charged $400 a year for the perquisites and the house. That is deducted from their salary, just like so much per month for rent. It amortizes the expenditure invested over a period of about 18 years. The houses cost on an average of $3,000. You can see how long it would take to amortize that expenditure in that way. I think it is just a little too early to go into details, because they have not been worked out. This is an initial amount provided for clearing and developing the area. It would make a wonderful cow pasture or farm land. It would have a lot of possibilities from that standpoint. Mr. SANDLIN. We would rather have it cow pasture and not put so many buildings on it. Mr. SHEETS. We need the necessary buildings on it. This land cost $30 an acre. Mr. HART. Where is it located? Mr. SHEETS. About 10 miles from where we are now. Mr. HART. At Beltsville? Mr. SHEETS. Yes. It is on this side of Beltsville. Mr. CANNON. What is the area of it? Mr. SHEETS. Five hundred and forty-one acres. This is the first part of the area that will be used for that purpose. STATIONS AND PROJECTS DISCONTINUED AND CURTAILED Mr. CANNON. How many stations are you discontinuing this year? Mr. SHEETS. They are projects. You can hardly call them stations, but we are discontinuing about 28 different phases of work and that covers practically all sections of the country. There is a curtailment to the extent of $31,523. Mr. CANNON. In what States are those stations located? Mr. SHEETS. North Dakota, Arizona, Georgia, Kansas, Indiana, Mississippi, Montana, Ohio, South Dakota, Texas, and Virginia. Mr. SINCLAIR. Why do you discontinue them? Mr. SHEETS. We completed the project, for example, in cooperation with the North Dakota station, in the northwest part of the State. M. B. Johnson, the cooperative man in that State, will carry on with another phase of work. We have completed that phase of the work. Mr. SINCLAIR. Where is he located? Mr. SHEETS. He is at Fargo now. The work was completed. It was carried on down in the southwestern corner, in a grazing region. We have been working 6 years on that, and we are getting out a bulletin now. It will be valuable to the ranchmen in the reorganization of their work. That is ranch management work in cooperation with the Bureau of Agricultural Economics and the State experiment station. Mr. CANNON. How many stations were discontinued? Mr. SHEETS. Stations discontinued and projects curtailed in 11 States. Mr. CANNON. Are those stations that you have been operating in cooperation with the State? Mr. SHEETS. All of them; yes, sir. When we discontinue a station, that does not mean that the work has been stopped in all cases, but it may mean that we have concentrated on it in another place in the State. We discontinued the work at Havre because it was important only to that region, and because we believed that in our curtailment, we had to cut somewhere. We thought that we should cut a project that was not a large regional or national problem. We believe that it is our responsibility to concentrate on the problems that are national in character or on large regional problems. We are still working in cooperation with the Montana experiment station, in close cooperation with them. We believe that we can answer the questions from one central point at the United States Range Livestock Experiment Station at Miles City, to a better advantage, rather than spreading the work out over a large number of places. FRIDAY, JANUARY 19, 1934. BUREAU OF DAIRY INDUSTRY STATEMENTS OF DR. O. E. REED, CHIEF, BUREAU OF DAIRY INDUSTRY; AND J. M. KEMPER, ASSISTANT TO THE CHIEF SALARIES AND EXPENSES Mr. SANDLIN. We will now take up the item for the Bureau of Dairy Industry. The first item is the introductory paragraph as follows: For carrying out the provisions of the Act approved May 29, 1924 (U.S.C., title 7, secs. 401-404), establishing a Bureau of Dairying, for salaries in the city of Washington and elsewhere, and for all other necessary expenses, as follows: GENERAL ADMINISTRATIVE EXPENSES Mr. SANDLIN. The next item is for general administrative expenses: General administrative expenses: For necessary expenses for general administrative purposes, including the salary of the chief of bureau and other personal services in the District of Columbia, $56,514. Your current appropriation for this purpose is $64,265, and your estimate for 1935 is $56,514. Dr. REED. The following statement is presented in explanation of the item for administrative expenses: Increase, Budget 1935, compared with estimated obligations, 1934..... appropriation of $64,265 for 1934 consists of: Impoundment of 6% of 15-percent pay cut.. Curtailments in 1934 working funds.. 5-percent salary restoration... Total... $69, 580 69, 380 64, 265 53, 500 56, 514 3, 014 -$3, 888 -6, 877 +3, 014 -7, 751 WORK DONE UNDER THIS APPROPRIATION The work conducted under this appropriation includes the direction of research, engineering, information, library, and service activities, the administration of fiscal and property work, and general supervision of personnel. DAIRY INVESTIGATIONS Mr. SANDLIN. The next item is for dairy investigations, as follows: Dairy investigations: For conducting investigations, experiments, and demonstrations in dairy industry, cooperative investigations of the dairy industry in the various States, and inspection of renovated-butter factories, including repairs to buildings, not to exceed $5,000 for the construction of buildings, $498,383. Dr. REED. The following justification is submitted for the record: Appropriation: 1932 1933. 1934. $727, 410 648, 068 590, 865 486, 500 498, 383 11, 883 Estimated obligations, 1934 Budget estimate, 1935. Increase, Budget 1935, compared with estimated obligations, 1934.... The decrease of $91,518 in the 1935 estimate of $498,383 below the appropriation of $590,865 for 1934 consists of: Impoundment of 6% percent of 15-percent pay cut. Further reduction in working funds for 1935 ($5,037 for dairy-cattle breeding, feeding, and management, and $4,825 for Missouri experiment station). 5-percent salary restoration. Total... - $28, 677 -75, 688 -9,862 +21, 745 ---92, 482 The reduction of $9,862 in working funds for 1935 includes: (a) Curtailment of $5,037 in expenditures for dairy-cattle breeding, feeding, and management investigations; (b) a decrease of $4,825 is due to the discontinuance of Federal cooperation of the Hatch experiment station. This project was established in July 1930 under which investigational work in dairy-cattle breeding, feeding, and management are being conducted in cooperation with the agricultural experiment station, University of Missouri. The Government has no investment at this station in land or buildings. While data accumulated to date is incomplete and probably of no value, due to the relatively short period of time the work has been under way, it will be possible to continue the breeding experiments by transferring the dairy herd to either the Lewisburg, Tenn., or the Jeanerette, La., station, thereby avoiding a complete loss. WORK DONE UNDER THIS APPROPRIATION This appropriation is used for scientific research and experimentation in practically all phases of the dairy industry, under the following projects: (1) Dairy manufacturing investigations and introduction.-The work conducted under this project is designed to ascertain the need for new and/or improved processes of manufacture in order to enlarge the outlets for creamery and cheese factory byproducts; to determine the factors affecting the quality of butter, cheese and other products of dairy manufacturing plants, and to improve the market grades of these products. Other work conducted contemplates the development and introduction of a new process of packaging and ripening cheese, of better methods for making casein and other milk byproducts, and the regulatory work incident to the enforcement of renovated butter act. The application to commercial practices of the results obtained has resulted in increasing the value of Swiss cheese through an improvement in the quality of cheese manufactured. Adoption of approved manufacturing processes by creameries and cheese factories has resulted in increased returns to dairy farmers, and the prevention of cheese factory failures in certain Southern States. Casein manufacturers using the Bureau's process have made a product that meets the highest requirements for all technical purposes. (2) Dairy herd improvement investigations.-Under this project studies are made of feed and milk production records of cows on test in dairy herd-improvement associations to obtain accurate data for the intelligent selection and feeding of dairy cows according to their known producing ability, and of the lactation records of the daughters of dairy sires in herds on test in dairy herd-improvement associations to discover dairy sires that are transmitting to their offspring the factors for high milk and butterfat producing ability. The purposes of this work are the development of methods that lead to efficiency and economy of milk production, the elimination of low and inefficient producing cows, the use of better sires, and the adoption of better feeding practices. The results show that cows on test in dairy herd-improvement associations produce 80 percent more butterfat per cow than the average for the United States, and that more than 10 percent of the cows in such associations are eliminated annually because they are inefficient and uneconomical producers. The studies also indicate that the elimination of the lowest producing 10 percent of the dairy cows of this country would decrease production about 5 percent and that the elimination of the lowest producing 20 percent of our dairy cows would decrease production about 12 percent. There are at present only about a third of a million cows on test in dairy herd-improvement associations. If this work could be extended so as to place at least half of our dairy cows on test it would doubtless be possible to restrict or expand production so as to supply the effective demand at all times without creating a surplus. This work is carried on in cooperation with 46 States. Its cost is borne largely by State organizations and dairy farmers, and the records obtained represent the most complete data available on production of dairy cows, and on the economy and efficiency of milk and butterfat production. (3) Dairy-cattle breeding, feeding, and management. The work of this project embraces fundamental research in all phases of dairy-cattle breeding, feeding, and management. It is carried on largely at the dairy experiment stations at Beltsville, Md.; Huntley, Mont.; Mandan, N.Dak.; Woodward, Okla.; Lewisburg, Tenn.; Columbia, S.C., and Jeanerette, La., and in cooperation with colleges and experiment stations in the States of California, Louisiana, Missouri, New Jersey, North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, Utali, Washington, West Virginia, and Wyoming, along five general lines, as follows: (a) General breeding investigations. These investigations are designed to determine the comparative effects of out-breeding, line-breeding, and in-breeding, in fixing an inheritance for high and uniform levels of producing ability in dairy Cows. Out of this work has developed the plan of breeding pure lines for production by the continued use of meritoriously proved sires. It has led to the adoption by the National Breed Associations of methods of sire analysis. The herds at the several dairy experiment stations are yielding the most complete scientific data on dairy cattle breeding ever assembled in the history of livestock breeding. Studies of the results secured in these herds and by analysis of other available data are used to illustrate the workings of the laws of heredity and their application to the problems of breeding better dairy cattle. (b) Relation of conformation to producing ability. These investigations have for their purpose determination of the relationship, if any, between conformation and anatomy of dairy cows to their producing ability to establish, if possible, a scientific basis for judging and selecting dairy cattle from outward appearances. The judging of the milk and butterfat-producing ability of cows by outward appearances is being taught in the various agricultural schools and colleges without any fundamental data in support of the theories being taught. Many established theories of judging the producing ability of cows on the basis of "type" have already been disapproved. The object of this project is to establish a scientific basis for judging the producing ability of dairy cows. Detailed studies are made of the udders of animals of known producing ability. Weights and measurements of the vital organs of these cows are also taken to study their relationship to the function of milk secretion. Nineteen State experiment stations are cooperating. (c) Fertility investigations and health of herd.-The investigations conducted under this project contemplate a determination of the effect of various factors on the fertility of dairy animals. Few sires breed beyond 10 years of age and their transmitting ability cannot be definitely established until they are from 6 to 8 years of age. Sterility in dairy cows is causing enormous losses to dairy farmers annually. It is estimated that approximately 20 percent of all cows eliminated from all dairy herds of the country are disposed of because of sterility. The object of the work being conducted, therefore, is to determine the effect of certain dietary regimes in the correction and prevention of certain forms of sterility and the effect of consistent exercise on the fertility of males and females. This work is especially important in extending the useful life of valuable breeding sires. Many cases of sterility have been corrected by control of the diet and through exercise. Through the development of methods by which sperm cells may be kept viable, some success is being obtained by artificial insemination. More complete knowledge of the sperm cell, its natural environment, and methods of keeping viable for long periods of time to facilitate artificial insemination is being sought. The normal reactions of female generative organs are also being investigated. (d) Milk secretion and reproduction investigations: Work is being done on the rate and amounts of milk secretion from the individual quarters of the udder; the factors controlling secretion; types of mammary tissue and other factors that may make possible the elimination of stripping in the milking operation. Milk secretion experiments have indicated that a secretion of the pituitary gland is an important agent in normal milk secretion in dairy cows and may prove low production in some animals to be the result of a deficiency of this hormone, possibly hereditary in some strains. The effects of certain hormone injections in prolonging the period of fertility in aged bulls are being studied. (e) Feeding and management investigations: Investigations are conducted under this project to determine the influence of various feedstuffs on growth and milk production of dairy cows; the comparative values of various roughages when cut at different stages of maturity and when made into hay or silage; the effect of fertilization and rotational grazing on the value of pastures for milk production, and the effect of various methods of handling, milking, feeding, exercising, and pasturing on the economy and level of milk production. Artificial drying of roughages is being tried out experimentally. Results of tests designed to discontinue stripping" in the milking operation, show no deleterious effects on yield or udder. These investigations have disclosed that contrary to the usual opinion cows in thin flesh produce about as well as cows carrying considerable flesh at time of freshening. The general results of the feeding and herd management investigations conducted under this item have developed methods which, if adopted by dairy farmers, will materially reduce their production costs. When prices for milk and butterfat are low, more dependence should be put on a roughage ration, with a lower but more profitable production. The determination of feeding methods and rations for calves to reduce mortality and assure growth during the early months of life is also an important phase of the work. It has been ascertained that extending the feeding period of skim milk from 6 to 12 months, has greatly stimulated growth of the animals. Heifers fed good roughages alone from 8 months of age are as large at two years of age as heifers fed continuously on grain. (4) Ice cream investigations. Investigational work under this project involves a determination of the physical and chemical factors incident to the manufacture of ice cream, with especial reference to the quality of the finished product. These investigations are designed to overcome manufacturing difficulties, to develop methods of manufacture whereby the quantity of milk solids may be increased, and the quality of product improved. As a result of the work conducted the amount of butterfat used in the manufacture of ice cream has increased approximately 32,000,000 pounds annually. Present investigations involve methods of manufcature which, when applied, should not only increase this figure but should materially increase the use of milk solids not fat in ice cream. This work in its relation to producers and consumers is of the greatest economic importance, in that its application to the ice cream industry will increase the market for milk and at the same time insure a higher quality product. (5) Butter and by-products investigations.-Objectionable flavors in storage butter result in a loss of millions of dollars annually Methods for preventing these objectionable flavors require a more thorough knowledge of the chemistry of the changes occurring in butter. The by products of the butter industry are skim milk, buttermilk, and whey. At present these by products are, to a large extent, wasted or inefficiently used. The manufacture of sweet-cream butter, concentrated sour skim milk, casein, and a relatively inexpensive good grade of lactose, are some of the results of the work conducted. In the manufacture of butter and cheese there are approximately 38,000,000,000 pounds of skim milk, buttermilk, and whey produced annually containing 3,500,000,000 pounds of milk solids. The efficient utilization of these products in dry or some other converted form will materially increase the returns to producers (6) Condensed milk and milk powder.-Investigations have demonstrated that there are two types of milk differing greatly in their tendencies to coagulate upon |