During the fiscal year 1937 the establishment of only 10 new demonstration projects is contemplated. Effort is to be concentrated principally in carryin toward completion the 141 demonstration areas to be in operation on July 1 1936. The new project areas to be selected will be located in erosion regions which as yet have been untouched by the soil conservation erosion-control program.

Soil- and moisture-conservation operations on watersheds largely owned or controlled by the Government.—Operations under this project involve soil- and moisture-conservation operations on large watershed areas composed for the major part of Federally owned or controlled land (public domain, forest lands. Indian reservations, parks, and other Federal reserves). In these areas, where the Federal Government is responsible for the application of proper landconservation measures, the most effective and economical procedure is to go ahead immediately with a control program, since delay may permit the development of erosion to the point where the cost of effective control becomes prohibitive. However, for the fiscal year 1937 no new work is contemplated Rather it is planned to concentrate on the completion of the 3 large watershed projects now under way.

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These project areas have long been subject to severe overgrazing which has resulted in the denudation of natural vegetation, the prevention of reproduction in certain forest and formerly grassed areas, an exceedingly serious accelerated erosion, and the creation of destructive floods carrying large quantities of silt. This process has upset the balance between rainfall, vegetation. and the run-off, infiltration, and underground storage of water. Perennial streams, formerly not subject to destructive floods, have been transformed into eroded washes, alternately dry and filled to the brim with flash floods. gated lands in the lower reaches of watersheds are subjected alternately to lack of water and destruction through bank and new channel cutting of meandering currents. Large irrigation projects are threatened with relatively early abundonment due to siltation of reservoirs and irrigation canals. Areas formerly made productive by flood-water irrigation methods are being progressively abandoned due to back-cutting of gullies and denudation of local watersheds. Grazing values of range lands are declining to the point where the virtual extinction of the economic use of large livestock areas is imminent. As a consequence the permanent habitability of large portions of the areas concerned is threatened, and large Federal and private investments in irrigation reservoirs and values dependent thereon are likewise menaced.

The plan of operation on these projects contemplates the restoration of natural balances through the following procedure: (1) The preparation of a comprehensive and integrated plan and method of procedure for each watershed, based upon comprehensive surveys of range-carrying capacities, erosion, topographic and soil conditions, climatological data, natural water supply, and necessary readjustments in methods of land use based upon existing population distribution and economic conditions as related to the physical factors involved. Such plans are being integrated with other agencies responsible for the administration of parts of such watersheds. (2) The application of such measures of control as the prevention of over-grazing: artificial revegetation of denuded areas; damming of gullies; the spreading of water from eroding gullies and washes onto neighboring lands to make possible (a) stabilization and refilling of gullies and (b) increase in erosion-resisting vegetation on lands thus provided with increased water supply; the introduction of improved methods of flood-water farming to make possible the existence of native populations which would be asked to reduce their livestock as an important measure of range rehabilitation; the rebuilding of areas destroyed by bank-cutting of meandering waterways and the protection of neighboring lands through planting of vegetation in the bottoms of destructive washes; contour and basin furrowing of certain areas; the encouragement of forest reproduction; and. where necessary, reduction of bank-cutting (with accompanying destruction of irrigated lands) through construction of comparatively small open-spillway flood-detention reservoirs to reduce peaks of flash floods.

Soil and moisture conservation operations (Federal aid) in cooperation with conservation districts established under State laws.--Operations under this project will involve the furnishing of technical and financial assistance to soil and moisture conservation districts established under State laws. The develop ment of operations through such legally constituted organizations will be the permanent approach to the problem of soil conservation on a national scale.

Up to the present the operation of demonstration soil conservation projects has constituted the main field of activity of the Soil Conservation Service, but while demonstration projects are necessary as a continuing activity, it is realized that erosion throughout the United States cannot successfully be controlled upon a purely demonstration basis alone. Even if it were possible to extend demonstrations to all lands needing treatment, the cost to the Federal Government might be prohibitive. Consequently it is planned ultimately to shift the emphasis from demonstration projects to cooperative soil conservation district projects, carried on to a large extent at State and local expense with equitable contributions by the Federal Government.

The procedure involves the establishment by the Federal Government of requirements to be met by cooperating conservation districts or soil-conservation associations covering such matters as the extent of State and local contributions, the maintenance of control works, and the legal limitations upon the use of land to insure the success of applied measures.

In return for the establishment of the necessary regulations and the making of the necessary contributions upon the part of a conservancy district, the Federal Government will make certain contributions in technical services and moneys in a manner somewhat equivalent to (a) the basis upon which Federalaid highways are carried out, and (b) cooperation with States under the ClarkMcNary Act for fire protection of forests.

Operation of erosion nurseries for the propagation of plants for use in soil and moisture conservation operations.-Operations under this project contemplate the establishment and maintenance of an adequate number of permanent nurseries for the purpose of gathering together and producing native and immigrant plants valuable for erosion control. These plants will be used on the various control projects of the Soil Conservation Service. This work is essential in order that the various demonstrations and other projects of the Soil Conservation Service may be supplied with adaptable planting stock adequate to effect control of erosion.

During the next year it is expected that the production of trees will approximate 500,000,000. Many of the species which are most valuable for erosion control, and which also have great economic value, cannot be grown in the nurseries in less than 2 or 3 years; hence it is necessary not only that sufficient nursery areas be operated to produce 500,000,000 usable trees by the fall of 1936 but also that enough seed be sown this year to get the desirable 2- and 3-year species under way. It is planned to have nearly a billion trees and shrubs under propagation in the nurseries on June 30, 1936.

The program includes the collection and use of little-used species of plants and their seeds and the quantity collection and production of those species which occur abundantly. Grass nurseries will play an important part in the erosion-control program. There is acute need for the establishment of vegetation on thousands of acres of abandoned land. Because of climatic conditions and soil variations, the number of useful species of grasses is quite limited. We have just passed at least 3 unfavorable years in the Great Plains region where the grasses have been largely killed out in wide localities and the land greatly overgrazed. These areas need immediate attention in the way of reseeding and proper crop management to prevent them from becoming sources of dust storms. The procedure will be to study methods of reestablishing vegetation on these lands. It is planned to bring together in the nurseries all species of promising native grasses and other vegetation from the dry-land areas. Species of grasses introduced by the Bureau of Plant Industry from foreign countries will also be grown in the nurseries. These plants will be studied as to their drought resistance, soil adaptability, rates of seeding, mixtures to use, requisite cultural methods, feed values, and ecological characteristics. These studies will form the basis for recommendation as to their use in field plantings.

The program also includes charting the approximate boundaries of the range (habitat) of all valuable species to facilitate the planting of those types which are most adapted to the control of erosion and the areas where they are to be used.

Desirable species of grasses occurring in thin stands and producing little seed will be planted on tillable land, and methods of culture will be developed, if possible, leading to quantity production of seed for erosion-control purposes. It is expected that approximately one and a half million pounds of native grass seeds will be collected during the next fiscal year.

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Technical cooperation with Emergency Conservation Work (C. C. C. campa and other Federal and State agencies.-The work to be carried on under the project involves the furnishing of technical supervision and planning service to other Federal and State agencies, principally the C. C. C. camps. procedure is in accordance with the provision of the Soil Conservation Ac which reads "and the Secretary of Agriculture from now on shall coordinate and direct all activities with relation to soil erosion." In accordance with the provision, it becomes incumbent upon the Soil Conservation Service to cooPET ate with other agencies in directing and coordinating erosion-control activities. This is necessary for adequate coordination of all erosion-control work Through the furnishing of technical direction and supervision by the Soil Cos servation Service, the other agencies may so conduct and adjust their oper tions as to accomplish the control of erosion without additional operation expense to the Federal Government.

By this procedure it is possible to obtain widespread and effective applic tion of erosion-control methods without direct expenditure of funds by ti Soil Conservation Service for labor and materials. Close cooperation is maintained with Emergency Conservation Work (C. C. C. camps), of which large number have been placed under the supervision of the Soil Conservatier Service. The work of these camps constitutes an important factor in Le national program of the Soil Conservation Service. The supervision of these camps, in order that this work may be of most effective and economica character, is a direct responsibility of the Service. Any failure of the camps to carry out the most effective type of work reflects directly upon the nation.i program.

Funds available from E. C. W. sources for the operation of E. C. W. campe are inadequate to furnish sufficient technical supervision for the coordinate: program of erosion control required by the Soil Conservation Service in its operations. Unless the Soil Conservation Service can provide supplementary technical supervision with funds from other than E. C. W. sources, the camps will inevitably fail to carry out work of adequate standards and the work will thus reflect unfavorably on the standing of the soil conservation program as a whole.

Other agencies with whom cooperation will be maintained include the Grazing Administration, Bureau of Indian Affairs, Resettlement Administration. National Park Service, Forest Service, Puerto Rico Reconstruction Coopera tion, Farm Credit Administration, and the Agricultural Extension Service.

Typical of the type of cooperation which will be maintained is that with the Bureau of Indian Affairs. That Bureau has under its supervision the control of large areas of Indian lands subject to erosion, for the care of which the Federal Government is responsible. The Bureau has available considerable quantities of E. C. W. labor which could be used in erosion-control work. There are also many Indian communities which would be willing to contribute labor and materials for the control of erosion in the areas upon which they are dependent.

Another contribution which the Bureau of Indian Affairs can make to the control of erosion in the areas under its jurisdiction is through the carrying out of proper land-management plans and measures for the control of overgrazing.

Through contribution of a comparatively small amount of technical supervisory and planning personnel by the Soil Conservation Service, the Bureau of Indian Affairs can control erosion on very large areas by the methods briefly mentioned above. However, unless the Soil Conservation Service does cooperate with the Bureau of Indian Affairs through the contribution of technical assistance, that Bureau will be unable to proceed with its program for the control of soil erosion of Indian reservations, since it does not itself possess the necessary technical facilities.

Work to be carried on in cooperation with Federal agencies other than the Bureau of Indian Affairs would include the preparation of soil-conservation surveys and of plans for land-use reorganization to control erosion. Other agencies concerned are the Resettlement Administration, the Grazing Administration, and the Farm Credit Administration. The Farm Credit Adminis tration is now borrowing a number of Soil Conservation Service specialists to work out farm-management plans on land in which they are interested.

In addition to cooperating with strictly Federal agencies, it is planned to cooperate with the State extension services in employing personnel to supervise erosion-control activities carried out by cooperative erosion-control associations, counties, and similar organizations.

Mr. CANNON. Your emergency funds for the fiscal year 1936 are 27,265,137, and the regular funds, including deficiency funds, 3,327,198, making a total for the current fiscal year of $33,592,335. ow, you propose in your Budget estimate to spend for the same urposes during the coming fiscal year, $24,604,974—an increase f $18,275,776 in the regular funds and a decrease of $27,265,137 emergency funds.

CONSERVATION SURVEYS TO DETERMINE EXTENT AND DISTRIBUTION

OF EROSION

Under the subhead of conservation surveys to determine the exent and distribution of erosion, you spent during the current year 51,392,682, and you propose to spend during the coming year, $993,935, a decrease of $398,747. This decrease of approximately $400,000 s due to the fact that you have made most of the capital expendiures and that you will now need only money for operation; is chat correct?

Mr. COLLIER. The decrease there is not due to the fact that we have completed all the surveys that we need to.

Mr. CANNON. I take for granted that this $400,000 during the past year was largely invested in capital expenditures.

Mr. COLLIER. It was invested partly in capital expenditures-not exactly capital expenditures, but in the form, partly, of aerial surveys that are necessary to the work. In general, though, it was expended or will be expended during this year on actual survey work.

OPERATION OF EROSION NURSERIES

Mr. CANNON. You are asking for an additional expenditure this year of $12,194 for the operation of erosion nurseries for the propagation of plants for use in soil and moisture conservation operations. These are producing nurseries in which you are producing stock?

Mr. BENNETT. Yes, sir.

TECHNICAL COOPERATION WITH CIVILIAN CONSERVATION CORPS CAMPS

Mr. CANNON. You are also asking for an additional amount of $186,114 for technical cooperation with emergency conservation work (C. C. C.) camps and other Federal and State agencies. What is the nature of that cooperation?

Mr. COLLIER. If I may explain that, Mr. Chairman, we have in the neighborhood of 445 C. C. C. camps that are operating on soilconservation work throughout the United States which are under the supervision of the Soil Conservation Service, or are administered by the Soil Conservation Service, for the excellence and care of whose work we are responsible.

EMERGENCY FUNDS

Mr. CANNON. Your item for emergency funds, on page 514 of the mimeographed notes, is merely a report on the year 1935 and on

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the current year. These funds are about to be discontinued, w the fiscal year beginning July 1, 1936?

Mr. BENNETT. Yes, sir.

PASSENGER-CARRYING VEHICLES

Mr. CANNON. What estimates are you making for passenger-c rying vehicles?

Mr. COLLIER. We are requesting authority to replace 150 vehic which have been driven between 75,000 and 100,000 miles at lea per vehicle, and which will be in a condition in which it is unecono ical to further operate them during the fiscal year 1937.

Mr. THURSTON. Are you getting a straight allowance, accordin to the age of the car? What is the basis of the exchange you ma when you turn in an old car for a new one?

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Mr. COLLIER. It is my understanding that they advertise for bi for a certain number of automobiles. They state that a certain nuzber of old automobiles will be exchanged, and they ask for bids the basis of turning in the old automobiles, plus a certain amount. cash; and they tell the companies interested that they may inspec the automobiles at certain locations.

Mr. CANNON. How many automobiles are you using at the preser: time?

Mr. COLLIER. Five hundred and thirteen.

Mr. CANNON. Are you providing transportation by private owned automobiles at a stated rate per mile?

Mr. COLLIER. Much more in the past than at present. We have authorized the use of personally owned cars at prices ranging fro 3 to 5 cents per mile, depending upon the part of the country where the cars are used. In the East, where the roads are good and condtions favorable, we give them 3 cents a mile. In certain parts of the West, particularly in wind-erosion areas, where the dust causes the motors to wear out more rapidly, we allow 4 or 5 cents per mile.

Mr. CANNON. Which do you consider more economical, to allow 3, 4, or 5 cents per mile for privately owned cars, or to have them use Government-owned cars?

Mr. COLLIER. In the long run, we feel that the Government-owned car is more economical, not only because we can operate them for less than 4 to 5 cents per mile, but also because, where you grant very many authorizations for the use of privately owned cars, the disposi tion is for the car mileage to increase.

SOIL CONSERVATION EMPLOYEES COVERED INTO THE CIVIL SERVICE

Mr. THURSTON. To go back to another matter, the Executive order placing your Service under the civil service was made effective December 27, 1935?

Mr. COLLIER. I believe that that was done by act of Congress, under the Soil Conservation Act.

Mr. THURSTON. About how many were covered into the civil service under that? Just give it approximately.

Mr. ABBOTT. Approximately 5,000.

Mr. THURSTON. Do you have a table showing the legal residences of the ones appointed?