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Show REPORT OF THE COMMISSIONER OF INDIAN BFFAIBg. 99 elty of 15 per cent; on a11 net emelter returns of ore over $150 per tan andleas than $XN per ton, a. royalty of 20 per cent; snd on all net molter returns of ore aver $300 per ton, a royalty of 25 per cent. Provided, That all lessees shall be required to pllg advaneed royalties, as provided in saidagreement, on all mines or cleimq whether developed or not, to be "s &it on royalty when eaoh said mine is developed and operated and its prodnosion is in excess of suoh guaranteed annual advanced psymonts," as follows, vie: One hundred dollars per annum in advance for the first and second years; $200 per annnm in advanoe for the third and fourth year#, mnd $500 in sdvsnoe for eaoh suceeeding year thereafter; and that, should any lessee neglect or refn6e to pay snob advanced royalty for the period of sixty days after the same becomes due and pap-ble on any lease, the lease on which default is made shall become null snd void, and a11 royalties paid in advance shall be forfeited and become the money and property of the Chootaw md Chickasaw nations. Previous to the promulgation of said regulations there had been flled in the Department by several partiea most interested in the matter s joint petition, dated September 9,1898, praying that the royalty on wal be reduced, and alleging that the royalty prescribed in the agreement (being the same as set out in above regulations) was unreaaouable and excessive and should be reduced for the best interests of the Indian nations affected as well as the petitioners; that it would not be prao-ticable to mine ma1 successfully in the Indian Territory if the royalty were not reduced to a reasonable basis; that royalties fixed by theagree-ment and tbe then existing leases were higher than paid elsewhere in this country, and greatly higher than were paid at the mines within the States of A&ausas, Kansas, Missouri, Texas, Colorado, and Alabama, the product of which wmes into competition with the Indian Territory coal in the marketsj and that the coal deposits in the Choctaw Nation are practically inexhaustible and caq be mined greatly to the benefit of the Indians if a reaaouable royalty be fixed. November 11 the petitioners were notified that the Department would give them a hearing on the 23d of that mouth, but at the request of the petitioners' counsel a postponement was had until December 12, 1898. The petitioners and the Ohootaw Natiou were represented by . counsel at this hearing, but it does not appear that the Chickasaw Nation waa represented in any way. After due consideration of the question the Department reached the oouclusiou tbat the royalty fixed in the regulations was so high as to be almost prohibitive and should be reduced. Consequently, in a letter of January 6, 1898, addressed to this office, the regulations were modified, reducing the royalty on coal to 10 cents per ton. I quote from the letter of the Department tbe last two paragraphs, as follows: The Secretary iis authorized by the said agreement, now a law of Congress, an hereinbefore pointed out, to advance or rednca roysllties on coal only "when he deems it for the best interests of the Choctaws and Chickasaws to do so." It wae evidently intended tbat royalties should be fired upon a revenue bsaia and not that they should he prohibitive. If, as appears from showing made, the royalty fixed by existing regnlations is practically prohibitive, the best interests of theaelndim require that it be reduced at once to a revenue basis. Such a basis will not be |