COMMITTEE ' HEARING TOQGOT. AT 7:30 A C3E COOK? TOPSE frrr WEATHER Pair Monday, somewhat colder la central and east portions; Teesdey (ale. Best Advertising Medium in Iforth Carolina VOL. QX. NO. 55. RALEIGH, N. C, MONDAY MORNING, FEBRUARY 24, 1919. PRICE: FIVE CENTS ft WILSON SPENDS NIGHT ait nitin iit nnnmniT n m v uiunir iivdumuw mi President And Party To Come . Ashore Some Time Before Noon . CEREMONIES TO BE BRIEF: SPEECH BY PRESIDENT ..Whole Party Will Leave Tor Washington bj Special Train At ' 4:30 This Afternoon; President Still Plans To Re turn To " Prance, Sailing About March 5 'jfdhss5rri all thfl Presidential party rcrrfaining hoard. Tomorrow sune time beore ncoa tho Presidenfsd those accom panying him from the Parii peace con ference, will come sshors for brief ceremonies of welcome and'-s short" ajieech by the President in Mechanics Hall. The whole party will leave for Washington byspeeial- aai-at 4:30 In The" iftcraoOiirTm'Tviny "Tnpsday-awn- . . fni - T t.tM4 .111 ..Una (a VA. mg. me i rirsiucu am . 4.... Ph.mb. ar i Conrviy Wnshinir- ton, sailing from Hoboken about March 5th unices something unforeseen oc curs. The condition of the French Premier, Mr. Clcmenceau, may prove to be a laro factor. The possibility of change in Ihfr French government should the Premier not respond to 'treatment for his wound, and tCe fur ther possibility of a delay in the peace eonfereneo or even a change, in the dole- Cation" of France, complicates the aitua- : tion. ; 1 Altfiough the President held several conferences during the, return voyage f ha did not rive any expressions on the erk of vruspeeta of the peace confer- ence further than to indicate ne reeis ; a ecrtain justification of his position in insisting that the making of ( peace and th creation of a league of nations are inseparable propositions, not to be disassociated. Has Confidence in nan. Mr. Wilson has told friends and ad visors that with the draft of the league constitution on the table before the conference ho considers the first great atep an accomplished fact and he is not disturbed by the possibility that it undoubtedly will be worked over, changed in many respects, and probably in the end be quite a different docu ment. Despite nil this the President i known to feel that in the end the underlying principle he has proposed rill be accepted in the conference. The ratification of the document 'in other countries, and in the United States the President considers as another step to be dealt with the league of nations plan is perfected. While he has been following keenly i-v. .H adverse criticism of the plan in Congress, the President told Reprcscntatis Helvering, Norton and White, who made the return trip with ' him, that he was sure he could convince Congress leaders that there were no fundamental objections. " After an explanation of tho plan at ' some length to tho three Congressmen, they expressed the opinion that the il min much support for his plan by close conferences with a few leaders who in turn could give an inti mate view of the President's explanation to members generally. This is probably one of the methods which will be adopted by the President when he gets back to Washington, be sides undoubtedlynmklng some sort of address to a joint session ant confer enees with the members of the foreign affairs committee of each house, ' Depends Upon Conditions, The question of an extra session of Congress, the President feels, depends shnllv nnon in what condition the nresent Congress lenves'pu'blie business If the President's hope is realised that the nrincipal business of the pence con ference will be finished by mid-summer a dthat ha is able to return to the United States some time in Juue or July, the probabilities are that at least in extra session of the Senate or pos siblv the whole new Congress might be railed in the early fall to get a start on reconstruction legislation and take up the ratification of the peace treaty, The President Jiad luncheon today with mbassador Frances, discussing the Russian situation at length and hearing the diplomat s recommendations aa to the course tne unneu otaijs snouiu pur , sue In Russia. . Also witu Jura at . laucheoa was Frauklin D. Roosevelt, Assistant Sec re tary f th Navy, who gave Mr. Wilson many new dejails of the navy's activi ties in Europe, snowing now the United States spent more than 1.10,000,000 lay Ihg the North Ben mine barrage. The United Plates aciuaiiy nau more man (00 ships based in Europe and more ' , than 200 seaplanes hunting submarines. K4ar-Tr( JUaghw, President Wilson hsda much rougher trip coming bom than he did going Tcr. Borne oi tne days nan the party aas confined to cabins but the Presi dent proved himself an excellent sailor and surrendered only once,, when the 'waves and spray were dashing over the bridge and got a wetting, while watch (Continued oa Pagt Two.) PRESIDENT S SHIP NEAR GROUNDING Vessel Loses Bearings Heavy Fog Off Massa chusetts Coast In On Board the U. George Wash ington, Feb. 23. The President's ship and its destroyer escort, the Harding, and ran off the MasLfAsetts.eoast this tfftrrM6n-Whttrif1rt thousand yards of grounding off the beach at Thatcher's Island, Cape Ann. The two vessels were proceeding on dead reckoning, about 3 o'clockjrith . th Harding as a guard ship ahead. Sud denly ne"ifa filing's lookout discovered land nnd the destroyer gave five quick blasts on her (whistle nad made) quick turn across" the' ' Washington'! bow;The''wihd wW'landward"atia th sound was carried away ,'rom the George Washington instead f t toward her. The Washington's.-deck officer, however, saw the five jets of steam from the Hard ing.' whistle nail giving three abort blasts of the big liners whistle signalled the engino room for full speed nstern. The big ship trembled and quivered with tho throbbing of , the mighty engines as they churned the water, and that was the first intimation any of the passengers and most of the crew had of what was going on. President Wilson noticed the motion at once and with Admiral Grayson went on deck. He was quite nneoncerned, however, and his attitude was more one of curiosity and interest. Troops and passengers piled on decks at the same time And saw the rollers on the snndy beach, and the sanMncar Hague. f -A motion picture show going on in tht main dining salon, however, continued tc hold the attention of many of the passengers. Although going full speed the Wash ington stnppod quickly and easily and began backing away, while) the destroy ers turned to wallowing about the big liner. The lead was not going quickly and deep water immediately was reach ed. Passengers, erew-eai troops did not seem to regard the incident as a possibility of danger, many of them thinking it rather a good joke playea by the fog on the navigators. -After backing a short distance Captain Mc- Cauley dropped anchor to make obser- vat ions and get bearings, w hile the destroyers formed a semi-circle about tho President's I'iip. The wind mhip pod up a bit and snow flurries swept down on the port ouarter. The de stroyer Paulding came close alongside and the Heliographs were not going. Captnin McCaulev lashed a helliograph message to the Paulding ; to proceed cautionusly and attempt to, identify the signal of fog horns. Through the dissolving mist the two lighthouses of the Cape Ann station became visible and the suspense was over. Tho Washington and her con voy had been headed toward shore just nbove Kastern Point, Gloucester, and still further north from Marble Head. The weather continued to clear every moment and before an hour had quite passed, it was possible to see from four to six miles. The Washington then backed out snd turning south, headed for Boston Light, where a pilot was waiting at the buoys at the mouth of tho channel. , , GEN. BENNET HrYOUNG DIES AT LOUISVILLE He Won Considerable fame During Civil War As a Cavalry Leader Louisville. Ky.. Feb. 23. General Bennett H. Touug, commander in chief of the United Confederate Veterans from 1913 to 1016, died at his home here this afternoon following a short illness. Ho returned to Louisville Hat urday night in a dying condition from Florida where he went seversl weeks ago to recuperate. General Young served with Morgan, J. E. B. Stuart atr&oMosby during the Civil war and won considerable fame as a cavalry leader." In 1914 he wrote "Confederate Wizards of the Saddle," describing the operations of the Con federate mounted lore aurmg ine war. NAVAL DIRIGIBLE SMASHES INTO A TREE AT MIAMI. FLA. (Br th Associated Trmt.) Miami, Fla., Feb, 23. The naval diri gible A-236, returning to Key west from a flight to Tampa and Jacksonville, struck a tree of Miami early today and is believed to be a complete loss. En sign D. P. Campbell, pilot, and Chief Quartermaster J. II. Collier, the only persons aboard, were rescued nnharmrd The dirigible had been forced to at tempt a landing Decease of engine trouble which developed within twelve ...r( pr riv.n hey west.' The nif' ship, however, had been; ia the air 87 u, ....ore i uc ace.ueui nnu was iry lug for a new record for continuous flight. The airship left Key West fiat urday afternoon going to Jacksonville via Tampa and was heading down the east coast on its leturn. PEACE COUNCIL IS II LI Plan To Have Preliminary Peace Treaty Reatjy Upon - Wilson's Return THIS ACTION RELATES ONLY TO GERMANY Conclusion of This Preliminary .' Peace Treaty Regarded As of Chief Importance; Balfour And House Call on Clemen- ceau wnere flans were Press.) Results of far-reaching -character wero obtained at the meeting of the council of the great powers today when resolutions were adopted requiring such' aspee7Ifng" up 'of all Important braaclieir "of the " worY" of" Hie" Pcacs Conference as to permit the formula tion of a preliminary peace treaty by the time President Wilson returns to Paris in the middle'bl March." To ac eoinplish ' this" all commissions dealing with the big questions of reparations, boundaries and economic and financial issues must report to the supreme coun cil within the next two weeks or by March 8 at the latest. These reports, in turn, will form a basis for tho drafting of the treaty. " An extensive program has been care fully matured within the past few days and it was brought to a culmination this afternoon when A. J. Balfonr, Brit ish foreign secretary, and Cot. E. M. House, of the American celrgation, called en Premier Clcraeneeaul in his sick room shortly before the council convened. Each found the wounded statesman dressed and sitting np and keenly alert concerning the work of tho conference and folly agreed, an the pisa for rapid acceleration of .work oa all swfejert.- - - Thit brought together the British. American and. French viewpoints for a rapid coarse of action assuring the earliest possible peace& Shortly after ward the supreme council met and rati fled the program. The official state ment issued after the meeting an non need : The meeting decided on proper steps to je doue in order ia order to acceler ate as much a. possible -the labors -of the conference. Back of the formal announcement is the speeding up of the plan, which now goes into effect, for an early drafting of the peace treaty. The main feature is to embody all subjects, both non- military and military in the preliminary peace soon to be framed and to have this broad general document take the place of a separate military treaty for disarmament which bad been prepared by the Supreme War Council under the direction of Marshal Fooh who was to present it within the next few days. But instead of this ' limited action on military questions today's decision broadens the action so as to Include all important subjects within the scope of the preliminary peace treaty, thus making it embrace economical, financial and all other essential subjects, includ ing reparations, in addition -to disarma ment and other military and naval features. It will be this broad general plan which will he drafted by the time the President returns and which will soon thereafter go before the pcaee conference. The foregoing action relates only to Germany a the conclusion of this pre liminary peace .treaty is regarded as of chief importance. But similar action may proceed at 1he same time con cerning Austria, Bulgaria and Turkey, although it is not certain that action on these" countries Can be effected with ir the same period. Although the proposed document Is designated as a preliminary peace treiyT itia expected Utmbody virtu ally all main questions and to corre spond to the treaty of Versailles which closed the Franco-Prussian war, al though a supplementary . treaty was s;gned later at Frankfort. , PRESIDENT WILSON HAS A FOl'RTH GRANDCHILD Soa Bora U Mrs. Francis B. Sayrm, at Philadelphia. (By Um AhoommI fim.) Philadelphia, Pa.,' Fth. p.-X son was bora to Mrs. Francis B. Kayre, daughter of President Wilson, at the Jefferson Hospital here early today. Mother and child are doing we'll. This is the President's, fourth grandchild. The first, Francis B. Kayre, was born in The second, Eleanor Axson Wilson the White House on January 17, 1013. Kayre, was bora at Jefferson Hospital March 26, J916. Another grandchild is Ellen Wilson McAdoo. 1 ' The Prewident, f course, has been no tified, and it is possible he may stop at, Philadelphia on his way fro m Boston to Washington to see his daughter and her second son. , ARMY REFRIGERATOR SHIP SINK AT PIER IN HOBOKEN (Br lh Anocwtod Fmm.I Xew Tork, Feb. 3, The army refrig erator ship Biisola wafstmk at her' pier in Hoboken tonight to save her from flames raging in her holds. Two mem bers of the crew, a a officer and a boat swain's mate, who were helping fight the fire, are missing and are believed to have perished. The, vessel was loaded with beef and was about to sail for Brest. - - -: TO SPEED UP WORK mm F NEV GERMANY IS IN National Law Supercedes The State Laws of Various - German States EXECUTIVE POWER ' LIES WITH PEOPLE States To Be Bepresented In Government By a National Council; Pull freedom In Religion, Art And Science Is Provided; Labor Is Espe- the German National Assembly, has been holding open meetings several committees have found time to discuss the draft of a new German Constitution as "prcpared'by "Huge t'euess, a member or-th"clisrns passed on second reading. The origl- nal few paragraphs have been cut up and expanded into 109 paragraphs which -eov.vry point carefully. - -Thtr iww-dratr-const'"Of veTa'"tH'--visions. The first division, entitled, tha nation and its component states," provides that the national territory shall consist of the former German states as well as other states that may, after a plebiscite, desire to be Incorporated with Germnny. The flag of the new republic will be black, red and gold. The second article of the first division provides that the executive power lies with the people. The third article says the generally accepted rules of international law shall be a basic part of the German law. Succeeding articles provide for the defense of the nation and Cover colonial questions, customs duties and publie transportation. ' , It is provided tho nation shall hav the Tight to tnsvt laws governing eitl- of citizens, crimes and penalties, Judi cial matters, the. right of onion, the relations betwoen workmen aad em ployers, the insurance of workmen, the promotion of labor and trade .weights and measures, industry, mines, insur ance, ocean traffe, freedom of the press, freedom of organization and meeting nnd the. rights nnd cere of war veterans and their relatives. The nation also shall have 'the right to enact laws con cerning tho' regulation, production and distribution of economic products for the general good and for protection and education of children and youths. The'nntlnnal law, it is provided, shall supersede the state Uws of tho various German states who are empowered to combine wholly or in part fo the pur pose of creating a more powerful mem bership in the nation. These states will be represented in the government by a "National Council." Eaoh member of the council can introduce bills but'-a bill to be introduced to the assembly must have the assent of the council which however, possesses little veto power on the lines of the British House of Lord. Tho second division contains eleven articles regarding tho basic rights of dom of belief, religion, art nnd science, dom of belief, religion, are and science. I.abor, ns the greatest national wealth is especially protected. Ferson free dom of dwelling and property are guar anteed, as is secrecy of the postal service. Tho third division contains nineteen articles and provides that details shall be determined by the national govern ment regarding tho regulation of elec tions. The .government will meet each year on the first Monday of December at the capital of the government. The president, it is provided con call the assembly earlier and must do so if at least one-third of the members demand it be called. A court to control the voting would consist of three members of " the assembly and two members of the national council. The constitution may bo changed by a two-thirds vote of the full membership of tho assembly. The election of a president is pTor vided for in a fourth division. He must be at least thirty-five years old and a German citizen for ten years and will serve a seven year term. He may be recalled through a popular vote. The president cannot be a member of the assembly. It is provided the as scmblyi can demand the presence before it of the chancellor and the cabinet. The fifth and sixth divis:ons to eh on 11 nance, trade and transportation and a common postal systfn for " the entire nation. The seventh division covers de tails of courts and other judicial or ganizations including a stt.te court or the entire nation. '"' ' BAVARIAN DELEGATION .LEAVES WEIMAR FOR MUNICH May Postpone Farther Consideration of ' New Constitution. Weimar, Saturday,. Feb. 22. (By The Associated Press.) The entire Bavarian delegation to the National Assembly left for Munich this morning upon receiving reports that Herr AuCr, Minister of the Interior, had died from his wounds re. ceived ia the shooting in the Landtdg and that a state of chaos existed in Bavaria. Their absence may postpone atill fur ther, committee consideration and de bate on the new constitution which was scheduled for next Tuesday, as it is con sidered more important to restore order in Bavaria than to debate the proposed constitution oa a date arbitrarily set, CONSTITUTION 0 ASS SHAPE Represents New RcgubWj fj H1GHVAY BILL : ABOUICOff LEIEO I 1 i it I ' . 3 W J 1 A ' U Charles Pergkr Commletnet-frm--Tho8lovaHaV Who Speaks ia Winaton-Salem Today. MOO I!' ITS FIRAL WEEK Leaders Have Abandoned Hope of Avoiding an Extra Session APPROPRIATION BILLS h -t- HOPELESSLY TIED Ut i , . President To Confer With Com mittee on Foreign Rela , tions Tuesday (By th Anaoriatcd PrH.) Waahiuglou, Feb. The final week of the sixty-fifth Congroas will be ush rd i tomtiriHiw with- the bueieut seven days in all congressional history in prospect Among the outstanding features of the final week will be President Wil son's eonfereneo at the White House Wednesday with tho Fureign Relations Committee on thu leagu of nations, prospective daily discussion of the league proposal in the Hinato selection by the House Republicans at a eonfer eneo Thursday of ft candidate for the Speakership of the next House and the final rush of appropriation bills and other urgent legislation, l'ecision re garding an extra session, of the sixty- sixth Congress also may le reached dur ing the week. With sine die, bdjourn ment at noon on Tuesday, March 4, and with nn h;;i.slatinn remaining on tho calendar than in the history of many Congresses, - leaders ..of both Houses have abandoned hope of avoid ing an extra ression. Tho only ques tion, it was-said by some members to day, is the time when it will be called by llm President. President Wilson will bo advised soon after his return regarding the extra ss sion. Tho nature of tho advice, ac cording to llcmocratic leaders, princi pally depends upon disposal of the pending--Uuj!so bill to authorize $7,000,- 000,000 of Shltft term treasury notes in liou of Liberty lfonds for the April loan cnmpnigo. If tho measure is pass ed the leaden plan to advise the Presi dent to call the extra session about May 15. If it fails, it was said a quest for a call of Congress, not later tha n ApriLl would lie substituted. The bill will be taken up in the House on Tuesday. Hope of passing all of the appropria Hon bills apparently has been alum doncd by both Heiiuto and Houso Jrad ers. Only two of the sixhcn regular mouey bills have been enacted. A doz en money measures arc awaiting action in the Senate, and Sennto lenders de clare several of them are certain of failure. SenafC discussion of the league of nations is pneof tho principal obsto clcs in dispoml of legislction. IV fenso of tho league on behiilf of the administration Vill be opened tomor row by Senator. Ixvvis, of Illinois. Daily snd protracted debute on' the. league thereafter . is in prospect. Senator Owen, Democrat, of Oklahoma, plans to discuss the league on Wednesday, Minority Leader Lidge on Kndsy, and Senator Knox, of Pennsylvania, Repub lican, former (Secretary of State, 4on Saturday. The Speaker of the .next House is to be chopen next Thursday night at the conference of Republicans, includ ing members-elect. Friends of Repre sentntive Gillett, 'of Massachusetts, arc Confident of, his selection, although supporters of Representative Mann,' of Illinois, have not yet conceded defeat, Congressional loaders today studied the legislative situation to determine which bills could bo passed and which must go over for tho extra session. Among bills said to be virtually as sured of enactment were' 1 hose appro priating one billion dollars to maiiM tain the government wheat price guar CONGRESS IN RUSH fCeaUaned ea, Pace Twe) Will Impose One-Fourth Cost of Construction-onCotm ties of State FURTHER INCREASE IN AUTOMOBILE TAX . Republicans Will Submit Pro gram of "Election Reform" Legislation This Week Work on a new State highway bill is practically finished f nd it is now in -1 . . 1.1. 1 1 ! 1 . T T imps iu do inirouuceu in ine uooeei of fieprescntatives today or tomorrVw, I U - '"".L.iItii w'idmtiTOBwr ws4 frr is expected to be ready for discussion on the floor of the House by the middle of this week. Boad legislation still holds the center oMhosteg, Thr-Stary- masttre--faila tj meet the situation, many of the legislators think, and hence the effort to get something else. Two Important Changes. mobiles .to U, $15 and 120 (nstend of $7JS0, $10 and $15, aj provided for in the Stacy bill ia one of the important changes mads in the new hill while the other is the placing of one-fourth the cost on tho counties, in accordance with the idea of Governor Biekett, leaving the other fourth to the State. The new hill will leave the composition of the Highway Commission, ss the Stacy bill has it. Other Important Bills. . While the educational program has practically been decided upofi, the plan for a Stato highway system. is still in tho process of being formed. The taxation program ia more fully ad vanced, but most of it still remains to he discussed la the House and the ft natiw..Ta Hfiaae has passed the pro posen uougnton income tax amendment to the constitution and it is now on Jie Senate calendar with favorable re port from the Finance and the Consti tutional Amendment Committees. The joint Finance Committn is due to report the machinery net thin week which will contain the program for re valuing property, which is expected to make un extra session of the General Assembly necessary next year. The .com- atiUea will adupt many of tlio principles contained m tho Humphrey revaluation bill, but is not inclined to appropriate $:t75,0OO for tho job nor does it look with favor On creating a new romfliis- sion to have chargo of the revaluation. It would rather increase the powers of the Mate Tax Commission and leave most of the cost to the counties. How Program Stands. It is recognized that there must be a strong central body to direct the revaluation program, btt it is believed tl .'it this can be attained by giving the present commission more authority Wiht the income tax amendment oh the way fir adoption and the progrnm of revaluation practically formulated, it is felt that the tai question is in u fair way of being elearefl out of tho way without great difficulty. It has been recognized that the three i (instructional measures that this Gou oral Assembly pass upon are those deal ing with taxation, with roads and with schools. While the Bryant school bill which has passed 'he House, does not meet the wishes of many jeopIe, it is felt to be the fairest that can W worked out. Wonld Re County System. The new road bill to lie introduced in the House is intended as a substi tute for the Stacy bill, which was passed by The Sennte, but will be in troduced as n new measure in order t expedite parliamentary procedure. If adopted by the House, it would then go i the Senate in regular course. The new bill is not favored by many legis- Tn f o fiTtiecari seTf "destroys" "Hi e T(Tea-ir o State system. It will he essentially a county system, it is held, if a fourth of the cost is fixed upon the counties. The authors propose to leave the pro vision affecting counties as flexible as possible as to the method of raising the tax. It is contemplated that In the thickly settled counties that most of the local nssesscd cost will be collect ed from the abutting, property owners while In tho counties less thickly set tled, it would 'proltfihly be collected through special tax levy or through the issuing of bonds. To Avoid Bond Issues, " One of the avowed objects of the new bill is to avoid a State bond issue, but supporters of the Stacv bill hold that It simply shifts the liarden, as it will lie necessary for the counties to issue bonds npd.st a disadvantage because they cannot borrow money as cheaply as the State. Supporters of the new road measure think it would be neces sary to borrow money to get the pro ject started, but they would do "this on short time notes that would riot extend over two years. Even for the Stole to raise one-fourth of the revenue necessary to match the federal fund and to provide for main tenancy, would' make it necessary to have a higher automobile tax than the Stacy bill provides for, and the increase has been mado that it is believed will meet the needs. ' '',' No Tsi On Gasoline. 'The new road bill will not impose a tax on gasoline or on lumber wagons. (Contlaaed oa Pare Two.) TAKING KINKS OUT OF REVENUE BILL WAS HEAVY TASK Sen. Simmons Reviews Magni tuda in Reaching Agreement By Senate And House AWARDS APPROVED FOR COMMANDEERED LAND These Aggregate $271,1 49 for ' 284,000 Square Peet of Land Taken for Xxtensibf of Washington Navy Yard; Ad - mjral Scales Will Make Nd New' mmi Ohmr llaraaa, 44 Datrkt National Bank Btdgv Br t. St. WINTERS. (By 8kM Uued Win.) Washington, Feb. 23. "The Be Bate" added" over fiOOamfBiimelitt'td IneTrev. ' aue bill as it passed the House of Representatives,'' declared Senator 8im. mons of North Carolina, chairman of tha ment reviewing the magnitude of the job involved in framing the National, - revenue legislation. , . "Of those amend- -ments, the Senate' conferees receded from only 6t. The House receded from its disagreement to 417 on the Senate amendments without change and from its disagreement to 117 of the Senate amendments with amendments. "In order to bring the two nouses together upon these 61)2 amendments, it is observed that a vast amount of work was required. That the conferees were nble to accomplish this result la a little over two weeks shojted that their work was constant and diligent ; but even with the greatest diligence,, it would nave been impossible to accomplish this re suit-within so'snori a time kadT not " every member of the conference been alive to the faet tnat the eiig?neja , of the .situation required -the utmost speed. "I sax advised by the Commissioner of Internal Revenue and the Secretary of the Treasury that Government obli gation amounting to more than 800,. ' 000,000 will mature and will have to be paid by the 15th of March west, and -that the money which it is txpoctcd to realize from the first installment under this bill has been pledged for the pay ment of those maturing obligations. "Karly in the year 101 the Secre tary of the Treasury recommended to Congress the enactmrnt of a nesr reti nue, law, framed to raise $H,0oO,O00,000 by taxation, to help meet the expendi tures of the fiscal year 1918, estimated a' that time at $'.'4,0(i010fi0,000. In re uponst" to this re;iest hc Waya and Means committee of the House prepared, , nnd the Ih.uw passed the hill providing fur an $S,OnO,noo,0(!K) tax levy. Wfcen the .,; arniistiee came on November 11, 1918, th' bill w.is still I fore the Finance Committee of the Senate, to which it had twen referred. No Pnrpose to Reduce Levy. "There was no purpose upon the part of that comnittee up to that time to reduce the amount of the levy below the House estimate of $,HM1,00. With- . in a few days, however, after the sign ing of the armistice the Secretary of " tha Treasury, in a communication to myself as chairman of the Finance Com mittee, advised that the estimated ex penditures would, because of the prac tical termination of the war, be reduced , to $!8,0X,iVi, and at the same time . he recommended a reduction of the taxes to be imposed for the fiscal year .HUS-'IS from s,i'O'i,iNI,0ii0 to tfl.OOO,. noO.iXMi, and for the fiscal year 1920 from $ii,000,iKi,iso to $4nsiii,ooo. Sena tors will recall that the President, la his message to. Congress, delivered a short time after the armistire, joined the Secretary of tne Treasury in these re rnrnmenrtatimrs. - "The Senate did not change the indi- vidunl normal income tax rate for the taxable year l!IS. It did, however, . change the surtax rates reducing the rates es to small and moderate incomes and increasing them somewhat as to larger incomes, especially those in ex cess of tiO.Cus). The result of hee changes is a redneflon . in estimated revenue receipts from this source ef about $.V)si,issi. The House conferees agreed to these changes. The Senate reduced the individual normal income tax rate for the taxable year l!U9 and , subsequent years from six and twelve per cent to fojir and eight er cent, and " the House agreed to these changes. Case Cotton Mannfsctarers. Let me illustrate with the ease of the cotton manufacturer-. They have laid i- great stocks of raw cotton, the larger part of vhieh was purchased at 30 cents or more than y cents a pound. The in ventories for the year 1U18 would have to he based upon those values. That cotton is tinlav worth probably not much over two-thirds of the amount for which it was, purchased. If they are required to pay their taxes without any rebate -upon the bssis of Che cost of this raw . material still in hand, it is easy to see thst they would have to pay tax upon a value charged against them, bat which -v -will not, fes a matter of fact, ever be realized. "Coming tojhe excess profits nnd war profits tnx. I may say in general that the House accepted the rates adopted, , by the Senate srith but few modifica tions. TDe House conferees accepted (CoaUaned Psge Teat V . l