Statutes. It is therefore recommended that said section be so amended as to change the name of naval officers to that of "customs auditors," and to empower them to audit the accounts of collectors of customs under general regulations to be prescribed by the Secretary of the Treasury.

An improved procedure in the receipt, handling, and delivery of invoices of merchandise in the appraisers' stores has been adopted by perfecting the procedure in this regard in the appraiser's stores at New York and extending the same to Philadelphia and Chicago. The same having proved advantageous at these ports, it is being installed in all of the appraisers' stores at naval-office ports and other large ports. This will result in a reduction in operating expenses of approximately $100,000 per annum, and the time in which merchandise is required to pass through the appraisers' stores will be considerably reduced. Also, the work of the division in the appraiser's stores at New York, commonly known as the C. V. R. Bureau, to secure uniformity among the various ports in the classification and appraisement of merchandise by systematic interchange of samples and information as to market values, has been greatly improved and steps taken to perfect its operation.

The customs regulations have been carefully revised and brought up to date and many minor changes in the procedure required at the customhouses have been made with a view to the elimination of unnecessary red tape and the simplification of procedure.

The results obtained from the conference of collectors of customs held in the fiscal year 1914 were so satisfactory that a similar conference of collectors and also a conference of appraisers of merchandise were held during this year and many recommendations were made to the department for improved procedure, which have been adopted and put into effect. Such conferences recommended the following changes in the statutes relating to customs matters:

1. The amendment of sections 2899 and 2901 of the Revised Statutes to provide for the examination of a less percentage of packages than 1 in 10, to make the giving of a bond for redelivery obligatory, and to provide for the giving of one bond on entry for the redelivery of unexamined packages, the production of consular invoices, etc., instead of the many bonds now required. 2. The repeal of sections 1790 and 2693 of the Revised Statutes, which require every person in the Customs Service to make an oath every time he receives his pay, that neither he nor any member of his family has received, directly or indirectly, any money or compensation of any description whatever, nor any promises for the same, for services rendered, or to be rendered, in connection with the customs, and that he has not purchased, for like services or acts, any merchandise at less than the retail market price thereof, and that he has not paid, deposited, or assigned any reward or compensation for his office or employment or contracted therefor.

3. That section 2777 of the Revised Statutes, requiring a vessel with cargo in part for this country and in part for foreign countries to give a bond for unlad

ing its American cargo before proceeding foreign, and likewise section 2782 requiring a similar bond to be given by a vessel proceeding from one district to another, be repealed.

4. Recommending the repeal of section 2775 of the Revised Statutes, which requires a special report of distilled spirits and wines imported in the vessel. 5. That the naval officer be authorized to settle the accounts of collectors at naval office ports.

I attach as Exhibit F a report made to me by Mr. F. M. Halstead, Chief of the Division of Customs, on July 31, 1915, giving the reasons for the foregoing recommendations of the conference of collectors of customs and giving other information of value, all of which is, I think, worthy of the consideration of the Congress.

The work of the customs efficiency board has aided materially in increasing the efficiency of the Customs Service. During the past fiscal year committees of that board visited many of the customs districts and made numerous recommendations, with a view to standardizing the procedure and adjusting the personnel of such offices to the best methods adaptable. These committees have had the cordial cooperation of the collectors, appraisers, naval officers, and surveyors of customs, who have assisted the department in every way in improving the service.

NARCOTIC LAW.

While the act of December 17, 1914, known as the Harrison narcotic law, has only been in effect since March 1, 1915, the results accomplished in this short time clearly demonstrate the need for and the wisdom of such legislation.

An interesting feature of the administration of this law is the cooperation on the part of reputable physicians and wholesale and retail druggists with the department in its efforts to enforce the law strictly. One of the largest wholesale drug houses in the country, expressing its commendation of the act and its enforcement by the Treasury Department, writes that its sales, which it considers representative, of opium and cocaine show a decrease of 75 per cent since the beginning of the operation of this invaluable law.

Investigations and prosecutions incident to the enforcement of this law have disclosed conditions which call for remedial legislation, both with a view to strengthening the law and ameliorating the sufferings of unfortunate citizens addicted to the use of narcotics. The law curtails the use of these drugs without any provision in the statute for the treatment of those who are financially unable to obtain necessary treatment at a hospital or sanatorium.

It is suggested that this law be amended or revised by providing: First. A tax on the drugs specified, based upon some unit of weight, such tax to be denoted by stamps affixed to original packages or containers, and that the list of proscribed drugs be extended to include

chloral-hydrate and cannabis indica, and other drugs having the same general properties, with a clear definition of "substitutes" and "synthetic substitutes" for such drugs.

Second. The repeal of section 6.

Third. That registration under this law shall be limited and restricted to persons lawfully entitled under State laws to dispense, prescribe, administer, or have in possession such drugs.

Fourth. That the writing of prescriptions, filling, keeping records, and the altering or forging thereof, be definitely and fully covered by the law, with adequate provision for the punishment of the offenses denounced therein, and providing that the tax imposed upon drugs shall not attach to prescriptions compounded from drugs once tax paid.

Fifth. That every person registered under the provisions of this law be required to keep record of all narcotic drugs purchased, received, dispensed, distributed, prescribed, or administered, and that collectors of internal revenue be authorized to require sworn statement covering such registered person's operations in these drugs for a given period.

Sixth. That all of the general provisions of the internal-revenue statutes, including those relating to seizures and forfeitures, be extended to and made to apply to the drugs taxed and the persons upon whom special taxes are imposed under this law.

Seventh. That some provision be made for the treatment, either by the Public Health Service or such other agency as may be designated, of indigent persons unfortunately addicted to the use of these drugs, where the operation of the law brings about conditions necessitating such treatment.

The law amended to embody the essentials of the suggestions herein outlined would produce greater revenues and at the same time accomplish the objects in view, and make this legislation of great benefit to the citizens of this country by restricting or entirely eradicating the use of narcotics for other than medicinal purposes, which, prior to the enactment of this law, had become an evil of gravest menace.

PUBLIC HEALTH SERVICE.

The Public Health Service continues to increase in usefulness and importance, and because of its great value to the country should be supported by adequate appropriations.

I desire to renew and respectfully to urge the recommendation made last year for additional commissioned medical officers. At the last session of Congress an estimate of $50,000 for the pay of additional assistant surgeons was submitted. It was estimated that this amount would permit of the appointment of 22 medical officers in

the entrance grade. This increase, however, was not favorably considered by Congress.

It is in the development of general public health work that this need of additional officers is most strongly felt. The number of officers required at marine hospitals and quarantine stations is, practically speaking, a fixed one; but the field investigations of the service have been widely extended since the passage of the act of August 14, 1912. The number of requests for advice and assistance in health problems received from States and municipalities during the past year has far exceeded the number in any similar period in the history of the service. In every case where it has been possible these requests have been complied with, but the limited number of trained officers available for this work has prevented compliance in many instances where the opportunity for valuable scientific work has been excellent.

Additional funds are also needed for field investigations of public health matters. An estimate for an increase of $50,000 in this appropriation for the fiscal year 1916 was not allowed by Congress. The work of the service in the field during the past two years has been a stimulus to State and local health agencies throughout the country, and it is believed that every effort should be made to encourage and turn to practical account the interest in health matters that has been awakened in the general public.

The need of additional clerical assistance in the bureau is one that is daily felt. Increased activities in the field have necessarily caused a large amount of additional supervisory and routine work for the bureau force. The important work of collecting and publishing morbidity statistics, and collecting, digesting, and publishing current public health legislation, also has taxed the capacity of the division having the task in hand. Although slight increases in the clerical force have been allowed for several years past, they have not been sufficient to handle efficiently the growing volume of administrative detail. Under present conditions, the question of allowing employees leaves of absence which they have justly earned is often a difficult

one.

It is also desired to renew the recommendation that an additional building be provided for the Hygienic Laboratory. Although the work at this institution has been greatly extended since the passage of the act of August 14, 1912, and the personnel increased, no provision in the way of additional laboratory or office space has been made. In the work of an institution of this character, where accuracy, precision, and system are of paramount importance, overcrowding is a serious condition.

The demand for service publications is increasing from year to year, the number of copies distributed during the fiscal year just

ended being the largest since the organization of the service. Although this number represents a consistent increase over other years, many requests were of necessity declined, owing to lack of sufficient editions. It is therefore urgently recommended that the appropriation for the printing of publications be increased in such amount as to adequately meet this need.

Attention is invited to the great and constant increase in the use of viruses, serums, toxins, and analogous products for the prevention or cure of diseases of man. The demand for these preparations is not limited to this country, since a vast market has been created for them abroad.

As the interstate and international traffic in these products continues to grow it is obvious that adequate facilities must be furnished to meet the new circumstances and enforce effectively the law of July 1, 1902, governing the propagation and sale of viruses, serums, and toxins. No medicinal or prophylactic substances have a greater field of usefulness, nor is the preparation of any attended by so many dangers. The safeguarding of their manufacture is therefore essential.

Until a specific appropriation is provided for this purpose the means are lacking to make frequent inspections of the establishments engaged in this business and examinations of samples of the products to determine their purity and potency. It is believed that an annual appropriation of $25,000 would be sufficient to cover the expense involved in safeguarding the public against dangers from this source. In view of the great importance of this matter to the public health, immediate action on this recommendation is respectfully urged.

National care of lepers.

In my report for 1914 I drew particular attention to the question of the national care of lepers and pointed out the necessity for a general policy which would be uniform throughout the continental United States for the control and segregation of lepers. The United States is the only Government of any importance which does not provide for the isolation and care of lepers. The recommendation I then made that the establishment of a national leprosarium be given prompt and careful consideration resulted in the introduction into Congress on December 16, 1914, of a bill (H. R. 20040) "to provide for the care and treatment of persons afflicted with leprosy and to prevent the spread of leprosy in the United States." This bill was favorably reported by the Committee on Interstate and Foreign Commerce, and passed the House on February 24, 1915, but was not acted upon by the Senate prior to the adjournment of the Sixty-third Congress.