SAN CARLOS RESERVATION.
This reservation was established by Executive order on the 14th of December, 1872. Its boundary has not been surveyed. It is ascertained, however, that on the southern part of the reservation there are extensive deposits of coal. Fuel is scarce in the Territory of Arizona, in which this reservation lies, and hence the coal deposit is supposed to be very valuable. Parties have sought to contract with the Indians for the privilege of mining the coal, and during the last summer a contract of this kind was submitted to the department for approval. The contract was disapproved, as neither the Indians nor the department had lawful authority to make or approve such contract. I consider this matter of sufficient importance to call it to your special attention. The reservation is a large one, and might perhaps be so lessened without injury to the Indians as to exclude the deposits of coal, or, if this cannot be done, it may be enlarged to a corresponding extent elsewhere, and the coal bearing portion withdrawn from the reservation. The coal is and will be needed for the proper development of Arizona, but in providing for the sale of the land care should be taken that the coal is not monopolized by a single or a few parties to the injury of the Territory.
THE SIOUX AND THE PONCAS IN DAKOTA.
I refer with great pleasure to that portion of the report of the Commissioner of Indian Affairs in which is set forth a copy of an agreement signed by the principal chiefs of nearly all the different bands of Sioux, at a council held in this city in August last for the benefit of the Poncas in Dakota. The conduct of the Sioux chiefs who signed the agreement was manly and generous, and deserves, I think, high commendation. Should the agreement receive the necessary number of signatures of adult male Sioux, it will be submitted for the consideration of Congress.
DEFICIENCIES.
I consider it very important that the attention of Congress be specially called to the following extracts from the report of the Commissioner of Indian Affairs:
DEFICIENCY APPROPRIATIONS.