(1) This reduction of $13,153 below the appropriation for 1934 consists of: Impoundment of 6% percent of 15 percent pay cut...

-$6, 821

Curtailment in 1934 working funds.

-2, 709

Reduction in working funds for 1935 ($2,090 for Hawaii Station and

$4,700 for Puerto Rico Station).

-6, 790

+3, 167

- 13, 153

5 percent salary restoration....

The reduction in working funds for 1935 includes:

(2) A decrease of $2,090 for the Hawaii Station. This decrease is partially offset by the increase of $1,500 (75 percent of the $2,000 increase authorized for 1935 by the act of May 16, 1928) to the Territorial experiment station under the Hawaii Station Act.

(3) A decrease of $4,700 for the Puerto Rico Station.-This decrease is partially offset by the increase of $3,700 (75 percent of the $5,000 increase authorized for 1935 by the act of March 4, 1931) to the Territorial station under the Puerto Rico Station Act.

WORK DONE UNDER THIS APPROPRIATION

The agricultural experiment stations in Hawaii and Puerto Rico were established to determine the agricultural possibilities of the two Territories, to improve and diversify their agriculture, and to develop types of agriculture adapted to different regions.

Hawaii Station.-The Hawaii Experiment Station at Honolulu, which is now maintained in cooperation with the University of Hawaii, is concerned with problems relating to the diversification of agriculture and the establishment of industries other than sugar and pineapple production. These major industries have their own experiment stations. Close cooperation is maintained with them on problems of mutual interest. Soil and crop work, horticultural investigations, crop utilization, chemical studies of soils, plant breeding, forage-crop studies, dairying, and livestock management constitute the principal activities of the station. These studies are designed to aid the so-called "small farmer" as contrasted with the plantation system. In the station work, substations have been established on other islands and at greater elevations than the main station for developing systems of agriculture adapted to large areas that are not now profitably utilized. The possibility of extending pineapple cultivation at about 1,000 feet elevation higher than formerly thought possible has been definitely proven. Through the cooperation of Territorial officials and private individuals, experiments have been begun at various elevations up to 5,500 feet. If these prove successful, large areas in the islands can be brought under cultivation. This is very important, as much of the land suited to present agricultural use is under the control of large corporations. Experiments have been begun for the assistance of the coffee industry and a beginning has been made, in cooperation with the Office of Foreign Plant Introduction, United States Department of Agriculture, to bring together plantings of all available economic tropical plants to study their requirements and adaptability to Hawaii and to limited regions in the United States.

Puerto Rico Station.-The agricultural experiment station maintained by this department at Mayaguez, P.R., is aiding in the improvement and diversification of the agriculture of the island. Its principal lines of work are connected with livestock improvement, crop improvement, introduction of new tropical crops, coffee, citrus fruit and pineapple studies, plant diseases and insect pest control, soils and fertilizers, and animal parasites. The station's work on the control of some animal parasites has resulted in extending stock production. The introduction of new forage plants has yielded more feed for stock, and the wide adoption of cover plants for soil conservation and improvement is a direct result of station work. The plant-breeding work with sugarcane and corn has yielded important results. Some of the new cane varieties produced by hybridizing are exceedingly promising, yielding more than the standard varieties. A number of these hybrids are under commercial test on several plantations this year. About 5,000 acres were planted to Mayaguez 28, one of the promising new sugarcanes of the station, by the end of 1933. The coffee investigations include studies of varieties, methods of planting, pruning, and use of fertilizers, all of which are necessary to the permanence of agriculture in a large part of the island. Cooperative investigations with citrus fruits and pineapples are in progress. Through its introduction of tropical horticultural crops, interest in them has been aroused. The station is

actively engaged in various undertakings that are expected to aid in the Governor's campaign for improving local conditions.

EMERGENCY FUNDS APPLICABLE UNDER THIS HEADING

Allotments under the National Industrial Recovery Act aggregating $4,950 have been made for physical improvements as follows:

1. Hawaii Station, $1,200; consisting of $200 to replace a water storage tank and $1,000 to replace the present dirt and gravel road from the station to city street with asphalt or macadam base road.

2. Puerto Rico Station, $3,750; consisting of $1,500 to replace roadways $900 to repair, replace, and extend fences; and $1,350 to clear land for experiment

purposes.

LIMITATION ON PURCHASE OF PASSENGER-CARRYING VEHICLES

Continuation of the purchase authorization of $750 is provided for in order that an additional automobile needed at the Puerto Rico Experiment Station may be purchased during 1935 if the funds permit during the year.

CLOSING OF ALASKA, GUAM, AND VIRGIN ISLANDS EXPERIMENT STATIONS Mr. JARDINE. The main reduction in this item for 1934 below 1933 was due to the closing of the stations in Alaska, in Guam, and in the Virgin Islands.

The Virgin Islands station was later transferred to the Department of the Interior. There is still a reduction in the appropriation for Puerto Rico and Hawaii, which is brought about in large part because under the Hawaii Station Act, in the first item, Hawaii was authorized to participate as a State, and as their participation has increased, the other fund of the Federal station has been reduced. In Hawaii we now have the Federal station, the insular station, and the Federal fund, under the Hawaii Act, coordinated into one working unit under one man. Somewhat the same plan is contemplated in Puerto Rico ultimately.

Mr. SANDLIN. You have abandoned the Alaska stations. Do you know how they are getting along up there?

Mr. JARDINE. In closing the Alaska station, the Matanuska station was transferred to the Alaska College of Agriculture and School of Mines experiment station at Fairbanks. The Sitka Station was closed. The only station operating in Alaska now is the experiment station in Fairbanks, under the College of Agriculture and School of Mines, with the $15,000 Hatch fund from the Federal Government.

Mr. SANDLIN. That is all that is spent in Alaska now?

Mr. JARDINE. That is all that is spent on agricultural research. They are attempting to operate and maintain the plant at Matanuska. Naturally, there would be a limit to their rendering service. I can say this, that the inquires I have received about opportunities for agriculture in Alaska the past year perhaps would approach 1,000 since January 1, 1933.

Mr. SANDLIN. They abandoned the work at Sitka?

Mr. JARDINE. They abandoned the work at Sitka, and the land at Sitka has been used by the Sheldon Jackson School in connection. with their school. A letter received a few days ago indicated that they feel they have strengthened their school work very materially by having a little land for gardening purposes.

Mr. THURSTON. Do you think they will use the reindeer meat for food?

Mr. JARDINE. I have eaten some reindeer meat, but I would rather question the supposition that they will do away with need of other food largely. I think it is a very difficult proposition. Personally, I have been a livestock man, and I would hesitate to invest either my savings or my time in the reindeer industry.

Mr. SANDLIN. What can you tell us further about the closing of the Alaska, Guam, and Virgin Islands Experiment Stations?

Mr. JARDINE. In the Appropriation Act for the Department of Agriculture for 1933 the sum of $30,000 was granted for the payment of expenses incident to closing of the experiment stations in Alaska, Guam, and the Virgin Islands, and the salaries of the employees of said stations appointed from the continental United States, including salaries during such leave as may be granted under the acts approved June 30, 1914, and July 24, 1919.

The Virgin Islands station was transferred to the Department of the Interior on July 8, 1932, provision for its maintenance having been made in the Appropriation Act of that Department for 1933. The Guam station was placed in the temporary custody of the Governor of Guam on July 6, 1932, and by him it was transferred to the Island government for use as an agricultural school on July 27, 1932. The Matanuska station was transferred to the Alaska College of Agriculture and School of Mines on July 23, 1932. The property of the Sitka and Juneau stations was placed in the custody of Charles H. Flory, ex-officio Commissioner for the Department of Agriculture for Alaska, as the representative of the Secretary of Agriculture, on June 30, 1932.

There still remains to be paid the claims for accumulated leave to which the personnel are entitled under the acts providing for such leave and the express provisions of the Appropriation Act of July 7, 1932. The estimated amount of these claims, according to data available, is about $8,000, but there is some question regarding the total, as the time records have not been checked absolutely and some of the employees may not be entitled to the sum which is credited to them.

In the opinion of the Comptroller General of the United States, the claims presented on account of such accrued leave could not be paid due to certain provisions of the Economy Act approved June 30, 1932. The Treasury-Post Office Departments Appropriation Act for the fiscal year 1934, passed by Congress and approved March 3, 1933, contained modification of sections 103 and 215 of the Economy Act, which it was thought would again authorize the payment of the claims for accrued leave. Later, however, these modifications were repealed by "An act to maintain the credit of the United States Government", generally referred to as the Second Economy Act, passed by Congress and approved March 20, 1933.

It necessarily followed that unless and until further legislation specifically authorizing payment for this accumulated leave is enacted, the individual claims could not be paid.

THURSDAY, JANUARY 18, 1934.

EXTENSION SERVICE

STATEMENTS OF DR. C. W. WARBURTON, DIRECTOR, AND MR. M. M. THAYER, BUSINESS MANAGER, EXTENSION SERVICE

PAYMENTS TO STATES, HAWAII, AND ALASKA FOR AGRICULTURAL EXTENSION WORK

Mr. SANDLIN. We will now take up the appropriation items for the Extension Service. Under the item for payments to States, Hawaii, and Alaska, the current appropriation is $1,580,000, and the estimate for 1935 is $1,185,000. Under the next item, for the full development of agricultural extension work between the agricultural colleges in the several States, the appropriation for 1934 is $1,480,000, and the estimate for 1935 is $1,110,000. The next item, under the head of "Alaska", the appropriation for 1934 is $12,000, and the estimate for 1935 is $9,000, and under the item for additional cooperative agricultural extension work, the current appropriation is $1,000,000, the estimate for 1935 is $750,000.

That makes it all, covering payments to States, Hawaii, and Alaska, for agricultural extension work, an estimate for 1935 of $3,054,000, as compared with an appropriation of $4,072,000 for 1934. The appropriation items I have referred to are as follows:

For cooperative agricultural extension work, to be allotted, paid, and expended in the same manner, upon the same terms and conditions, and under the same supervision as the additional appropriations made by the Act of May 8, 1914 (U.S.C., title 7, secs. 341-348), entitled "An Act to provide for cooperative agricultural extension work between the agricultural colleges in the several States receiving the benefits of an Act of Congress approved July 2, 1862 (U.S.C., title 7. sees. 301-308), and of Acts supplementary thereto, and the United States Department of Agriculture," $1,185,000; and all sums appropriated by this Act for use for demonstration or extension work within any State shall be used and expended in accordance with plans mutually agreed upon by the Secretary of Agriculture and the proper officials of the college in such State which receives the benefits of said Act of May 8, 1914: Provided, That of the above appropriation not more than $300,000 shall be expended for purposes other than salaries of county agents.

To enable the Secretary of Agriculture to carry into effect the provisions of the Act entitled "An Act to provide for the further development of agricultural extension work between the agricultural colleges in the several States receiving the benefits of the Act entitled 'An Act donating public lands to the several States and Territories which may provide colleges for the benefit of agriculture and mechanic arts', approved July 2, 1862 (U.S.C., title 7, secs. 301-308), and all Acts supplementary thereto, and the United States Department of Agriculture", approved May 22, 1928 (U.S.C., Supp. VI, title 7, secs. 343a, 343b), $1,110,000. Alaska: To enable the Secretary of Agriculture to carry into effect the provisions of the Act entitled "An Act to extend the benefits of the Hatch Act and the Smith-Lever Act to the Territory of Alaska", approved February 23, 1929 (U.S.C., Supp. VI, title 7, sec. 386c), $9,000.

Additional cooperative agricultural extension work: For additional cooperative agricultural extension work, including employment of specialists in economics and marketing, to be allotted and paid by the Secretary of Agriculture to the several States and the Territory of Hawaii in such amounts as he may deem necessary to accomplish such purposes, $750,000.

Dr. WARBURTON. The following general statement is presented:

FUNDS AVAILABLE FOR 1934 AND ESTIMATES FOR 1935

Funds available for direct payments to the States, Hawaii, Alaska, and Puerto Rico for cooperative agricultural extension work for 1934 total $8,738,096, subject to reduction of 25 percent from March 4 to June 30, 1934, by Executive Orders Nos. 6166 and 6221. Pursuant to section 18 of the Executive Order No. 6166, of June 10, 1933, a reduction of 25 percent has been made in the estimates for payments to the States and Territories for extension work for 1935. As provided by the act of March 4, 1931 (Public, No. 846, 71st Cong.), entitled An act to coordinate the agricultural experiment station work and to extend the benefits of certain acts of Congress to the Territory of Puerto Rico", the permanent annual appropriation (Smith-Lever Act) has been automatically increased by $10,000, after which the 25 percent reduction has been computed. The total of funds requested for payments direct to the States, Hawaii, Alaska, and Puerto Rico for 1935 consequently is $6,561,072.

In addition to the sums indicated above for 1934, there was available to the States, Hawaii, and Puerto Rico from appropriations direct to the Department of Agriculture (farmers' cooperative demonstrations and Clarke-McNary forestry funds) a total of $823,432, making the total funds available to the States and Territories for 1934, $9,561,528. Under the estimate for 1935 the Department's contributions to States and Territories under the appropriation for farmers' cooperative demonstrations will be reduced by $505,368, thus bringing the allotments from direct Department funds to a total of $318,064.

The payments to the States, Hawaii, Alaska, and Puerto Rico proposed for 1935, therefore, will total $6,879,136, or a net decrease of $2,682,392. The use of this money is indicated in greater detail by the following tables 1 and 2.

TABLE 1.-Statement showing appropriation items and amounts available to the States in 1933, 1934, and estimated for 1935

1 Subject to 25 percent reduction for payments covering the period from Mar. 4 to June 30, 1934, pursuant to the provisions of Executive Orders Nos. 6166 and 6221.

? Personal services are subject to 15 percent legislative reduction in compensation for 1934. 3 Includes approximately $22,000 for field envelop supplies.

• Personal services are subject to 10 percent legislative reduction in compensation for 1935.

With the exception of the $750,000 designated for "Additional cooperative extension work", and funds allocated by this Department under the appropriation entitled "Farmers' cooperative demonstration work", the major part of the extension money is distributed on the basis of rural population, computed on the proportion that the rural population of each State bears to the total rural population of the States. The $750,000 appropriation for "Additional cooperative