of the Judiciary Committee should draw an entirely new bill which, in his judgment, would meet the objections of the committee of the House, and at the same time perhaps stand a reasonably fair chance of passing the Senate. Such a bill has since then been prepared, and I am glad to say, as a supplement to the report which has been printed, that that (H. R. 13981) bill has been reported favorably by the Judiciary Committee of the House with every prospect that it will pass at the next session. Then I suppose we will have to thresh the matter out in the United States Senate at a later date.

But my report is simply this: We have made, we believe, considerable progress, and we ask that the committee-a committee at least having the subject in charge, be appointed by the incoming administration to continue this work. I move that the report of the committee, including the supplement which I make today, be approved and the recommendations concurred in.

The motion was seconded and carried.

(See report, p. 486, infra; also copy of H. R. 13981, referred to by Mr. Richards in his supplemental oral report.)

Chairman Whitman:

The next report is that of the Special Committee on Federal Taxation, by Mr. Hugh Satterlee, of New York, Chairman.

Mr. Satterlee:

One addition should be made to the report of the committee. as printed at page 235 of the Advance Program. The report in order to secure inclusion was necessarily filed while the Revenue Bill of 1928 was still pending in the Conference Committee. At the last minute there was reinstated in the bill Section 611, which, according to our report, had been eliminated by the Senate Finance Committee.

Section 611 of the Revenue Act of 1928 is an iniquitous provision which permits the Treasury Department in certain circumstances to retain taxes unlawfully collected at a time when the Statute of Limitations had already barred collection of such taxes. The Section was originally included in the House bill with the backing of the Treasury Department, but we persuaded the

Treasury representatives to withdraw their support and it was eliminated by the Senate Finance Committee. Through the insistence of one or two members of the Committee on Ways and Means of the House, however, it was reinstated in the bill at the last minute in the Conference Committee.

The Section as it stands in somewhat modified form from the original form is vague and may be unconstitutional. It is discussed at some length in the interim report of the committee which was filed with the Executive Committee in March and formed the basis of our informal representations to the Senate Finance Committee. I have in my room at the Olympic about twenty-five copies of the report, and if any members are suffiiently interested I should be glad to furnish them with copies of the report.

The subject of Federal Taxation is, of course, one that will probably continue to be of legal importance for some years. There are at least three ways in which our committee can be of service in the situation. In the first place, the Board of Tax Appeals is a quasi court now, as you know, of outstanding importance. Its members are feeling their way in working out procedure and practice, and they welcome suggestions from members of the Bar, and particularly from such a medium for furnishing suggestions as is your Committee on Federal Taxation.

In the second place, the relations of the committee at the present time with the Treasury Department are most cordial, and we have already been told by representatives of the Treasury that when the regulations under the new act are formulated, to some extent they will want our cooperation in working them out, so far as we can properly give such cooperation.

In the third place, where, as during this last year, general legislation is pending, there is plenty of opportunity for service; and even in periods when there is no general legislation, bills are continually coming before Congress affecting some phase or other of taxation, and the policy of watchfulness is necessary at all times to forestall freak measures at some time.

For these reasons and because in the next two or three years there will probably be another general revision of the Revenue Acts, this time even more attention than in the past will undoubtedly have to be paid to the form of the measure as dis

tinguished from the substance, and we feel that the committee should by all means be continued. I therefore move (1) that the committee be continued; and (2) that the committee be authorized to continue its services to the Congressional Joint Committee on Internal Revenue Taxation, or other similar agency, to assist, so far as called upon, in restating the Federal Revenue Acts.

The motion was seconded and carried.

(See report, infra, p. 398.)

Chairman Whitman:

The next report is from the Special Committee on Judicial Salaries, Mr. A. B. Andrews, of Raleigh, North Carolina, Chairman.

Mr. Andrews:

One year ago this committee was continued as a Special Committee of seven on Judicial Salaries, with instructions to report both as to state and federal salaries. The report of the coinmittee will be found on page 243. However, as that was drafted three months ago in order to get it printed in the Advance Program, and since then there has been some additional legislation, the committee asks leave to file a revised supplemental report to explain that and set forth the various increases in salaries that have taken place.

During the past year the State of Massachusetts has increased its Supreme Court from $12,000.00 to $14,000.00 salary, its Superior Court of trial judges from $10,000.00 to $12,000.00. The States of South Carolina and Virginia have increased their Supreme Court salaries to $7,500.00 and $7,600.00 respectively.

On the 29th of May Congress passed an act increasing the salaries of the Supreme Courts of Porto Rico, Philippine Islands and Hawaii to $10,000.00, the Trial Judge in China is placed at $10,000.00 and the four Trial Judges in Honolulu City and in the Virgin Islands placed at $7500.00. The four country judges in Hawaii territory are placed at $7000.00.

We have brought forward the figures in our report and brought forward again the table of Supreme Court salaries and printed

that in.

We report that during the past year, as there was no appropriation made for our committee, distribution of the report has been very limited. Only about 3500 or 4000 copies were mailed out to interested members of the profession.

The recommendation that we make, which is printed, is as follows:

Resolved, That the special committee of seven to be known as the Committee on Judicial Salaries, the membership to be named by the incoming President, be continued for another year.

I move that the revised report be substituted for the report as printed in the program, and that the resolution be adopted continuing the committee, with the membership to be named by the incoming President. (See revised report, infra, p. 490.)

The motion was seconded and carried.

Chairman Whitman:

Next is the Report of the Standing Committee on Commerce, and will be made by Mr. Thomas W. Davis, of North Carolina, in the absence of the Chairman.

Mr. Davis:

Rush C. Butler, of Chicago, is Chairman of the Committee on Commerce, but was unable to be here and asked me to present the report. It appears, gentlemen, on page 96, of the Advance Program, and appended to that Report on page 135 is a bill which this committee, after several years' labor, has reported and asks that this Association approve, to be presented to the Congress. When we come to that I will ask your indulgence to permit Mr. Julius Henry Cohen, of New York, to present that part of it.

The President suggests that I read these recommendations. There are eight of them.

First Resolved, That the American Bar Association readopts the report of its Commerce Committee made to the 1927 annual meeting of the Association reaffirming its approval and urging the enactment of "An act relating to sales and contracts to sell in interstate and foreign commerce," and that your committee be directed to continue its efforts to have its bill on that subject enacted into law.

Second: Resolved, That the American Bar Association adopts and approves the bill relating to the carriage of goods by sea, subject to the modifications and suggestions contained in the report of the Committee on Commerce made to the 1927 meeting of this Association, and

that the committee be directed to continue its activities to the end that the bill as so modified may be enacted into law.

Third: Resolved, That the American Bar Association readopts and approves the report of the Commerce Committee respecting the bill providing for the payment of interest on judgments rendered against the United States for money due on contracts, as set forth in the committee's report for the year 1927, and that the committee be directed to take such further steps as it may consider necessary in order to bring about the enactment of appropriate legislation.

Fourth: Resolved, That the American Bar Association adopts and approves the report of the Commerce Committee concerning the settlement of industrial disputes affecting or relating to interstate commerce, and that the committee be directed to take steps to have the bill enacted into law after making such changes as to it may seem

necessary.

Mr. President, with your permission I would like to ask that Mr. Cohen be permitted to make some remarks upon that bill, because he was the Chairman of the sub-committee and to him is due most of the cooperation we have gotten on that particular bill.

Fifth Resolved, That the Commerce Committee continue its work concerning the regulation of motor vehicles in interstate commerce for the ensuing year and until it has been able to obtain the benefit of the investigation and report of the Interstate Commerce Commission on this subject.

Sixth: Resolved, That the Commerce Committee be given further time to consider amendments to the United States anti-trust laws.

Seventh: Resolved, That the Commerce Committee be given further time to investigate the proposal to adopt a thirteen-month calendar. Eighth Resolved, That the Commerce Committee be given further time for investigation and consideration of the possibility of securing unity of law and its interpretation as to negotiable instruments, fire insurance policies, and warehouse receipts in interstate and foreign

commerce.

Now those are the eight recommendations. The report has been printed. I have no further suggestions. I only desire to conform to the rules of the Association, but I would like Mr. Cohen to make some remarks upon the question of arbitration, which is something we have been working on for the last five years.

Chairman Whitman:

We will be very glad to hear Mr. Cohen. We will proceed with the resolutions, if it is your will that that motion should be entertained by the Chair.

R. D. L. Killough, of Texas:

I move that the resolutions be adopted.

The motion was seconded.