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known as friar land bonds, shall not exceed at any one time 10 per centum of the aggregate tax valuation of its property, nor that of the city of Manila 10 per centum of the aggregate tax valuation of its property, nor that of any Province or municipality, a sum in excess of 7 per centum of the aggregate tax valuation of its property at any one time. In computing the indebtedness of the Philippine Government, bonds not to exceed $10,000,000 in amount, issued by that Government, secured by an equivalent amount of bonds issued by the Provinces or municipalities thereof, shall not be counted."

While Act No. 3255 of the Philippine Legislature, supra, authorizes the issue of bonds in the amount of three million dollars for the purposes indicated in said Act, you state that but $1,500,000 of such bonds are to be presently issued; that they are to be issued in coupon form of the denomination of $1,000 each, bearing interest at the rate of 41⁄2 per cent per annum, payable semiannually, to be dated October 1, 1929, and to mature on October 1, 1959.

You also state that the assessed valuation of taxable real property of the Philippine Islands on December 31, 1928, was $860,514,528.50; that the present bonded indebtedness of the Philippine Government, exclusive of collateral bonds aggregating $6,986,500 which are secured by an equivalent amount of bonds issued by its provinces and municipalities, and of friar lands purchase bonds aggregating $5,117,000, is $63,323,000 and that on February 28, 1929, there had accumulated in the various sinking funds for the payment of said bonded indebtedness the aggregate sum of $10,426,033.16. It is therefore apparent that the proposed bonds when issued, together with the bonded indebtedness heretofore incurred, will not exceed the amount authorized by Congress.

The recital in the form of bond submitted with your letter with respect to tax exemption follows the language of section 1 of the Act of Congress approved February 6, 1905 (c. 453, 33 Stat. 689).

I find that all of the statutory requirements regarding the issue of the bonds by the Philippine Government for the purposes stated have been complied with and that the

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form of bond submitted with your letter is in substantial compliance with the law authorizing the issue. It is my opinion, therefore, that when issued in the form and amount proposed said bonds will have been legally issued and will be valid and binding obligations of the Government of the Philippine Islands.

Respectfully,

To the SECRETARY OF WAR.

WILLIAM D. MITCHELL.

TRUST OF RESTRICTED INDIAN FUNDS

A trust of restricted Indian funds can not be created by agreement of the Indian and a trust company with the approval of the Secretary of the Interior.

The Secretary, however, has the power to remove restrictions from certain Indian funds and, where the restrictions are removed from any such fund and the fund is released to the Indian, the Indian may use the fund as he sees fit, and if he desires to create a private trust of it by agreement with a trust company, there is no legal objection to his doing so.

DEPARTMENT OF JUSTICE,

October 5, 1929.

SIR: I have the honor to comply with your request of August 17, 1929, for my opinion as to whether a trust of restricted Indian funds may be created by agreement of the Indian and a trust company with the approval of the Secretary of Interior. By "restricted Indan funds" is meant moneys coming into the control of the Secretary of the Interior from the proceeds, including income, from lands allotted in severalty to the Indians, as well as certain funds created by individual distributions to the Indians, upon which funds and with reference to which Indians Congress has defined and fixed certain limitations of power. I understand that your question refers, and I have considered, funds of the Quapaws, Five Civilized Tribes, and the Osages, only. The Secretary of the Interior has only such power over Indian property as Congress has, necessarily or by implication, confided in him. Congress has, however, for many years placed supervision over Indian affairs in the Secretary of the Interior, as indicated in the Act of March 3, 1849,

(9 Stat. 395) and sections 441 and 463 of the Revised Statutes of 1878. Under the early statutes, various restrictions were placed upon Indian properties, and certain time-limitations fixed, within which such restrictions might not be removed. (For example, see 24 Stat. 388.) Under these statutes, the Secretary of the Interior was not empowered to consent to the release of the restrictions thus imposed. Later, however, Congress passed statutes which to some extent permitted the removal of certain restrictions, subject to the approval of the Secretary of the Interior. Among such statutes may be noted 32 Stat. 275, 34 Stat. 1018, 37 Stat. 678.

Congress provided that the Secretary of the Interior might in his discretion issue patents in fee simple to Indians found competent to manage their own affairs. (See 34 Stat. 182, 35 Stat. 444, 36 Stat. 855.) Moreover, Congress has in a number of statutes contemplated the power of Indians to lease properties allotted to or inherited by them under such rules and regulations as the Secretary of the Interior might prescribe. (28 Stat. 305.)

In 34 Stat. 1018, Congress directs that the proceeds derived from the sale of allotted or inherited lands shall be used for the benefit of the allottee or heir so disposing of the same, and in 36 Stat. 857 (sec. 4) Congress directs that the proceeds from leases shall be paid to the allottee or his heirs, or expended for his or their benefit in the discretion of the Secretary of the Interior. Section 1 of the Act provides, in effect, that the proceeds from the sale of inherited lands shall be paid to competent heirs and held in trust during the trust period for incompetent Indians.

Similar provisions prevail with respect to per capita distributions which Congress has authorized to be made out of tribal funds. Competent Indians receive such payments without restrictions, whereas the shares of other Indians are held subject to expenditure under the rules and regulations of the Secretary of the Interior. (See 34 Stat. 1221.) From time to time Congress has indicated how the Secretary might invest certain of the funds of Indians thus committed to the supervision of the Department of the Interior. (See 40 Stat. 591, 41 Stat. 1249, 43 Stat. 1008.)

On the other hand, the 70th Congress, after extensive hearings failed to enact a measure expressly authorizing Indians (subject to certain limitations and conditions) to create trusts by agreements between the Indians and trust companies with the approval of the Secretary of the Interior. From the foregoing it appears that while it has been the purpose of Congress to place the supervising control over Indian funds in the Secretary of the Interior, his control is not unlimited, but is based upon directions contained in the various statutes of Congress. I find no provision or implication in any statute to the effect that the Secretary of the Interior may delegate control of these Indian funds, while held under restrictions, to outside agencies.

I regard the control and supervision over Indian funds so committed to the Secretary of the Interior and the Department of the Interior as an imposition of a specific duty by Congress, and am of the opinion that it can not lawfully be transferred by the Secretary of the Interior to agencies outside of his Department. The suggested creation of a trust, in which the custody and control of the trust funds would be in a private trustee, would be an abdication on the part of the Secretary of the control of restricted Indian funds with which Congress has vested him. I believe that this would be improper in the absence of specific congressional authority to that end, and I do not find that such authority has been given by Congress by existing statutes. I have the honor to advise you, therefore, that your specific question must be answered in the negative. The Secretary, however, has the strictions from certain Indian funds. such restriction from any fund and the release of the fund to the Indian, the Indian may use the fund as he sees fit, and if he desires to create a private trust of it by agreement with a trust company, I know of no legal objection to his doing so.

Respectfully.

power to remove. reUpon the removal of

WILLIAM D. MITCHELL,

To the SECRETARY OF THE INTERIOR.

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COMPENSATION FOR INJURY TO VETERAN OF SPANISHAMERICAN WAR RESULTING FROM HOSPITALIZATION

An honorably discharged veteran of the Spanish-American War, who was admitted to a Veterans' Bureau hospital and who in the course of his treatment sustained a fracture of the right femur, is entitled to the compensation provided by section 213 of the World War Veterans' Act, 1924, as amended.

Military service during the period of the World War is not essential in the case of one otherwise entitled to the compensation provided

by section 213 of the World War Veterans' Act, 1924, as amended.

DEPARTMENT OF JUSTICE,

October 5, 1929.

SIR: I have the honor to refer to your letter of August 31, 1929, requesting my opinion upon the question hereinafter indicated.

It appears that Martin J. Tunney, an honorably discharged veteran of the Spanish-American War, was admitted to a Veterans' Bureau Hospital on April 10, 1928, and in the course of his treatment sustained a fracture of the right femur. In consequence thereof he is entitled to compensation from the United States unless the statute is to be construed as authorizing compensation under such circumstances only to veterans who have seen service in the World War.

The applicable statutory provisions are to be found in sections 202 (par. 10) and 213 of the World War Veterans' Act, 1924, as amended (June 7, 1924, c. 320, 43 Stat. 607, 620, 623; March 4, 1925, c. 553, 43 Stat. 1302, 1307, 1308; July 2. 1926, c. 723, 44 Stat. 790, 796; U. S. C. Title 38, secs. 484, 501).

Under section 202 (par. 10) the Director is authorized "to furnish hospitalization and necessary traveling expenses incident to hospitalization to veterans of any war, military occupation, or military expedition without regard

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to the nature or origin of their disabilities."

Section 213 provides that, "where any beneficiary suffers or has suffered an injury," as the result of such hospitalization," and such injury or aggravation of an existing injury results in additional disability to or the death of such beneficiary, the benefits of this title ["Title II-Compensation and Treatment "] shall be awarded in the same manner as

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