VOL. LV NO. 17,015. PORTLAND, OREGON, MONDAY, JUNE 7, 1915. PRICE FIVE CENTS. V K v ARBITRATION IS TO BE REFUSED Wilson Rejects Heir Von Jagow's Suggestion, PRECISE LANGUAGE STUDIED President Will Hold America and Germany Must Settle Differences Alone. TONE WILL BE FRIENDLY Terms of The Hague Agree ment First Must Be Met as to Marine Warfare. Br LOUIS SEIBOLD. J"WashinErton correspondent of the New Tork World. . Published, by arrangement with the World.) WASHINGTON, June 6. (Special.) Reserving for his final considera tion one section or hia second note defining the conditions under which friendly relations may continue be tween the United States and the Ger man empire, President Wilson has de ferred its transmission to Berlin until tomorrow and perhaps Tuesday. The rest of the note is complete and there is little reason to believe that Bny change will be made even in the paragraph over the construction of which the President is centering his most profound thought. Arbitration Held Unavailable. This relates to the suggestion of Herr von Jagow, the Imperial For eign Minister, that the adjustment of the differences between the two gov ernments be referred to an interna tional tribunal as provided by The Hague conference. The suggestion that any feature of the negotiations be submitted to arbi tration will be rejected as not avail able in the pending dispute, or until the main issues as interpreted by the Administration are disposed of to the satisfaction of the United States. The only uncertainty regarding the proposal in the mind of the President concerns the exact phrasing of the declination to set aside the issues so clearly understood by him and his Cabinet. , Secretary Bryan Reconciled. ' Even Secretary Bryan, who is an ardent advocate of arbitration or any ether diplomatic device that may avoid the disruption of peaceful con ditions, has become reconciled to the view of the President and all the other members of his Cabinet, that the pend ing controversy does not permit of the slightest abridgement of the de termination of the Administration to insist on a full and complete under standing between the United States end Germany without reference to any powers other than the principals. The possibility of further consider ation of the note by the full Cabinet before it is dispatched to Germany is suggested; but there is apparently nothing to make this necessary. The Bote in complete form will be reduced to cipher tomorrow and started on it? !fc"ay to Berlin not later than Tuesday. Friendly Character Emphasized. The friendly character of the Presi dent's note is emphasized at the start by an expression of gratitude for the offer of Germany to make adequate apology and compensation for the killing of an American citizen on the British ship Falaba and the sinking of the American ships Gulflight and Cushing, destroyed by "mistake," ac cording to Herr von Jagow's unsatis factory reply to President Wilson's first note of protest. Perhaps the most positive statement that will confront the German Minis try when the President's second note is placed before it will be the em phatic rejection of the suggestion that the controversy between the two gov ernments over the sinking of the Lusi tania, and the American ship be re ferred to an international committee of inquiry pursuant to title 3 of The Hague Convention of October 5, 1907. Compliance Most Come First. The position of the American Gov ernment is that until Germany com plies with the other terms of The Hague agreement, particularly with those relating to marine warfare, de signed to prevent the useless sacrifice of human life, it cannot discuss the ap- (Cooctutfed on Pace 2. Column 2.J. MARSHAL ARRESTS HIS BENEFACTOR LIJTXTOX POLICE CHIEF CHASES ACTO, HURT, RESCUED. I. E. Riley Stops When J. H". Hogan Is Caught Beneath Cycle and Takes Him to Hospital. While pursuing- a, speeding autolst yesterday on a road near Llnnton, J, H. Hogan. City Marshal of Llnnton, was pinioned beneath his motorcycle when the machine skidded and fell with him. I. E. Riley, of 108 East Eighteenth street. North, driver of the automobile chased by the marshal, seeing his pursuer's plight, stopped his car and carried the Injured man back to Linn ton. At Linnton. Dr. S. M. Mann took the injured man in charge and found that his right leg was fractured below the knee. Mr. Hogan was taken to the Good Samaritan Hospital by the Ambu lance Service .Company. A block of wood in the path of the motorcyclist was responsible for the accident. The autoist was thanked for his ser vices and cited to appear In court to answer to the charge of speeding, when the marshal's injury would per mit him to testify. The officer de clared the machine was going 35 miles an hour. HOT SPELL SEEMS BROKEN Temperature Reaches 8 6 at S P. M. and Then Falls Rapidly. The thermometer reached a maxi mum of S6 degrees yesterday at 3 P. M. and pessimists began to predict that the spell of hot weather would be sure to blow up in a thunderstorm on the Hose Festival. A whiff of clouds began to come out of the West in the evening, however. and the temperature dropped rapidly. Within three hours it had fallen 11 degrees and people began to put their coats back on. It is thought probable that the tem perature will moderate for the next few days, without bringing on any radical reverse that may affect the entertainments of the Festival week. The weatherman's forecast Is: Fair weather with northwesterly winds. AUSTRIAN CABLE IS CUT Italian Destroyers Cause Much Dam age in Dalmatians. ROME, via London. June 6. The fol lowing official statement was issued by the War Department today: 'Naval detachment yesterday cut the cables uniting the continent and the Islands of the Dalmatian archipelago. All lighthouses and lookout stations of these islands were destroyed. The rail way between Cattaro and Ragusa were bombarded and seriously damaged. "The same day a group of our de stroyers, which were unsuccessfully attacked by aeroplanes, again bom barded Monfalcone and sank several sailing craft laden with merchandise. Large vessels supporting the destroy ers cruised in the same waters with out seeing the enemy." SAN FRANCISCO IS SHAKEN Two Quakes Are Distinctly Felt Throughout City. SAN FRANCISCO, June 6 Two slight but distinct earth shocks were felt generally throughout the city at 9:51 this morning. No damage was re ported. At the University of California at Berkeley, across the bay, where the shocks were felt. Professor A. C. Law son, of the mineralogy and geology de partment, who supervises the seismo graph records, said that the temblor was comparatively insignificant. Observers at Lassen Peak reported the volcano somnolent and that no shake was felt there. KING'S FEVER RUNS HIGH Anxious Athens Crowds Surround Palace of Constantine. LONDON, June 7. An Athens dis patch to the Morning Post says: "All the physicians remained at the King's bedside throughout the night. and the streets outside the palace were packed with crowds of anxious people. The doctors say that the temperature 104 was regarded as a natural reaction after the operation, but its intensity un doubtedly was alarming." BALTIC BATTLE RUMORED Violent Cannonade, Lasting Six Hours, Heard in Stockholm. LONDON, June 7. In a dispatch from Copenhagen the Daily Telegraph's cor respondent, says: "It is reported from Stockholm that a naval battle occurred Saturday near Gothland. For six hours a violent cannonade was heard from a south easterly direction and for a long time from 20 to 25 shots were heard every minute." 30 "DUCKED" AT EUGENE Freshmen Hold Annual Bee, Saving 10, "Who Can't Swim, With Rope. EUGENE, Or.. June 6. (Special.) More than 30 university freshmen, members of the various fraternities, were thrown In the mill race by their classmates this afternoon as part of an annual Spring ceremony, held on the last Sunday before examination. Ten. who could not swim, were res cued with a rope. JAPAN DUG OF WORLD DOM HMD China Catspaw of Ra cial Ambition. HORDES HOLD POSSIBILITIES Fighting Material There, and Iron for Ordnance. VAST ARMY CONTEMPLATED Ten Million Trained Men, With 40, 000,000 in Reserve, Among Grand Ideas of Militarists, Now in Saddle at Tokio. . BT OSCAR KING DAVIS. (Copyright. 1913, by tha Chicago Tribune. Published by Arrangement. ) PEKIN. May 5. There are plenty of indications here, at this writing, that what Japan has sought from the first in her dealings with China is not merely the leadership In commerce and industry In Asia, but political and military domination as well. And she wants this domination in order to satisfy her vaulting ambition and to gratify her boundless racial pride. In a word, she aims at the day when the yellow race shall come into armed conflict with the white race for the supremacy of the world. Her military geniUB believes that if she can secure the effective control of the unnum bered hordes of Chinese she will be able to construct a fighting machine so enormous and so powerful that it will be able to drive the remainder of the world before it as it wills. Army of Million Dreamed Of. &he dreams of an initial army of 10.000.000 trained men, 250 army corps of 40,000 men each in the first fight ing line, supplemented by a vast re serve approximating 40,000,000 more. She dreams of capitalizing the un touched and untold resources of this vast country; of installing here her own system of taxation that has pro duced-amazing results from a land and a people stricken with poverty. If she can do it she can raise money by the billion, and she can build navies and equip armies that will conform to the grndeast ideas suggested by her mili tary ambition. Japan today Is not an independent nation. She lacks two great essentials of national Independence, money and iron. Without them she can never achieve the Independence that alone can reconcile her people to their situa tion. Mere Money Not Enough. Money Japan might acquire. But to do so she would have to abandon her mounting military ambition. Her finances are in a desperate condition. She has reached the practical limit of taxation, and has borrowed abroad to the point where it would be difficult to secure further credit, even if the war in Europe had not arbitrarily closed all (Concluded on Page 6. Column 2.) rr " ' INDEX OF TODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature, 85.6 degrees; minimum. 69 degrees. TODAY'S Monday fair, northwest winds. War. Allies report important sain on Turkish front. Page 1. Roumanians clamor for war on side of allies. Page 1. Diplomatic Intrigue rife in Lualtania ne gotiations. Page Z. Will Erwln depicts war contrasts seen at British base. Pago 2. Mexico. General Obregon reports Villa badly de feated. Page 1. Foreign. , Japan dreams of capitalizing China's vast resources for coming world conflict of races. Page 1. National. Wilson's reply to Germany will reject Herr von Jagow's proposal for arbitration. Page 1. Domestic. Supreme Court in Daniels case deals blow to bureaucracy. Page 3. Oregon squirrel at Exposition Ignores- every thing but home products on marauding expedition. Page 3. Messenger boys accused in investigation into San Francisco drug ring. Page 4. Sports. Paclfio Coast League Results: Portland 0-4, Oakland 9-2; Salt Lake 6-7; Venice 2-6; San Francisco 1-2, Los Angeles 0-11. Page 12. City League Results: Piedmont 4. West Side 3; East Side T, Sellwood 0. Page 13. High scores made in practice shoot prepar ing for Northwest tourney. Page 13. Matty bemoans loss of speed and curve and lack of control. Page 12. Roller skaters to get numbers and go over marathon course tomorrow. Page 13. Financial and Industry. No hope for general prosperity seen while war continues. Page 10. Oregon Bankers' Association indorses pig clubs. Page lO. June trade letter of Merchants National Sank optimistic. Page 10. Portland and Vicinity. Equipment of Municipal Dock given first severe test. Page 13. Havy voting expected, in city election. Page 16. Installation of meters would prevent lower ing water rates. Page 11. Portland cannot use half of available water. Page 11. Miss Grace De Graff returns to Portland from The Hague peace conference. Page S. Motion picture theaters offer interesting and entertaining programme. Page 9. Sunnyside Congregational Church celebrates l3d anniversary.. Page 5. Children's Day observed. In Portland churches. Page 6. Women at Adventlst Camp meeting give gold trinkets to $11,55 fund for missions. Page 7. Floats for electrical pageant aro taken out of den for final "going over" and are pronounced ready. Page 6. Weather report, data and forecast. Page 13. Expressing loyalty,' German Society reserves right to criticise Administration. Page lo. Head of B'nal B'rlth tells of efforts to over, come racial prejudice. Page 3. Economy calls for defeat of garbage collec tion plan. Page 11. List of polling places announced. Page 5. J. II." Hogan. City Marshal of Llnnton, ar rested man who rescued him when motor cycle topples. Page 1. D. W. Campbell returns after lengthy busi ness visit In Chicago. Page o. Use of concrete for paving county highways advocated. Page 4. Charity fund now $924.91. Page 7. . . LOSSES HEAVIEST OF WAR British Casualties for .Week 900 Of ficers and 2O,000 Men. LONDON, June 7. The casualty lists for the week's end are the heaviest issued since the war began. They include 80 officers and 5620 men, of whom 1674 were killed. This brings the total British losses during last week to 900 officers and 20,000 men. . Swiss Approve War Tax. BERNE, Switzerland, via Paris, June 7. A referendum of the Swiss nation has approved, by a vote of 435,000 against 26,000, special war taxation yielding about 60.000,000 francs ($12, 000,000). IT'S UP TO YOU MR. TAXPAYER. ALLIES IKE GAIN ON TURKISH FRONT Two Lines of Trenches Are Captured. 3-MILE LINE IS MASTERED Ships Aid in Heavy Bombard ment Preceding Attack. ENEMY'S LOSSES HEAVY Troops Cliarge With Bayonet When General Forward Movement Is Ordered; Five German Sailors Among Prisoners Taken. LONDON, June 6 Official announce ment was made tonight that the Brit ish troops at the Dardanelles, as a re sult of their new offensive movement last week, captured two lines of Turk ish trenches along a three-mile front. The statement follows: "On the night of June 3-4 the Turks, having heavily bombarded a small fort in front of the extreme right of the French position, which previously had been captured, launched infantry at tack against it. which was repulsed with heavy loss to the enemy. At the same time the Turks set fire to scrub in front of the left center of the posi tion occupied by the British division and attacked, but met with no success. General Attack la Ordered. "On the morning of June 4 Sir Ian Hamilton ordered a general attack on the Turkish trenches in the southern area of the Gallipoli Peninsula, pre ceded by a heavy bombardment by all guns, assisted by battleships, cruisers and destroyers. "At a given signal the troops rushed forward with the bayonet. They were immediately successful all along the line except in one spot, where the heavy wire entanglements were not destroyed by the bombardment. "Indian troops on our extreme left made a magnificent charge. They cap tured two lines of trenches but owing to the fact that the troops on the right were hung up by tho wire entangle ments, they were obliged to retire to their original line. Strong; Redoubt Captured. "The regular division made good progress on the left and center, captur ing a strong redoubt and two lines of trenches beyond it, about BOO yards in advance of their original line. "The territorial division on our cen ter did brilliantly, advancing 600 yards and capturing two lines of trenches, but though the advanced captured trench was held all day and half of the ensuing night, they had to be ordered back in the morning to the second cap tured line, as both their flanks were exposed. "The naval division on our right center captured a redoubt and a formidable line of trenches constructed in tires (Concluded on Page 2. Column &. u CLAMOR FOR WAR SHAKES ROUMANIA 30,000 AT CAPITAL MAKE AXTI GERMAN" DEMOXSTRATIOX. Leader of Conservati es Denounced by Party for Speech Favoring Kaiser, and Withdraws. LONDON. June 6. Reuters corre spondent at Bucharest telegraphs that a great demonstration was held there today in favor of Intervention by Rou mania in the war in support of the Allies. About 30,000 persons marched with flags flying and bugles sound ing, to the Italian legation where speeches were delivered eulogizing Italy. Later partisans of Alexander Mar ghiloman, the Conservative leader, to gether with Socialists, organized a counter demonstration. At a meeting of the executive com mittee of the Conservative party, the attitude of XI. Marghiloman in favor of Germany, was discussed. After a debate the majority condemned the leadership of the party. M. Marghilo man thereupon left the meeting, ac companied by his supporters. A meeting of the party was called for tomorrow under the presidency of Jean Lahovary, who represents the wing of the party which is favorable to the Allies, BAKER BACKED TO LEAD Adams and Bigelow Also Favored in Betting for Today's Election. The outcome of today's election has aroused interest of the betting frater nity. A single bet involving $1000 was reported laced last night. It was $500 even that George L. Baker would lead the ticket for City Commissioner by 5000 votes. This bet is said to be between two prominent business men. Another wager at $200 even that Ba ker, Adams and Bigelow would lead the Commissionership race had been placed earlier in the day. This bet was against the field. There were six or seven bets of $30 to $100 that the Commissionership race would result in the following order: Baker, Adams, Bigelow, or Baker, Bige low, Adams. One bet for $50 Is that water me ters would not bo authorized by the voters had been placed, according to habitues of betting resorts. There was considerable money uncovered that me ters would not carry. Baker and Adama were the, choices last night, but no significant odds were being offered. Practically all bet ting is at even money. STORMS DERAIL TRAINS Rain and Wind Cause Damage in Minnesota and Wisconsin. ST. PAUL, June' 6. Heavy rains, in some places accompanied by destructive winds and electrical storms, caused three deaths late last night, together with considerable property damage, in western Wisconsin and eastern Min nesota. A Chicago. Milwaukee & St. Paul train eastbound left the rails near Lake City, Minn., the engine and coach go ing into a ravine, killing the engineer and fireman. A cloudburst near Roberts, Wis., caused the derailment of a Chicago, Minneapolis & Omaha train, from Chi cago, and the death of the engineer. PASSPORTS ARE REVOKED Americans Ashamed of Citizenship Lose Credentials. BERLIN, via London, June 6. The passports of two American citizens liv ing in Dresden. Leon Raines and Karl Recknagel, have been ordered revoked by the American embassy on instruc tions from the State Department at Washington. The men, it is said, adversely criti cised the American Government's policy in the present crisis and reported in newspaper circles that they were ashamed of their citizenship. CABINET TO POOL SALARIES Coalition Basis Agreed On by New Ministry of Britain. LONDON. June 7. According to the Daily Express the members of the coalition cabinet have agreed to ar range their salaries on a coalition basis that is. all the salaries will be pooled and then equally divided. The only exception will be Premier Asquith, who will receive his full salary as be fore, and Sir Edward Carson, the attorney-general, whose fees will not be included in the pool. FIVE TRAWLERS ARE SUNK Crews of Day's Victims of German Submarines Are Saved. LONDON, June 6. Five more traw lers have been sunk by German subma rines. Four of the attacks occurred off Peter Head yesterday and the Dogberry, of Hull, Persimmon, of Grims by and Gazehound and Curlew, of Sun derland, were the victims. The Hull trawler Bardolph has also been sunk by a submarine. The crews of all of the trawlers were saved. Bomb Near American Consulate. LONDON, June 7. In the German air raid on Calais last Saturday, says the Daily Mail's North of France cor respondent, a bomb fell within 50 yards of the American consulate, but did no damage. VILLA IS REPORTED BADLY DEFEATED Important Victory An nounced by Obregon. ALL GANNON DECLARED TAKEN Foe Loses Military Trains, Says Carranza General. TOWN OF LEON CAPTURED Enemy Said to Have Been Scattered in Various Directions After Bat tle Lasting Five Days; EI Paso Bears Differently. VERA CRUZ, J-une 8. Defeat of the forces of Generals Angeles and Villa, the capture of the town of Leon and all of Villa's trains and artillery was announced In a report of General Obre gon, of the Carranza army, received to day. The report says: "I have achieved an important vic tory. After a five days' battle Angeles and Villa, with small groups of follow ers, fled in different directions. Our forces are pursuing them north of Leon. Tons of Leon Occupied. "Leon has been occupied by the Car ranza troops. All the enemy's trains and artillery were captured. The battle extended over a zone of 300 miles. "I have ordered the reconstruction of the railroad and telegraph with Vera Cruz." EL PASO, Texas, June 6. No word has been received here for two days from the fighting line in the state o.f Guanajuato. Obregon Reported Encircled. The last direct advices from General Felipe Angeles said that General Villa, with a force of cavalry, had circled east of. General Obregon's entrenched line at Trinidad and captured Sflao. thereby cutting Obregon's line of com munication with Irapuato. Villa representatives here, as well as American officials conversant with the situation, were inclined to await direct advices before accepting the Carranza report of a victory at Leon. PEACE OVERTURE IS RUMORED Carranza Consul Approached by Villa Official on Border. "WASHINGTON. June 6. Informal, efforts as yet without official sanc tion are being made by Mexicans Identified with the Vllla-Zapata move ment in Mexico to bring about a recon ciliation with the Carranza faction, with the view of establishing a gov ernment that could claim recognition at the hands of the United States. Eliseo Arredondo. Washington repre sentative of General Carranza, today received a message from a Carranza consul on the border, saying he had been approached by a Villa official, speaking presumably with authority, to learn what could bo done to initiate peace negotiations. The message was forwarded without comment by Mr. Arredondo to General Carranza at Vera Cruz. Enrique Llorente, agent here of the Villa-Zapata coalition, said he had no official advices that any peace parleys had begun. He said he had. received a telegram from Miguel Diaz Lombadoro. secretary of the Vllla-Zapata govern ment, in which the latter reported his departure for Leon to confer with General Villa. American Red Cross officials are put ting into effect their plans for reliev ing starving Mexican non-combatants. An army transport will leave Galves ton for Mexico City, arrangements hav ing been made for safe passage of the supplies through the Carranza lines. On its return trip the transport will bring back those who may have reached Vera Cruz from Mexico City or other points In the interior and desire to leave the country. Brigadier-General Devol. general manager of the Red Cross, left today for the Texas border to confer with Major-General Funston and other offi cers. There was a disposition at both the Carranza and Villa agencies here to treat the subject of peace parleys with caution, as neither of the representa tives here professed to know the views " of their respective chiefs. Officials of the Washington Govern ment declined to comment on the sit- (Concluded on Page 3, Column 1.) THE OREGOMAX TO FLASH RETl'RXS. In pursuance of its usual cus tom. The. Oregonian will flash returns from today's election on a "screen at the corner of Sixth and Alder streets, across from The Oregonian building, -ind give the earliest possible announce ment of the results. The polls close at 8 P. M. and as soon thereafter as figures are available the first returns will be given. The service will be continued, as usual, until late at night, recording the count as it progresses. A large force of motorcycle messengers will tele phone the returns to The Ore gonian with the least possible delay.