Agent Wilbur has regarded himself as placed in a responsible position, for the accomplishment of certain ends, viz the civilization of the Indians under his charge To accomplish these ends certain funds in money and goods are placed in his hands, and the manner in which these funds shall be disb- ursed, is prescribed by certain laws, rules and reg- ulations. These are unvarying, though the conditions they are intended to govern, vary materially, during This the certain stages of development. Admirably calcu- Inspector lated for the government of Indians just located says is true on a reservation, they are totally inadequate for them when they reach a state of semi civilization This you have admitted when you say that there is no Indian Agent who can possibly carry on his reservation in strict conformity to the law, rules and regulations of the Service So far there- fore as can be done without positive infraction of those rules, Agent Wilbur has found himself com- pelled to modify his treatment of the matter and conform his administration to the varying necessities of the condition of the people, as they have step by step risen towards the desired end, and the result is before you It would seem to me that the real question is. Has the desired end been reached in substantial compliance with the law and instructions of the Department? You complain that certain Indians have been favored at the expense of others, in that goods and supplies, the property of all have been given to those who have rendered service for the Dep- artment, and the goods used to carry on the work of the Agency (by Indians) and build up a flourishing Agency at the expense of those who do not desire to labor for supplies Now the Agent had no hand in making the law which directs that no goods shall be issued to able bodied Indians, except in payment for labor performed under such rules and regulations as the Agent may prescribe and the latest instruction from the Department, direct that Wagons (a part of annuity goods) be sold to Indians who wish, and payment made in transportation for the Department Now every one knows that a wagon is of far more value than any one Indian is in strict justice enti- tled to, so that the inequality in distribution is absolutely directed by the Dept. With reg- ard to the point that Agency work: transpor- tation, shop work, labor on Indian houses plowing amp; sowing are paid by the issue of Annuities I remark that Indians are emp- loyed in all departments about the Agency where they are competent to perform the work, and paid first from funds appropriated by the Government as far as such funds may be available Second from Miscellaneous funds if in hand, and third and by far the written sideways in the margin in pencil already entitled under treaty greater portion, directly or indirectly from Annuity goods. There is hardly a department of labor on the Agency, which so far as Indian labor is concerned, is not largely carried on from issues of Annuities. No return is made to the Department of this labor, nor am I aware that any is required, except in Anual Reports, or monthly reports when the sum of labor performed in this way is usually stated. The regulations require that Indians shall be Employed to fill all positions when competent, and to fill such positions they must learn the duties required of them, and if no funds are pro- vided for their payment, it is difficult to see where a reasonable proportion of Annuity funds could be more profitably employed. than in payment. If an Indian is disposed to be industrious to learn, to become self reliant, Agent Wilbur has made it a special point to encourage and assist him, he is employed in the Dept Shops, on the farm, in hauling Dept goods, and such other work as may be required, and compensated with such goods as may be on hand, and he may desire, but while duly caring for the sick the aged and needy, the idle, and improvident, who will do nothing but hunt, fish, and sleep, who prostitute their wives to worthless whites and gamble all night with the proceeds, receive no encouragement, and unless actually needy are not likely to receive any goods. The results of his management you have seen in part. You have yourself have been mentioned several who you believed were The Inspector better qualified to exercise the rights and duties desired this of citizens, than the majority of whites who, slightly changed like them, are unable to read or write, and if your time will permit, you will see many equally well qualified, equally industrious, intelligent, and worthy. Do you believe these results would have been equally satisfactory, had a different policy prevailed, and goods been distributed pro-rata? But perhaps a sufficient answer on this point may be found in the fact that the treaty provides for the payment since 1875 of only 4000 per annum to the tribes, parties thereto. This is all they could claim under any cir- cumstances for pro-rata distribution. I think the records where accessible will show that Agent Wilbur has in fact distributed this amount to the old, needy and sick in about the proper proportion to the numbers in each. All over 4000 has been goods placed tribe in the Agents hands for the civilization of the Indians, and I am not aware that there is any special limit to the discretion of the Agent in their distribution, other than found in the law referred to at the Com- mencement mencement of this Statement. Another, and last point needing explanation is the reception of money from Indians for goods and supplies purchased by the Department for them As this was a point on which Agt Wilbur desired to receive the Special instruc- tions of his Official head Secretary Shurz, it has probably been brought to the attention of the Department before this time. A few words on the point however may be proper. Your own experience at Rosebud Agency as related to me, has taught you how powerful a motive to effort and industry is prompt payment for labor in money. Particularly so is this the case with the Indians. When Indians have been employed by Agent Wilbur, they have received payment promptly in cash, if on the arrival of goods and supplies, they desired to return the money, and receive the amount in supplies, could the Agent refuse if he was entitled to participate in the goods? This the Indian same money has been again used in payment for labor, perhaps two or three times and this enabled the Agent to accomplish an amount of work, disproportioned to the cash actually placed in his hands for disbursement. While admitting that such a system would give a dishonest Agent opportunity for fraud against the Indians, Agent Wilbur has seen no practicable way of avoiding it, and accomplish the results at which he aimed. No system of checks has yet been devised by which a man predisposed to dishonesty, could be restrain- ed from crime, if entrusted with the Disburse- ment of money, and while none will be nore ready to admit its apparent irregular- ity than Agent Wilbur, he has been unable to find any regulation or law positively prohibiting it. This particular point has been brought to the Special attention of the Authorities in Washington, and by their decision he is ready to abide Very Respectfully Your Obedient Servant JH Fairchild Clerk PS: It is now 5.AM and I have not time to write a copy of this, so I send it as it is. In the statement submitted to the Inspector those parts where he is personally mentioned were slightly changed, but this is substantially the same, and I think a fair statement and as strong against yourself as the facts will warrant. Fairchilds statement to Pollock