palmer WarnsGerman TradeMust Be CurbedAlien Property Custodian§ayS Industrial Invasión$as Menace to Nation

Some Lawyers Rebuked

Attempts to Hinder U. S. inTakina Enemy ConcernsSeen Since the Armistice

Declaring that Germany's so-calledfriendly industrial activity in this

country rrior to tnc war íiací actuallvbee* a "knife at the throat of Ameri-g» \. Mitchell Palmer. Alien Propertymstodian. in a speech before the NewYork City Bar Association last night,¿«rned agaii ¦. >o great readiness to

foreive Germany and accept her againan industrial rival. Uc astounded

his hearers by pointing out the rami¬fication.- of Germany's industrial cam-

oaten in this country bef re the war.

\\lr Palmer, incide tal y paid tributoto" the loyaltj of American lawyers.He declare,i that while it wa- true thatmanv of them did act as counsel to.lien interests when the latter weremakitic desperate efforts to cover

es after the adv Mit 01 war.

variably innoci nt«rongdoin - and as soon

¦. showed prompt willing ess

»o place the rights of the governmentcver and ¦< 'hose of any client.

Palmer Reviews His Work"The oïï.cc of Alien Property Cus¬

todian was filled by the appointment ofthe President on October 22, 1917. so

that the office has been in operationabout thirt en months," said Mr. Pal¬mer. "At the close of business Decem¬ber 5. 191S, 32,684 reports of enemyproperty had been received. The num¬ber of separat* trusts now being ad¬ministered amounts to 29.Too. and have*n aggregate value of §506.400.500.94.When the :itire number of trusts re¬

ported si .i 1 have been finally openedon the books anel the readjustment ofvalues, consequent upon appraisal shallhave been :ompleted, it is safe to saythat the total value of the enemy prop¬erty in the hands of the Alien Prop¬erty Custodian will reach $800,000.000."Every device known to the law. as

well as many unknown to the law.served the purp< se of evading the con¬sequences of the war between Germanyand the United States, which Germanbusiness men. at least, seemed to haveforeseen from the time the world warstarted."In working >ut their plans,the Germanowners frequently had the assistanceof capable American counsel, who inmost case- carried out the details ofthe transaction ¡n entire good faithand withoul ulterior motive, beingwithout knowledge of the under-lyingpurpose of the parties."Most of these lawyers feeling thatthe interest tf their country was para¬mount to those of their clients, assisted

os in developing the real facts, fromwhich we we oble to draw conclusionsas to the actual ownership of the prop¬erty. In very few cases have we dis¬covered American lawyers activeparties to conspiracies to defeat thebelligerent rights of the United States,or to hide the property of enemiesfrom the governmental authorities."With the cessation of hostilities,lowever, something of a new fightingspirit has developed, and lawyers who,while the war was on. would have beenunwilling to play any part in resist¬ing the just demands of the govern¬ment in the taking of enemy property,have not hesitated to throw all sorts ofobstacles in the oath of the Alien Prop¬erty Custodian and to invoke the aid ofthe courts to sustain transactionswhich, as patriotic Americans, theywould have been first to condemn whilethe war was being fought. It seemsnot improper tor, me to say that law¬yers ought fo be no less loath nowtnan heretofore» to involve themselvesin the machinations of enemv personsseeking: to prevent the agencies of the

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-nfl'T^-,, fr.om Ctt«-ryinK out the ex-ressed will of the Congress.Businesses individually owned, part-iships and branches of enemv con-erna have been generally liquidated oi¬ré m process of liquidation. Mer-nan,llsc .,ul commodities running into'lliona of dollars; making steel andron products i. Pennsylvania and \. ,-siuginia, brewing heer in New York,ew Jersey, Illinois and Louisiana;anutaetunng chocolate, pianos, ma-crmiery, chemicals, dyestuffs, pharma-euticals. munitions, woollen, silk andotton goods and laces; dealing inrecious stones and art. works; exportng and importing all kinds of goodstul commodities there is hardly ame of industry in which the enemy.as not engaged in America. In soniche investment was large and dominat¬ing; m others it was of a negligiblemount, hut the grand total marks aold up,«» American industry and com¬merce which is nothing short of amaz¬ing. It constituted a real menace toho industrial and commercial inde-endence of America.Invasion Was Studlei'

"W hen we realize the important partplayed in modern warfare by industrytar back of the front line we can wellbelieve this industrial invasion ofAmerica was a studied effort on thepart of Germany to make effective herplan to colonize, subdue and controlthe world.

"I cannot too forcefully repeat thatthe German industrial penetration ofAmerica has not been a mere friendlydesire to trade and do business withthe world. It has been a knife at thethroat of America. In the days beforethe war and during the war most ofthe great German-owned industrial es¬tablishments were soy centres tilledwi h the agents of Germany long pit¬ting against the safety of the UnitedStates They were depositories ofsecret information gleaned by theubiquitous spies in the German em¬ploy, and without them these spieswould have been almost harmless.

Redfield PlansTo Hold TradeAfter the War

Proposes Expansion of Bu¬reau to Aid U. S. Mer¬chants in World Trade

WASHINGTON', Dec. 10..Expansionof the Bureau of Foreign and DomesticCommerce to enable it to give effectiveaid to American manufacturers andmerchants in taking full advantage ofafter-the-war world trade opportunitiesis the chief recommendation of Secre¬tary Rediield in his annual report madepublic to-day.The Secretary also reiterates his ap¬proval of the proposed development of

a government owned intracoastal water¬way to link up the great cities of theEast, from the lakes to the coast anddown the Atlantic seaboard.

Dealing with post-war trade and thepart the Bureau of Foreign and Do¬mestic Commerce car, play, the reportemphasizes especially the need for ad¬ditional commercial attachés and tradecommissioners. The balance of tradein favor of the United States for thefiscal year 1918 was $2.981'.226,238; thetotal of the merchandise export tradewas $5,928,285,641, and of the importtrade $2,946,059,403."Measured by the economic needs of

the country and by the giave respon-sibities of post-war competition," thereport says, "the bureau should be ex¬panded substantially in every branch ofservice.

More Attachés Needed"New attachés should be assigned to

a number of important capitals, es¬pecially Athens, Rome, Madrid, Ottawa.Mexico City and Santiago, Chile. Weshould also establish at the earliestpossible moment resident trade com¬missioners in Sweden, Norway, GreatBritain, France, Greece, Switzerland,Russia, Mexico, Bolivia. Uruguay,Brazil. Colombia and Venezuela. DutchEast Indies, China, Philippine Islands,British India, Japan, Malay Penninsula,Egypt, South Africa, Australia and NewZealand. The value of resident repre¬sentatives is too obvious to require anyargument for the extension of this feat¬ure of our service."Our country is looking to the

Bureau of Foreign and Domestic Com¬merce to do its share in preparing the.country for economic security andprosperity after the war, when thechief industrial and commercial forcesin both hemispheres will be ready tolaunch great organizations on the com¬mercial seas in quest of trade. Theinstinct of commercial self-preserva¬tion demands organized action. Thisis not the time for short-sighted thrift.Other countries are looking ahead and-pending money to organize for theircommercial security."

Importance of WaterwaysOf the inland waterways Secretary

Redfield says:"An important step forward, which

will be of great advantage to our com¬merce, was taken when the DirectorGeneral of Railroads assumed, on be¬half of the government for the periodof the war. the operation of the CapeCod and the Delaware and Raritancanals, the latter being operated in con¬nection with the New York State BargeCanals. Every economic, military andnaval argument points to the impor¬tance of the earliest possible develop¬ment of a government-owned waterwaycorresponding with what is commonlyknown as the Atlantic intracoastalwaterway, connecting all the great citiesof our Atlantic seaboard with one an¬other, with the New York State water¬ways, reaching to the Great Lakes andLake Champlain, and with all the rail-read terminals along our easterncoast."

Legislation to provide for the estab¬lishment of standards for all lines ofindustry with the bureau as the deter¬mining and classifying agent is sug¬gested by Secretary Redfield.War work accomplished by the Bu¬

reau of Standards is extensively re¬viewed in the report. Scientific prob¬lems in nearly all branches of aero¬nautics have been investigated by thebureau during the year, and much as¬sistance given on airplane motor prob¬lems. Munitions gauges were stand¬ardized and methods of producing op¬tical glass developed.

Urgent needs of the department forthe future enumerated by SecretaryRedfield are:Two sea-going vessels and wire drag

launches for the Coast and GeodeticSurvey, and officers and crews forthem.Larger clerical force in the held ser¬

vice of the Steamboat Inspection Ser¬vice and in the office of the Coast andGeodetic Survey, together with moredraughtsmen and computers at more

adequate salaries in the latter service.Provision for housing the army of

clerks needed during the three-yearperiod of handling the census of 1920,which will be in full swing by nextJuly. . .. .A laboratory aquarium for the Bu¬reau of Fisheries.A government owned commerce build-,

ing to house all services except theBureau of Standards and the laboratory-aquarium. , .

An assistant to the Secretary ofCommerce to ai'd in the greatly in¬

creased volume of work.Estimates for the fiscal year of 1920

aggregate $39.727.740. A large part ofthe increase over the current year of$21,571.676 is for the Bureau ot theCensus to provide for taKing the four¬teenth decennial census.

RepublicansOpen FightOn Tax Bill

Senate Minority Files Its Re-port Protesting AgainstMaking 1920 Rate Now

K x p e c t Reductions

Forthcoming Changes in theEeonomie Conditions AreUsed as Delay Argument

By Theodore M KnappenWASHINGTON. Dee. 10. -The Sen¬

ate wearily took up the revenue billto-dajr, and only n few harely Senatorsstayed throughout the session withChairman Simmons of the FinanceCommittee as he discussed the meas¬ure at length. Most of them were ab¬sent, or fled early, and the gallerieswere not much better patronized thnnthe floor. ',The Republican minority of the

Finance Committee did not disturb the;somnolence of the occasion by reasonof any spirit in its report, which was

given out to-day. It was expected that!the minority's report would be stated;rather aggressively, anel consequentlythe mildness of its language is taken,as a criterion of the intensity of theopposition that will be offered to thebill. IThe minority report, after stating

the genera1 accorei of its memberswith the $fi 000,000.000 form of the billfor 1918-'19. proceeds to give reasonsfor opposing the enactment of a reve¬nue measure for 1919-'20 at this time.

Expect More ChangesThe fact that even while the present

bill was under consideration in thecommittee circumstances arose thatmad' it wise to reduce the amount tobo raised from $8,000,000.000 to $6,-(00 000.000 is cited as evidence thatcircumstances in the near future mayinvalidate considerations that now'point to $4.000.000.000 as the properamount to be raised in 1919-1920.

In answer to the argument of theneed of promptness in dealing withthe matter, the minority recalls that inJuly and August it was insisted thatthe bill must be passed by September28 in order to avoiel disaster to thefourth Liberty Loan anel serious incon¬venience to Treasury functions. Theseapprehensions turned out to be with¬out foundation, it is declared."Who will claim now," the report

continues, "that Congress was not justi-fied or lacked wisdom in eleliberatingupon this the greatest of all tax billsin history? The fact alone that changée!conditions made possible a reeluction of,S2 000,000 000 in the interest of the tax¬payer.- justified the care and scrutinygiven the bill by those charged withthe constitutional duty of framing it.

"In the light, therefore, of this re-cent valuable" experience and objectlesson, it would be entirely withoutjustification to attempt to prescribe for'the American people what amount oftaxes they shall be called upon to payin the year 1920. We cannot fail to beimpressed with the many difficulties en-countered, even with every possible aid,in levying just taxes for the current,year, and to undertake to project our-selves into the future, so tilled withportentous changes, and arbitrarilyrigidly tix taxes for the year 1920 is inviolation of every sound principle oflegislative procedure and economicallyis fallacious anel absurd.

Estimates Are Uncertain"No one can foresee the full course

of the events which will crowd the in-

tervening months, and no one with anydegree of definijcness can estimate thegovernment's needs or the country's in¬dustrial prosperity. Sources of revenuenot now tapped may be made to yielda largo portion, thus relieving othersources from onerous taxation. Whocan foresee clearly results from the re-1adjustment and reconstruction pro¬gramme .inevitably impending andbound to follow the retn-n of pence."Tille problem of the high cost of liv¬ing is not the least of those awaitingattention, and a wîse and carefully considored economic policy must be framednt the proper time with ftill informa¬tion as to the facts. Care must beexercised so as not to disarrange ourindustrial system in a way which willlender either capital or 'nhor less cmployed in profitable pursuits than atthe present time."A sound policy demands that, no leg¬islation shall be enacted which will

suddenly or unwisely disturb valuesand prices.*'

Strong Protest Made"Vast governmental undertakingsand agencies made necessary by the

war must »come in for a large share ofconsideration as to the policy to beadopted with respect to those activi¬ties in the future thus presenting themost difficult domestic problems everconfronted by this nation," the reportcontinued."No programme for the near or dis¬

tant future has even been evolved.nothing but the merest outlnes, sug¬gestions and preliminaries and yet onthe threshold of these nebulous condi¬tions it. is proposed to lay down a hardand fast scheme of taxation for thefuture."The only argument advanced in be¬ba f of this extraordinary propositior

to fix arbitrarily the rates of taxatiorin the present bill for 1920 is that thetaxpayers are entitled to know ther.mount of reduction in taxes and tincharacter of the taxes for that year."It does not seem to the minoritytint this argument furnishes any justideation for violating the methods oorderly legislative procedure. Ever;taxpayer in the country Knows thataxes will be reduced after this year a;the inevitable resu t of a reduction iigovernmental needs following thdecHration o:* peace."Every business man knows the nex

Congress can enact a revenue measurebased on accurate information as t>the then existing conditions, which wilreduce the burdens of taxation as faas the requirements of the governmenwill permit."Why, then, attempt to do so now iithis bill, with no knowledge of futur

conditions and needs.Uphold Present Plans

"As a 1918 measure the minoritmembers of the committee concur ithe reporting of the hill, but the measure should stand as essentially a 191measure, and the many changes whicwill be necessary to adapt the tax la1to the conditions to follow and founto obtain in 1919 and subsequent yeaishould be made at one time and in thlight of as full information as it wibe possible to obtain."

Senator Thomas, while concurring ithe minority report, presented his iidividual views on certain features <the bill, and Senators La Follette arSmoot announced an intention of filirsimilar personal reports to-morro1Senator Thomas found fault with tlexcess profits provision, which he dclared to be arbitrary unjust and idefensible. He favored a straight wiprofits tax based upon the excesswar earnings over tin- average earings of representative corporationsthe pre-war period.Senator Simmons introduced his a

dress with a review of the revenue siuation and with a presentation of tconflicting views of the majority aminority as to the proposition to estalish now the tax rates for 1919 as w<as 1918.

Predicts Extra Session"The minority," he said, "insists th

tax reductions be made at some latdate. Unless an extra session of Cogross is call jd this must go over unthe first of next December. Produceof revenue during the interim willunable to fix proper prices for tinproducts. The principles of self-pitection as well as selfishness will pivail. Unnecessary tax exactions wbe made to meet unknown requi:ments. Producers will not take t

risk. They will mark up their pricesto conform to present rates and not tome'ot promised reeluctions. The pro¬ducers will have $3 000 000.000 in theirpockets, collected from the people, be-yond what will meet the requirementsof the government."Neither the government nor the

people will get this money. Thosetaxes will remnin in the pockets ofthe great industrial taxpayers. Theywill go to increaso the great anel over-weening profits they make."This situation is caused through

the desire of one political party toperform the. gracious task of makingthe reeluctions in taxation. This willcost the people $3.000 000.000 and thegovernment will derive no benefit fromit."

Seven Out of FifteenAtlantic Cables Broken

Seven of the fifteen Transatlanticcables are broken anel will not beavailable for use during the peace con¬

ference, it was stateei yesterday at the»office of the Commercial Cable Com¬pany, 20 Broadway.The lines out of commission, accord¬

ing to officias, comprise four wiresleased by the Western Union Company,one owned by a French comnany andtwo taken from Germany at the begin¬ning of the war by Fiance anel GreatBritain. The bréales, with one or twoexceptions, are in mid-ocean, where thelines are laid hundreds of fathomsdeep.

"It will probably take months to makethe necessary repairs," saiel William J.Deegan, secretary of the Mackay com¬panies, the holding corporation of theCommercial Cable Company. "I under¬stand that the Western Union boat, theLord Kelvin, is out now trying to makesplices. It is a long and difficult jobhowever, and I'm afraid that news fromthe peace conference must be loadedon the eight remaining cables. Five ofthese are owned by our company, oneby the French, anf four are leased bythe Western Union. The broken cablesare old and parted under a naturalstress of time and weather. The Methu¬selah of the group was laid in theearly 80s."

Man Who Smoked in BedFound Burned to Death

Charles Terry, Aged Official ofWard Steamship Line, Was

ParalyzedCharles Terry, seventy years old,

New York superintenaent of the WardSteamship Line, was burned to death'ast night in his bed at his lodging1250 B'oomfield Avenue. Hoboken. Mr.Terry had a habit of smoking in beel.Late last night persons on the streetsaw smoke issuing from his windowand turned '.n an alarm.

Before the firemen arrived. MissMadge Loomi's, proprietor of the es¬tablishment, had attempted to open thedoor of Mr. Terry's room, but the heathad swollen ¡t so that it stuck. Whenit had been battered down, the bodyof the old man was discovered in thecentre of the blazing bed clothes.

Mr. Terry had not been to work for(wo weeks. Twice before he had suf¬fered paralytic strokes. It is believedthat he was smoking in bed, fell asleep,and waking to find his bed in flamessuffered a third stroke. He was abachelor. His relatives all live in Eng¬land.

Dr. McElroy to SpeakAt a luncheon to be given by the

Woman's Municipal League at theCosmopolitan Club this afternoon, oneof the principal speakers will be Dr.Robert M. McElroy, head of the de¬partment of history and politics atPrinceton University. Dr. McElroy,who is now on leave of absence,is devoting his time to the chairman¬ship of the National Security League'scommittee' on organized education.Dr. McElroy's topic will be "Safe Re¬building."

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Jewish Fund HerePasses $2,000,000;Poor Answer Call

Jacob H. Schiff DeclaresWealthy Have Yet loMake Full Response to.War Contributions Plea

The Jewish War Relief campaigntotal last night swept by the $2 000 000mark on the way toward its goal of$5 000 000. Yesterday's contributionswere $227 975 bringing the total of twodays of effort up to $2,005 840.Jacob II. Schiff and Jacob Wertheim

addressed the meeting of Workers atthe Biltniore yesterday. They declaredthat while the rich Jews have not giventheir share, the persons in poorer cir¬cumstances are loosing a shower of sil¬ver which is swelling the totals. Acontribution of $2,000 by the gins liv¬ing m the dorm.tory of the YoungWomen's Hebrew Association was citedas an example. This money, given innickels and dimes, had been originallyfor the purchase of an ambulance, butwith the armistice the girls changedtheir plan, A $25 contribution fromthe children of the Hebrew OrphanAsylum sent a tear to the eyes of thediners.

Gentiles Add to FundMr. Schiff extolled non-Jewish donors

who made unsolicited contributions.These included $5 000 from Mrs. E. II.Harrjman and large amounts fromFrank Trumbull, chairman of theChesapeake & Ohio Railroad, and C- C.Burlingame, former president of theBoard jf Education. A contributionof $1,000 from "The Wall Street Maga¬zine" also was recorded.A $10,000 contribution from AdolphLewisohn and another from Adolph S.Ochs were among the largest receivedin the day's grist. Colonel H. A. Guinz-

burg, chairman of-the meeting reportedthe highest daily total for his team,$27,779 having been collected. The

team captained by Samuel Untermyer,although reporting only $18,800 yester¬day, retains the lead among the teams,with a total of $391,4.06.

Women Workers Busy,The BO-called "flying squadron "com-

posed of women, has added $485,100 tothe campaign total. Mrs. Samuel G.Lamport's team, with $31 106 gathered,leads the women's groups.To emphasize' among the Jewish peo¬

ples here need of relieving the intensesuffering of tue Jews ;n the upsetregions overseas a cablegram from ? heHolland branch of the Joint Distribu-tion Committee to Albert Lucas, thecommittee's secretary here, was madepublic. It described the attack on theJewi h quarter of Lemberg followingthe Polish conquest.

Legionnaires are describ»d as syste-matica ly pillaging the Jewish e¡uarterleaving 10 C00 Jews without shelterafter 600 had been killed.

Protects Are Unheeded"The fact is est'ib ished " the cab'e-

gram states, "that permission had beengiven in advance to pil age for forty-eight hours. Jewish el/nutations ap¬peared b.'fore Polish C airman Dr.:Adam anei State President Dr. Stcsch-lotitz friday morning, but absolutely1without success. During conflagrationwater supply shut off. T ree syna¬gogues destroyed. Desperate cry for..e p Do everything; leave no stoneunturned, as further jpread of po¬groms will surely follow Po.ish ad¬vance."John R. Mott, chairman of the exec-,

utive con.m.tte'o and d.rector generalof the United WarWork Campaign, haswritten to Felix M. Warburg, <.»f ù.erelief campaign, praising the Jews fortheir liberal contributions to the warwork campaign.

Lodge L'rges IndependenceOf Armenia and Lithuania

WASHINGTON, Dec. 10..Two résolu-tions urging the independence of Ar-men a and Lithuania and that "someprovision be made for the Syrians andother Christian popu ations of AsiaMinor" were introduced to-day by Sen-ator Lodge and referred to the ForeignRelat.ons Committee.One of the resolutions also declares

that portions ot Asia Minor where the(¡reeks predominate should be placedunder the control of the Greek govern¬ment.

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