BERLIN SAYS ENEMY IS IN FULL RETREAT Germans Claim Every, thing in West BRITISH SAVAGELY ATTACKED Crown Prince's Army Advanc ing on River Meuse. LAST RESERVISTS CALLED Guard on Communications Strength ened Opposing Armies Declared to Be Ringed With Vic torious Invaders. BERLIN, Aug. 28, by wireless to the Associated Press, via Sayville, It I., Auk- 28. Headquarters has Issued an official report that the west ern enemy has everywhere been defeat ed and is In full retreat after nine days' fighting. General Von Kluk defeated the Eng lish army at Maubeuge, renewed the at tack today, and threatened to surround It Generals Von Guelow and Von Hau ren completely defeated the Franco Belgian forces, about eight corps, be tween the Sambre and "amur and the Meuse in several days' battle, and are now pursuing them to the eastward of Maubeuge. Enemy Attacked and Pursued. The attack on Maubeuge was opened by the Grand Duke Albrecht of Wuer- temburg, who defeated and pursued the enemy across the Semois and the Meuse. The German Crown Prince Is advanc ing toward the Meuse, and the Crown Prince of Bavaria repulsed an attack from Nancy and the south. General Von Heeringen continues the pursuit southward through the Vosges. Four Belgian divisions, attacking Tuesday and Wednesday from Ant werp, have been repulsed, losing guns and many prisoners. The Belgian pop ulation generally participated in the fighting, necessitating severe repress ive measures. Last Reservists Called On. A corps of the last reservists have been called out to guard communica tions. The Danish colony In Berlin has warned foreigners to beware of ficti tious news. A meeting today of all foreign colo nies in Berlin was held, at which a res olution was passed thanking the Ger man government for the kind treat ment of foreigners and to express ad miration for the wonderful spirit and enthusiasm shown by the German peo ple. Civilians of the Belgian town of Louvaln made a perfidious attack on German troops while fighting. Louvaln was punished by the destruction of the city. DEFENSE SYSTEM IN PERU British Expert Emphasizes Necessity for Holding Ground. LONDON. Aug. 28. The Times" mili tary correspondent in discussing the situation on the French frontier says: "The news that the allies have re tired to the line from Lecateau to Cambral shows that active defense of the line from Lille to Maubeuge has been abandoned, and that these two fortresses have been left temporarily to look after themselves. "The necessity for holding the In terval between the Scheldt and Cam brai and the Sambre near Lecateau is probably due to the need of holding Mezleres. Once this point goes, or the Meuse between Mezleres and Verdun is penetrated by the invaders, the whole system of frontier defense of Eastern France breaks down, and if the field armies are inferior to the enemy noth ing remains but retreat. "If the line there Is skillfully de fended It should be most difficult to penetrate Latere, Laon and Rheims, which are provided with permanent fortifications. But we are not at that point yet. The line from Lecateau to Cambrai must expect an enveloping attack on the north, but this attempt will prob ably fail. "We have every right to expect suc cess today, but if we do not win a decisive victory we must abandon our bases on the coast north of the mouth of the Somrae and shift farther south, either to Havre or Cherbourg. "If we are unable to resume the of fensive and beat back the German at tack from the north, one consequence will be that the Germans will establish aircraft stations along the Straits of Dover and thereby be able to keep us under constant observation. "We must meet this by a counter attack with searchlights and anti-aircraft guns. Sportsmen should make up practice parties for airship shooting. "The Germans will also mount their heaviest guns at any port they seize and once more there will be an army encamped on the heights of Boulogne. 'Let us, however, be grateful for one mercy. The International financiers, doctrinaires and lunatics who wish to fit us out with a channel tunnel are silenced for good and all." A dispatch to the Express from Lille announces that the advance guard of Germans is now at Pont-A-Marcq and Marchiennea. "This represents," says the Lille cor- i Concluded on Face 2.) BULLETINS LONDON, Aug. 28 The Germans continued to bombard lalln today, destroying or damaging moat of the monuments, according to a dispatch from the Ostend correspondent of the Renter Company. They have not en. tered the town. LONDON, Aug. 20. The Russian Em bassy here last night received advices M i.t.-rki.,,r,- . the effect that ! the Russians had occupied Altensteln, Kas Prussia. OS miles soutn oi Koenlgsberg. after repulsing the Ger nuns, who had bruuiht up the rein forcements. In Gallcia. the advices ay, the Russian advance continued and an Austrian regiment had been decimated. I.OKriOV. Anr. 28. A dispatch to the Renter Company, from Ostend, saya that of the German war levy of "40,owo,- ( on the cltv of Brussels only S-ou 000 has been paid thus far, and the Germans say that If the remainder is i.,, i made irood. they will seise the pic tures and works of art In the museums. SOUTHAMPTON, England, Aug. 20. Th. tir-i hnanitnl shin from France ar rived here last night with 200 British wounded from the first battle at Mons. Nearly all the men were wounded by shell fire. LONDON, Aug. 28. The Marquis of Crewe, Secretary of State for India, In dicated In the Honse of Lords today that the Government proposed to em ploy native Indian troops In the war. LONDON, Aug. 2S. The Belgian Foreign Minister reports that the Bel gian city of Lovaln, In the province of Brabant, has been burned by the Ger mans. TSING-TAU, China, Aug. 28 Two small Japanese cruisers yesterday drew the first shots from the Tslng-Tau for tifications. Several shots dropped around one of the cruisers, whereupon i... I fired one shot in reply and withdrew. It Is reported that one Ger man shell found Its mark. LONDON, Aug. 28. A Central News di.natrh from Brlndlsl. Italy, says that .. itrliio. deairover sank an Austrian destroyer off Corfu after a 10-mlnute fight. i.nxnnv. Amr. 28 The Exchange Telegraph Company publishes a dis patch from Its Ghent correspondent saying that the Germans have placed several quick-firing guns in the out skirts of Brussels, principally on the north side, from which direction the Belgian troops In Antwerp would ar rive for an attack. WASHINGTON, Aug. 28 France has submitted to the United Statea and other neutral governments a sworn statement that after an engagement at Moncel, a German pf fleer fired on, three Red Cross nurses, kllllug two and wounding the tklrd. LONDON, Aug. 28. A dispatch to the Exchange Telegraph Company from Rome says that a dispatch received there from Vienna saya Austria has de clared war on Belgium. The American Minister In Belgium has been asked to take charge of Austrian Interests there. PARIS, Aug. 28. The Havas Newa Agency declares today that two motor cyclists attached to the Belgian army, who arrived In Paris today from Namur, declare that the forts at Namur are still holding out and that they are not even ready to surrender. NEW YORK, Aug. 2S. The National Association of Importers has decided to appoint a committee to assist mem bers whose consignments have been seized at sea by belligerents. LONDON, Aug. 2S It Is nnnounced that the British fleet has sunk two German cruisers and two German tor pedoboat destroyers off Heligoland. A third cruiser was set afire and wna left sinking. No British ships were lost in the bottle. It was added, and the Brit ish loss of life was not heavy. WASHINGTON, Aug. 28. Emperor Nicholas of Russia today acknowledged President Wilson's offer of mediation. All the warring European nations have now replied, but none has indicated more than an acknowledgment. NEW YORK, Aug. 2S. It was re ported In shipping circles here today that six more British cruisers had been ordered to the Atlantic Coast to block ade American ports against the escape of German merchant ships and to clear the North Atlantic of the enemy's war ships. The British Consul-General here would neither confirm nor deny the report. LONDON, Aug. 28. A dispatch re ceived here from Amsterdam saya the Telegraaf, a local newspaper, declares that the German Exchequer has taken steps to seize all Japanese balances In German banks. BRUSSELS DOES NOT PAY Burgomaster Says He Has Not $40,- 000,0'00; Hostages Designated. LONDON, Aug. 28. The Antwerp correspondent of the Exchange Tele graph Company says the burgomaster of Brussels has not handed over the war levy .of $40,000,000 demanded by Germany. He declares he has not the money. The German military government, the correspondent says, has designated as hostages Ernest Solvay, who has been described as the Belgian Carnegie, on whom it has Imposed a tax of 30, 000,000 francs ($6,000,000), and Baron Lambert Rothchild, who has been taxed 10,000,000 francs. Neutrality Inquiry Urged. WASHINGTON, Aug. 28. Reports that a Hartford, Conn., concern is fur nishing rapid-fire guns to agents of European belligerents and that a man ufacturing company near Philadelphia Is preparing to ship armored cars to Canada caused Representative Bar tholdt, of Missouri, to Introduce a res olution today asking Secretary Bryan what steps have been taken to prevent the shipment of contraband of war to nations at war. INDIAN TROOPS TO BE SENT TO FRANCE Kitchener Says Forces Are Already on Way. TORN LINES BEING FILLED Reinforcements Also to Be Sent From British Isles. FRONTIER STILL SECURE Secretary Declares Keen Desire of Combatants in Far East to En ter Service Is Gratifying to' Government. LONDON, Aug. 28. Lord Kitchener, Secretary of State for War, announced in the House of Lords today that In addition to the reinforcements which would be received f-om this country, the government had decided that the British Army In France should be fur ther increased, '"he troops to Increase the forces were now on the .way, he said. He added that all the gaps In the army In France were being filled. That the employment of native In dian troops was meant by Lord Kitch ener was later confirmed by the Mar quis of Crewe, Secretary of State for India. India Fired With Patriotism. The Marquis of Crewe said: "It has been deeply impressed on the government that the wonderful wave of enthusiasm and 1- alty at the present tirr. passing over India is largely due to the desire of the Indian people that Indian soldiers should stand side by side with their com patriots in the British armv. "India is aware of the employment of African troops to assist the French war and it would have been a disap pointment to India if they had been debarred from taking part in the war In. Europe. Keen Desire Gratifying. "Our army will thus be reinforced by soldiers high-soule'1 men of first rate training and I am certain that they will give the best possible ac count of themselves. I venture to think that this keen desire of our In dian fellow subjects so to co-operate with us Is not less gratifying than the same desire shown in the self-governing dominions, some of whose soldiers In due course will no doubt also be found fighting side by side with Brit ish troops and Indian troops In the war. "Of course we all know that India does not possess an inexhaustible re- (Concluded on Page 2.) INDEX OF TODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature, 73 degrees; minimum, 57 degrees. TODAY'S Saturday fair; north-west winds. War. Louvaln burned. Belgians say, to cover Ger mans' own error. Page 1. Germany and Austria-Hungary' willing to make peace on lour conditions, rage i. Wounded Britons tell of attack in open. Page 5. Asqulth urges all Britons to help In war. Page 2. Canadian reefment. including many Amer icans, off for Europe today. Page 2. British native Indian troops on way to France. Page 1. Paris well fortified but will be strengthened. Page 3, Brlitsh victors In North Sea battle. Page 2. Belgian officer in armored auto kills Uhlans and reports as to German troops. Page 3. National. President spends first day of Summer vaca tion at Harlakenden House. Page 5. Domestic. Japanese slayer of white woman blames -aw forbidding marriage of races. Page 2. Federal Inquiry into hopplcklng riots begun. Page 11. Pacific. Northwest. Recall petitions filed against four Columbia County officials. Page 11. Sports, Coast League results: San b rancisco J, Portland I: Oakland 3, Sacramento 2; Venice S. Los Angeles 5. Pag 10. Western tennis men. all but Griffin, still la Newport play. Page 10. Great futurity run today at Saratoga. Paze 10. Moose Mulrhead. track star, to enter Unlver. lty of Oregon. Page 10. Commercial and Marine. Cauda and California in market for North western oats. Page 15. Sharo reaction in wheat at Chicago. Page 15. Eastern roads will issue through bills of lading on foodstuffs. Page 13. Eight objections filed at hearing for change of harbor lines. Page 14. Colusa Balls as British vessel and will take chances on capture. Page 14. Portland and Vicinity. Idle to be warned to stay away from Port land this Winter. Page . Big scale Is presented to Railroad Commis sion for In laboratory. Page 14. Free trade brings invasion of Northwest by foreign farm products. Page 11. Pair of shoes and fiatiron cost farmer $3000. Page 7. FRENCH GENERAL IS KILLED Two Writers Among Casualties of Officers Published in Paris. LONDON. Aug. 29. A dispatch from Paris to the Reuter Company says the French War Office is beginning to publish lists of casualties among the officers engaged in lighting and that already one General had been killed. Among the deaths announced today was that of Lieutenant-Colonel Pat rick Mahon, who fell lighting In Alsace. He came of old Irish stock and from the same family as the late Marshal MacMahon. once President of France. He was a regular contributor to the Temps and an author of military works. Philippe Millet, another writer, also figures in the casualty list among the wounded. City Gets Coal Supply. Fearing a rise in the price of coal because of the European war the city yesterday awarded a contract to the Willamette Fuel & Supply Company for 500 tons of first-class fuel to be deliv ered during the coming 12 months. The city by entering Into the contract will get first-class coal at present market prices, amounting to about $9 a ton. A contract was awarded to the Fir wood Lumber Company for 80,000 feet of road planking for use In building a road from Bull Run station to the Bull Run head works. The price paid for the lumber will be $820. COMING THEIR WAY. BURNING OF LOUVAIN AROUSES PROTEST Belgian Says Germans Covered Own Error. FIP-tSC.!f UEIIED goVte It Was German Guard Itself That Shot, Says Envoy. NOTED CITIZENS KILLED Splendid Church, University, Library and Scientific Buildings Among Those Destroyed Washing ton Formally Xotified. WASHINGTON, Aug. 28. Formal protest against the burning of Louvaln by German troops as a violation of international law and the laws of humanity, was submitted today to the State Department by Belgian Minister Havenith. The Minister was deeply moved, when he left Secretary Bryan's office, where for the last few weeks his visits have meant the record of pathetic history for his country. News Saddens Minister. "1 bring this knowledge to the United States," the Minister said sadly, "for it is not only Belgium who has to mourn. This thing concerns the whole world." LONDON, Aug. 28 The War Infor mation Bureau announces the follow ing: "The Belgian Minister of Foreign Affairs reports that on Tuesday a Ger man army corps after receiving a check withdrew in disorder to the City of Louvaln. The Germans on guard at the entrance of the city, mistaking the nature of this incursion, tired on their countrymen, whom they mistook for Belgians. City's Destruction Ordered. "In spite of all the denials from the authorities, the Germans. In order to cover their mistake, pretended that it was the inhabitants who had fired on thorn, whereas the inhabitants, includ ing the police, all had been disarmed more than a week before. "Without inquiry and without listen ing to anv Drotest. the German com mander announced that the town would be destroved immediately. The in habitants were ordered to leave their dwellings and some were made prison ers. The women and children were placed on trains the destinations of which are not known and soldiers fur nished with bombs set fire to all parts of the city "The splendid Church of St. Peter, fOonclurted on Pase 2.) FRIDAY'S WAR MOVES WITH absolute official silence con cerning' war operations In France and Belgium yesterday, inter est was transferred to news of a Brit ish victory in a sea battle off Heligo land, the German naval stronghold In the North Sea. The Germans sre re ported to have lost two cruisers and two torpedo-boats sunk, whllo another of their cruisers and many of their destroyers were badly battered In fight with British warships. - This an nouncement comes from British official sources and the assertion Is added that the British navy did not lose a vessel and that there were few fatalities on board British ships. This engage ment Is regarded as important as showing the Heets to be in touch with each other, although the ships report ed lost cannot be said to constitute material proportion of the great ar fleet Germany Is known to have In re serve either near Heligoland. In the Kaiser WUhelm Canal or in the Baltic, near Cuxhaven. It may indicate, how ever, that the British have succeeded in rendering harmless some of the mines with which German waters were protected at the cutset of hostilities. The Island of Heligoland, which lies 45 miles off the mouths of the rivers Elbe and Weber, always has been re garded as a point of great strategic roitiA frtr tYiA nrnteetlnn of the Kaiser Wilhelm Canal and otherwise in the naval defense of Germany. Again last night there was a paucity of news concerning the land warfare In Europe. The French war office, In a statement, said laconically that the situation along Its lines on Friday was the same as It was on Thursday, adding that the Germans "apparently have slackened their march." That was all. From England there came not a word officially concerning the fighting on land. , The Important announcement that native troops from India were being sent to France was made In the Houso of Lords by the Marquis of Crewe, Sec retary of State for India, and Lord Kitchener. Lord Kitchener said that In addition to reinforcements which would be received from Britain Itself, the government had decided that the British army in France should be In creased and that the Indian troops were chosen to increase the forces. Lord Kitchener added that all the gaps in the army In France were being ttlleil. The Marquis of Crewe said the Indian people desired that tho native soldiers should fight by the side of their comrades in the British army and it would have been a disappointment to India If they had been debarred from taking part in the war In Europe. The Marquis asserted that In spite of heavy drafts on the Indian army, the Indian frontiers would be fully se cured. Louvaln, a Belgium town of 45,000 in habitants and with many historic buildings, is reported to have been burned by the Germans as an act of re prisal, alleging Belgian citizens fired on German soldiers. The Belgians con tended, however, that the people of Louvaln did not commit the hostile act charged, but that It was tho Germans themselves who fired on their fellow countrymen. The Belgian .Minister to the United States filed a formal protest yesterday with the State Department at Washington. The Belgian version Is that a German army corps on Tuesday, while withdrawing to the City of Lou vain, was fired on by Germans on guard at the entrance of the city, who thereafter, to conceal their error, made charges against the citizens and burned the citv in nretended reprisal. The City of Louvaln was noted as a seat of learning and art. and among the build ings destroyed were the historic church of St. Pierre, the famous Hotel lie Vllle and the structures composing the uni versity. It was declared that several of the city's notable citizens were shot. AMERICANS MADE TO ARM Xations Seize on Sojourning Kxpa trates State Department to Act. WASHINGTON, Aug. 2. American Consuls In Europe are being over whelmed with appeals for aid from claimants of American citizenship who have been forced to take up arms tor their land of birth. In Germany the situation is the most complicated, for the only treaties the United States has which touch on this subject were made with separate states and principalities before the confeder ation of the empire. None of these ac cept first naturalization papers as a valid obstacle against repatriation. Mine Americans by adoption, who are surgeons or physicians, mechanics or at least material for able-bodied sol diers, have been or are about to be sent to war. In the cases of those who are bona fide citizens the State Department a ma kinir representations, but it was pointed out today diplomatic bodies move slower than recruiting sergeants. BORDER TROUBLE NOT SEEN Report of Threatened Gcrmun-Amor-icaii-Canadlan ClMfe IHxproved. WASHINGTON. Aug. 28. Messages predicting trouble between German- Americans and Canadians nave oeen received by the State Department from persons In several states along the border. Careful investigation by authorities, officials stated tonight, have In each . nPnu mrh fears utterly ;iiniflu. . v. . groundless. No details were given, but It Is known that warning messages have come from Maine, Vermont and Michigan. IK Calllaiix' Voe Among Wounded. PARIS, Aug. 28. In the list of French losses made public today was the name of Fernand D'Allleres. who ran against Jos Calllaux recently In .ia..tinU fnr membership in the Chamber of -jeputies and was defeated by M. Calllaux. Later ne ana ai. L.1H ..a-Kf n rilll Th CflSttaltV LaniauA iune.li. m - ljt gave M. D'Allleres as among the wounded in the fignting in teigium. DUAL ALLIANCE HAS 4 PEACE CONDITIONS Price of Ending War Already Fixed. BRITISH CONSENT UNLIKELY Germany Asks Recognition of Commerce and Colonies. BUFFER STATE DESIRED Reconstruction of Old Kingdom In Middle Kurope Propo-cd lrance lo I'ny indemnity; Srvla lo Cense PropoRiunlii. BT JOHN CALLAN O'l.ACOHMN. WASHINGTON. Aug 2 (8pclal.) Germany and Austria-Hungary r prepare. 1 to make, peace at any tlm on these conditions: lThat Great Britain shall respect German commerce and Germany's right to colonies abroad. j That France shall pay an Indem nity to meet the expenses Incurred by Germany and Austria In connection with the war. S That a buffer stale. formed through the reconstltutlon of th old Polish kingdom, be created between Germnny. Russia and Austria. 4 That Scrvla shall glvs guaran tees to Austria-Hungary under wh. h she will cease her propaganda de signed to acquire Austro-Hungarlan territory. Sen I'nnrrilrd lo llrltaln. Germnny and Austria-Hungary on their part will agree to recognize th naval supremacy of Grent Britain. Your correspondent Is In a position to affirm that this represents the Ger man price ..f peace. It further rati be said that Germany does not want and never has wanted additional Trench territory, nor has the Berlin govern ment any desire to acquire more of Toland from Russia and thereby In crease her Polish problem. If tho entente can be Induced to ac cept the foregoing terms Germany will be ready at any moment to terminal the war. Otherwise she will continue It It l tho Intention of her strate gists not only lo occupy Paris, but. M greater Importance In the war gams, they are playing to seise and hold Os tend and Calais, the two ports In closa proximity to England. llrltlsh Ullllaaaess Improbable. It Is believed the Germnn terms havs . Kn officially communicated to I IV, I. " . this government, nor Is It likely that -.l,lr,r of the kind V.II1 ne ttrme mini Great Brltnln shows a disposition to make peace. That Great Britain win make such a move at this moment Is exceedingly doubtful. The Germans have been victorious In every encounter on land, save In tna vicinity of the Russlsn frontier. Tho terrain there Is flat and not easily de fended and the German forces have deemed It advisable to fall back beforo the Russian forces, but will make a stand at the Vistula River, when, strong fortifications have been erected. By the time these fortifications are at tacked the campaign In Franc will have been far advanced. It Is the ex pectation of German strategists that within three weeks their troops will M besieging Paris. It then will be pos sible to detach several corps and hasten them to the northeast for the purpose of operating against the Russians. Hermans Alioliilcl OhMhA There Is absolute confidence on th part of the Germans that they will b successful on land. They have no ex pectation that they will be able to de feat the British fleet. This explains why the German fleet has not left port. It explains further why the Germans are willing to rec ognize British supremacy on the sea on condition that the British In turn respect their commercial and colonial aspirations. In reference to the latter, the con tinent on which the Berlin government particularly has Its eyes Is Afrl. s With France beaten to her knees aba must pay. besides an Indemnity, by the Hiirrendcr of somo of her African ter ritory. Great Britain and liormany will control Africa between them If the Berlin government views ar adopted. It Is contended by the German that they did not want th war; that Rus sia, "the greatest autocracy of mod ern times." precipitated the struggl through Its insistence on the right to protect the Slavs wherever they ar. and they regard it as a great pity thaw France should be made to pay such a tremendou price. But It was Franc who financed Russia and it was Franc who threw in her fortunes with her ally. To prevont further Frnoh as sistance of Russia. Germany stru.k at Paris. Von Brrnstorft Calls an Bryan. Count von Hornstorff, th Grmsn Ambassador, had a long confarcne to day with Secretary of Stat Bryan. What the Ambassador said to the Sec retary only th two men know and neither will discuss the subjects they considered. It Is believed that Count von Rern storff takes the view that Germany I prepared at any time to make peaov, provided Great Britain compile with (Concluded on Paso 2 I HH 108.2