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The reduction of $735,541 in the estimate of $684,648 for 1935 below the appropriation of $1,420,189 for 1934, consists of:

Impoundment of 6% percent of 15 percent pay cut..
Curtailment in 1934 working funds..

Further reduction in working funds for 1935.

5 percent salary restoration...

Total...

WORK UNDER THIS APPROPRIATION-GENERAL

-$125, 940

-229, 107 1-413, 170

+32, 676

-735, 541

This appropriation is used for financing the Office of Cooperative Extension Work, the Office of Motion Pictures, demonstrations on reclamation projects, and, by allotment, for salaries of extension agents in the States.

By far the larger part of the approximately 6,000 State and county extension workers are under Federal appointment, either without compensation or paid at rates running up to $50 or more per month. The compensation of these workers from Federal sources is arranged by the State directors of extension, out of allotments made to the States from this appropriation at the beginning of the fiscal rear. These extension agents are made employees of the Federal Government, as well as of the States and counties, by appointment under this appropriation. The Office of Cooperative Extension Work examines and recommends for approval budgets and plans of work submitted by State directors of extension, involving the expenditure of Federal and State offset funds; makes an annual examination of extension expenditures in each of the States; and gives general supervision to cooperative extension work. It employs subject-matter specialists who represent the subject-matter bureaus of the Department in their contracts with the State extension forces, receives and tabulates annual reports from all extension agents, and prepared press material and reports on extension work. Economic extension work.-Under this project special attention is given to the extension of information to the States along the lines of cooperative marketing and farm management. The results of investigations of, and information available from, the Bureau of Agricultural Economics and State experiment stations, particularly along the line of price trends, the agricultural outlook, and intentions of farmers to plant crops and breed livestock, foreign and domestic supplies, and demands for agricultural products, and other data of this nature, are assembled and made available, insofar as possible, to the State extension services.

Demonstration on reclamation projects are conducted in cooperation with State extension services in the employment of extension agents in counties which include reclamation projects. The work of these agents is practically identical with that of other extension workers, their activities of course, being directed especially toward successful farm operations on irrigated land. Because of the special relationship of the Government in reclamation projects, more than the usual share of the expense of maintaining these agents is paid from Federal sources, this being the allotment from which such payments are made.

The office of motion pictures, in cooperation with the subject-matter bureaus, prepares motion pictures illustrative of the various phases of the Department's work and makes these pictures available to the public through extension workers and other Department employees, vocational teachers, and other agencies. The films deal with important lines of work in which the Department and cooperating State institutions are engaged. Their aim is to acquaint the public with agricultural methods and significance of important activities, and by making common property of the results of scientific investigations, to spread knowledge of improved methods in agriculture, forestry, road building, rural engineering, and kindred pursuits.

Dr. WARBURTON. This item, Mr. Chairman, is a sort of dual purpose item, as it has been used. Part of the money is used in Washington for the Office of Cooperative Extension Work, for salaries and other expenses of that office, and the amount for the office of motion pictures is also carried in this item.

In previous years something like $950,000 to $975,000 has been allotted to the States for direct payment on the salaries of Cooperative Extension agents.

The reduction of $413,170 in working funds for 1935 represents a reduction in the total amount allotted and disbursed by the Department of Agriculture for salaries of extension agents in the States.

A frequent arrangement in the employment of a county agent is for him to receive a part of his salary from either State or Federal funds allotted to the State from the appropriations we have just discussed, and part from the county, and probably $25 a month direct from the Department, which gives the agent whatever prestige there may be in a departmental appointment, and the franking privilege.

Some agents have appointments without compensation, which gives them the franking privilege for their official mail.

Mr. HART. All county agents have the franking privilege, have they not?

Dr. WARBURTON. Not unless they are under Federal appointment. Mr. HART. Practically all of them are under Federal appointment? Dr. WARBURTON. Practically, if not all are under Federal appointment, yes.

REDUCTION IN FUNDS

Mr. SANDLIN. I see that this appropriation is reduced from $1,420,189, which was the amount appropriated for 1934, to $684,648, the Budget estimate for 1935.

Dr. WARBURTON. The appropriation for this year was $1,420,189, and the cash withdrawal figure which we were given at the beginning of the year was $1,065,000, as shown in the figures on page 50.

The estimate for 1935 is $684,648, which is a further decrease of nearly $400,000 below the amount we were authorized to expend for this year.

That necessarily will result in a considerable decrease in the allotments to the States from this appropriation, as we do not see how we can make any reduction in our Washington staff, with the very large increase in the volume of correspondence and other work which is coming to the Extension Service as the result of what we are doing for the Agricultural Adjustment Administration. So it seems necessary to pass on most, if not all, of this cut to the States.

The theory back of that is that if this work is to be continued for the Agricultural Adjustment Administration we can utilize to better advantage the Agricultural Adjustment Administration funds for cooperative employment in the States than we can for employment in Washington.

It is difficult to set up new positions and make new appointments under present conditions, and we avoid that wherever we can.

AGRICULTURAL EXHIBITS AT FAIRS

Mr. SANDLIN. The next item is:

Agricultural exhibits at fairs: To enable the Secretary of Agriculture to make suitable agricultural exhibits at State, interstate, and international fairs held within the United States; for the purchase of necessary supplies and equipment; for telephone and telegraph service, freight and express charges; for travel, and for every other expense necessary, including the employment of assistance in or outside the city of Washington, $66,510.

Dr. WARBURTON. I submit the following statement in connection with this item:

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Increase, Budget 1935, compared with estimated obligations,
1934...

$129, 870 120, 000

85,000

63, 750

66, 510

2, 760

The reduction of $18,490 in the estimate of $66,510 for 1935 below the appropriation of $85,000 for 1934 consists of:

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This appropriation item affords the means by which the Department provides the public with agricultural information in exhibit form which has come to be recognized as one of the important teaching methods. It also enables the Department, through the maintenance of a trained staff, to effectively coordinate the general exhibits work of its bureaus. The activity is carried on through a cooperative arrangement with State and interstate fairs within the United States by which the Department furnishes the exhibits and personnel for their management and demonstration, and the fairs share in the transportation costs of exhibits shipments, furnish without cost to the Department exhibition space, drayage, and labor for unloading and reloading cars at exhibition points, common labor for unpacking, installing, dismantling, and repacking the exhibits, and janitor, watchmen, electrical, and such other special services as are necessary to accomplish creditable displays.

Mr. SANDLIN. How much is going to be spent from the 1934 fund for that purpose?

Dr. WARBURTON. The 1934 allotment is $63,750. The increased amount put in the estimate, bringing the amount to $66,510, is to make up the additional 5 percent for salaries.

Mr. SANDLIN. You had appropriated for 1934, $85,000?

Dr. WARBURTON. The appropriation for this year was $85,000, which was reduced by 25 percent in cash withdrawals.

CENTURY OF PROGRESS EXHIBIT

Mr. SANDLIN. What about the fund for the exhibit at the Century of Progress in Chicago? There is nothing carried for that this year, is there?

Dr. WARBURTON. A transfer of funds amounting to $61,245 for the fiscal year 1933 and $40,505 for the fiscal year 1934 was made from the State Department to the Office of Exhibits, Extension Service, under the appropriation for exhibits at the Chicago World's Fair Centennial celebration.

This appropriation was for the purpose of employing personnel, purchasing materials and the making of contracts necessary in designing, preparing, assembling, transporting, installing, demonstrating, and arranging for the safekeeping of the Department's exhibits at the Century of Progress Exposition in Chicago, and their return to the custody of the Department and restoration to such condition as will permit their use at subsequent expositions and fairs.

There is now no provision for the continuation of the Department's exhibit at the Century of Progress in 1934. The plan is to continue the exposition next year, and my understanding is a request will be made for an appropriation to finance the continuation of the Government exhibit. If such an appropriation is made the Department will have an allotment from it.

Mr. SANDLIN. There is nothing carried in this bill for that.

Dr. WARBURTON. It is not an appropriation that comes before this committee. This is an allotment from the Commission.

COOPERATIVE FARM FORESTRY

Mr. SANDLIN. The next item is:

Cooperative farm forestry: For cooperation with appropriate officials of the various States or with other suitable agencies to assist the owners of farms in establishing, improving, and renewing wood lots, shelter belts, windbreaks, and other valuable forest growth, and in growing and renewing useful timber crops under the provisions of section 5 of the act entitled "An Act to provide for the protection of forest lands, for the reforestation of denuded areas, for the extension of national forests, and for other purposes, in order to promote the continuous production of timber on lands chiefly suitable therefor", approved June 7, 1924 (U.S.C., title 16, secs. 564-570), including personal services in the District of Columbia, $51,354.

Dr. WARBURTON. I desire to submit the following statement in connection with this item:

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Increase, Budget 1935, compared with estimated obligations,
1934..

2, 764

The reduction of $13,433 in the estimate of $51,354 for 1935 below the appropriation of $64,787 for 1934 consists of:

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This activity is conducted under section 5 of the Clarke-McNary Act (U.S.C. pp. 427, 428, secs. 564-570), which authorizes a maximum appropriation of $100,000. The funds are used for the employment of an extension forester, representing the Forest Service and the Extension Service, and for cooperation with the States in the employment of extension foresters. The usual arrangement is for the Federal Government to contribute $1,620 toward the salary of the extension forester, the State providing for the remainder of his salary, State travel expense, clerical help, and other necessary expenses. Usually the State contribution is considerably more than that of the Federal Government. At the present this cooperative arrangemet is in effect with 32 States, Hawaii, and Puerto Rico. A very large part of the farm acreage of the United States is in woodland and much of the income of farmers in certain sections, particularly the Northeastern and Southern States, is from forest products. County agents generally are not trained in forest management and need the assistance of farm forestry specialists in strengthening their work in this field. The extension forester arranges demonstrations in wood-lot management, selection of trees for cutting, estimating of merchantable timber, and in other fields. In many States, the extension forester

is also active in assisting farmers in forest-planting plans, and in interesting members of boys' and girls' clubs in tree planting.

Dr. WARBURTON. That is an appropriation, Mr. Chairman, authorized by the act of June 3, 1924, section 5 of the Clarke-McNary Act, which is an authorization for an appropriation of $100,000 a year for extension work in farm forestry.

The maximum appropriation which has ever been granted was $74,000 in 1932, which has been somewhat decreased since that, and the appropriation for 1934, $64,787, was reduced to $48,590 in the cash withdrawal figure, or a 25 percent reduction.

Practically all of that appropriation is spent for salaries for Extension Farm Foresters in the various States, who are cooperatively employed, the Federal part being considerably less than half of the total cost, the requirement being that allotment to the States shall be at least matched by the States. The purpose of increasing the amount to $51,354 for 1935 is to provide for the restoration of 5 percent of the salary cut. Practically all of this appropriation is used for salaries.

Mr. SANDLIN. The amount stated on page 56 of the committee print of the bill, $814,938, is the total amount for your bureau?

Dr. WARBURTON. That is the total of the items for general expenses and Farm Forestry. It does not include any amount budgeted for allotment to the States.

Mr. SINCLAIR. As I understand from your figures, you had appropriated $64,787 for 1934, but you will not spend all of that, you will only spend $48,000, approximately.

Dr. WARBURTON. That is the direction we received at the beginning of the fiscal year, to limit our expenditure to 75 percent of the appropriation. That was not a part of the Executive order of June 10, which affects the allotments to the States, but a direction to the Department. The same thing affected the exhibit item and the item for farmers' cooperative demonstrations.

PERMANENT ANNUAL SMITH-LEVER APPROPRIATION

Mr. SANDLIN. Is there any further statement you desire to make with reference to any of your appropriations, Dr. Warburton?

Dr. WARBURTON. Yes, sir; I would like to call attention to the item on page 57, which is a permanent continuing appropriation under the Smith-Lever Act, amounting to $4,656,696, which, for 1935, in the normal course of events, would be increased by $10,000, which would go to Puerto Rico, under the act of March 4, 1931. Mr. SANDLIN. That carries a 25 percent reduction?

Dr. WARBURTON. Yes, that carries a 25 percent reduction, and the amount becomes $3,507,072.

Mr. SANDLIN. Will you put in the record a statement showing the contribution by States?

Dr. WARBURTON. Yes, sir. Table 3, which was inserted earlier in my testimony as a part of the general statement for the Extension Service, contains the information you desire. (See p. 70.)

Mr. HART. Will you put in the record a statement showing the number of employees or county agents that are in the various States? Dr. WARBURTON. Yes, sir. Table 4, which was inserted in the record at the same time, will give that information. (See p. 72.)

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