will be set up in this plantation to test the feasibility of raising silk worms in Puerto Rico.

The Manual Industries and Design Department also completed arrangements for the organization of textile and ceramic laboratories. Technicians were retained by the Company for the purpose of organizing these laboratories. Part of the necessary equipment and materials were ordered.

All of the legal work of the Company is handled by the Law Division. The Division served in the organization of three additional subsidiaries, the preparation of all bids and contracts, and the drafting and revising of collective bargaining agreements with labor unions.

Specialized transportation services are provided by the Traffic Division. Rates for this service are lower than those prevailing among common carriers, and a profit of $7,517.22 was realized from operations for the period ending June 30, 1945.

A Finance Department, which began functioning on July 1, 1945, will handle not only the financial affairs of the Company, but also will offer assistance to its operating subsidiaries. The activities of the Company for the period under review have been financed primarily from the funds obtained through an issue of temporary financing collateral bonds. The total authorization amounted to $5,000,000, of which $3,500,000 had been issued by the end of June 1945. Shortage of funds to finance projects, which has previously been a handicap, was relieved in May 1945, when the Legislature appropriated $17,500,000. The value of investment in stock of subsidiary corporations on June 30, 1945 was $4,532,430 against a total of $2,596,490 on June 30, 1944. Administrative, general and financial expenses amounted to $229,843.10 for the year, and of this amount $82,114.02 constituted interest expense.

EXTENSION SERVICE

(University of Puerto Rico)

The Extension Service, in cooperation with the U. S. Department of Agriculture, engaged in a variety of activities designed to help rural families to raise their standard of living. The Service's report covers the period from December 1, 1943 to November 30, 1944.

The food production program was carried out with the assistance of 36 War Emergency Production Assistants. Vegetable seeds were distributed among farmers and 4-H Club members for a total of 23,774 Victory Gardens covering 3,694 acres of land. Almost 7,000 tons of food were produced in these gardens.

Better methods of food preparation and conservation were taught by 28 Home Demonstration Agents assisted by 21 Preservation and 14 Canning Assistants. More than 53,000 families were given this instruction. The increase in the amount of food thus preserved during the year 1944 over 1943 is shown by the following figures:

In cooperation with the WEP, six industry centers were maintained where 600 Extension farm women and 4-H girls were trained in different crafts, such as fabrication of articles from maguey, coconut, carey, straw and drawn work. At the completion of their training, 173 of these women were transferred to mass production centers established by the Puerto Rico Development Company. A total of 8,934 articles, valued at $5,139.45, was made at these production centers. Home Demonstration agents also trained 4-H girls and farm women in the making of articles from native fibers and in needlework. The value of such articles sold by farm families during the past year was estimated at more than $14,000.

The Extension Service gave special attention to a clothing conservation program. More than 3,000 farm families were given assistance in the renovation, repairing and remodelling of used garments. In addition, 2,930 families were assisted in clothing construction problems and 2,043 others in the selection of clothing and textiles.

Other activities of the Service included instruction in hygiene and nutrition, improvement of recreational facilities in rural communities, holding of extension schools on farm management, establishment and supervision of 4-H Clubs and camps and the distribution of various. publications of the Service.

The nine Demonstration Farms of the Extension Service continued to render many valuable services to farmers. More than 10,000 farmers visited these farms to take advantage of method demonstrations, free breeding services of purebred stock from the farms, for free propagation material, or to buy poultry and live stock. The most important materials distributed free of charge were coffee seedlings, vegetable seedlings, cassava cuttings, coffee seeds and guava seedlings.

FIRE SERVICE

Two unusually disastrous fires occured in 1944-45. In February 1945, the worst fire in the history of the Island took place at Lares. In all, 198 houses were destroyed, and the damage was estimated at $308,748. In March, another major fire broke out in Aguadilla where 43 houses were burned down.

The total number of fires handled during the year was 145, as compared with 75 during the preceding year. Total damage was estimated at $2,101,428. Bayamón suffered the greatest amount of property damage, with losses calculated at $714,525. Fires caused the death of eight persons, most of them children under eight years of age.

Lack of uniformity in hydrants and inadequate fire-fighting equipment continued to handicap the Fire Service. A survey made during the year showed that 80 per cent of the hydrants are in urgent need of repair or replacement, and that the number of existing hydrants is wholly inadequate. Although there were no funds with which to purchase new equipment, several pieces were received which had been contracted for during the previous year. New equipment delivered included 15 fire trucks and 16,000 feet of hose. Eight of the 33 pumpers which were transferred from the Civilian Defense during 1943-44 were remounted on new Ford chassis purchased during the year.

In October, the Service's Central office was installed in the new Insular Fire College building in Santurce.

GENERAL SUPPLIES ADMINISTRATION

Activities of the General Supplies Administration during the past year included the allocation of shipping space; recapitulation of import statistics; procurement, importation and distribution of lumber and coffee; and the enforcement of a system of priorities for the purchase of fuel oil. An additional duty was assumed in April 1945, when the Administration agreed to accept responsibility for the continuation of the price support program for food crops and the agricultural market news service, which had formerly been carried on by the Office of Supply of the U. S. Department of Agriculture.

The work of allocating shipping space increased considerably during the year as more commodities were released from government control. The policy of giving preference to the most essential items was continued.

Monthly imports of dry cargo for civilian use increased from 80,719 short tons in July 1944 to 109,634.79 in June 1945. A total of 984,208 short tons was received during the year. The Division of Finance and Statistics compiled monthly reports covering stocks in the Island of the most important food commodities. The Division also analyzed 834 manifests of steamships covering all incoming civilian cargo.

The procurement and distribution of lumber by the Administration was continued until November 1944, when dealers were again permitted to handle their own importations within the limits prescribed by the War Production Board and shipping space allocations. During the fiscal year, the Administration bought 8,026,860 board feet of lumber with a total value of $621,663.02.

A threatened coffee shortage caused the Administration to attempt to build a stockpile during the harvest season. It was impossible, however, to obtain an adequate supply in the local market, due to the short crop and the reluctance of the growers to sell at OPA prices. Importations from the Dominican Republic by the War Food Administration caused local growers to release some of their stores, and a coffee crisis was averted.

Bunker "C" fuel oil was again rationed in accordance with the priority system promulgated in 1942. A total of 3,825 permits for industrial use was issued for this commodity.

An emergency stockpile of construction materials was again built up for use in case of a hurricane and was disposed of at the close of the storm season.

On November 17, 1944, the Governor appointed the Administrator sole buyer of surplus war property for all Insular departments and agencies and municipalities. Commodities totalling $104,795.55 in value were purchased up to June 30, 1945.

The General Supplies Administration also encouraged the Victory Garden Program by contributing $2,410.04 worth of seeds to the Department of Agriculture for distribution among small farmers.

The Administration took over the Price Support Program on April 16, 1945. The major activity during this short period was the preparation of a Procedure and Manual of Instructions. Contracts were entered into for the use of warehouses where Produce Centers were established and for using the services of the Vegetable Marketing Cooperatives sponsored by the U. S. Department of the Interior as purchasing agents of the Program in various localities. A campaign was conducted through the radio and various Insular and Federal agencies to acquaint farmers with details of the program.

The Market News Service broadcast a daily summary of agricultural prices over three different radio stations. Price reports were also mimeographed and distributed, upon request.

A net profit of $19,934.63 realized from commercial operations reduced the net cost of maintenance of the General Supplies Administration to $40,273.13 as against a budgetary appropriation of $72,609.51.

HOUSING AUTHORITY

War restrictions on building continued to prevent the development of new housing projects. As in the previous year, the funds of the Federal Public Housing Authority, on which the Insular program has depended, were reserved for housing connected with the war effort. Puerto Rico could not qualify for such housing. An annual appropriation by the Insular Government of $30,000 for administrative expenses has allowed the Authority to continue its other activi

ties.

Two new laws passed during the last legislative session will serve to make the Authority less dependent on Federal aid in the future. One act appropriated $1,850,000 for the development of housing projects, and the other provided $1,000,000 for slum control. Under the latter Act, the Planning Board may declare "slum districts", and the Housing Authority may then hire inspectors and watchmen to enforce the regulations of the Board with respect to the development of such areas, or may proceed to eliminate them through voluntary purchase or condemnation of land and buildings.

Disastrous fires in the towns of Lares and Aguadilla in February of 1945 left 258 families homeless. The Insular Emergency Committee placed at the disposal of the Authority the sum of $600,000 to rehouse the victims. Designs for the reconstruction of Lares have already been completed.

In cooperation with the War Emergency Program, a slum survey was made of each town that is under the territorial jurisdiction of the Housing Authority. Under a law passed the previous year, appropriating $2,200,000 for the development of housing projects, sites were inspected and located in 71 towns approved by the Planning Board and Health Department, and survey parties were sent out to prepare survey and topographical maps for the purchase of land and the preparation of site plans. In all, 18 property surveys and 15 topographical maps were completed. The Planning Division of the Authority was reorganized in 1945, and the programs for the towns of Lares and Aguadilla were developed by this Division.