATE PLAfI HAVE LAMGU A GE THAT V) Oi.O REQH IRE JOM FlIMDS TO BE USE 
EXCLUSIVELY f'UR IflOIAiN STUUEMTS"? 



-- NO. In fact, the language of the State Plan is so ambiguous and flowery 
it is difficult to determine what is actually meant by any of it. 



(14) DOES THE PLAN REQUIRE THAT A L L FUNDS B E US E D f OR PliOGRAf-iS TH AT ARE 
SUPPLEMENTARY, i.e., ABOVE STATE MlfJli'iUM ST/WDARDS? 



— WO. Funds may be used to supplant local school budgets. 



(15) DOES THE STATE PLAN PROVIDE THAT ALL SERVICES OF AN EDUCATIO NAL AGENCY 

RECItVIMG STATE. LOCAL OR FEDEPJ\L FUi'iPS SHAL L B E PROVIDED EQUA L lY FOR INDIAN 
STU:EflTS FROM THOSE FUNDS, AND NOT FROM J0HN:,0iN O'MALLEY? 



— No mention of this is made in the State Plan. 



COHMECITS : The general intent and provisions of this State Plan are very 

clcvarly disguised, by means of highly technical, ambiguous and othecwise 
misleading language, so as to make it appear to be a very sound and good 
Plan for the administration of JOM funds. It could and should be revised 
and re-written so as to save paper and more clearly spell out what is to 
be done. 



1031 

PROPOSED KEW MEXICO STATE PLAH FOR THE 
P D:-lIf!ISTRATIOU A.VD PROCRAJ-H-IIl^G OF 

jomiso^:-o 'malley fuuds 

PURPOSE : 

This plan is intended as a guide for the administration and 
programaing of Johnson-O' Malley contract funds received by the State of 
New Mexico through annual contracts with the government of the United 
States, Department of the Interior. Said funds are to be used to meet 
the spsdal and unique needs of eligible Indian children in the public 
schools of Hew Mexico. In no case are these funds to be used as general 
operational funds by the participating school districts or to meet mini- 
mum standards as prescribed by the State Board of Education. Neither 
shall Johnson-O 'Malley funds be used to supplant resources supplied from 
other local r state or federal sources. 

AUTHORITY : 

This plan is based on the authority and intent of the Johnson- 
O'Malley Ret (April 1934-C-147 §1 48th Stat. 5) and amendment thereto 
(June 1936-C-490 Stat. 1438). See Appendix A. 

POLICY : 

This program of federal aid (Jobnson-O' Malley funds) to certain 
school districts In tha State of >ev Moxico is based upon the following 
oolicy considerations: 



1032 

1. Operating criteria in Volur.e 6, Part 2, Chapter 3, Bureau of 
Indian Affairs Manual. See Appendix B. 

2. State laws and constitutional reguirenrsnts governing the oper- 
ation of schools and educational programs in the State of New Mexico. 

3. The philosophy that Indian children will receive all other benefits 
of local, state and federal resources for education that are afforded other 
children in the public schools of the state. Johnson-0 ' Malley funds are to 
be used to mee-t the special and unique needs of eligible Indian children. 
The special and unique needs will be as identified and agreed upon by Indian 
parents, tribal authorities and local state educational authorities. 

4. A program assessing the educational needs and expectations of Indians 
will be conducted and programs will be developed to meet the educational needs 
and expectations of Indians. 

The program needs and expectation assessment will be carried on with 
the cooperation, understanding and participation of Indian students , Indian 
parents and Indian leaders. 

SPECIFICATIONS ■• 

J. Method and extent of Johnson-O' Malley budgeting process . 

The funds provided under the annual Joknson-O' Malley contract for the 
State of Hew Mexico shall be based on financial neads of eligible students in 
each Johns on-O' Malic- J school district after all local, state and federal sources 



1033 

are considered bv the respactive school districts in justifying supplemental 
funds under the plan. 

Each participating school district shall be responsible for sub- 
rdtting a budget esti