; Vol.. i.i v- NO. 16,880. PORTLAND, OREGON, THURSDAY, DECEMBER 31, 1914. PRICE FIVE CENTS. COCSS RO BRITAIN EXPECTED Washington Thinks Settlement Probable. CO-OPERATION ALREADY BEGUN Cargo of Cotton Inspected and Transport Facilitated. MO IRRITATION IS SHOWN Officials Surprised That Xote Has Been Regarded as "Brusque" and Insist Only Matter-of-Fact Statement Is Blade. WASHINGTON. Dec. 30. While the American note to Great Britain, con cerning interruptions of the commerce of this country, continued today to ab sorb official Washington, there was manifest a tone of confidence that the numerous difficulties which had arisen In the last five months eventually would be amicably adjusted. Already the discussion had turned to measures which the United States could properly take in co-operation with Great Britain to reduce to a minimum the necessity for extending: search on the high seas. It become known that agents of the Treasury Department, acting: in co-operation with the State Department in one case, already had Inspected a cargo of cotton, which In spection had satisfied the British em bassy and facilitated the progress of the shipment to its destination. Mutual Understanding; Expected. The belief was held in official quar ters that a mutual understanding: might be reached whereby legitimate cargoes could be certified before their depart ure from this country and thereby made immune from detention. High officials of the Washington Government were somewhat surprised that the American note has been re garded as "brusque" in some London quarters. They said, the British Cab inet, which has. it under -consideration, after a single reading of the document must be convinced " that the United States had spoken in the most friendly spirit, though none the less earnestly and emphatically, on points on which it considered itself thoroughly justi fied under the laws of nations. , Note Show No Irritation) There is nothing of a peremptory character in the note nor is it phrased in tones of Irritation, according to those Who are familiar with its contents. They say it is a matter-of-fact and frank statement of the difficulties ex perienced by American shippers, and the failure' of the British government to meet the various protests which have been made. In all, it became known today, 30 American ships and cargoes, their value totaling millions, have been detained. The American note points out specific ally, however, that reimbursements for previous damages alone cannot cure the situation, as the activity of the British fleet has restrained many exporters. whose business has become stagnant for fear of the numerous technicalities and risks involved in shipments. 'Violations Cbum Suspicion. With respect to cotton shipments the case of one or two illegitimate car goes, it is recognized, has caused the British government to suspect all ship merits. The United States has no evidence Ithat there has been contraband con cealed in cotton cargoes, but Great Britain has made two specific com plaints of it. Although not vouching for or confirming the charges, the United States Government has thought St advisable nevertheless- to issue a warning that one fraudulent shipment must produce embarrassment to cargoes generally. Secretary Bryan discussing the note with callers today, declined to give any derails. He described it as a general statement summarizing the American position in several specific cases. Those neutral diplomats who called to ask a dou t tne note aid not receive a copy of it. but were informed that the first newspaper report of it was accurate. They were told that the State Depart ment probably would not deliver the text of the communication to foreign governments generally, as it still re garded the note as confidential, the United States Government itself not having authorized its publication in part or in whole. CABINET CONSIDERS ISSUE Briti&li Reply Not Expected to Be Ready for Several Days. LONDON. Dec. 30. The British Oabl net held a special session todav to con eider the American Government's 'note concerning the delay to American ship ping by the searching of vessels by the British fleet. The note reached the foreign office only today. The subject of American shipping continues to monopolize Interest here. It is not ex pected a reply to the note will be ready for several days. It is pointed out that a document which it took weeks to draft hardly conld be digested by th Cabinet in one meeting. Information must be sought at th Admiralty, wnicn department ts re sponsible for the examination of ships' cargoes. The permanent officials of th Foreign Office and the law offices of the. Crown necessarily will be called (Concluded on Face 2.) GERMAN AIRCRAFT ATTACK DUNKIRK 15 KILLED, 32 WOUXDED AND MANY BUIIDrYGS WRECKED. Four Aeroplanes Slake Several Trips Over' Town, While Fifth. Stands Guard Fortifications Hit. LONDON, Dec. 31. Four German aeroplanes flew several times over the city of Dunkirk Wednesday, dropping bombs as they went, according to the Dunkirk correspondent of the Dally Mall. Soldiers in the streets fired on the machines and one Taube seemed to be hit but all got away safely. . The official returns of the casualties shows that 15 persons were killed and 32. wounded. The bombs were filled with shrapnel. For half an hour the whole city crackled with rifle shots and bombs, which threw up dense clouds of black moke. No sooner did one aeroplane seem to depart than another arrived. Buildings in all parts of the city were wrecked. The first bomb fell on the fortifica tions, two more near the railroad sta tion, and many others in different parts of the town and in the suburbs of Rosendall and the districts of Cude kerque and Fumes. One child's arm was blown off and an old woman was killed outright. The fifth aeroplane remained as sen try outside the town, ready to attack any of the allies' aeroplanes that might seek to repel the air assailants. BATTLESHIP IS TORPEDOED French Submarine Cripples Austrian Vessel, Says Venice Report. LONDON. Dec. 31. A dispatch to the Dally Mall from Venice contains a report that a French submarine boat has torpedoed the Austrian dread nought Viribus Unltis at Pols, It is said the hull of the dread nought was pierced, but that she suc ceeded in reaching her dock. The Viribus Unltis Is of 20.000 tons displacement, and has a complement of 1000 men. She is one of the four ships constituting the largest type of the Austrian navy. A. London newspaper dispatch from Venice in September said that one side of the Viribus Unitis had been badly damaged In a fight in the Adriatic but that she escaped her pursuers. 40 CONVICTS ARE FREED RIease, Pardoning. 1 5 54 . In All Leaves Only 14.9 in Prison. COLUMBIA. S. C, Dec. 30. Fifty-five New Year's pardons, paroles and com mutations granted today by Governor Blease reduced the number of prison ers in the State Penitentiary, at the state farms and in county convict camp; to 149. The Governor's action today put the total number of prison ers to whom he has granted clemency in his four years of office at 1541. Sixteen full pardons were granted to day, 21 prisoners were paroled and the sentences of 15 commuted. Twenty- eight of the 55 were serving terms for homicide. ARMY CARGOJSHIP ON ROCK British Supplies and Vessel Believed Doomed in Bay of Fnndy. YARMOUTH. N. S.. Dec. 30. The steamer Navarra, a St. John. N. B ves sel, bound for France with a full cargo of hay, oats, automobiles and army supplies for the British, struck on Holes ledges. Tucket Island, in the Bay of Fundy, last night and probably will be a total loss. The steamer went on the ledges in a fog. and the heavy sea pounded her hard on the rocks, which pierced the hull. The Navarra registers 2848 tons and was under charter to the British government. NORSE NATIONS MAY UNITE Entente Just Formed Is to Continue After War Ends. LONDON, Dec. 30. The Daily Mail's Copenhagen correspondent says he learns from thoroughly trustworthy sources that the Triple Entente, result ing from the recent conference of the Scandinavian Kings at Malmoe, will be continued after the war has ended. Although no political alliance is yet intended, it is not improbable that the understanding between the three small nations eventually may result in a strong Scandinavian nation, divided into three Independent families. KING DECORATES PREMIER Highest Honor, Cousin to Ruler, Is Bestowed in Italy. ROME. Dec 30. King Victor Em manuel has decorated Premier Salandta, with the Order of the Annonclade, the highest Italian decoration, which en titles the bearer to call himself i "cousin of the King." The King decorated the Premier at the ceremony of baptism of the newly born Princess Maria. -He spoke warm ly of the services rendered to the state by tho Premier.' KAISER IS RJPORTED ILL Persistent, but Unconfirmed, Rumor is Heard in Rome. ROME. Dec. 30. It is persistently rumored here that the Kaiser has had a relapse and that his condition is serious. It is impossible to confirm these rumors at present. RUSSIANS CONTINUE GAINS, THEY REPORT Germans Go Back, Aus trians Flee in Panic. WARSAW SAFE, SAY EXPERTS Third Attempt to Reach City Believed Abandoned. CZAR'S CAVALRY RETIRES Force Is Driven Out of East Prnssia. Vienna and Petrograd Both Say Victory in Carpathian Moun tain Pass Is Theirs. LONDON. Dec. 30. With Petrograd tonight reporting further important successes in Southern Poland, Galicia and in the Carpathians, Berlin con tents itself with the assertions that Russian cavalry have been driven out of. East Prussia and that the offen sive in various parts of Poland con tinues. Vienna admits defeat in Galicia, but says the Russian advance in some of the Carpathian passes has been checked. This is in conflict with the Petrograd official communication. Train Loads of Loot Taken. Many train loads of war material. which, with 50,000 prisoners, was taken from the Auetrians, are passing through Lemberg, according to a dis patch from that city. With the defeat of the Austrlans. the Germans evacuated their strong posi tion in Mistrzewice. from which they delivered their furious attacks in an attempt to advance on Warsaw. Russian military experts believe this is the first step in the abandonment of the. third attempt of the Germans to reach Warsaw. Germans Brave Heavy Fire. The Russian official report, received tonight from Petrograd, follows: "Along the whole front of the armies operating on the left bank of the Vistula there has been a lull, except in the region of Bolimow, Inowlodz and south of Malagoszc, where fierce fight ing persists. "Taking the offensive from Bolimow, the Germans, under an intense fire from our guns, made an assault on Bourgaae, Borjlmow and our trenches near Goumine (Gombin), but our troops by an impetuous counter at tack slaughtered with their bayonets all of the enemy with the exception of a few who were made prisoners. Losses Are Enormous. "In this engagement we captured German machine guns and inflicted enormous losses on the enemy, who brought into action, successfully In (Concluded on Page 9.) J INDEX OF TODAY'S NEWS The , Weather. YESTERDAY'S Maximum temperature, 60.6 degrees; minimum. 40 degrees. TODAY'S Occasional rain; southerly wind. War. Russians report further gains in Poland and Galicia. Page 1. Allies advance six consecutive days, says official report. Page 2. Belgium protests to Washlncton that Ger man requisitions violate convention ot The Hague. Page 2. Allies repel German attacks and make some gains; artillery duels continue. Page 3. Burial by Kraden commander of dead foes with miliary honors is revealed. Page 3. German aircraft make raid on Dunkirk. Paso 1- National. Output of American farms eclipses all records In 1914. Page L Washington confident difference with Brit ain will be adjusted amicably. Page 1. Senatorial candidates In last campaign spent $400,777. Page 5. Senate committee pleads vigorously for ship purchase bill. Page 3. Domestic. "Oregon First" Idea predominates at dedi cation of state building at Panama-Pacific Exposition. Page 1. Governor-elect of Kansas pleads for Nation wide prohibition. Page 4. Sport. Walter McCredle says he'll live up to $5000 salary limit set in league. Page 10. Joe Shugrue's stock Jumps skyward with practical defeat s of Charlie White. Page 10. . - Harry Wolverton becomes new boss of Seals. Page 10. Commercial and Marine. Possibilities of Argentine market for Ore go.i apples. Page 15. Wheat lower at Chicago because of diffi culties with England. Page 15. Stock trading narrow, but last prices firm. Page 13. Water rates on northbound commodities from California to be raised. Page 12. Portland and Vicinity. Volunteer workers rush building of East Side Tabernacle for revivals. Page 11. Operations of Army Rescue Home described by Envoy Gunderson. Page 7. Multnomah delegation considers merging of state laboratories. Page 9. Interstate bridge to be biggest highway span In America. Page 12. All dry forces are reported to have agreed on proposed prohibition act. Page 9. Various clvfo organizations plan united boosting in behalf of city and state. Page 8. Fist fight staged in Judge McGinn's court Page 11. Fun prevails in new films at moving picture theaters. Page 11. Governor revokes parole of J. C. La France. Page 11. Three boys confess several robberies and blame neighboring shopkeeper aa leader. Page IS. Port Commisiion makes statement regard ing Harriman bridge franchise. Page 12. Thousands to watch new year in tonight. Page 4. Weather report, data and forecast. Page IS. CUXHAVEN RAID EFFECTIVE Snper-Zeppelin Destroyed by Brit ons, Says Genera Report. GENEVA, via Paris, Dee. 33. News baa reached. P.omann'iorn from Fried richshafen to the effect that during the recent British aerial raid on Cuxhaven one of the latest super-Zeppelins, which was completed two months ago, was entirely destroyed in its shed by bombs dropped by the aviators and that another Zeppelin escaped only by rising rapidly in the air. It is said that the British attack inland of Cuxhaven, where the Zep pelins were stationed, came as a com plete surprise. The Friedrichshafen factory, it is said.- has received urgent orders to hasten the completion of two Zeppelins now building in order to re place the big machine destroyed at Cuxhaven. The men in the factory are working overtime. Count Zennelin ar- I rived at Friedrichshafen from the front yesterday to supervise the work. THE HORRIBLE EXAMPLE OP 1914. . ' . f '" AMER GAN FARMS ECLIPSE RECORDS Output in 1914 Nearly Ten Billions. GRAIN CROP IS ENORMOUS Loss in Cotton Almost Com pensated by Other Items. VALUES GENERALLY HIGHER Small, Increase in Price of Eggs and More Widespread Increase In Cattle and Calves Con tribute to Result. WASHINGTON, Dec 30. American farms during 1914 eclipsed all records for combined value of their products with a. total of almost 110,000.000, 000. Secretary Houston, of the Depart ment of Agriculture, announced today that the value of all farm crops, farm animal products and farm animals sold and slaughtered aggregated $9,872,- 93S.000. That was $83,000,000 more than the grand total for 1913, the previous rec ord year, and more than double the value of all farm products in 1899. Cotton Brings Total Down. Crops this year were valued at $6,044,480,000, and the estimated total value of the animal products and of the farm animals sold and slaughtered was $3,828,456,000. The value of crop pro duction this year was slightly less than in 1913 on account of the reduced value of the cotton crop, brought about prin cipally by the European war. The corn and wheat crops, however, were the most valuable ever produed in the United . States, bringing the year's crop value total to only $88,279, 000 less than the total for last year, despite the loss of more than $300,000, 000 in the value of the cotton crop. Value of Animals Increases. ' "The estimated value of the animal products .'on " the farm In 1914." said the Agricultural Outlook today. "is distinctly higher than in 1918. which was itself a record year in the value of this class of products." "This is due to general, but slight, in creases in production, except for sheep and swine, and in prices, and more es pecially to a small Increase in the av erage farm price of eggs and to a more considerable increase In the farm price of cattle and calTCS sold and slaugh tered. "It must be borne in mind that the amounts of these estimates do not stand for net wealth produced, nor for cash receipts, nor for profit, nor for Income in any sense. Each product is valued, as in the census, when it reached com mercial form and the grand aggregate (Concluded on Page 8.) Wednesdays War Mo?es THE third German advance on "War saw has been definitely checked, according to the view of the military situation In Poland held by the offi cials at Petrograd. In that territory the Germans, who have been fighting fiercely for weeks past, have suffered great losses, and they have failed to break through the Russian line, which has been greatly reinforced before the Polish capital. The failure of the Austrian advance through the Carpathians is said to have had a serious effect on the Austro German campaign in the east. There has been a lull of late in the fighting on the left bank of the Vis tula, except at some isolated points where the Russians apparently have succeeded in maintaining their posi tion. Vienna asserts the Austrians have brought the Russian advance in the Carpathians to a standstill, but the Russian general staff records an im portant success near Lisko and the re pulse of the Austrian counter attacks at Uzsok Pass, as well as sorties by the garrison at Przemysl. The allies, although making no dra matic attacks on the German lines, are steadily hammering away with their artillery and when opportunity offers push their line a few yards forward. A French eyewitness, in a description of the battles from December 16 to 24, gives a good idea of the kind of fight ing in progress and records gains which, while each is marked only in yards, amount in the aggregate to a considerable advance at many points. A few hundred yards in Flanders were taken by primitive methods. Hav ing the breeches of their rifles choked with mud, the allies used them as clubs and in many cases fought the Germans with their fists. In one little French village within sound of the guns. Princess Patricia's light infantry, the first of the Canadian contingent to go to the front, is bil leted, waiting its turn to go into the trenches. The men had a splendid re ception from their comrades in arms and the French villagers. It is expected in London that the British government will require sev eral days to consider fully the repre sentations made in the American Gov ernment's note with regard to the searching of American vessels by Brit ish warships before replying to them. The Cabinet already has given the pro test a preliminary reading. Public feeling In Great Britain seemingly in clines to the belief that the difficulty will be smoothed over amicably. ' The first shipment of cotton from the United States since the war began has reached Rotterdam. The American steamer transporting it was held up In the English Channel for an examina tion of her papers by British warships. causing a delay of 24 hours. The Japanese Foreign Office gives denial to the reports that Japanese troops have landed at Vladivostok or at any other place on the way to Europe. A report from Friedrichshafen by way ot Geneva, says that in the recent British, aerial raid on Cuxhaven one of the later super-Zeppeltns was de stroyed by bombs. The Belgian borders will be closed by the German administration, beginning January 1, to all persons except those holding special military passes. This measure, it is understood, has been taken to prevent espionage. DISCOUNT RATE REDUCED San Francisco Reserve Bank Slakes Cnt in Short Maturities. SAX FRANCISCO. Dec. 30. (Spe cial.) The rediscount rate of the Fed eral Reserve Bank of San Francisco, representing the Twelfth Federal Dis trict, was reduced today from 5 per cent to 4 per cent for maturities not exceeding 30 days. Rates for other maturities remain unchanged, 5 per cent and 6 per cent for maturities not exceeding 60 days and 90 days, respectively. BELGIUM TO BE CLOSED Precaution of Germans Believed Di rected Against Espionage. ROTTERDAM, Dec. 80. via London, Dec. 31. Beginning January 1 the Ger man administration In Belgium intends to close the Belgian borders against all comers. No passports will be issued or recognized, except the special mili tary pass. The cause for this unusual precau tion is not known here, but it is be lieved to have been ordered to prevent espionage. NEW YEAR'S CITY HOLIDAY Employes Given Day Off Despite Protest of Commissioner Brewster. New Tear's day is to be a holiday for city employes. Over the protest of Commissioner Brewster, the Council yesterday decided to give the employes the day off with a full day's pay for those engaged on a monthly salary basis. Commissioner Brewster said holidays are too numerous and he opposed the recognition of New Year's day. KAISER CABLES WILSON German Ruler's Felicitations on 58th Birthday re Received. WASHINGTON. Dec. 30 President Wilson tonight received a cablegram from Emperor William of Germany, warmly congratulating him on his 58th birthday anniversary. King George of Great Britain Is the only other ruler of a belligerent na tion who has congratulated the Presi dent. Cable difficulties are supposed to have delayed other messages. OREGON FIRST WITH CALIFORNIA FOLK Rosarians Win Place in People's Hearts. STATE BUILDING DEDICATED Place of Priority Won by Promptitude in Action. GREAT CROWD TURNS OUT Formal Ceremonies at Exposition Marked by Many Tributes to En terprise or State Oakland to Act - as Host Today. BT DBAS COL.LTN-S. SAN FRANCISCO, Dec. 30. (Staff special.) The tradition of "Oregon first" was splendidly maintained by the Rosarians today when they stormed San Francisco and in the dedication of the Oregon building at the Panama-Pacific Exposition set a new record for other states to follow. As Oregon was first with her great excursion in 1912 to select the site for her building at the Exposition, and as she was first to break ground for the new building in the excursion of the Rosarians in 1913, and first to complete her building ready fr turning over to the State Commission, so today the Rosarians held the first elaborate for mal dedication ceremony that any state organization has yet held for its build ing. Oregon First In Affections. President Moore, of the Exposition, in his address before the Rosarians and others who attended the ceremony wf dedication In the auditorium of the Ore gon building, dwelt on the "Oregon first" idea. "As she was first in selecting a site, in breaking ground and in completing her building," he said, "Oregon is also, I may say. first in my affections for a special reason. "When I as lied Mr. Clark, chairman of your commission, to attempt, if pos sible, to reproduce your forestry build ing in Portland, or a building along similar lines, saying that I believed that such a building 1 would do more good, not only to the Exposition, but to your own state as well, than a build ing constructed on the classical lines, they gave weight enough to my opinion on the matter to arrange for just such a building. Building Inspires Pride "Now, when I am escorting the great men of other nations through the grounds, I always stop here with them and say, with pride, 'Look, here Is Ore gon.' "In size, in effectiveness and In the uniqueness of its quality you have here a building that thoroughly suits the Exposition, one that you may well be proud of and one for which I con gratulate you." The Rosarians made San Francises realize that Oregon holds a large place on the map of the Pacific Coast from the moment they rushed off the ferry from Oakland. With band blaring and Rosarians in full uniform marching under the direc tion of Captain Krohn, they visited and serenaded the newspaper buildings, marched with their band through tha Palace Hotel and kept necks craning all" along Market street until they turned off to the Hotel Sutter, where they made their headquarters. Big ob servation automobiles carried them from the hotel to the fair grounds and trumpets announced their progress all along the route. Gathering Breaks Record. Thousands, visiting the exposition grounds paused and turned to follow with their eyes the progress of the Rosarian marchers through the gates and streets of the exposition to the Oregon building. "There has never been such a crowd gathered at any function in a state building as there is in the Oregon building today," said one of the news paper men present. L. W. Buckley, as chairman of the day, introduced D. O. Lively, director of livestock exhibits, who as one of the charter members of the Rosarians dur ing his residence in Portland, took charge of the dedication ceremonies. Albert Vogt, of Koster-Vogt Company, turned over the plans of the completed building formally to O. M. Clark, chairman of state commission, who de livered them to General W. E. Finzer, representing Governor West. By him they were conferred through John F. Logan into the custody of W. L. J Thompson, secretary of the Oregon commission. Mr. Logan delivered the address of the day in behalf of the Oregon commission. Tribute to Oregon Applanded. When President C. C. Moore, of the exposition, was escorted into the as sembly hall by Eugent Shelby and by Hollis E. Cooley, chief, of special events, there was a burst of applause which was exceeded only by the ap plause which followed the tribute he paid to Oregon and Oregon's building in his address. Equally enthusiastic in their praise of Oregon's part In the exposition were Edward Rainey, secretary to Mayor Rolph, and R. B. Hale, first vice-president of the exposition, who paid bis compliments to Oregon as first, not only in her work in the exposition araoi; other slates, but as the guide of other ' states of the Pacific Coast Concluded on Page 3.)