thus defeated. Section 5 should be amended so as to provide specific penalties for destroying or defacing any of the duly authorized marks upon renovated butter and its packages.

The predictions that the law referred to would be detrimental to the interests of makers of country butter of the poorer grades, which goes to make up the bulk of the "packing stock," reducing its price and the consequent income of farmers from this source, have not proved true. Since the law went into effect two attempts have been made to combine manufacturers of renovated butter, who are the chief buyers of packing-stock butter, and fix a low maximum price for the latter; but the efforts have failed through the competition of buyers who needed the material to keep their renovating factories in operation. During part of the season of 1901, and still more during the earlier portion of 1902, a feverish condition of the market led to the payment of abnormally high prices for packing-stock butter to be stored for manufacture later. The prices of these low grades of butter ranged very high for a time, although the farmers who first. sold it received but a small part of this temporary advance. The whole movement was exceptional and entirely independent of the law of Congress and its effects. Since the operations of the law have become generally understood and its effects appreciated the market for the new material has been comparatively steady and prices for packing stock have been relatively as high as two and three years ago and higher than for several years just preceding the introduction of the renovating process. In the administration of that portion of the law regarding renovated butter which is assigned to the Department of Agriculture during this first year after going into effect many allowances have been made for errors and omissions in observing the regulations, due to the novelty of the subject, misunderstandings, and inadvertence, and even in cases of indifference and negligence. It is believed that after one full year's experience in operating factories under the law, with repeated visits and explanations from inspectors, in addition to printed instructions and special correspondence, it is time more strictly to enforce the reasonable regulations and time to make the sanitary inspections more effective.

The Dairy Division has again assisted in procuring butter for the use of the United States Navy by perfecting specifications and supervising the execution of contracts. Dairy inspectors have examined and passed upon 700,000 pounds of butter included in naval contracts during the year, and the Navy Department has acknowledged the service rendered and its satisfactory results. A much less quantity of butter has been inspected for the Army, upon the application of purchasing officers for the Subsistence Department.

By the cooperation of this division a "national educational test of creamery butter" was conducted covering six months and embracing

monthly samples of the product of about 500 creameries located in 19 different States. Incidentally determinations were made of the moisture content of 730 packages of butter from 400 representative creameries in 18 States, with the gratifying result of showing that the average creamery butter of the country appears to contain less than 12 per cent of water.

A cooperative experiment in the cold-curing of cheese upon a commercial scale was carried on in conjunction with the agricultural experiment stations of Wisconsin and New York. The report of this work is now in press.

The work of the Dairy Division during the fiscal year 1903-04 will embrace, in large measure, a continuation of that of previous years and also include several material additions. The condition of the dairy industry of the United States will be studied in all its aspects, with a view to determining the most favorable opportunities and methods for progress and improvement and assisting in their accomplishment. The dairying of other countries will also be observed, productive conditions noted, the demands of consumption and of all foreign markets watched, and such action taken as is possible in the interest of extending foreign trade in the dairy products of this country. Relations will be maintained with State dairy officials with a view to cooperation in the enforcement of law; also with the voluntary organizations of dairymen and the dairy schools in numerous States, in order to be informed of their proceedings and to cooperate so far as may be advisable.

The inspection of renovated-butter factories and markets will continue and be gradually extended and improved for the better administration of section 5 of the act of Congress of May 9, 1902.

This Division will conduct investigations by itself or in cooperation with suitable agencies. An exhaustive study will be made of the conditions and limitations incident to the extension of the dairy industry in the "short-grass country" or "semiarid region" east of the Rocky Mountains. This will include careful consideration of the centrifugal cream separator for hand power or light power and its proper relations to the creamery system of making butter. A series of commer

cial tests will be conducted to determine the relations between different temperatures and other atmospheric conditions in storage and the maintenance of quality in butter stored for several months. It is also proposed to investigate the manufacture of condensed milk and the action which may be expedient to preserve and promote the reputation of this country for producing this article in a form suited to foreign markets.

In considering the future of the Dairy Division it should be first remarked that after eight years' existence the work in hand and the opportunities for usefulness in extending present lines of effort and

taking up new ones are much greater than can be accomplished by the original organization. The dairy industry is one of the most important and most extensive branches of American agriculture. Four-fifths of all the farms in the country keep cows for milk, seventeen million in number, and another million are reported "not on farms." The annual product of these eighteen million dairy cows has a value of about $600,000,000. The opportunities for improvement are manifest at many points. If the average cost of maintaining a cow could be lessened by intelligent economy, or the average dairy product slightly increased in quantity by rational treatment, or the average quality of dairy products raised a little by improved methods of practice, the aggregate additional profit would be very great. For example, onethird of all the butter produced in the United States is made in creameries and two-thirds on farms. The former, by reason of higher average quality, has a value of at least 3 cents per pound greater than the latter. If one-half the butter now made on farms could be made in creameries or in any way to make it as good as average creamery butter, the increased income to this third (only) of our butter producers would amount to $15,000,000 a year. Again, if the average municipal milk supply could be but slightly improved in quality and sanitary condition and the service correspondingly improved, the gain in the comfort and health of millions of people would be beyond measurement by dollars. Such improvements are entirely practicable and in large measure comparatively easy of accomplishment. In the accomplishment of them the Dairy Division strives to assist and sometimes. to lead, doing those parts of the work which are impossible to individuals or even associations of individuals.

THE ANGORA GOAT INDUSTRY.

The great interest which has become widespread in the Angora goat industry during the past three years has not abated in the least, and this Bureau has done everything possible to assist the Angora goat raisers to place this industry upon a permanent basis. The correspondence concerning this feature of the work has been cared for in the editorial office, and the editor, Mr. George Fayette Thompson, visited the annual show at Kansas City in October and addressed the breeders along lines favorable to better animals and better mohair. There is a constant demand for the literature on this subject published by the Bureau, and there is every evidence that the industry is rapidly becoming established in all parts of the country.

The disease, which has been given the name of "takosis," referred to in my last report, seems to have about run its course, and it is hoped that it will not reappear. In the meantime, purchasers are advised to select animals carefully in order not to introduce the disease into flocks. where it has not already existed.

ANIMAL HUSBANDRY.

The expert in animal husbandry, Mr. George M. Rommel, has prepared an extensive bulletin on the hog industry in the United States, and it is now ready for the printer. He has also devoted considerable time to an investigation of alleged irregularities of a certain breeders' association, and his report on this matter has been placed in the hands of the Secretary. These investigations have shown the necessity of more careful supervision by this Department over the importation of animals for breeding purposes and more careful scrutiny of the registers accepted as evidence of the pure breeding of animals admitted free of duty.

REPORT OF THE WORK AGAINST SHEEP SCAB IN 1903.

By C. O. GOODPASTURE,

Of the Inspection Division, Bureau of Animal Industry.

The efforts of this Bureau toward the eradication of scabies in sheep were carried on with increased vigor during the year 1903, and the figures relating to this work will bear out the statement that, while it was much more extensive than in any previous year, it was likewise more satisfactory to all concerned.

The following exhibit shows at a glance the growth of the work during the past three years:

The large increase in total inspections as shown above is due in part to the normal increase in the movement of live stock and of the facilities for the inspection of sheep, but more largely to the fact that in previous years some of the regular stations failed to report the inspection of sheep found free from scab which were sold for slaughter at local abattoirs. These discrepancies, affecting only the States in which the principal packing centers are located, will be seen at a glance by comparing the statement on page 45, showing the inspections by States in 1903, with the similar statement published last year.

It is noted that a slightly larger percentage of sheep inspected were reported to be infected with scabies than were so reported in previous years, but this may be understood when it is stated that the principal work was done in Western States, where the disease is most prevalent and where sheep are run in large bands (1,000 to 3,000 head), and that under the regulations of the Bureau (B. A. I. Order 108) when scab is found at all in a band the entire lot is reported and recorded as infected sheep. It is for this reason that in the statement above referred to on page 45, showing in detail the year's inspections, it appears that two-thirds of all the infected sheep were found in the State of Wyo