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STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE.

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the bill (H. R. 10854) making appropriations for the naval service for the fiscal year ending June 30, 1919, and for other purposes, submit the following written statement in explanation of the effect of the action agreed upon and submitted by the accompanying report on the amendments of the Senate, namely:

The Senate recedes on amendments Nos. 5 and 53.

The House recedes on amendments Nos. 34, 35, 38, 39, 41, 42, 102, and 115.

The House recedes with an amendment on amendments 23, 93, 100, 112, and 120.

Of the amendments upon which the House recedes, Nos. 34, 35, 38, 39, 41, 42, and 115 were dependent upon Senate amendment numbered 33 which the House had agreed to, and these amendments were simply in conformity with and perfecting the amendment numbered 33.

Amendments Nos. 102 and 112: Simply change totals.

Amendment No. 23: Relates to the Dental Corps, and the conferees agreed to the same with amendments limiting the rank to lieutenant commander instead of commander as provided in the Senate amendment and striking out the provision requiring confirmation by the Senate, and making verbal changes to conform to the amendment limiting the rank to lieutenant commander. While the rank is limited to lieutenant commander, provision is made for pay and allowances to the rank of commander and captain.

Amendment No. 93: Is for the development of a submarine base at Key West, Fla. As agreed to by the conferees, it reduces the appropriation from $2,500,000 to $1,000,000 with an additional authorization for $1,500,000.

Amendment No. 100: Provides for the construction of a railroad to connect with the Indianhead proving ground and powder factory to afford rail communication with the proving ground and powder factory and increases the appropriation as authorized by the House from $550,000 to $850,000.

Amendment No. 120: Is legislation providing for the temporary promotion during the war of the officers of the Coast Guard which under existing law during the period of the war are operating with and under the Navy. This amendment provides temporary promotion so as to give needed and just recognition and promotion for their service in the Navy.

Amendments Nos. 37, 47, 52, and 170: Are still in disagreement.

L. P. PADGETT,

J. FRED C. TALBOTT,
D. J. RIORDAN,

THOMAS S. BUTLER,
WM. J. BROWNING,

Managers on the part of the House.

EXTENSION OF TIME OF FEDERAL CONTROL OF RAIL

ROADS.

JUNE 26, 1918.-Referred to the House Calendar and ordered to be printed.

Mr. SIMS, from the Committee on Interstate and Foreign Commerce, submitted the following

REPORT.

[To accompany H. J. Res. 303.]

The Committee on Interstate and Foreign Commerce, to whom was referred the joint resolution (H. J. Res. 303) to extend the time within which the President may relinquish control of any railroad or system of transportation, as provided in section 14 of an act entitled "An act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes," approved March 21, 1918, to January 1, 1919, having considered the same, report thereon with amendment, and as so amended recommend that it pass. Amend the bill as follows:

Add, at the end of the resolution, the following:

Provided. however, That the right conferred upon the President to relinquish prior to July first, nineteen hundred and eighteen, control of all or any part of any railroad or system of transportation without consent of the carrier as provided in section fourteen of an act approved March twenty-first, nineteen hundred and eighteen, entitled "An act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes," which right is herein extended to and inclusive of January first, nineteen hundred and nineteen, shall not be construed to include any railroad engaged as common carrier in general transportation such as mentioned in section one of said act, not owned, controlled, or operated by another carrier company and which has heretofore competed for traffic with any railroad or railroads of which the President has taken and retained the possession, use, and control, it being the intent of Congress that every railroad not owned, controlled, or operated by another carrier company and which has heretofore competed for traffic with a railroad or railroads which the President has taken and retains the possession, use, or control, or which connects with such railroad and is engaged as a common carrier in general transportation shall be held and considered as within Federal control as defined in said act and to be entitled to the benefits of all the provisions of said act so long as the railroad or railroads with which it has heretofore competed for traffic or with which it connects shall be retained under Federal control.

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65th CONGRESS, HOUSE OF REPRESENTATIVES. No. 708.

2d Session.

ALLOWANCES AND PAY OF ARMY FIELD CLERKS.

JUNE 27, 1918.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed.

Mr. SHALLENBERGER, from the Committee on Military Affairs, submitted the following

REPORT.

[To accompany S. 4451.]

The Committee on Military Affairs, to whom was referred the bil (S. 4451) to provide for allowances for and minimum pay of Army field clerks, to provide for increased pay to Army field clerks for service beyond the continental limits of the United States, and to provide quarters or commutation thereof to Army field clerks in certain cases, having considered the same, report thereon with a recommendation that it do pass with the following amendments:

First. In line 3, page 1, strike out the word "hereafter" and in lieu thereof insert the words "during the present emergency."

Second. In line 4, page 1, after the word "allowances," strike out the words "and benefits" and insert in lieu thereof the words "except retirement."

Third. In line 5, after the word Corps, strike out the semicolon and insert the words "and shall be subject to the rules and articles of war.

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Fourth. Strike out all of section 2.

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2d Session.

FOURTH LIBERTY-BOND AUTHORIZATION.

No. 709.

JUNE 27, 1918.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed.

Mr. KITCHIN, from the Committee on Ways and Means, submitted the following

REPORT.

[To accompany H. R. 12580.]

The Committee on Ways and Means, to whom was referred the bill (H. R. 12580) to authorize an additional issue of bonds to meet expenditures for the national security and defense, and for the purpose of assisting in the prosecution of the war, to extend additional credit to foreign Governments, and for other purposes, having had the same under consideration, report it back to the House without amendment and recommend that the bill do pass.

The Secretary of the Treasury in his letter to the chairman of the Ways and Means Committee on June 5, 1918, estimates that the expenditures for the fiscal year ending June 30, 1919, will be $24,000,000,000. He recommends that at least $8,000,000,000 of this amount be raised by taxation. If this amount is raised by taxation it will therefore leave $16,000,000,000 to be raised by the sale of bonds. The proposed bill authorizes an issue of $8,000,000,000 of bonds in addition to the bonds now authorized by law. There are $4,021,214,200 of bonds authorized and available to be issued during the fiscal year ending June 30, 1919, or subsequently. It is estimated that this amount will be reduced by $1,302,140 by the postal savings bonds already issued and to be issued. The postal savings bonds already issued and to be issued will reduce the amount of bonds available to be issued to $4,019,912,060, so that if this bill becomes a law in its present form the total amount of bonds available to be issued will be $12,019,912,060.

The amount of bonds issuable under the first liberty bond act of April 24, 1917, was limited by the second liberty bond act of September 24, 1917, to $2,000,000,000. The second liberty bond act of September 24, 1917, authorized an additional issue of $7,538,945,460. of bonds. The third liberty bond act of April 4, 1918, authorized the additional issue of $4,461,054,540 of bonds and it is proposed in this bill to authorize an additional issue of $8,000,000,000 of bonds. If this bill becomes a law in its present form, the total bond authorizations since the declaration of war will amount to $22,000,000,000.

It is deemed advisable to authorize only $8,000,000,000 of bonds additional at this time and to provide for the necessary future bond issue to meet the remaining expenditures of the fiscal year 1919 at the next session of Congress rather than to include the total estimated necessary bond issue in this bill.

THE PROPOSED BOND BILL.

SECTION 1.-BOND AUTHORIZATION.

This section amends section 1 of the second liberty bond act of September 24, 1917, as amended by the third liberty bond act of April 4, 1918, by increasing the bond authorization from $12,000,000,000 to $20,000,000,000, or $8,000,000,000.

SECTION 2.-CREDITS TO FOREIGN COUNTRIES.

This section amends section 2 of the second liberty bond act as amended by the third liberty bond act by increasing the appropriation for loans to the allies from $5,500,000,000 to $7,000,000,000. The appropriations under the war bond acts for the purpose of extending credit to our allies have been as follows:

First liberty bond act..

Second liberty bond act..
Third liberty bond act..
Proposed bill.

Total....

$3, 000, 000, 000 4, 000, 000, 000 1, 500, 000, 000

1, 500, 000, 000

10, 000, 000, 000

The following table shows the credits and loans made to foreign Governments to and including June 26, 1918:

Loans to foreign governments to and including June 26, 1918.

[Acts of Apr. 24, 1917, Sept. 24, 1917, and Apr. 4, 1918.]

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NOTE. The above credit in favor of the Greek Government for $15,790,000, or 90,003,000 francs, has been formally established to meet drafts which will be drawn on the Treasury of the United States under arrangements heretofore entered into with the Greek Government. This amount is part of a credit of 250,000,000 francs, or approximately $44,000,000 agreed to in favor of the Greek Government, but not yet formally established in full.

A credit of $6,666,666 also has been arranged in favor of the Roumanian Government, the precise status of which and the drafts thereunder is not definitely determined.

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