A very common response to any sentence that includes the word "Indian". It is to distinguish the indigenous peoples of India from the Native Americans.
Dot Not Feathers is a description that differentiates between the two "Indian" possibilities. "Dot" refers to the Indian that comes from India (the word "dot" refers to the forehead festoonery that represents the third eye in the Hindu Religion). The word "Feathers" is descriptive of the American Indian who use feathers to accessorize their cranium.
The Indians (dot not feathers) are good businessmen - they own a lot of motels. On the other hand the Indians (feathers not dot) are even better businessmen, they own casinos where the dots gamble.
When discussing Indians there is often confusion about who you're talking about, native Americans or people from India. To clarify the matter you can ask, "Dot or feather?" The feather refering to native Americans or dot, referring to the red dot worn by Indian women.
Judy said, "I was downtown and a large group of Indians were in the park."
Chesney replied, "Indians? Dot or feather?"
Judy replied, "Feathers."
Steve said, "There's a new IndianTV channel on Direct."
Tilt replied, "Dot or feather?"
Steve, "Dot, lots of dots."