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Dr. SIMMS. I believe these tables and other testimony offered cover the information you desired. The table shows contributions from the Mexican Government through January 1, 1949. In addition Mexico paid for about 270,000 small animals slaughtered up to October 3, 1947.

(The tables are as follows:)

Obligations and funds provided for control and eradication of foot-and-mouth disease (as of Jan. 1, 1949)

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Obligations and funds provided for control and eradication of foot-and-mouth disease (as of Jan. 1, 1949)-Continued

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MEXICAN-UNITED STATES COMMISSION FOR THE ERADICATION OF FOOT-AND

MOUTH DISEASE

Statement of Commission receipts, disbursements, and available cash as of Jan. 1,

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1 Because of the change in the rate of exchange, this statement is made in pesos. portion of expenditures were made when the rate of exchange was 4.85 pesos.

197, 236, 448

However, the major

2 $31,000,000 contributed by United States converted to pesos at the rate of 4.85; $2,995,004 at 6.88 to 6.90. The Joint Commission conducted salvage operations between Oct. 3 and Dec. 13, 1947, when salvage operations ceased. Salvaged animals for that period included 5,025 cattle and 278 small animals. to Oct. 3, 1947, the Mexican Government conducted salvage operations.

Prior

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1 Does not include 270,707 small animals slaughtered prior to Oct. 3, 1947, when payment for slaughter of small animals was handled directly by Mexico.

REPLACEMENT OF AUTOMOBILES

Mr. WHITTEN. I notice you are asking for authority to exchange approximately 124 automobiles. How many automobiles do you have altogether?

Dr. FLADNESS. It is stated in here.

Mr. WHITTEN. Yes, 852, and you wish to replace approximately 124. Dr. SIMMS. That is a replacement on the basis of about 1 car in 7. Dr. FLADNESS. We have to catch up on what we could not get during the war. We had cars running which were too expensive to maintain in the first place. They had too much mileage on them. But we could not get replacements. Normally, the work those cars do in this Bureau is out in the country districts and farms with tuberculosis and Bang's disease and they travel every kind of road. They get pretty rough use and usually need to be replaced 15 or 20 percent every years. We got behind during the war.

Mr. WHITTEN. Are there further questions?

If not, then, Doctor, we appreciate your statements, and we will turn to the Bureau of Dairy Industry.

FRIDAY, FEBRUARY 4, 1949.

BUREAU OF DAIRY INDUSTRY

STATEMENTS OF O. E. REED, CHIEF, BUREAU OF DAIRY INDUSTRY; R. E. HODGSON, ASSISTANT CHIEF, RESEARCH; J. M. KEMPER, ASSISTANT CHIEF, ADMINISTRATION; G. E. HOLM, HEAD, DIVISION OF DAIRY PRODUCTS RESEARCH LABORATORIES; L. A. MOORE, ASSISTANT HEAD, DIVISION OF NUTRITION AND PHYSIOLOGY, BUREAU OF DAIRY INDUSTRY; AND RALPH S. ROBERTS, ACTING DIRECTOR OF FINANCE AND BUDGET OFFICER, DEPARTMENT OF AGRICULTURE

SALARIES AND EXPENSES

STANDARD CLASSIFICATION SCHEDULE

Salaries and expenses, Bureau of Dairy Industry, ARA

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Anticipated Pay Act supplemental, 1949.

Transfer in 1950 estimates from "Printing and binding, Department

of Agriculture".

Base for 1950..

Budget estimate, 1950_..

Decrease

$1,050, 000 70, 000

43, 200

1, 163, 200

1,093, 200

-70, 000

SUMMARY OF DECREASES, 1950

Decrease due to partial absorption of Pay Act costs.--
Decrease due to the elimination of nonrecurring items for replace-
ment of equipment, and repair and reconditioning of facilities at
field stations___.

-31, 000

-39, 000

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Mr. WHITTEN. We have with us Dr. Reed and his associates of the Bureau of Dairy Industry.

Dr. Reed, we would like to have a brief statement, including a description of your Bureau, the broad divisions of the work, and the plants that you operate including a general description of how you carry out your duties and obligations.

GENERAL STATEMENT

Dr. REED. Mr. Chairman, the Bureau of Dairy Industry is essentially a research bureau. It conducts research in dairy cattle breeding, nutrition, management, and in the physiology of milk secretion and reproduction.

It also conducts chemical, bacteriological, and technological research in the production, handling, and utilization of milk.

In short, you might say our three main objectives are one, to work for greater economy and efficiency in milk production; two, raise the quality of dairy products; and, three, create more profitable ways to utilize dairy products.

ORGANIZATION OF BUREAU

The Bureau was established in 1924 and has been operating ever since as a research organization. We have little regulatory work. It involves only the inspection of process butter.

Our Bureau is divided into four research divisions. First, the Breeding, Feeding, and Management Division whose activities are in Washington, at Beltsville, and at other points in the field; second, the Nutrition and Physiology Division located entirely at Beltsville; third, the dairy products research laboratories, with activities both in Washington and at Beltsville; and fourth, the Dairy Herd Improvement Association Division whose activities are headquartered in

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