per annum, except that no deduction shall be made for continuous installments during the life of the insured in case his total and permanent disability continues more than 240 months. Subject to regulations, the insured shall at all times have the right to change the beneficiary or beneficiaries of such insurance without the consent of such beneficiary or beneficiaries, but only within the classes herein provided. If no beneficiary within the permitted class be designated by the insured, either in his lifetime or by his last will and testament, or if the designated beneficiary does not survive the insured, the insurance shall be payable to such person or persons within the permitted class of beneficiaries as would under the laws of the state of the residence of the insured be entitled to his personal property in case of intestacy. If no such person survive the insured, then there shall be paid to the estate of the insured an amount equal to the reserve value, if any, of the insurance at the time of his death, calculated on the basis of the American Experience Table of Mortality and 32 per centum interest in full of all obligations under the contract of insurance.' (Approved June 25, 1918.)

Marine and Seamen's Insurance.

Be it enacted, etc., That the war-risk insurance act is hereby amended by adding a new section to be known as section 2b, to read:

"Sec. 2b. That when it appears to the secretary of the treasury that vessels of foreign friendly flags, or their masters, officers or crews, or shippers or importers in such vessels, are unable in any trade to secure adequate war-risk insurance on reasonable terms, the bureau of war-risk insurance, with the approval of the secretary, is hereby authorized to make provisions for the insurance by the United States of (1) such vessels of foreign friendly flags, their freight and passage moneys, and personal effects of the masters, officers and crews thereof against the risks of war when such vessels are chartered or operated by the United States shipping board or its agent, or chartered by any person a citizen of the United States, and (2) the cargoes to be shipped in such vessels of foreign friendly flags, whether or not they are so chartered. Such insurance on the vessel, however, is authorized only when the United States shipping board or its agent operates the vessel or the charterers are, by the terms of the charter party or contract with the vessel owners, required to assume the war risk or provide insurance protecting the vessel owners against war risk during the term of the charter or hire of the vessel.

"The bureau of war-risk insurance, with the approval of the secretary of the treasury, is also hereby authorized to insure the masters, officers and crews of vessels operated or chartered as aforesaid against the loss of life or personal injury by the risk of war and for compensation during the detention following capture by enemies of the United States, whenever it appears to the secretary that the owners, operators or charterers of such vessels are unable, in any trade, to secure such insurance on reasonable terms."

Sec. 2. That section 5 of the war-risk insurance act is hereby amended to read as follows:

"Sec. 5. That the secretary of the treasury is authorized to establish an advisory board, to consist of three members skilled in the practices of war-risk insurance, for the purpose of assisting the bureau of war-risk insurance in fixing rates of premium and in adjustment of claims for losses and generally in carrying out the purposes of this act: the compensation of the members of said board to be determined by the secretary of the treasury, but not to exceed $20 a day each while actually employed. He is likewise authorized to appoint two persons skilled in the practice of accident insurance for The purpose of assisting the bureau of war-risk

insurance in the adjustment of claims for death, personal injury or detention; the compensation of persons so appointed to be determined by the secretary of the treasury, but not to exceed $20 a day each while actually employed. In the event of disagreement as to the claim for losses or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the District court of the United States, sitting in admiralty, in the district in which the claimant or his agents may reside. The secretary of the treasury is, in his judgment, authorized to compromise the claim either before or after the institution of an action therein."

Sec. 3. That section 9 of the war-risk insurance act is hereby amended to read as follows: "Sec. 9. That the president is authorized whenever in his judgment the necessity of further war insurance by the United States shall have ceased to exist to suspend the operation of this act, in so far as the division of marine and seamen's insurance is concerned, which suspension shall be made in any event within six months after the end of the war, but shall not affect any insurance outstanding at the time or any claims pending adjustment. For the purpose of the final adjustment of any such outstanding insurance or claims, the division of marine and seamen's insurance may, in the discretion of the president, be continued in existence for a period not exceeding three years after such suspension.

"The words 'end of the war' as used herein shall be deemed to mean the date of proclamation of exchange of ratification of the treaty of peace, unless the president shall, by proclamation, declare a prior date, in which case the date so proclaimed shall be deemed to be the 'end of the war' within the meaning of this act." Approved July 11, 1918.

LIBERTY LOAN TAX EXEMPTION.

Be it enacted, etc., that until the expiration of two years after the date of the termination of the war between the United States and the imperial German government, as fixed by proclamation of the president

(1) The interest on an amount of bonds of the fourth liberty loan the principal of which does not exceed $30,000, owned by any individual, partnership, association or corporation, shall be exempt from graduated additional income taxes, commonly known as surtaxes and excess profits and war-profits taxes, now hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations or corporations;

or

(2) The interest received after Jan. 1, 1918, on an amount of bonds of the first liberty loan converted, dated either Nov. 15, 1917, or May 9, 1918, the second liberty loan, converted and unconverted, and the third liberty loan, the principal of which does not exceed $45,000 in the aggregate, owned by any individual, partnership, association or corporation, shall be exempt from such taxes: Provided, however, That no owner of such bonds shall be entitled to such exemption in respect to the interest on an aggregate principal amount of such bonds exceeding one and one-half times the principal amount of bonds of the fourth liberty loan originally subscribed for by such owner and still owned by him at the date of his tax return; and

(3) The interest on an amount of bonds, the principal of which does not execeed $30.000, owned by any individual, partnership, association or corporation, issued upon conversion of 32 per centum bonds of the first liberty loan in the exercise of any privilege arising as a consequence of the issue of bonds of the fourth liberty loan, shall be exempt from such taxes.

The exemptions provided in this section shall be in addition to the exemption provided in section 7 of the second liberty bond act in respect to the interest on an amount of bonds

or states under which such corporation or corporations are organized.

The secretary of war is hereby authorized to assign for duty, under the direction of the director of aircraft production, any enlisted men or commissioned officers, from time to time, in the military organization as he shall deem necessary or desirable to carry on the work of such corporation or corporations: Provided, That nothing in this chapter shall prevent such corporation or corporations from employing civilians in the manner customary in the conduct of ordinary business under corporate organization.

The secretary of war, acting through the director of aircraft production, is authorized to transfer, by appropriate instruments, to any such corporation as may be formed under this chapter, any interest of the United States in any existing contracts for aircraft, aircraft equipment or materials therefor, and the title to any lands, plants, railroads or equipment used in or in connection with the production of aircraft, aircraft equipment or materials therefor, on such terms as the secretary of war, acting through the director of aircaft production, shall deem fit.

MEDALS AND DECORATIONS.

In the army appropriation act approved July 9, 1918, it is provided: That the provisions of existing law relating to the award of medals of honor to officers, noncommissioned officers and privates of the army be. and they hereby are, amended so that the president is authorized to present, in the name of the congress, a medal of honor only to each person who, while an officer or enlisted man of the army, shall hereafter, in action involving actual conflict with an enemy, distinguish himself conspicuously by gallantry and intrepidity at the risk of his life above and beyond the call of duty.

That the president be, and he is hereby, further authorized to present, but not in the name of the congress, a distinguished service cross of appropriate design and a ribbon, together with a rosette or other device, to be worn in lieu thereof, to any person who, while serving in any capacity with the army of the United States since the 6th day of April, 1917, has distinguished, or who shall hereafter distinguish, himself or herself by extraordinary heroism in connection with military operations against an armed enemy.

That the president be, and he is hereby, further authorized to present, but not in the name of congress, a distinguished service medal of appropriate design and a ribbon, together with a rosette or other device, to be worn in lieu thereof, to any person who, while serving in any capacity with the army of the United States since the 6th day of April, 1917, has distinguished, or who hereafter shall distinguish, himself or herself by exceptionally meritorious service to the government in a duty of great responsibility, and said distinguished service medal shall also be issued to all enlisted men of the army to whom the certificate of merit has been granted up to and including the date of the passage of this act under the provisions of previously existing law, in lieu of such certificate of merit, and after the passage of this act the award of the certificate of merit for distinguished service shall cease, and additional pay heretofore authorized by law for holders of the certificate of merit shall not be paid to them beyond the date of the award of the distinguished service medal in lieu thereof as aforesaid.

That each enlisted man of the army to whom there has been or shall be awarded a medal of honor, a distinguished service cross or a distinguished service medal shall, for each such award, be entitled to additional pay at the rate of $2 per month from the date of the distinguished act or service on which the award is based, and each bar or other suitable device, in lieu of a medal of honor, a dis

tinguished service cross or a distinguished service medal, as hereinafter provided for, shall entitle him to further additional pay at the rate of $2 per month from the date of the distinguished act or service for which the bar is awarded, and said additional pay shall continue throughout his active service, whether such service shall or shall not be continuous; but when the award is in lieu of the certifi cate of merit, as provided for in section 3 hereof, the additional pay shall begin with the date of the award.

That no more than one medal of honor or one distinguished service cross or one distinguished service medal shall be issued to any one person: but for each succeeding deed or act sufficient to justify the award of a medal of honor or a distinguished service cross or a distinguished service medal, respectively, the president may award a suitable bar, or other suitable device, to be worn as he shall direct, and for each other citation of an officer or enlisted man for gallantry in action published in orders issued from the headquarters of a force commanded by a general officer he shall be entitled to wear, as the president shall direct, a silver star three-sixteenths of an inch in diameter.

That the secretary of war be, and he is hereby, authorized to expend from the appropriations for contingent expenses of his department from time to time so much as may be necessary to defray the cost of the medals of honor, distinguished service crosses, distinguished service medals, bars, rosettes and other devices hereinbefore provided for.

That whenever a medal, cross. bar, ribbon. rosette or other device presented under the provisions of this act shall have been lost, destroyed or rendered unfit for use, without fault or neglect on the part of the person to whom it was awarded, such medal, cross, bar, ribbon, rosette or device shall be replaced without charge therefor.

That, except as otherwise prescribed herein, no medals of honor, distinguished service cross, distinguished service medal or bar or other suitable device in lieu of either of said medals or of said cross, shall be issued to any person after more than three years from the date of the act justifying the award thereof, nor unless a specific statement or report distinctly setting forth the distinguished service and suggesting or recommending official recognition thereof shall have been made at the time of the distinguished service or within two years thereafter, nor unless it shall appear from official records in the war department that such person has so distinguished himself as to entitle him thereto; but in case an individual who shall distinguish himself dies before the making of the award to which he may be entitled, the award may nevertheless be made and the medal or cross or the bar or other emblem or device presented, within three years from the date of the act justifying the award thereof, to such representative of the deceased as the president may designate; but no medal, cross, bar or other device hereinbefore authorized shall be awarded or presented to any individual whose entire service subsequent to the time he distinguished himself shall not have been honorable; but in cases of officers and enlisted men now in the army for whom the award of the medal of honor has been recommended in full compliance with then existing regulations, but on account of services which, though insufficient fully to justify the award of the medal of honor, appear to have been such as to justify the award of the distinguished service cross or distinguished service medal hereinbefore provided for, such cases may be considered and acted upon under the provisions of this act authorizing the award of the distinguished service cross and distinguished service medal, notwithstanding that said services may have been rendered more than three years before said cases shall have been considered as authorized by this act, but all consideration of

and action upon any of said cases shall be based exclusively upon official records now on file in the war department, and in the cases of officers and enlisted men now in the army who have been mentioned in orders now а

part of official records, for extraordinary heroism or especially meritorious services, such as to justify the award of the distinguished service cross or the distinguished service medal hereinbefore provided for, such cases may be considered and acted on under the provisions of this act. notwithstanding that said act or services may have been rendered more than three years before said cases shall have been considered as authorized by this act, but all consideration of and action upon any said cases shall be based exclusively upon official records of the war department.

That the president be, and he is hereby, authorized to delegate, under such conditions, regulations and limitations as he shall prescribe, to the commanding general of a separate army or higher unit in the field, the power conferred upon him by this act to award the medal of honor, the distinguished service cross and the distinguished service medal, and he is further authorized to make from time to time any and all rules, regulations and orders which he shall deem necessary to carry into effect the provisions of this act and to execute the full purpose and intention thereof.

Foreign Decorations.

That American citizens who have received since Aug. 1, 1914, decorations or medals for distinguished service in the armies or in connection with the field service of those nations engaged in war against the imperial German government, shall, on entering the military service of the United States, be permitted to wear such medals or decorations.

That any and all members of the military forces of the United States serving in the present war be, and they are hereby, permitted and authorized to accept during the present war or within one year thereafter, from the government of any of the countries engaged in war with any country with which the United States is or shall be concurrently likewise engaged in war, such decorations, when tendered, as are conferred by such government upon the members of its own military forces, and the consent of congress required therefor by clause 8 of section 9 of article I. of the constitution is hereby expressly granted: Provided, That any officer or enlisted man of the military forces of the United States is hereby authorized to accept and wear any medal or decoration heretofore bestowed by the government of any of the nations concurrently engaged with the United States in the present war.

The president is authorized, under regulations to be prescribed by him, to confer such medals and decorations as may be authorized in the military service of the United States upon officers and enlisted men of the military forces of the countries concurrently engaged with the United States in the present war.

MEDAL FOR NATIONAL GUARDSMEN. That the secretary of war be, and he is hereby, authorized and directed to procure a bronze medal, with suitable device and ribbon, to be presented to each of the several officers and enlisted men, and families of such as may be dead, of the national guard who, under the orders of the president of the United States, served not less than ninety days in the war with Spain, and who have received an honorable discharge from the service, and who served on the Mexican border in the years 1916 and 1917 and who are not eligible to receive the Mexican service badge heretofore authorized by the president: Provided, That such medals shall not be issued to men who have, subsequent to such service, been dishonorably discharged from the service or deserted.

INCREASE OF NAVAL PERSONNEL. In the naval appropriation act approved it is provided; The authorized enlisted strength of the active list of the navy is temporarily increased from 135,485 to 181,485; the num6,000 to 24,000, and the number of men in ber of apprentice seamen is increased from the flying corps is increased from 350 to time during the present war to incease the The president is authorized at any enlisted strength of the navy by the addition of 50,000 men.

10,000.

The enlisted strength of the marine corps is The rank increased from 17,400 to 75,500. of first class private is created. The rank and title of major-general is created in the marine corps. The act provides for the temporary appointment of additional brigadiergenerals and other officers in the marine corps necessitated by the increase in the number of enlisted men.

INCREASE OF THE ARMY.

In the army appropriation bill approved July 9, 1918, it is provided: The authority conferred upon the president by the act approved May 18, 1917, entitled "An act to authorize the president to increase temporarily the military establishment of the United States," is extended so as to authorize him during each fiscal year to raise by draft as provided in that act and acts amendatory thereof the maximum number of men which may be organized, equipped, trained and used during such year for the prosecution of the present war until the same shall have been brought to a successful conclusion.

SLAVIC LEGION.

a

In the army appropriation act approved July 9, 1918, it is provided: That, under such regforce of volunteer troops in such unit or units ulations as the president may prescribe, as he may direct may be raised to be comof Jugo Slavs, Czecho-Slovaks and posed Ruthenians (Ukranians) belonging to the oppressed races of the Austro-Hungarian or German empire resident in the United States but not citizens thereof nor subject to the draft. Such force shall be known as the Slavic legion or by such other description as the president may prescribe. No man shall be enlisted in it until he has furnished satisfactory evidence that he will faithfully and loyally serve the cause of the United States and that he desires to fight the imperial governments of Germany and Austria-Hungary and the allies thereof. The force so raised and duly sworn into the service may be equipped, maintained and trained with our own troops or separately as the president may direct and thereafter may be transported to such field of action as the president may direct to be used against the common enemy in connection with our own troops or with those of any nation associated with the United States in the present war; and the several items of expense involved in the equipment, maintenance, training and transportation of such force may be paid from the respective appropriations herein made or from any subsequent appropriations for the same: Provided, That American citizens of Austrian or German birth, or who were born in alien enemy territory, who have passed the necessary examination and whose loyalty is unquestioned, may, in the discretion of the commander-in-chief of the army and navy, be commissioned in the United States army or

navy.

WAR APPROPRIATIONS. Following is a summary of the appropriations made at the second session of the 65th congress for meeting war expenditures. Only the more important items are included. Army.

In the army appropriation bill approved July 9. 1918:

Military information section, general staff corps, $2,000,000.

Telegraph and telephone systems, signal service, $105,946,054.77.

Aerial appliances and instruction, $884,304,758.
Army registration expenses, $15,762,000.
Pay of officers of the line, $201,654,279.
For length of service, $3,500,000.

Pay of enlisted men of the line, $776,458,721.04.

For length of service, $8,520,000.

Pay of enlisted men in ordnance service, $26,111,095.56.

Pay of enlisted men in quartermaster corps, $76,978,205.70.

Pay of enlisted men in signal corps, $72,779,501.85.

Pay of enlisted men in medical department, $74,876,475.85.

Pay of officers General staff corps, $730,908.
Adjutant general's department, $2,095,578.
Inspector-general's department, $619,884.
Corps of engineers, $837,306.
Ordnance department, $16,743,807.
Quartermaster corps, $17,539,479.
Medical department, $54,223,659.

Engineer department, operations, $70,000,000. Ordnance department-Ordnance stores, ammunition, $107,732,000.

Small-arms target practice, $900,000. Ordnance stores and supplies, $19,826,585. Manufacture of arms, $27,996,100.

Terminal storage and shipping facilities, $5,000,000.

In the deficiency appropriation act approved July 8, 1918: Quartermaster corps-Storage and shipping facilities, $50,000,000. Mileage, $2,750,000.

Incidental expenses, $20,500,000.

Clothing and camp and garrison equipage, $712,232,605.

Regular supplies, $90,971,072.06.
Barracks and quarters, $27.767,860.32.

Construction and repair of hospitals, $13,936,554.66.

Civilian military training camps, $1,000,000. Medical department, $33,000,000.

Navy.

308.

Signal corps, $39,716.523.

Commutation of quarters, $33,350,000.

Increase of pay for foreign service, officers, $24,683,808.73.

Increase of pay for foreign service, enlisted men, $89,806,752.

Subsistence of the army, $830,557,398. Regular supplies, quartermaster corps, $552,868,390.

Incidental expenses, quartermaster corps, $35,000,000. of army and its supplies,

Transportation

$1,532,606,103. Water and sewers at military posts, $70,569,605. Clothing and camp and garrison equipage, $1,230,190,089.

Storage and shipping facilities, $147,000,000. Horses for cavalry, engineers, artillery, etc., $70,000,000.

Barracks and quarters, $175,100,000.
Medical and hospital supplies, $267,408,948.
Ordnance service, $30,000,000.

Ordnance stores, ammunition, $390,000,000.
Small arms target practice, $75,200,000.
Manufacture of arms, $50,000,000.
Ordnance stores and supplies, $93,400,000.
Automatic machine rifles, $237,144,000.
Armored motor cars, $75,550,000.

Contract obligations for ordnance, $600,000,000.

Arming and training of national guard, $2,473,650.

Arms, uniforms, etc., for national guard, $3,

210,000.

Ordnance equipment of home guards, $2,500,000.

Supplies for reserve officers' training corps, $2,788,096.

Ordnance stores, $2,921,725.

Ordnance supplies for schools and colleges, $1,138,700.

In the urgent deficiency act approved March 28, 1918:

Additional employes war department, $3,000,000.

Armories and arsenals. $1,010,000.
Provost marshal general's office

penses), $8,476,490.

(draft ex

Quartermaster corps-Mileage, $5,000,000.
Regular supplies, $26,358,176.

Transportation, $125,000,000.

Storage and shipping facilities, $100,000,000. Barracks and quarters, $61,252,744.

Water and sewers at military posts, $18,681,820.

Roads, wharves, walks and drainage, $9,194,100.

Construction and repair of hospitals, $19,654,300.

Shooting galleries and supplies, $984,000.
Military post exchanges, $550,000.

Aviation, $220,383,119.

Transportation, $12,000,000.

Outfits on first enlistment, $9,975,000.
Instruments and supplies, $3,469,800.
Camps of instruction, $2,655,360.

Ordnance and ordnance stores, $30,522,279.
Smokeless powder, $2.400,000.
New batteries, $85.014,110.
Ammunition, $73,289,530.

Torpedoes and appliances, $10,000,000.
Navy mine depot, $3.000,000.
Navy nitrate plant, $9,150,000.
Maintenance yards and docks, $10,500,000.
Hospital construction, $10,295,000.
Surgeons' necessaries, $5,000,000.
Pay of the navy, $227,372,946.
Provisions, $75,520,216.

Clothing and small stores, $27,000,000.
Maintenance, bureau supplies, $17,836,625.
Fuel and transportation, $49.400,000.
Construction and repair, $60,000.000.
Bureau of steam engineering, $50,000,000.
Pay of marine corps, $50,135,874.14.
Provisions, marine corps, $15,053,500.
Clothing, marine corps, $32,470,480.
Stores, marine corps, $25,277,750.
Total for marine corps, $160,016,756.14.
For torpedo boat destroyers, $125,000.000.
For torpedo boats (submarines), $32,397,000.
Armor and armament, $20,000,000.
Ammunition, $7,000,000.

Total increase of navy, $184,397,000.
For materials, equipment, munitions, for the
purchase or construction of additional naval
craft, to be expended at the direction of
the president, $100,000.000.
Improving and equipping navy yards, $10,000,-
000.

In urgent deficiency appropriation act, approved March 28, 1918: Bureau of navigation-Transportation, $2,000,000.

Outfits on first enlistment, $1,000,000.
Naval reserve force, $100,000.

Bureau of ordnance-Ordnance and stores, $10,000,000.

Naval gun factory, Washington, D. C., $5.499.737.

Batteries and outfits for vessels, $13,200,000.
Ammunition for vessels, $8,064,000.
Reserve ordnance supplies, $13,000,000.

Bureau of yards and docks-Maintenance, $2,500,000.