171. Morton v. Mancari, June 17, 1974
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270 Indians having a form of organization that is satisfactory to the Secretary [of the Interior] and for loans to individual Indians who are not members of or eligible for membership in an organization which is making loans to its members: Provided, That, where the Secretary determines a rejection of a loan application from a member of an organization making loans to its membership from moneys borrowed from the fund is unwarranted, he may, in his discretion, make a direct loan to such individual from the fund. The fund shall also be available for administrative expenses incurred in connection therewith. Sec. 102. Loans may be made for any purpose which will promote the economic development of (a) the individual Indian borrower, including loans for educational purposes, and (b) the Indian organization and its members including loans by such organizations to other organizations and investments in other organizations regardless of whether they are organizations of Indians: Provided, That not more than 50 per centum of loan made to an organization shall be used by such organization for the purpose of making loans to or investments in non-Indian organizations. Sec. 103. Loans may be made only when, in the judgment of the Secretary, there is a reasonable prospect of repayment, and only to applicants who in the opinion of the Secretary are unable to obtain financing from other sources on reasonable terms and conditions. . . . TITLE IV—INDIAN BUSINESS GRANTS Sec. 401. There is established within the Department of the Interior the Indian Business Development Program whose purpose is to stimulate and increase Indian entrepreneurship and employment by providing equity capital through nonreimbursable grants made by the Secretary of the Interior to Indians and Indian tribes to establish and expand profit-making Indian-owned economic enterprises on or near reservations. Sec. 402. (a) No grant in excess of $50,000, or such lower amount as the Secretary may determine to be appropriate, may be made to an Indian or Indian tribe. (b) A grant may be made only to an applicant who, in the opinion of the Secretary, is unable to obtain adequate financing for its economic enterprise from other sources: Provided, That prior to making any grant under this title, the Secretary shall assure that, where practical, the applicant has reasonably made available for the economic enterprise funds from the applicant’s own financial resources . (c) No grant may be made to an applicant who is unable to obtain at least 60 per centum of the necessary funds for the economic enterprise from other sources. . . . [U.S. Statutes at Large, 88:77–79, 82–83.] 171. Morton v. Mancari June 17, 1974 The preferential hiring of Indians for BIA positions was challenged by non-Indian employees, who claimed that the Indian preference law of 1934 had been repealed by the Equal Employment Opportunity Act of 1972. The Supreme Court, overturning a district court decision, supported the preference policy and declared that the preference was based not on “racial discrimination” but on the special legal status of the Indians. . . . . The federal policy of according some hiring preference to Indians in the Indian service dates at least as far back as 1834. Since that time, Congress repeatedly has enacted various preferences of the general type here at issue. The purpose of these preferences, as variously expressed in the legislative history, has been to give Indians a greater participation in their own selfgovernment ; to further the Government’s trust obligation toward the Indian tribes; and to reduce the negative effect of having nonIndians administer matters that affect Indian tribal life. The preference directly at issue here was enacted as an important part of the sweeping Indian Reorganization Act of 1934. The overriding purpose of that particular Act was 271 to establish machinery whereby Indian tribes would be able to assume a greater degree of self-government, both politically and economically . Congress was seeking to modify the then-existing situation whereby the primarily non-Indian-staffed BIA had plenary control, for all practical purposes, over the lives and destinies of the federally recognized Indian tribes. . . . One of the primary means by which selfgovernment would be fostered and the Bureau made more responsive was to increase the participation of tribal Indians in the BIA operations. In order to achieve this end, it was recognized that some kind of preference and exemption from otherwise prevailing civil service requirements was necessary. . . . Congress was well aware that the proposed preference would result in employment disadvantages within the BIA...