The Brooklyn Daily Eagle from Brooklyn, New York • Page 1

THE BROOKLYN DAILY EAGLE EXCLUSIVE i ASSOCIATED PRESS NEJ COMPLETE STOCK MARKET Complete report page 9. THREE CENTS FOUR O'CLOCK. NEW YORK CITY. WEDNESDAY, JANUARY 3. 1917.

20 PAGES. ALBANY SESSION ON SAYS BARUCH SOLD I GERARD SOUNDS HOLE WEG I ARREST J. T.BURNS, MEXICAN CONSUL, IN ON ATTITUDE OF BERLIN TOWARD NEW PEACE MOVE ROYAL FLYING CORPS DREADS THE "LONG RECONNAISSANCE" J. S. Ambassador in Interview With Chancellor Seeks to Learn Germany's Answer if Second Request for Peace Terms Is Made by U.

S. Entente Reply Is Delivered to Foreign Office British Paper Sees in Wilson Serious Factor in War if American People Back Him. PROFESSIONAL HELP In order to find those mysterious leaks in the btate Department why not send for a Secret Service man disguised as a plumber MEAGHER UNDERSHERIFF Successor to T. F. Byrnes Named by Riegelmann.

Sheriff Riegelmann today announced the appointment of Matthew T. Meagher as Undersherlff, to succeed the late Thomas F. Byrne, Meagher was formerly warden of the County Jail and is Democratic leader of the Thirteenth A. D. James J.

Sexton, who was selected to fill the Jail wardenshiD. is Dresl- dent of the Horseshoers Union. He is leauer or tne Fifth A. D. E.

V. BREWSTER WINS BRIDE IN ROCKAWAY Brooklyn Lawyer-Publisher Weds Eleanor Cator With Gem-Studded Ring. HEIRESS, TALENTED SINGER. Romance Born of Summer Calls at Her Home Couple Married December 27 in Stamford. A wedding ring of orange blossom design and studded with diamonds will make its first appearance in Far Rockaway this evening.

Close friends of the bride may be granted permis sion to read the inscription on the in side. It reads, "Won July 7, One December 27, E. E. V. The happy wearer of the gold band was Miss Eleanor Cator, daughter of the lato Senator Thomas Cator of New Jersey and Mrs.

A. Cator Hervey Miss Cator is now the wife of Eugene tsrewster, lawyer, art enthusiast ind motion picture magazine pub lisher. Their romance might make a successful "movie." Mr. Brewster is 47 years old. His bride is 25, beautiful and an accom plished musician and singer.

Her parents had planned great things for her in grand opera. She studied abroad and was about to step into professional life when along came Mr. Brewster. The wedding ceremony was per-rmed last Wednesday afternoon at Stamford, by Justice of the K. A.

Scolicld. This is Mr. Brewster's second marriage. His first wife divorced him on December 8, 1914. The Hervey home at Far Rockaway is one of the most attractive.

The family is wealthy. Mr. Hervey was noted concert singer on the coast. His step-daughter is unusually talent- Her musical education was his and dream, and that she might enjoy the best of training she was sent broad. She studied there for three 'ears, and at the outbreak of the var was one of those who encountered erious difficulties.

For a time she ras interested in Red Cross work in France. Girl's Sister Introduced Brewster to His New Bride. During these years Mr. Brewster had et one of her sisters. She called frequently at the offices of the Motion re oeing Interested 1e" writing, easual friendship sprang up.

Last summer she invited Mr. Brewster to spend the week-end Miss Cator was Mr. Brewster did not now beyond the acquaintance which ias half business. He accepted, and July 7 journedeyed to Far Rock- WH' reached the Oak street r.Monn and rubbed his eyes. When a Jap- Contlnucd on Page 2.

ALLEGED ARMS PLOT Charge Representative of dt Facto Government Conspired to Violate Embargo. RELEASED IN $10,000 BAIL. Aided in Shipping Munitions to Cnu, Accusation Against O.nclal. On three indictments charging him with being concerned in a conspiracy to violate the customs laws and Pre? dent Wilson's arms embargo procl; matlon of October 19, 1915, by secretly shipping arms and ammunitio Vera Cruz, Juan T. Burns, Consul eral of Mexico in this city, was today arrested by Special Agents Scully and Plgnioulo of the Department of Justice.

The munitions of war, intended for use hy the Carranza government forces, were forwarded by Ward liners, and to deceive the customs authorities, the indictment charges, wert falsely manifested as hardware, etc. Consul Burns was arraigned before Judge Learned Hand in the Federal District Court this at indictments and was held in $10,000 bail. He pleaded not guilty and refused to comment, on the charges. The arrest of Consul General Burns is the outcome of the arrest about a month ago of Louis Gotting Wcnces-loa Mont and Jose de la Paz In a raid on the offices of the Adic Company, importers and exporters, at 132 Nassau street, Manhattan, and the capture later at Houston. of a man named Reuben Mier.

Consul Burns was taki into a West Thirty-first street, id proceed to his office at 12a Broad-tv: Instead of going to bis office, Consul Burns rode down in his private ii fern I with Assistant in, ltd District Attorney John C. Knox. conspiracy, the authorities say, t.i light when one of the pack ages marked Hardware was acci- thousands of cartridges spilled out on the dock. The sending of the mis-branded packages was traced back to the Adic Company, and then it was learned that Gotting and Mont had also operated at 132 Nassau street as the Oceanic Hardware Co. and the Steel Products Co.

Gotting and when arraigned before U. S. Commissioner Houghton, furnished bonds of $10,000 each for examination and De La Paz. their office boy, was put under $5,000 bail. It is believed that the youth, after his rrp.i famished the customs authori ties with the evidence upon which the three indictments were procured Mier, when apprehended in Texas, tills city.

reM-nta' iv been the accredited rep of the de facto Mexlcai March. He was arraigned this after noon before Judge Learned Hand, In pleaded not guilty to the three indictments and was held in $10,000 bail to await trial. Burns is a well-dressed man, about 35 years old. He produced his check book when he heard the amount of the bail and offered to give a check. It was explained that he would surety, whereupon he immediately a ranged to comply.

He refused to dl cuss the charges. DARK CARS NEW B.R.T. WOE Heat, but No Light on Trolleys Here, Now. power troubles of the B. R.

T. fested themselves in a new form today. Patrons of the Flatbush ave- lino coming to work about o'clock this morning found the cars i tba I hey could not read tin i papers. They asked the conductor to nd the difficulty by turning on the ights. "We've got orders not to turn on the lights except when it's dark outside." the conductor replied.

"The company hasn't power enough to run "officials of theaB. H. T. said this fternoon that they had no knowledge such an order, but admitted that he company was doing its best to con-erve its power supply. CHIEF McCULLAGH DIES Word was received in this city today the death in Asbury Park this orning of John McCullagh, former chief of police.

He had been in ill- lt an operation lor Chief McCullagh I DIRECT STATE TAX MAY BE $12,000,000 Legislature Receives Message Urging Local Option and Executive's Budget. Senator Lawson Blocks Resolution, Which Is Sent to Committee. Women Look On. Albany, January 3 The New York mate legislature for 1917 conven noon today for its opening session overwhelming Republican both houses. The lawm; listened to Governor Whitman's nual message, In which he expressed the belief that local option should extended to cities of the State, celved the Executive's segregated budget, an analysis of which forecasted a direct tax levy of betweer $8,000,000 and $12,000,000 this year and re-elected the officers who served last year.

The desks of many of the members were decorated with handsome bou quets of flowers and the more popu lar leaders held informal receptions committee rooms and Capitol corri The wives and friends of many the legislators thronged the galleries and executive chambers. Prominent among the women was Mrs. Norm: De R. Whitehouse, chairman of State Woman's Suffrage party, came to see that the resolution intended to provide for a resubmission of the suf-t'frage question in 1917 was properly introduced. She was surrounded by a email delegation of her coworkers, in cluding Mrs.

James Lee Laidlaw of New York. Lawson Blocks Resolution for Woman Suffrage. The suffrage question came up the opening session, and Senator Ro ert R. Lawson of Brooklyn succeed in blocking the Woman Suffrage res lutlon in the Senate as lirsi nttici act. The resolution was offered by Senator Whitney and moved for the third reading without reference, whicn would have pushed it rapidly toward final passage.

Lawson objected and that sent the measure to ihe Judiciary Committee, where it will have to go i through the intricate machinery of the whole legislative mill. The resolution was also introduced in the Assembly, championed by Assemblyman Bret-eton of Warren. It was referred to committee. Lawson is offering a bill on police pensions. It provides that he may retire at any time after twenty years of service.

The Legislature was convened under direction of the wn Hided affairs last year. Elon R. own of Watertown was re-elected president, or majority tder of the Senate, and Thaddeus 2 et of Oswego was chosen Speaker the Assembly for a fourth term. Robert F. Wagner of New York and Joseph M.

Callahan of the Bronx were elected minority leaders in the Senate and Assembly, respectively. Other officers of the Senate included: Clerk, Ernest A. Fay. St. Lawrence; sergeant-at-arms, Charles R.

Hotaling, Albany; principal doorkeeper, Lee V. (iardiner, Sullivan; stenographer, John K. Marshall, New York. Those chosen in the Assembly were: Clerk, Fred W. Hammond, Onondaga; sergeant-at-arms, Harry W.

Haines, Westchester; principal doorkeeper, Fred K. Smith. Warren; stenographer, Paul E. McCarthy, Albany. Necessity of Raising Eight to Twelve Millions by Direct Tax $8,000,000 and 1 by direct nor Whitman's tentative, segregated, executive budget bill and financial statement submitted to the Legislature's opening session.

The Governor's bill calls for departmental appropriation of 65.4-S7.S4. as compared with requests of departmental heads of $80,796,000. In addition to the i total, the Governor in his hill asks for appropriations for new State activities totaling $2,433,000. The estimated cost of these new activities is apportioned as follows: Extra compensation for militiamen who served on the Mexican border, State's share of Federal post road plan, stone quarry at. Great Meadow Prison, insuring all State employees under workmen's compensation act, $150,000.

This makes a total estimated expenditure for the year of To offset this, the Controller has estimated; the receipts from indirect sources will amount to that there will be a treasury balance on July 1 of $3,530,894, and that lapses from old appropriations will increase the resources $3,250,000. This makes a total of estimated receipts of $59,745,343. In order to provide for a working surplus in the Treasury at the beginning of the 1918 fiscal year it is probable that the direct tax rate will bo fixed at one mill, which will raise approximately $12,000,000. The principal increase in the Governor's bill over the appropriations of last year are: Fixed charges and contributions, personal service, food, printing, supplies, $347,2211, and traveling expenses, $159,279. Pension systems operated in the State for the benefit of State and municipal employees were characterized as unscientific in a report transmitted to the Legislature by the Senate Committee on Civil Service, headed by former Senator Clinton T.

Borton of Buffalo. Governor Whitman's message to the Legislature will be found on Page 7 of today's Eagle. TODAY IN CONGRESS Washington, January 3 The Senate met at noon. Resumed debate on Hitchcock resolution to indorse President Wilson's peaco note. I'niversal military training hearing resumed.

Railroad legislative inquiry was con- The House met at noon. Representative Adamson failed to obtain unanimous consent for his resolution to continue the Newlands Railway Investigating Committee for another year. FLORIDA TOl-IUSTS' PATnONAGK SHORT JUSTl BEFORE PEACE NOTE1 Representative Bennet of New York Causes Sensation in Lower House of Congress. BAniCH IN DEFENSE COUNCIL. iardner Demands Investlgatlo: Resolution to Probo Leak (iocs to Rules Committee.

Eagle Bu 603 Fourtecntl Washington, January 3 ment that Bernard M. Bl New York banker, is sold l.l.ooo shares i States Steel short, on a-rlsing market, just helore the publication of Pros! dent Wilson's peace note, was made on the floor of the House of Repre sentatives this afternoon hy Iiepresen tativo William S. Bennet of New York City. Mr. Baruch Is a member of the Council of National Defense, by point ment of President Wilson.

Representative Bcnnct's statement came after the House for more tl an hour had been debating charges made by Thomas W. of Boston, to the effect that a It in official quarters in Washington abled certain persons to make big profits In Wall Street on the strength or the peace note. Representative Gardner of Massachusetts, demanding an investigation by the House, declared he did not know where the alleged leak cai from, whether it was in the House in the executive branch of the Govei the Pules Coi its duty and I it, declared: Lawson Mnkes an Attack on Senator Stone for His Criticism. Thomas W. Lawson left Washington last night.

Before leaving he made the following to the Washington Times, which that paper printed: "In regard to Senator Stone, 'lliiiii- shoe I believe they call him, I do not know bun personally, but I do reputath tie, this pup. "I am here in Washington, and all can see me and compare me, Cod ror-bid, with this man. And if they can, after comparison, put me in his class me for the first hole in the Potomac Representative Wood's resolution for a special investigation of charges of a "leak" in President Wilson's peace note was held privileged by the House today and it was referred to the Rules Spnainrnslnn" after conferring with Secretary Lansing today, made a statement In the Senato explaining that he had intended in no way to reflect on the Secretary when yesterday he charged that important official find their way into unauthorized documents of the department had Senator Stone, "I ought to have said department. "I am sure also that no Secretary of State nor any other high official of seidus of those acts to which referred." When an Eagle reporter called to Bernard Baruch at his office in Manhattan, lie was informed that days ago." Bernard M. Baruch, the leading hear operator during those gloomy hours of December 21, when Wall Street was filled with foreboding rumors, was capital was broached, Mr.

Baruch nors which were floating arnum itreet. even at that early hour. FAMILY OF 7 OVERCOME Mrs. Margaret Keller of 384 South Fourth street and her six children arrow ly escaped aih from coal gas while asleep early this morning. The three youngest children, Dora, 6 years; Kathleen, 8 years, and Rosebud, 10 years, were badly affected and are in the Williamsburg Hospital.

First-aid efforts hy Policemen Polski, O'Donnell and Scheer and John Keller, father of the children, probably saved their lives. Mrs. Keller, her son, Louis, 13 years old, and her daughters, Helen. 16 years, and Blta, 8 years oiu, were revived wun pul- The gas came from basement of the house. 1 Mi 196 Entente Warships, Total Tonnage 759,430, Sunk During the War Berlin, January 3 (by wireless to Sayville, L.

"Including the French by a German submarine," sayc an Overseas News Agency statement today, "196 hostile warships, including torpedo boats and submarines, of a total tonnage of 759,430, liave been sunk since the beginning of tlus war. "Of these, 125 vessels were British, of a total of 565,200 tons. "The total losses of Entente warships exceed the total tonnage of the warships of France at the beginning of the war. "Auxiliary cruisers and ships of special type that have been lost are not included in the figures given." MARGINAL ROAD ASSURED? Official Expects Work Will Be-gin in Near Future. Work on the South Brooklyn marginal railroad will begin in the near future unless some unexpected hitch arises In the present negotiations between the city officials and the repre sentatives of the trunk line railroads, 1 it was asserted today by one of the officials participating in the negotla-i i the i the i the city will accept the ffer of the railroad companies to perate a portion of the line.

This ortion will be the section along Bed look and Erio Basin. MIDVALE DIVIDEND Directors Declare $1.50 a Share. Huge Surplus. The directors of the Midvale Steel and Ordnance Company today declared an initial quarterly dividend of $1.60 per share at the rate of 12 per cent, per annum on the stock and $50 par value. $38, 1.270; 32,1 69,164.

The dividend BRECKINRIDGE TOOK TEE' TO PUSH CASE, NEW SWANN CHARGE Money, Put Up by Employers, Arranged for by Declares Prosecutor. District Attorney Swann today made a vitriolic attack upon Li Hreckonrioce, former trict Attorney under Governor Whit man and District Attorney Perkins, who has come forward to support former Judge Delehanty in his charges against District Attorney Swann. District Attorney Swann did not confine himself to the record of Mr. Breckenridgo himself, hut recited in stances in the family history of th Breckenridges of Kentucky to dis credit this Breckenridge. "I charge you, Lucien S.

Breckln ridge of Kentucky," declares Swann ir nicy in the name of a 'fee' from mmittee of employers, whip yot ire a Special Assistant District Attor-y under me, to induce you to us ur special efforts against the strik- employees of the Employers' As- largo thath tnis money was efforts of a well known 'collector' of graft money tor two policemen who yoi llie debt the labor unions is, Mr. Breckinridge of In reviewing i tie ramiiy nistory or Breckinrldges, Swann asserted at John C. Breckinridge was exiled from the fulled States Senate in IStil for treason to the nation; that a Congressman Breckinridge was in- hieh is riled in the court's at the case of Miss Pal- lard vs. Breckinridge; and that only a few months ago Assistant Secretary of War Breckinridge tried to "betray but "failed as signally as the member tamiiy attempting lo discredit would fall." FRENCH BATTLESHIP VERITE TORPEDOED OFF MALTA, REPORT Berlin, Jnnuary 3 (By wireless ta Sayville, L. A dispatch to tho Zurich Post from Milan reports that the French battleship Verlte has been torpedoed by a German submarine near Malta, says an Overseas News Agency announcement today.

The Verlte, badly damaged, is lying neni the port of Malts, the dli jtvh adds. It Means Flying for Hours Many Miles Behind the Enemy's Lines. EXPOSED TO 'ARCHIE' AND COLD. Archie" Is the British ATlnfors' Nickname for German Anti-Aircraft Guns. 16 Regent Street, S.

W. By Henry Suydam. London, December 20 The Royal Flying Corps, during tho brief period of its war-time existence, has developed distinct traditions and distinct dislikes. The traditions are those of excessive chivalry; the dislikes culminate in prolonged flights behind the German front. Of these dislikes, the greatest is named "the long reconnaissance," and I propose to explain why.

They have a faculty for picturesque and striking expression in the Royal Flying Corps; the German anti-air craft guns, for example, aro known simply as "Archie." "The long recon naissance" sounds like the title of a the events of such an experience aro not less fantastic. Three or four hours many miles behind the enemy's lines form the basis for "the long reconnaissance." The ordeal calls for immense skill, powers of endurance and devotion to duty; in short, the things that usually win the Distinguished Service Order or the Military Cross. The new pilot, upon arriving at the front, has time to get his local bearings rather thoroughly before his turn arrives to undertake this particular effort. Then, one day when things may be quiet, the squadron commander will order him to take his machine and an observer and to reconnofter a certain distant area. In ihe summer the task is not so bad; but in tho depth of winter, flying at 10,000 feet for four hours Is worse than patrolling for Ave days aboard a torpedo-boat destroyer in the foamy frigidity of the North Sea.

Nevertheless, the deed is done. Proper Clothing Highly Essential. "The long reconnaissanco" is primarily a matter of proper clothing. The flyers wrap themselves in quantities of fur and wool, In the shape of clumsy but warm garments. Sweaters, thick leather coats, extra socks, fur-lined helmets, mufflers, gauntlet gloves reaching to the elbow; these are some of the preliminaries.

Lastly, a goggle-fltted mask of leather is strapped across the face, for frostbite means a ghastly mutilation of the features. Tho technical equipment embraces maps, notebooks, pencils and bombs, these last to be released from the bomb-rib should a favorable target of ammunition are fitted to the machine-guns; a camera is put into the rack; the tanks are filled with oil and petrol; finally the pilot and observer strap themselves in; the pilot cries "Contact!" and the big propeller com- Slowly It swings at first, then faster and faster. When the engine is well warmed up, the propeller slows down, tho pilot waves his arms, waiting me ttle wheels, and the airplane rushes across the airdrome and starts mounting rapidly toward the German Chance Targets Are Never Neglected. The observer is in command; he directs operations. The pilot merely obeys instructions.

Although these expeditions aro primarily affairs of scouting without offensive purposes, chance targets are always taken advantage of, especially when large bodies of troops aro discovered In the open, or several trains are found in an enemy railroad station. Tho same pair of pilots and observers always work together; they have complete confidence in each other, and no differences of opinion exist as to what should be done In a given emergency. Oftentimes tho orders issued by the squadron commander call for reconnaissance 100 miles behind tho lines. The whole of a large enemy area must be observed, with reference to movements of troops, gun emplacements railway junctions, ai Continued TODAY'S U-BOAT RECORD London, Jcnuary 3 Lloyds reports the sinking of the French sallingship Aconcagua. 1,313 tons; the Swedish steamer Coosehrldge.

1,854 tons; tho British steamer Holly Branch, 3, 55'. tons gross, and the Norwegian steamer Brest (via Paris), January 3 The French steamer Leon, 2,401 tons, has been sunk by a submarine. The crew MRS. ST. JOHN HELD Mrs.

Carley St. John of 37 Lincoln road, who was arrested on December 21, by Policeman Donnelly of the Snyder avenue station, on a charge of Intoxication, after tho automobile she was driving collided with a Church avenuo trolley car, between Bedford and Flatbush avenues, waived examination today. In the Flathush court, and Magistrate Steers held her in $200 bail for trial In the Court of Special Sessions. She claims that Instead of running Into the trolley car, tb n'llej rf into htf automobile. i Berlin, January 2 (via London, January 3 (United States Ambassador Gerard took advantage of a New Year's call yesterday to discuss the Entente answer to Germany's peace mann-Hollweg, The Ambassador is believed to have learned what possibility there Is of Germany acting favorably on a renewed request for conditions of peace should the United States make such Amsterdam, January 3 (via London, 3:37 p.m.) According to the German newspaper the reply of the Entente Allies to the peace proposal of the Central Powers and their allies was presented to tho Foreign Office in Berlin, on Monday, hy the Swiss Minister to Germany.

ITesldent Xo Mere Essayist A Serious Factor, Says Westminster Gazette. London, January 3 Commenting; on Washington dispatches to the effect that President Wilson Is determined to press his efforts to bring about peace, the Westminster Gazette "The notion that tho Americans' President is a purely academic person, who launches literary essays on the world without preparation beforehand or consideration of tho next step if probable consequences follow, is a dangerous delusion which may seriously lead us astray if it is not abandoned. For good or evil, we have to realize the President's position of great power, and If he has the American people behind him we are bound to treat him as a very serious factor at this stage of the war. If, as suggested, he is taking steps to get his action ratified by a resolution of the Senate, we should have to take that as a definite intimation that he means to go on in spite of our reply." This newspaper expresses the hope that the reply of the Entente to the President's peace note will be couched in terms which will bring to the side of the Entente a good many Americans who believe there is nothing to choose between tho two sets of belligerents. "But whatever we do," says the Gazette, "whatever our prepossessions may he, It Is high time that we took the American situation seriously and were ready with a definite policy in regard to It" GERMANY'S FOOD OUTLOOK IMPROVES, BERLIN SAYS Amsterdam, January 3 A Berlin semi-official telegram today says that this year's bread-corn harvest will exceed last year's by 1,500,000 tons.

The deficiency in the potato harvest, which Is considerably under the, average, will be chiefly offset by the very good turnip Tho reduction in the use of barley for brewing purposes by 50 per cent, will help greatly overcoming the effects of the bad potato crop, the Germany's stock of cattle is declared in tho dispatch to have been Increased since the beginning of IMS bv more than and the stock of pigs by more than "so that Germany can reckon with an Improvement in the supply of milk and fat, while the I til man bin booty guarantees a great Improvement in the supply of fodder." BERNSTORFF ATTACKED Lodge Resents German Envoy's Approval of Wilson's Peace Note. Washington, January 3 During the Senate debate today on the resolution to indorse President Wilson's peace note, Senator Lodge attacked the German Ambassador, Count von Bernstorff, for giving out a news- paper statement, publicly Ue note. "It Is hardly to be with such a ttatemi nl the German Ambassad tor Lodge, "that thero eral misinterpretation ondered that froi said mid ho gen tho note a is designed belief that It Iti Germany In attaining peaco upon Senator Hitchcock urged the adoption of the resolution. "In framing it." he said, "I have carefully avoided reference to those portions of the I'ri sldcnt's notes which might provoke controversy." Senator Hitchcock said there was recent precedent for the President's action, and referred to former President Roosevelt's peace overtures to end the Russo-Japanese war. Senators I.edge and Borah both opposed the resolution.

Senator lloke Smith urged Its ndorjtlon. Action on the resolution was again Uf. I a Knf debate .) a lvni May Tax Motion Pictures State Revenue To Raise (Special to The Eagle.) Albany, January 3 Four plans for increasing the State's indirect reve- have developed already as tne re sult of the announcement of the budget figures hy Governor Whitman, which show that a direct tax of from ight to twelve millions must be levied this year to make up the deficiency letween the proposed expenditures, ggreiting, roughly, $65,000,000, and he anticipated revenues plus the sur-dus amounting to about $56,000,000. The new indirect revenue plans in clude (1) levying a tax on the moving-picture industry; (2) a revival of the personal income tax scneme evoivea by the Mills Committee last winter; 1 3) a tax upon the capitalization of industrial corporations; (4) a tax upor the net incomes of industrial corpora- The object of all the plans is to ward off future direct tax levies, the legislators being without hope of putting anything through that can avert ib ss tmn noo or $1 2,000,000 lew ap parently necessary this year. Consideration of new sources of direct revenue is also in line with the Governor's financial recommendations this year.

In this tentative budget he suggests that they seek somo way of raising ths State's indirect income to the normal levy of thi 'xpendltui ine proposed tax on tne motion picture industry is the newest of the schemes. It was broached today in the caucus of the Senate Republicans and a resolution was passed providing for the appointment of a special committee to make an investigation to see if this industry could be taxed and if so how. At present the only levq upon it is an indirect one, the license tax on tiieaters. Senator Ogden L. Mills of Manhattan is credited with being behind the scheme to tax net incomes of industrial corporations, and he is also the man who will press the personal income tax.

The plan to tax on the capitalization of corporations is said to emanate from the State tax department and is an alternative to the proposed tax on corporation incomes. I out already in great detail. It is to supplant the present corporation franchise tax and the plan is to levy it against all manufacturing and in-I dustrlal corporations. Public utility I corporations would be exempt. They paying under the special franchise tax taw.

rnose wno nre working out the details of the Industrial corporation claim that It would yiled about annually. It Is proposed to use the information of the Federal Government in getting at the taxable incomes of such corporation.