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TO THE SECRETARY OF THE INTERIOR: THIS WILL ACKNOWLEDGE RECEIPT OF THE LETTER OF OCTOBER 10. WHICH HELD THAT DEDUCTIONS ARE REQUIRED TO BE MADE UNDER THE ACT OF FEBRUARY 14. THE ABOVE DECISION WAS RECONSIDERED AND ADHERED TO IN OUR LETTER OF JUNE 14. HE REFERS TO THE DEPARTMENT'S PREVIOUS CORRESPONDENCE INDICATING THAT FOR SUCH PERIOD THE NAVAJO TRIBE HAD NO REASON TO BELIEVE THAT ABOVE-CITED REGULATIONS WOULD BE CONSIDERED APPLICABLE BUT THAT THE TRIBE WAS INFORMED THAT THE REGULATIONS WOULD BE APPLICABLE EFFECTIVE AS OF JULY 1. HE REPORTS THAT INSTRUCTIONS ARE BEING ISSUED THAT FOR THE PERIOD BEGINNING JULY 1. DEDUCTIONS FROM THE VALUE OF STUMPAGE USED BY THE NAVAJO TRIBAL SAWMILL ARE TO BE DEPOSITED AS MISCELLANEOUS RECEIPTS.

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B-119574, OCT. 23, 1956

TO THE SECRETARY OF THE INTERIOR:

THIS WILL ACKNOWLEDGE RECEIPT OF THE LETTER OF OCTOBER 10, 1956, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY OF THE INTERIOR WITH FURTHER REFERENCE TO OUR DECISION OF NOVEMBER 3, 1954, B-119574, WHICH HELD THAT DEDUCTIONS ARE REQUIRED TO BE MADE UNDER THE ACT OF FEBRUARY 14, 1920, 41 STAT. 415, AS AMENDED BY THE ACT OF MARCH 1, 1933, 47 STAT. 1417 (25 U.S.C. 413), AND APPLICABLE REGULATIONS THEREUNDER, FOR ADMINISTRATIVE SERVICES RENDERED INCIDENT TO CERTAIN TIMBER SALES TO THE NAVAJO TRIBAL SAWMILL. THE ABOVE DECISION WAS RECONSIDERED AND ADHERED TO IN OUR LETTER OF JUNE 14, 1955.

MR. BEASLEY STATES THAT FOLLOWING A CAREFUL SEARCH OF THE RECORDS AT THE NAVAJO AGENCY, HE HAS BEEN INFORMED THAT FOR THE PERIOD FROM NOVEMBER 1, 1948, TO JUNE 30, 1955, STUMPAGE PAYMENTS BY THE TRIBAL SAWMILL ENTERPRISE AGGREGATED $838,496.31 AND THAT ON THE BASIS OF THE 10 PERCENT CHARGE FIXED BY THE STATUTORY REGULATIONS (25 C.F.R. 61.25), THE AMOUNT OF DEDUCTIONS FOR COLLECTION FOR THE PERIOD WOULD AGGREGATE $83,849.63. REGARDING THE PERIOD PRIOR TO JULY 1, 1954, HE REFERS TO THE DEPARTMENT'S PREVIOUS CORRESPONDENCE INDICATING THAT FOR SUCH PERIOD THE NAVAJO TRIBE HAD NO REASON TO BELIEVE THAT ABOVE-CITED REGULATIONS WOULD BE CONSIDERED APPLICABLE BUT THAT THE TRIBE WAS INFORMED THAT THE REGULATIONS WOULD BE APPLICABLE EFFECTIVE AS OF JULY 1, 1954.

IN THE LIGHT OF THE FOREGOING, HE REPORTS THAT INSTRUCTIONS ARE BEING ISSUED THAT FOR THE PERIOD BEGINNING JULY 1, 1954, DEDUCTIONS FROM THE VALUE OF STUMPAGE USED BY THE NAVAJO TRIBAL SAWMILL ARE TO BE DEPOSITED AS MISCELLANEOUS RECEIPTS. ALSO, HE STATES THAT INSTRUCTIONS ARE BEING ISSUED TO THE EFFECT THAT THE AREA DIRECTOR IS TO TAKE UP, AS ACCOUNTS RECEIVABLE FROM THE TRIBE, AN AMOUNT EQUAL TO 10 PERCENT OF THE VALUE OF STUMPAGE USED DURING THE PERIOD NOVEMBER 1, 1948, TO JUNE 30, 1954, INCLUSIVE. HE REPORTS, HOWEVER, FOR THE REASONS INDICATED ABOVE AND AS SET FORTH IN THE PRIOR CORRESPONDENCE, IT IS FELT THAT THE TRIBE SHOULD NOT BE REQUIRED TO PAY THIS ACCOUNT RECEIVABLE AND THAT PURSUANT TO THE AUTHORITY CONTAINED IN THE ACT OF JULY 1, 1932, 47 STAT. 564, 25 U.S.C. 386 (A), YOU PROPOSE TO RECOMMEND TO THE CONGRESS CANCELLATION OF THE CHARGE FOR THE PERIOD NOVEMBER 1, 1948, TO JUNE 30, 1954, INCLUSIVE.

WE WISH TO TAKE THIS OPPORTUNITY TO THANK YOU FOR THE ADVICE AS TO THE ACTION TAKEN AND PROPOSED TO BE TAKEN IN THIS REGARD AND REQUEST THAT WE BE INFORMED WHEN THE MATTER IS REPORTED TO THE CONGRESS, AND OF THE CONGRESSIONAL ACTION TAKEN THEREON.

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