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"CANADA PACKERS LIMITED REPORT TO SHAREHOLDERS FOREWORD In the following Report, constant references are made to the war, They have to do solely with its effect upon the Canadian Live Stock Industry, and the operations of this Company, In the war, issues are at stake greater than any which man- kind has heretofore been'called upon to solve, But, for a discus- sion of them, a commercial report is not the appropriate place. The Directors who write this Report, and the hareholders to whoni it is addressed, are keenly aware that in relation to those issues, the fortunes of a single Industry,--still more of a single business,--are a matter of small moment. 3 Nevertheless, the war adds to, rather than detracts from, the importance of every unit engaged in essential .industry, By the utmost efficiency of operation, an Industry best serves the Nation, as well as its Shareholders. The necessity, therefore, to attain such efficiency never was so great as now, The thirteenth fiscal year of Canada Packers Limited closed March 28th, Net Profit, after Bond Interest, Depreciation, and Taxes was $1,667,809.78 Equivalent, (on 200,000 Shares of Common Stock) to .... $8.34 per Share. The regular Dividend, 75¢ per quarter, was paid through- out the year, and as in the caseqof last year, an extra Divide was declared, (and paid July 2nd, 1940) Of inviaindine $1.00 per Share. Total Dividend ... $4,00 per Share. $800,000.00 te Preceding year Increase Sales for the year were ........ $88,205,639.75 $77,225,782.65 14.2% Weight of products sold, lbs. 913,261,116 800,763,592 14.0% Net Profit . ... (31,667,809.78) was equivalent to .. 1.9% of Sales and to .. ..18¢ per 100 lbs, of product scld, that is,--slightly less than 1/5 per Ib. The following condensed set-up of the Profit & Loss Account, ex presses the operations of the year in camparison with the average of the previous five years: -- ricultural production is much above that of the other Dominions, and her geographical position adds greatly to her importance in this respect, The three nh foods which, by natural endowment, Canada is best fitted to produce are Wheat, Bacon and Cheese, And the Agricultural economy of Canada is geared specially to make her the source of these three pro- dacts, . With the experience of the last war in mind, there was little thought that too much of any of these could be produced, And yet at this moment there seems a possibility of an embarrassing surplus of both Wheat and Bacon, ar From the point of view of Great Britain, this may seem an advantage, --inasmuch as a nearby reserve exists which can be called upon at any time. Byt from the point of wiew of Canada, the prospect has some anx- ieties. For Agriculture is still Canada's basic industry, and Canadian econ- omic welfare hipzes on the purchasing power of the Farmer more than upon any other factor, . P A Boi cannot Dirchase other goods with Wheat or with Hogs which he is unable to sell. LL . The Wheat situation does not come within the scope of this Repos and it is sufficient to say that with a carry-over of 300,000,000 bushels, and a crop in sight of (perhaps) 400,000,000 bushels a problem faces Can- ada for the first time as to how its Wheat can even be stored. . No doubt the storage problem will be solved, and when it is, anxiety will be partly alleviated, for. when properly stored, Wheat does not deteriorate. . With- Hogs it is otherwise. Hogs must be marketed when ready, and the Meats into which they are processed cannot be stored for more an a limited time, : B In respect of Hogs it should immediately be said that Ww to. now no serious problem Fos occurred. All surplus production has been bought by the British. Ministry of Food. Record quantitics havé been shipped. The fact is, the war rescued the Canadian Pig producer from what otherwise would have been an embarrassing situation. It happened that just when war broke out, a marked increase in Hog deliveries was about to arrive upon the Canadian markets, By the terms of the Ottawa Agreements (1932) Canada had been given a Quota of 650,000 cwts. weekly, (Cwt.--112'1bs.) And, because of this outlet, Hog ploduniy n had since then been the most profitable branch of Canadian Agriculture. } But Bacon shipments had never reached the Quota, as is scen from . under review, this Profit was equivalent to:-- tic ocr. 100 Tho, 1 Dears sols : i.e. to just over 1/10¢ per lb. Broadly speaking, it may be said that the margin of Profit in the "Beef division was less than' average; and that on 'Hogs was greater-than .- On total Live Stock products, the margin per 100 lbs. was in fine with the average of the last b years, But the amount of the Profit was higher, because of record volume. cies sae The year under review began April 1st, 1089. In retrospect it divides itself Inte tifa peredsi : months u 7 months, A 3rd, 1989, to March 28th, 1940. The first has been described as the period of the war of nerves. A constant threat of war existéd. The 'démand for certain foods was active, due to-the policy of Great Britain, France, and Germany, 'of storing re: gerve supplies. During this period the weight of product merchandised was ....10% greater, but Profit was somewhat less, than in the same period i ear. . 5. {he Drosenins Jord began with the declaration of war. It brought an immediate step-up, both in volume and in margin of Profit. ALS This improvement came in part from increased shipments to Grea Britain.) The increases consisted chiefly of three Cimadities Basen, Cheese, Eggs. These increases, however, were to some extent offset by decreased shipments of other foods, which were ut under license,--an in some cases excluded,--by the British Ministry of Food. Such foods were Canned Goods, Dressed Poultry, ete. ~ i AN | <r i Sa : spect to Volume and Profit, - The chief improvement, however, both in res eh Canad, gah pratt, came from the increased industrial activity. wit! a with' the war and which-expanded as Canada's war effort this is seen in the increased Volume of the second perjod--(hs ne ok With the previous year) --first period, increase ood 17. f--second period, increase .... . I. fo igher Profits of the second period derive not so muc m RRORL (as was the case in.the last war), as from the gararal uiekening of industrial activity, In the main, prices of the chief pro fe 8 Handled by this Company have not been advanced by the war. Cattle 4 083 have been tirm, but this has been due to two causes quite independen HK an price level In. United Shales, spesially for choice grades. & ratively light' marketings in Canada. ator ot war, Canada's only exports of Cattle or Beef products have been to the United States. : i og prices since September, 1939, have, on verage, not been higher than: oni the corresponding period a year earliér. (This, however, does not mean that the war has failed to help the Canadian Pig industry. Very much the opposite-is the tate; Had it not been for the war, Hog prices in Canada would have been mue¢h lower.) But although there was no géneral advance in price levels, certain products, of which this Company held substantial quantities, did advance yapidly because of 'the war, Chief amongst these Were the following: -- Hides and 'Skins--of which there are always on hand the equivalent of ae lakeort. cause, for several months « « = =--38tocks , be ly Wout, 3 receding the war, it had been very difficult to sel ; ool in Canada, 'Butter and Cheese--At the outbreak of war storage stocks of these were of hen et their distant sources, it Is neces { aed , becai e n ses Yegeidvle Olle an hiways to (have on hand several months' su ply. © An immediate i rar in the inventory values of the above roximate A 3 hil A t prvi time will have its counterpart in a correspond: ing deéline. Therefore, instead of being taken 'up as Profit, the sum of $879,000 has been 'set up as a "Wartime Inventory Reserve." bat) Vivviie on i Utitil the present, the war Kas had many unexpécted developments. In Great' Britafn oii has been no Beateity, of food, On the other hand, there has been a definite seareit ons and' implements of 'war, of mun ! At the moment, the lacing In Yanda of 'enormous orders fot muni- tions 'Hay, to Nome extent, d d" attention from the role assigned to Canada in pre-war plans--=that of the chief Botirce of food; 'Cahada's Ag- S¥ptember- 8rd, 1939,--when war was declared, Average the following table: -- « . Year ended b years to ERAGE Weekly SHIPMENTS TO GREAT March, 1940 % March, 1939 % AV LiL ; BRITAIN OF CANADIAN HAMS AND BACON NF $88,205,639.75 100.0% $71,368,937.94 100.0% (Quota Allotment 50,000 bwts. weekly) - 12 281 " "" © Cost of roducts 1933 .... 12,281 = . chiefly Live stock 69,767,159.36 79.1 56,845,044.67 79.6 1531 - 20a " . Cost of materials . y : " and packages. ........ 2,461,790.30 2.8 2,099,654.25 3.0 , 1936 Sons 9 " Salaries & Wages, ' . 1937 Lt . including Bonus .. 7,738,780.98 8.8 6,251,740.21 88 J oon = ; gs J . i Ve Selig: . This failure to ship the allotted quantity was not due to indifference. igen . 5 f ssi f crop failures in Western Canada, Hogs pairs, and general It was the result of a succession of crop 8 VIN Samad Hs operating costs .... 3,808,775.20 4.3 3,512,035.58 540 cannot be produced without Grain, and in large areas of the West, fa 79 1 165,703.08 ; had no Grain. . . ond Istorss) Ta eT 1.3 504331.92 Ni ' In 1938 the Western crop was large and well distributed. Many dis- j ii ay tricts had feed for the first time in seven years. Thousands of farmers Total cost of pro- ita 3 swung back into Hog production. The sows were bred beginning go duct, plus Expenses $85,066,685.76 96.4 ~~ $69,308,599.71 = 97.2 1938,=and it was realized that beginning September 1939, marketings would Wartime Inventory TTT 1 be much heavier; particularly in the West. TT "Reserve 579,000.00 Ni Pa But no one expected an increase so great as actually occurred. The Depreciation on Fix- . 5 = 694.5 11 extent of this increase is evident from the following «able of average ed Assets oo... 898,081.71 1.0 801,694.75 L Weekly Hog Gradings:-- $86,543,667.47 98.1 $70,170,294.46 98.3 AVERAGE Weekly HOG GRADINGS Se smite » FHT TT fon All Canada Eastern Canada Weitz Canada Profit from Oper- on 61,254 20.930 31,315 tions ...oi 1,661,972:28 1.9 1,198,643.48 1.7 10% a gp aan Yntonie fiom Invest 1936 57,102 26,169 30.931 MENS .otinaiiin 5,837.50 -- Somes) ---- 1956 72,029 36,142 35.887 : ti ati 1937 .. 75,506 10,879 621 Bh a ta . 1938... 62.304 38.205 2408 ET dreriniy $ 1,667,809.78 1.9% $ 1,293,726.49 1.8% | 1939 (to Sept, 1) 59,569 . 35,842 . 12 . * business of Cana S11 90, 38518 --T7.0% . 24,207 45.0% The chief (and original) business of Canada Packers is to purchase | 1939 Pent: bs ae IY pH yk Live Stock, and to process and sell the products,--Meats plus By-Products. . a a a 3h 0.285 01 But numerous subsidiary operations are also carried on, including the ng 30581 So aiayD a 49,596 ms i le of :-- -l A 3 ' , 23 I Cheese, Poultry and Eggs, Fish, Canned Goods, 1940 Jan. 78,639. 38.4 i 2h im 5 Soap, Vegetable Oil products, Fertilizer and Stock Feeds, Wool i Fe © 93,014 45.6 $213 us aes. 32 Pullery products (Wool and Skins), ete. Mar. 88,602 31.7 Ly 2s 1}.u89 i Live Stock products constitute the bulk of the volume, and because the Apr. 95,319 50.0 fa us fle 02 producers of Live Stock have a natural interest in the subject, a separate May 100,748 60.7 Sp igs gi 33a accounting is kept of the Profit on purely Live Stock operations. June 81,047 56.4 43, . , -- sindicate Increase as compared with previous year.) RG sig it not been for tho war, Canada would last Fall have had arket her Hogs. : ha problem did not arise. During the months when the runs were heaviest (October; November, December) the British Minstry of Food willingly bought all the Bacon Canada was able to ship. In Jue Sours a contract was made between the British Ministry of Food, and the gang - tan Government. The contract was for $0000 Suis, Took: but the Ministry larger quantities in case they could " i rk Td Der 4939 until January 1940, Canada shipped prac- tically all the Bacon of suitable type which she herself produced, and left herself without sufficient Bacon for domestic requirements. This deficiency was made up by Importations from United States, However, about the middle of January 1940, a new and important phase of the export situation set in. The British Ministry notified tho Bacon Board (which had been set up in Canada to administer the contract) that stocks of Bacon in-England. had become. embarrassing. They requested that for a per- fod, shipments should bo restricted to the contract quantity. later, -- in tho month of February, -- further notice to tho Board stated definitely that ship- ments must henceforth be limited to the contract quantity of 50,000 owts. weekly, and since that date this limit has been strictly enforced. By this order, the whole Bacon position was transformed. Current mar- ketinge were moro than sufficient to provide the export allotment (50,000 cwts.) plus Canadian. domestic requirements. The situation was further com. d | plicated by the fact that, In anticipation of continued unrestricted exports, large quantities of American Bacon had been bought and were coming for- ward. Because of the now restricted export outlet, and of the relatively low price pt the American product, thbse importations, had they continued, would quickly have broken down the price of Canadlan Hogs. The dilemma was a serjous one, The Government, after consultation with [the Bacon Board and tho Packers, decided that steps must be taken to restrict American imports, However, because of the Canadlan-American Trade Agreo- ment, such action could not be taken without full explanation to the United States Government, Considering the difficulties of the situation, the Canadian Government handled the matter with despatch. An agreement was arrived at, which was promulgated by Order-in-Council, that beginning February 26th, 1940, Amer- fcan importations should be Hmited to the average of the period January to August, 1939, While the discussions wore under way, Packers had agreed, at the suggestion of the Bacon Board, to discontinue purchases of American pro- duct, \ Since that date, imports of American product hava rapidly declined. There has been quite wide comment in the press and elsewhere regarding imports of American Bacom, and It Is worth while to stafo the facts, which are as follows: -- : (1) During the time that unrestricted quantities of Canadian Ba. con were being shipped to England, American Bacon had to be brought into Canada for domestic requirements, Otherwise - shipments to England would have had to be cut down, (2) These imports (of American Bacon) did not affect the price whic the Canadian Producer received for his Hogs. That was based upon the price received in England for Canadian Ba- con. (In April the. price of Hogs in Canada broke, but this was 7 weeks after American importation had been checked, and © was due to the growing approhension that the purchases of the Britistt Ministry would not be sufficlent to clear total +. Canadlaii atocks.) 4 Ye (3) American\Bacon was not sold in Canada as Canadian Bacon, nor at the 'Canadian Bacon price; 3 (4) American Bacod was not re-oxported to England, even ta the extent of a single pound. (5) Throughout, the disparity fn cost as between Canadian and American Bacon led to complications and complaints, Never theless, so long as imports continued, all Packers were forced to handle American Jroduet. Otherwige they could not have met competition in the low price field, of bo A (6) Exporting Packers received A Drawback of the Duly which they had paid on imported American product, This also has been a subject of considerable comment, But the facts Are *véry simple, The Drawback was mads under a claves in the Cattadian Customs Drawback Regulations, ktiown as the 'Equi- valef(' Clause, covered 'by Orderin-Councll, of 25th March,. 1920, and subsequent amendments. This Clause had been a part of the Customs Regulations for 20 years. Canadian Pack- ers had had no part in having the 'equivalent' principle estab- lished, It applies not only in respect of Meat exports, but of all Canadian manufactured products, Under this 'Equivalent' Clause, Canadian Packers were clearly entitled to a Drawback of the Duty paid: -- American Bacon was imported, -- equi- valent Canadian Bacon exported, However, a complication arose In respect of non-exporting Canadian Packers, Inasmuch as they did not export Canadian Bacon, they were not entitled to a Drawback of the Duty paid _on American Bacon. Non-exporting Packers protested, and be- 'cause of this the Drawback privilege was cancelled, Cancella- tion was made retroactive, The retroactive feature was clear- ly unfair, as the Customs Department had ruled that the Drawback applied, and most of the product had already been gold upon that understanding. In other respects exporting Packers agreed. with the ruling. ~~ . (7) Much of tha discussion on the subject of American imports overlooked the fact that the Canadian-American 'Frade Agree ment was involved in the issue, This Agreement is of* high value to Canadian Farmers, inasmuch as it prayides the only outlet for Canada's surplus Cattle, ° Moreover, the discussion lost sight of the fact that, even in respect of Pork Products, the movement is frequently in the ather direction, that is from Canada to United States. It is indeed quite possible that within the next few months United States may bea very wolcomo outlet for some of Canada's surplus Hog product, It has been go many times in the past ruary) that shipments must be restricted to 50,000 cwts. weekly, several eve ents have occurred which vitally affect Britain's Bacon supplies. On April 9th the Germans invaded Norway and Denmark, thus cutting off imports of Scandinavian Bacon. On May 10th Holland was overrun, thus cutting off the Dutch supplies. From that dato forward Canada became the sole external source of Cured Wiltshire Sides. Further, becauso of the necessity of restricting importations of feeds, Bri tlsh Pig producers have been enjoined to cut their herds to one-third. But notwithstanding all these facts, the British Ministry still informs the Canadian Bacon Board they do not wish heavier shipments from Canada. It heavier shipments are not taken, Canadian Hog producers will this Fall find themselves In a most embarrassing position. Beginning in September or October, 1940, it is certain that Hog market: ings will heavily exceed all previous records. The Canadian Farmer has pro- duced these Hogs in the belief that by so doing he was playing his part in the general war effort. Becauso of the experience of the last war, everyone (in- cluding the British Ministry of Fyod) took it for granted that all the Hogs which Canada could produce would be needed. Present forecasts aro that in the coming year (October 1st, 1940 to Sep- tember 30th, 1941) Hog marketings will be 6,000,000 as compared to 4,827,000 in tho present year (October 1st, 1939 to September 30th, 1940 -- August-Sep- tember estimated), Jt this forecast is realized, the surplus available tor export will be approximately 75,000 cwts, weekly, - For this surplus Great Britain 18 the logical buyer, and it is earnestly hop- od the British Ministry of Food will lay its plans to take all of it. This, it Is believed, the Ministry can casily do. For, with shipments from Canada of 75,000 cwts. weekly, total supplies will-bo barely more than one- hall normal consumption, and will not exceed the total involved in the ration -- 4 ounces per person per week. 3 *--NOTE.--Since this Report was set up in type, exports of Bacon have been stepped up for a period. It is hoped this step-up may be the forerunner of an increased scale of shipments, It must always bo kept in mind that Canada has no claim on the British market unlesds in addition to quantity, she also produces the quality of Hogs desired. During the last war, this fact was lost sight of. As that war progressed, Canada produced. fnereasing numbers of Hous, but the quality deteriorated, After the war, as soon as Danish' Bacon was again available, Canadian Bacon was pushed off the British market. : Pig production in Canada is now much moro important than ever before. It, at the end of the present war, Canadian Bacon were again pushed off the British market, the disaster to producers would be ono of first magnitude, The only safeguard fs, during the war, to produce exactly the type of Bacon the British consumer wishes. So that, at the end of the war, the Bri: tish consumer will demand Canadian Bacon instead of refusing to eat it, In the last ten years, substantial progress has been made in improving the quality of Canadian Hogs, This has heen done largely through the estab- lishment of testing stations in which the best strains are given R.O.P. (Record of Production) rating. And this improvement ig being maintained. One last step still remains to bo taken, It has to do with the 'sizeability" of Canadian Bacon. The British market demands Wiltshire Sides of lean type weighing 55 to 65 Ibs. At present only about 55 per cent, of the Bacon shipped from Canada falls within this range, as compared with 95 per cont. of Contin- ental Bacon (while Continental supplies wero still coming). The present is Canada's opportunity. She is now almost the sole external source of supply for British Bacon, and this may continue for a period of ono' or two or three years. If, during that period, Canada provides the British con- sumer with exactly the typo of Bacon he requires, then the demand at tho end of the war might be for. Canadian Bacon, and the dream of sixty years might be realized. Canada would find herself in the preferred position on the British market which Denmark 'has held for that length of time. To that end, one change in trade practico would contribute more than all others: --viz, that all Canadian Hogs should be marketed on a dressed weight basis, This would make possible, accurate grading, both in respect of quality and sizeability, and would permit accurate apportionmént of preminms for Se- lect Hogs, and penalties for undesirable types, The adoption of universal rail grading is a step which can be enjoined only by the Federal Department of Agricnlture, and ft fs to be hoped that no time will be lost in establishing this practice. 2 Canada Packers Ltd, has now 5,500 émployecs, During the year under ro view, Plant efficiency was further advanced. This was reflected in Improve ment in the quality of products, and at tho same time reduction fn the cost of producing them. In this advance, the chief contributing factor has been the skill and co- operation of the Company's workpeople. For this, Directors, on behalf of the Shareholders, extend to employees of all ranks, their sincere appreciation and thanks. Directors had pleasure, duting the year, In welcoming to the Board an Employee Director, as. authorized by the Sharcholders at the last Annual Meoting. Tho first person elected by employees to this office is Mr. Geo. J.P, Ayers, a workman on the Heef Cooler Staff of the Toronto Plant. His fellow Directors have pleasure in testifying that Mr. Ayers' services have beon of high value to the Company as well as to the employees whom he specially ro presents. = . ' During the coming year, because of war conditions, the problem ot Plant efficiency will bo one of steadily Increasing difficulty. The loss of experienced men due to enlistments will ho heavily felt, To meet these difficulties as they arise, tho Directors bespeak on the part of all employees, the same spirit of loyalty and co-operation as in the past. A copy of this Report will be mailed to each employee. At the Jast Annual Meeting authority was also given by the Shareholders to appoint a Director representing Live Stock Producers, No appointment has yot been made under this authority. Advice has been sought of numorous per: tho approval of Live Stock Producers generally. As yet po such plan has been arrived at. Tho Directors and Shareholders are sincorely anxlous that such a plan may be found, and it Is hoped that within the coming year the appointment may be made of a Director who will specially represent Live Stock Producers. TORONTO, August 19th, 1940. J. 8. McLLEAN, President, Extra coples of this Report are available, and so long as they last will be malled to anyone requesting them. Address to Canada Packera Limited, Tor- onto, "oe VOICE OF THE TWO GUESSES Tho censor allows you two guesses at the identity of that new place name in the news, "An 'Eastern Canadian Port." ! --Vancouver Province. --O and quartered. --Farmer's Advocate. --0-- THE CHILDREN'S CHANCE The character of most- (chil ~ .dren) is influenced by environ- ment. Social workers who deal with neglected children see daily the miracle of astounding change come about in a child, An ailing, cowed, inhibited, backward, anti- social littla creature can be help- ed to turn-into a robust, bright, ambitious, ingenious, creative and well adjusted boy or girl, It is literally true that as a result of the good care that is given them, their own mothers cannot ree- ognize them, Thus it any British or refugee children who come "here show marks of former neg- lect and lack of opportunities, they should, through the care and understanding offered them in Canadian homes, develop into héalthy, useful citizens of th WHAT AILS US What ails this continent is too many people in too many cars in too much of a hurry going in too many different directions to nowhere for nothing, "Quebec Chronicle-Telegraph a nn DIPLOMATS Weed inspectors must be sup- erb diplomats, If weed inspectors in some municipalities really did Empire~--~Toronto Star, > sons prominent fn Agriculture, as to a method of selection which will carry k_, their duty they would be drawn \ " Saving Ontario's Natural Resources (No. 6) By G. C.-TQNER Forests have another function in their relation to trout streams. In the winte¥ the snows are held by_wooded lands and in the spring they "are slow to melt, allowing the water to sink into the "earth. The surface run-off is light and free from silt. 'At other times of the year the heaviest rains will not cause floods for the trees and the litter "of the forest floor retards the water until it sinks into the ground.or is evaporated into the air, All' the water that sinks into the ground eventually yeappears in the springs, perhaps months later, Thus, forests pro- tect and hold constant the flow of trout streams. Floods And Fish The food of the trout is largely aquatic invertebrates of various kinds. Inscet larvae, that live wn the vegetation and under the stones; crayfish and scuds, dwell- ers in the ooze of the bottom; these are eaten throughout the summer. In winter and early spring these creatures are dor- ,mant in nooks and crannies under the water. If the spring flood 1s light, most of them survive, If the flood is heavy, the bottom of the stream is scoured clean and few animals will survive. Streams subject to heavy flooding will' not cariy as many rout as will streams in which the floods are light ¢ Summer Drought Summer droughts are also harmful to the "trout streams. Most parts of the Province have a rainfall that varies somewhat from season to season bat over a period of years the average am- ount remains constant. If the run-off from a season's precipita- tion is carried away in a few weeks the rest of the year tho streams will he nearly diy. Heavy floods in the spri mean dry walercourses later in the summer. Under natural conditions we have ample moisture for all our needs, Actually, most of the time we are short of water. Common Housefly Disease Carrier A Menace to Health Their Breeding - Places Should Be Eliminated by Proper Dispo- sal of Garbage The common houselly is notor- fous for the part it plays in spread- ing dangerous dizeases, such as ty- phold; infantile diarrhoea, tuber- culosis, cholera, and dysentry. It is a menace to health because it breeds in filth and may pass dir- ectly to foodstuffs. Particlés of de caying organic matter, bacteria, or other living organisms cling to its hairy legs and body and sticky feet and mouth parts, 1t is computed that ono fly may carry as many as 1,000,000 germs, that a female housefly may become a great grand- mother in 60 days, layviuz around 2,700 eggs during a lifetimo of three months. CARRY 1,000,000 GERMS Houseflies aro particularly dan- gerous during warm. weather from mid-summer to fall, when they aro most numerous, The-most effective method of controlling them consists fn eliminating or reducing their breeding places by properly treat Ing or disposing of manure and of garbage. RURAL CONTROL In rural sections, where practic- able; the manure should be remooy- ed daily and spread thinly on the fields whore the drying effect of sun and wind will provent breeding. An alternate method consists ot taking advantage ot heat produced by formentation when manure fs placed In tightly packed piles, The heat produced by fermentation des- troys all fly eggs, lartao, and pup- ae, except perhaps those close to tho surface of the top layer. The application with a watering can or sprayer of a solation of borax con- sisting of one pound of borax to six gallons of water will destroy any fly stages In tho top layer. of the packed manure, sot Washing Tips To Remember ~ A good general rule for wash- ing woollens, silks and rayons is to use plenty of mild soapsuds, lukewarm water for the entire washing and rinsing processes, gentle, but quick handling, ah- sorption of excess rinse water between thick towels, and drying in moderate temperatures. These fabrics should not be soaked, \ a oy ns a A