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Show strong indications that oonsiderahle timher was 6red to bring it nomi-nally under the head of "dead1' timher. This was another loss to the Indians. (See Senate Doc. No. 70, By-fifth Congress, third session, pp. 84 and 101.) All these and other minor influences wrought together .to produce the general feeling of oppression and distrust and exasperation which found expression when the arrests were undertaken by the aid of military force. NEGOTIATIONS FOR PIPESTONE EESERVATION, MWN. Under the head of 6' Indian school sites " reference was made in my last annual report to the provision contained in the Indian appropriation act approved June 7,1897 (30 Stats., p. 87)) directing the Secretary of the Interior to negotiate, through an Indian inspector, with the Yankton tribe of Indians, in Sonth Dakota, "for the purchase of a parcel of land near Pipestone, Minn., on which is now locatcd an Indian indudtrial school," and it was stated that the duty of conducting the negotiations bad been assigned to Inspector James McLaughlin under instructions of April 25, 1898. This traot contains the red pipestone quarries famous in Indian legend and history and not unknown to our own literature. During the latter part of April last the inspector arrived at the Yankton Agency, and on the 27th of that month met the Indiins in council. Further councils were held from day to day until May 2, when they finally adjourned without having reached an agreement. In his report of May 3, which was forwarded to this office by the Department May 10,1899, accompanied by full minutes of the council proceedings, Mr. McLanghlin says that some of the Indians at first set s valuation of $3,000,000 on the reservation, whioh embraces 684.4 acres, or a little more than oue section; but subsequently they reduced it to $1,000,000. At the last council, however, they offered to accept $100,000, with the condition that they he still permitted to goupon the reservation for the purpose of obtaining pipestone from its quarries. On the other hand, the inspeotor, who had first offered them $100 per acre, or $64,840, made them a final offer of $75,000 for the tract, which the Indians refused. As $75,000 was a very liberal offer, the inspector left the agency May 4, believiug that a postponement of negotiations would cause the Indians to regret their refusal of his offer and to be more ready to accept it when negotiations should he resumed in the future. The offioe is informally advised that in accordance with a recent request of the Indians, addressed to the Department, Inspector McLaughlin was instructed August 1 to return to the Yankton Agency for the purpose of resuming negotiations. Now that the Government has a valuable school plant upon that reservation, upon which it is ahout to expend over $30,000 for additional |