K TOL.I.IV.-NQ. 16,874. PORTLAND, OREGON, TITTTT?STA Y DECEMBER g4, 1914. . PRICE FIVE CENTS. Y v KING OF BELGIANS LIVES UNDER FIRE Monarch Commands in Fact as in Name. ARMY BEING REORGANIZED Force Half Former Size, but Infinitely More Efficient. THANKS SENT AMERICANS (Some Day, Says Albert, He Will Ride Into Brussels at Head of His Troops, but Three Months He Thinks Too Soon. GRAND HEADQUARTERS OP THE King of the Belgians, in west Flanders. Belgium, Sunday, Dec 20., via London. Dec 23. In the council chamber of an ancient Flemish town hall, from which he Is directing, under German shell fire, the resistance of his war-worn little army, blocking the road to Dunkirk and Calais. King Albert of the Belgians told the As sociated Press today of the stand his soldiers were making against the Ger man invaders. The King's headquarters is situated en one of the remaining; dry areas of that small corner of Belgium left under his rule. Gratltnde Felt fer American Help. King Albert also requested The Associated Press to convey to the peo ple of the United States his deep grati tude for their efforts to feed his sub jects now' under German rule. The monarch was alone when the correspondent was admitted to the council chamber, not even an aide be ing present The King's tall, angular, Lincoln-like form was clothed in the simple undress uniform of a General of artillery, which was without insig nia, beyond braided shotrlderstrapBr to' distinguish him from a staff officer. Face Shows Line of Care. Physically King Albert looks hard ened, but lines , of care show in his otherwise youthful face. In manner he is decidedly shy and- he apoligized for his English, which however, was exceedingly fluent. The light from a smoky oil lamp barely penetrated the recesses of the great beamed hall, from the walls of which empty picture frames stared down. When the King saw the correspond ent gazing at those black spaces, where a few months ago invaluable Flemish canvases hung, he smiled and said he no longer expected the Germans even to be in a position to take the frames. Modestly he praised the courage of his soldiers, speaking of them with great kindliness, as though he were talking about his own children. People Resent Conscript Discipline. "I believe." he said, my army Is courageous. My people, however, are too democratic for the same discipline that prevails in the conscript European armies. You will see something of the bravery of my people when tomorrow you shall have the 'chance to witness the peasants working in their fields Under shell fire, concerned only for the losses of their homes, the destruction f which causes them grief." When Edgar Sengeer. Belgian at tache to the American Commission for the Relief of Belgium, entered and pre sented King Albert with a report from the commission showing that enough food was in sight to feed his people until February 12. the King turned quickly to the correspondent, saying: "Will you be kind enough to convey to the American people my deep ffratitude?" Message of Thanks Sent. He then wrote in English the follow ing message: "The magnificent generosity of the American people in forwarding im - mense quantities of foodstuffs to my suffering people affords me intense sat isfaction and touches me very deeply. "In this, my country's hour of trial, nothing has supported me more than the sympathy and the superb gener osity of those who have assisted in materially lessening the same; and I desire .to offer my deepest thanks, and at the same time to convey a message of good will for the new year. "ALBERT. "King of the Belgians." King Albert also desired to have the American people, as he put it. know the facts of the story of how his troops, demoralized and disorganized by their disheartening retreat almost beyond the limits of their own country, turned at bay along the Yser and held back the Germans there at frightful cost In killed and wounded to their army, and of the almost incalculable loss suffered in the deliberate Inundation by its owners of the most valuable agricul tural part of the country. 700 Belgians Killed In One Day. "In one of these terrible nine days In the trenches along the Yser." the King said. "I know that 700 of our brave Belgian soldiers were killed out right" With the modesty and shyness which marks the whole manner of address. King Albert continued: "I believe I am not claiming too much to say that our army saved Dun- (Concluded on fags 3.) 19 LODGERS RUN TO STREET FROM FIRE LODGIXG-UOUSE AT 422 MORRI SOX IS BCKXED. Occupants, Including Four Women, Clad In Xiglit Clothes "IVuit in Restaurant Fireman Hurt. Nineteen lodgers, including four wo men were routed this morning at 2 o'clock by fire in the lodging-house at 422 Morrison street The occupants scantily clad, found refuge in a nearby restaurant until the flames were quelled. A few then returned to their rooms and others, packing their be longings hastily, went to other quar ters. The damage is estimated at $3000, much of it being due to water. Frank Meadows, a member of Truck No. 1 Company, sustained a badly sprained ankle by falling when) a lad der which he was scaling slipped on the sidewalk. He was taken to the Yamlrill-street Fire Station for treat ment Investigation indicated that the fire started in a room on the second floor and that the flames spread after the occupant fled, his action in leaving the door open creating a draught which fanned the blaze The damaged building is owned by S. A. and E. C Brown and was leased by Mrs. B. Rassett. ICE FREEZES ABOUT MAN Justice of Peace in Precarious Con dition as Result of Accident. DAVENPORT. Wash.. Dec 23. Spe cial.) Joseph Guerin, long a Justice of the Peace in this county, is in a pre carious condition from accidental con finement in a water tank on his place in which he nearly froze to death. Guerin, in attempting to break the sheet of ice that covered the water of the tank, which was on a scaffold, broke through and plunged in five feet of icy water. With the water to his mouth he stood for nearly an hour, the temperature hovering below zero, before his calls for help were heard. A farmhand finally rescued him with a ladder. The Ice had frozen on his head and ears. The extreme cold and the shock have left him In a serious condition. RUSSIANS DEFEAT TURKS Victory Reported Near Van; Otto- mans Are Repnlsed in Caucasus. .PETRO'dBAD. Dec. 2S. The follow ing statement of the general staff- of the Russian army in the Caucasus was issued this evening: "On the 22d the Turks again showed evidence of great activity in the direc tion of Olti (55 miles west of Kars). They made a series of attacks in the direction of Sary-Kamysh, but these failed. "The Turkish offensive in the direc tion of Van . was turned into a de fensive movement which, however, our troops succeeded in breaking after stubborn resistance. We captured from the enemy several prisoners with their arms." COLD STILL TO CONTINUE East Breeze and, Low Temperature Show Signs of Remaining. More of the same kind of weather is promised Portland for today. ' East winds will prevail again, it Is forecast, and temperature changes.' if any, will be unimportant The minimum temperature recorded early yesterday was 23.2, and the mer cury climbed by degrees to 39.2. Yesterday provided eight hours and 37 minutes of sunshine. The Clackamas River near the South ern Pacific bridge is frozen. The river boat Oregonla of the Oregon City Transportation Company's fleet was damaged by the Ice on the river today. OREGON DEDICATION IS SET Rosarlans to Conduct Ceremonies at Panama-Pacific Fair Building. SAN FRANCISCO, Dec 23. The Ore gon State building at the Panama Pacific International Exposition will be officially opened next Wednesday, according to announcement made here today. The dedication will be held under the auspices of the Royal Rosarlans, of Portland, who also conducted the ground-breaking ceremony in 1914. Acting with the Rosarlans will be the Oregon Commission, of which A. o. Clark Is president POPE IS NOT ENCOURAGED Exchange of Prisoners, as Request ed. Id Not Expected. ROME, Dec. 23. Pope Benedict. In addition to continuing his efforts for peace, is trying to obtain the consent of the belligerent powers to an exchange of war prisoners. The answer to his proposals thus far received and the difficulties of various kinds that are being encoun tered are said to Incline the Pontiff to the belief that his initiative will meet with no better success than his request for a truce at Christmas, tide. Vegetarian Diet Crged. AMSTERDAM, via London. Dec 23 The Vosslsche Zeitung of Berlin prints an appeal signed by leading German professors of political economy which urges. Germans to live on vegetables and rye bread. leaving meat, white bread and delicacies for the. sick and wounded. "England wants to starve us and we must therefore, do everything possible to economize in the use of our food," the appeal says. RUSSIANS REPORT GAINS EVERYWHERE Successes Are Marked in South Poland. AUSTRIAN FORGE ANNIHILATED Kaiser Orders Capture of Warsaw by Christmas. NEW BATTLE DEVELOPING Fighting in Region of Bzura River Is Violent, but Germans Are Held Back, Says Enemy; Czar Sends Force Through Carpathians. LONDON, Dec. 24. "We were gen erally successful on all fronts,' says communication from the Russian commander-in-chief, in describing the operations of December 22, according to a dispatch received from Petrograd Wednesday night The greater successes were achieved on the Nida and Dounletz rivers, in Southern Poland, and in the Carpathi ans, the report says. The Austrian official communication denies some previous reports of Rus sian gains and describes the situation as favorable to the Teuton forces. The German report gives little information. Wanaw Christmas, Smyrn lvalaer. Telegraphing from Petrograd, the Morning Post's correspondent says: "Emperor William has promised his troopa rest and reward at Warsaw, which he has ordered to be taken by Christmas," Russian troops in theneighborhood of Tuchow, Galicia, south of Tarnow. on observing the advance of the Twenty-sixth Austrian brigade today, slipped past on . parallel roads and surprised the Austrian rear, according to reports received here. The Russians opened fire with machine guns and virtually Annihilated tbe--wbole brigade.-;- During the last two days' fighting in Southern Galicia, near the Carpathians, the Russians are reported to have cap tured more than 4000 prisoners,, in cluding a Major of the general staff and five other officers, besides three heavy guns and seven machine guns. . Russians Crossing Mountains. In this region the Russians, it is said, are moving small detachments through the mountain passes. In the recent Austrian sortie from Przemysl the Russians captured a machine gun, which they turned against the Aus trlans. The Novpe Yremya's correspondent in the Sochaczew neighborhood, Rus sian Poland, reports that along a 12 mlle front the Russians have packed four regiments of heavy artillery, 150 light field guns and three corps of In fantry. The Russians allege that Polish German sympthtzers are using windmills in the vicinity to signal the (Concluded on Paga 2. ) iiii INDEX OF TODAYS NEWS The Weather. YESTERDAY'S Maximum temperature, 3H.2 decrees: minimum. 23.2 degrees. TODAY'S Fair, easterly winds. War. Kins Albert, living under shell fire, reorgan izes remnant ot army to high state of efficiency. Page 1. Russia reports successes on all battle fronts. Paare 1. Allies reDorted to be holding; ground al ready xained and making; some advances. Paje 2. Mexico. Peace on border believed possible, after General Scott's conference. Page 13. National. Hobson forces to present prohibition amenu ment again in next Congress. Page 2. Withdrawal of troopa from Colorado is ar ranged.. Page 2. Domestic. Floods devastate Southern Arizona. Page 1. C M. Schwab says country is at threshold of era of unexampled prosperity. Page 1. Centenary of peace of English-speaking peo ples to be celebrated In part, notwith tandlng war in Europe. Page 3. Alfred Henry Lewis dies. Page 2. Arms Issued to American civilians in Phil iPDrnes. following: discovery of- native -plotting. Page 1. I'aclric Northwest - Man buried more than five days in Gov ernment test hole at Winona, Wash., is rescued. Page 4 Oregon State Teachers' Association will meet in Medford next year. Page 5. Sports. Tigers to play Salt Lake city for opening game. Page JO. Tacoma Moose decide to place ban on pro fessional bout. Page 10. Hockey match Saturday to see fast players in action. Page lo. Commercial and Marine. Spot wheat sells at new high mark, but futures are lrregur In local market Page IS. Wheat declines at Chicago on rumors of larger Argentine surplus. Page 15. Jetty rock tied up by ice at St Helena. Page 12 Portland and Vicinity. Sorority girls entertain 40 youngsters of less prosperous class. Page 16. Proposed bill would give all registered voters voice In setting school tax. Page 12. Babes and aged at institutions enjoy Christ mas trees. Page 18. Boy crossing heart and shaking hands to seal promise to be good. Judge McGinn paroles him. Page 7. Christmas relief fund of Associated Chari ties, is greater than ever. Page 9. Employes of Bridal Veil Lumbering Com pany send to fund for Belgium, Page 11. Christmas shopping rush In stores of city is great Page 11. Churches will celebrate anniversary ot Christ's birth. Page 11. Portland, now embraced by Christmas spirit, to be scene of many festivities Page 16. Wiier skirts to be fashion, says Parisian expert. Page 4. Fire routs 10 lodgers from sleep. Page 1. Weather report data and forecast. Page 15. KAISER URGES SON AS KING Prince Eitel Frederick Suggested for - J. Proposed Hungarian Throne. LONDON, Dec; 24. The Morning Post's Petrograd correspondent says: "Germany, is energetically pushing the candidature of Prince Eitel Fred erick for the throne of Hunzarv h independence of which is expected to bo one result of the war." Prince Eitel Frederick In 111 A - Rfra-an A son of Emperor William,. NEW WAR LEVY WAIVED Protest "of American Minister Said to Have Benefited Brussels. LONDON, Dec. 24 A dispatch to the Daily Express from Amsterdam says: "The Germans at Brussels have" with drawn their demand for a new war contribution of $100,000,000 presumably owing to the protest of the American Minister, who asserted that the levy violated The Hague convention." TWAS XMAS EVE. AND ALL THROUGH THE HOUSE," ETC., ETC. SCHWAB PREDICTS GREAT PROSPERITY Steel Mqm Says United States Gains by War. ENORMOUS ORDERS PLACED Contracts for $300,000,000 in Supplies Already Made. EVERY LINE IS AFFECTED z Next Big National Problem Declared to Be Development of Trans portation to Handle Grow ing Commerce. NEW YORK, Dec 23. The nations of Europe have placed contracts In the United States for more than $300,000, 000 worth of supplies since the begin ning of the war, according to Charles M Schwab, president of the Bethle hem Steel Corporation, who returned here today from England aboard the steamship Lusitanla. Mr. Schwab predicted that for this reason the United States was now at the threshold of the "greatest period of prosperity it has an in many years." Submarine Contritcts Canceled. Mr. Schwab, who sailed for England less than a month ago, admitted that the object of his trip was to cancel provisional contracts he had made with the British government for the build ing of submarines. This he had done, he said, after having been advised by Secretary of State Bryan that for an American concern to supply subma rines to any of the belligerent nations would be a violation both in letter and in spirit of the neutrality of the United States. The contracts which he had given up, he said, were worth more than $15,000, 000, but he had been able to secure, while abroad, contracts for 'the- supply of various munitions of war, although he declined to say with what nation they had been negotiated. Transportation Next Problem. "The next big problem that the United States will have to face," said Mr. Schwab, , "will be the development of transportation facilities in order to handle the tremendous increase in man ufacturing and commercial enterprises. "The period of prosperity that I pre dieted on my last return from Europe is about on us. The contracts placed with the American manufacturing con cerns by Europe are for delivery within the year and I look to see a big revival of business in every line." Mr. Schwab, on his previous trip, was a passenger on the steamship Olympic when that ship went to the rescue of the dreadnought Audacious. On his re turn he declined to confirm or defi nitely deny the incident, pleading that he was bound as a matter of honor not (Concluded on Page 2. t AMERICANS ARM IN PHILIPPINES RIOT GUXS ISSUED TO CIVII IAXS OX BAY ISLANDS. Plot to Make Night Attack on Cor regidor Frustrated by Discovery of Bolos Hidden in Barrels. MANILA, Dec. 23. (Special.) A Gov ernment vessel today distributed riot guns and ammunition to the American civilians on Caragao and Fralle Islands in the bay. One hundred rounds of am munition and the necessary field equip ment have been Issued to the soldiers In the Cuartel Espana In Manila. Several barrels shipped to Corregidor Island supposed to contain cement were found to be full of bolos. Trie native scout officers disarmed their com panies and confined them at Corregidor. The plan was to free the prisoners by a sudden night attack, to overpower the scant guard, man the guns and capture the island. The date had been fixed between Christmas and New Years. If nipped, the uprising was to be post poned until March. In the last few months there has been an enormous increase in the so called Boy Scout organizations, com posed in greater part of full grown men. They have been noticed drilling throughout the Manila provinces. The authorities remain silent. 5 MEN FOR 1 KAISER ASKS London Paper Heports Negotiations Over Exchange of Prisoners. LONDON. Dec. 24. Efforts recently were made officially, says the Daily Telegraph, to ascertain whether Ger many would consent to an exchange of civilian prisoners interned in England and Germany. The newspaper adds that Germany's reply, just received, de mands the exchange be on a basis of the release of five Germans to one Englishman. "Germany maintains." the newspaper declares, Vthat this is the only equitable basis, as there are many more German prisoners in England than there are Englishmen In . Germany. It is need less to say that Great Britain declined the proposal." Wednesdays War Moves TT'HIS allies in the west, the Ger- A mans in Poland and the Russians lit East Prussia and Galicia continue their offensive operations, but the ad vances have been so slight as to be almost imperceptible. In the long run. however, the ground which is being taken may prove vital and the various armies are fighting with an intensity which has not been exceeded since the war began. In Poland the center of interest has shifted slightly" to the south. Finding the direct rbad to Warsaw blocked by Russian reinforcements, the Germans made an attack from the southwest and have reacheu Sklerniewice, which is some 40 miles from the Polish capi tal. They have thus far failed to pierce the Russian lines, but have forced Grand Duke Nicholas to withdraw his forces from before Cracow. " In this, one of the chief aims ot their offensive against Russia, the Germans have been successful. In Galicia Russia ha, resumed the offensive against the Austro-German forces which have poured In from the west and across the Carpathians. Ac cording to the latest Petrograd report. the Russians Inflicted heavy losses on these forces, while in the north they have pursued into the interior of East Prussia a small German army which made a feint at Warsaw from the northwest. Although the allies have scored some successes in the battles in the west, they are meeting with stubborn resist ance and military men In London warn the British public that heavy casualty lists must be expected before any seri ous Impression can . be made on the German entrenchments. Activity seems to have been resumed along the Bel gian coast, for it is announced that slight progress has been made by the allies between the sea and the road from Nieuport to Westenae. At other points similar fighting is proceeding, with here success and tnere reverse or failure of attach. The airmen on both sides have been extremely busy and aeroplanes have been swarming over Belgium, the avi ators reconnoitering movements of the opposing troops and occasionally drop ping bombs. Bruges and Brussels have been visited by a viators from the ranks of the allies, while Bethune and other towns in Northern France have received attention from tne Germans. France, through her Parliament, ap parently has given evidence of her de termination to prosecute the war to the end. Both branches of Parliament have passed unanimously the government's bill appropriating the sum of $1,700, 000,000 to meet the expenses of the next six months, including the cost of the war. King Albert, of the Belgians, in an interview in which he thanked the American people for the aid they have given his stricken people, asserted that he again some day would ride into Brussels at the head of the Belgian army. The King praised highly his army and declared he felt he was not claiming too much to say that the Bel gians saved Dunkirk and Calais at the battle of the Tser. A newspaper dispatch from Athens says that Austria has twice attempted to make peace with Servia, but that each time Servia declined the proposal. Rome has received a rumor that Em peror Francis Joseph, of Austria-Hungary, is dying. FLOODS DEVASTATE SOUTHERN ARIZONA Known Dead Are 3 and Property Losses Big. MANY HOMES SWEPT AWAY Ranch Folk Marooned in Trees and Towns Inundated. RESCUERS SAVE HUNDREDS Passengers on Train Surrounded and Kivers Are Killed With Fur niture and Wreckage More Damage Is Threatened. TUCSON, Ariz.. Dec. 23. Floods, the result of a week of practically un broken rainfall. Inflicted severe danf age on nearly the entire area of the state lying between Phoenix and the Mexican border. Three persons, so far as known tonight, have lost their lives; livestock by hundreds of head has been drowned; ranch-houses and city resi dences wrecked or washed away by torrents roaring through what are nor mally dry arroyos, and traffic by rail, highway and wire either has been bad- , ly crippled or completely suspended. A Southern Pacific train loaded with passengers still is marooned some where near Nogales. Floods complete ly surround it More Destruction Threatened. The most serious damage seems to have been suffered in that part of the Santa Cruz Valley lying 30 miles south of here. The Santa Cruz River, swol len by the almost continuous rain of the past seven days, attained a width of more than IVi mileB today and the crest of the flood, after sweeping through Am ado and the farming re gion round about, reached Tucson to night, wiping out bridges and. houses and threatening to work further de struction. Dozens of ranch dwellings were de stroyed in the vicinity of Amado. Two Mexicans were drowned there after they had hung in the branches of trees for hours awaiting rescue. A United States soldier was reported to have been drowned in a big wash at Naco. $500,000 Plant Submerse. An open cut a mile long, containing 19 centrifugal pumps and other ma chinery costing $500,000, which served the Tucson Farms Company project, went under water this afternoon. Pules coming down the river a little later in dicated that the power lines had been destroyed. At Bisbee floods tore through the deep canyons between the mountains and Inundated portions of the busi ness section. Gangs of city workmen were engaged there tonight digging and scraping away a three-foot layer of sand, deposited on the main streets by the flood, which receded almost as rapidly as It came. Sogslrs Is Isolated. Nogales remained isolated tonight, as well as lluachuca, Florence and Ray, the two latter being near Phoenix, where the Salt River Valley Irrigation project, with its extensive andj costly canal system, suffered severely. The full extent of loss, both in lives and property, could not be ascertained tonight, owing to continued rains and to the fact that many of the ranching communities in the path of the floods could not be reached. A relief train was sent out late to day to the Southern Pacific train ma rooned between Tucson and Nogales ' by washouts. Volunteers Rescue Ranchers. Superintendent Williams, : of the Tucson division, brought the first news of the serious aspect of the floods when he called for volunteers to aid in (Concluded on Pace 2. KIGHT-AND-DAY OPERATION OF SPOIvAJNK FLOUR MILLS IS PROSPERITY' SIG.V, SPOKANE, Wash, Dec 23. (Special.) As a flour manufac turing center this year Spokane has exceeded all previous rec ords in the value of its product, and will equal in volume the out put of any former season. More than 2,000,000 bushels of wheat have been consumed and 450,000 barrels of flour, or 2500 cars, is the total production for 1914. Running night and day since the opening of the Fall milling season, the three flouring mills of the city have been grinding out from 1200 to 1500 barrels dally. In number of days of operation the year will exceed the 1913 run by a slight margin. The Centennial Mill Company has been producing 20,000 bar rels a month and Is closing th year with a record of having op erated for 11 months. The Echo mill has produced 37,000 barrels since June 30, and the Spokane Flouring Mills have been shipping an average of about 60,000 barrels of flour to the Orient since the opening of Fall. The mill produces 500 barrels dally.