CONDITIONS ADVERSE TO GOOD ADMINISTRATION.

“The legal status of the Indian and his property is the condition which makes it incumbent on the government to assume the obligation of protector.  What is of special interest in this inquiry is to note the conditions under which the Indian Office has been required to conduct its business.  In no other relation are the agents of the government under conditions more adverse to efficient administration.  The influence which make for the infidelity to trusteeship, for subversion of properties and funds, for the violation of physical and moral welfare have been powerful.  The opportunities and inducements are much greater than those which have operated with ruinous effect on other branches of public service and on the trustees and officers of our great private corporations.  In many instances, the integrity of these have been broken down.”

GOVERNMENT MACHINERY INADEQUATE.

“* * * Behind the sham protection, which operated largely as a blind to publicity, have been at all times great wealth in the form of Indian funds to be subverted; valuable lands, mines, oil fields, and other natural resources to be despoiled or appropriated to the use of the trader; and large profits to be made by those dealing with trustees who were animated by motives of gain.  This has been the situation in which the Indian Service has been for more than a century—­the Indian during all this time having his rights and properties to greater or less extent neglected; the guardian, the government, in many instances, passive to conditions which have contributed to his undoing.”

OPPORTUNITIES STILL PRESENT.

“And still, due to the increasing value of his remaining estate, there is left an inducement to fraud, corruption, and institutional incompetence almost beyond the possibility of comprehension.  The properties and funds of the Indians today are estimated at not less than one thousand millions of dollars.  There is still a great obligation to be discharged, which must run through many years.  The government itself owes many millions of dollars for Indian moneys which it has converted to its own use, and it is of interest to note that it does not know and the officers do not know what is the present condition of the Indian funds in their keeping.”

PRIMARY DEFECTS.

“* * * The story of the mismanagement of Indian Affairs is only a chapter in the history of the mismanagement of corporate trusts.  The Indian has been the victim of the same kind of neglect, the same abortive processes, the same malpractices as have the life insurance policyholders, the bank depositor, the industrial and transportation shareholder.  The form of organization of the trusteeship has been one which does not provide for independent audit and supervision.  The institutional methods and practices have been such that they do not provide either a fact basis for official judgment or publicity of facts which, if made available, would supply evidence of infidelity.  In the operation of this machinery, there has not been the means provided for effective official scrutiny and the public conscience could not be reached.”