VOL. LV.-XO. 17,091. MEXICAN BANDITS KILL 2 AMERICANS Kidnapers Riddle Bod ies of Victims. INFANTRY ROUTS 16 RAIDERS One Slain and Others Flee, i Letting One Prisoner Go. BAND FIGHTS FROM TRENCH Aniccto Pizano, Who Has Been Ac tive In Inciting Countrymen to Rise Against Americans, Is Said to Be Leader of Band. BROWNSVILLE. Tex.. Sept. 2. The bullet-riddled bodies of two Americans, who were. early today kidnaped by Mexican bandits about 12 miles north of here, were found today in the bed of a dried lake. They were Earl Donaldson, a farmer ti mi mine jiere irom ayette, AIo., two weeks ago, and an engineer named Smith, engaged in concrete construc tion work on an irrigation canal. The bodies were brought to Brownsville to night. One Called (;rrmnn Saved. Donaldson, Smith and Stanley Dodds, a contractor building an irrigation pumping station, were captured by the Mexicans. Because one of the band told the others that Dodds was a. German he was not harmed, but his hat and shoes were taken. The pumping sta tion and an automobile were burned by the bandits. Later in the day the Mexicans be came engaged In a running fight with a detachment of half a company of United States infantry, and in the ex citement Dodds escaped. He telephoned Irom a distant ranchhouse tonight that he was safe. Americans Rout Bandits. The fight between the Mexicans and the American detachment resulted in the death of one Mexican and the es cape of 15 others, who' composed the band. No American was hurt. Lieutenant Faulkner, who command ed the detachment, reported that the automobile trucks bearing the Ameri cans were traveling along the old Alice nidcuuacn roaa wnen the Mexicans were seen. Called upon to halt, six of the band showed fight, using an ir "riation ditch as a trench, while 10 escaped down the canal. Five of the six finally escaped, leaving their dead comrade. Further KIclMing Inspected. Following a flight this afternoon. Aviation Lieutenant Joseph C. Morrow, pilot, with Lieutenant B. O. Jones as observer, reported that United States cavalry and infantry were well disposed throughout the section in which there nre believed to be from 50 to 60 Mex ican bandits. Further fighting is ex pected. The band, to which was ascribed the burning of a railroad trestle north of here last night, today burned a pump ing station and made prisoners of three Americans. Officers said tonight that Aniceto Pi rano, a Mexican, who was engaged in the Los Tulitos fight last month and escaped to Mexico and whose name later was signed to a circular distrib uted In Mexico urging Mexicans to rise In arms against Americans, was the leader of this band. OHO.CO Fl'XEHAL POSTPONE! TIwummhIs or .Mexicans View Body, Which Will Be Buried at El Paso. KL PASO, Tex.. Sept. 2. After prep arations had been completed to hold the funeral of General Fascual Orozco nt the Mexican Methodist Episcopal Church late today, the Orozco family cancelled the plans and announced the funeral would be held early tomorrow nt the undertaking establishment where it has been viewed by many thousands of Mexicans today. The body was removed to the Orozco home late today. Mrs. Orozco an nounced she had declined to avail her self of General Villa's permission to inter the body In Mexican soil and that burial would be in a local cemetery. NOTE TO AUSTRIA COSTLY Eight Albanians Imprisoned in Italy for Using Carrier Pigeons. BAltl. Italy, via Paris. Sept. 2 Kight Albanians were sentenced to long terms in rrison today for having communicated with Austria by carrier pigeons. The men involved are Captain Mus tapha. of the Albanian bark Bella Scutarina. who was sentenced to 20 years, and seven members of his crew, condemned to serve ten years each. RUSSIAN TONGUE BARRED Oerman and Polish Only Nov Spo ken In Lodz by Residents' Choice. BERLIN. Sept. 2. (By wireless to Sayvllle.) The Overseas Agency says: "The municipal council elected by the citizens of Lodz ta city of Russian Poland now in the hands of the Ger mans) has banished the Russian lan guage, and only Polish and German wlil be used," - VICE-PRESIDENT OF CHINA QUITS JOB ACT PREPARATORY TO ESTAB LISHING EMPIRE IS BELIEF. LI Yuen Ring, for Months Virtually Prisoner, Asks to Go and Prom ises to Aid Monarchy. SHANGHAI, Sept. 2. LI Yuen Heng has resigned as vice-president of the ChineSe Republic. The interpretation placed upon his act la that it is pre paratory to the establishment of monarchy, which is popularly regarded as virtually certain. A dispatch from Pekln Wednesday night said that the failure of Li Yuen Heng, who has been virtually a pris oner In the palace grounds for some months, to attend Wednesday's session of the advisory council has been made the basis of a sensational story published by the Pekln newspapers. Li Yuen Heng was reported in Pekln to have requested from President Yuan Shi Kai permission to depart from the forbidden city. He is said to have in formed the president that he would not oppose the re-establishment of a mon archy, but would not subscribe his name to a petition favoring the project. AMERICAN SUSPECT FREED England Objects to Passports to Citizen Carrying Word to Berlin. WASHINGTON, Sept. 2. Ambassador Page at London sent a cable message to the State Department today contain ing a report on the case of James F. J. Archibald, an American from whom the British authorities declared they had taken papers alleged to have been com munications to the German and Aus trian governments from their embassies in Washington. Archibald himself was released, and officials indicated that no further de velopments were expected. It was said, however, that the value of American passports in the allied countries would be considerably impaired if such inci dents continued to occur. GAS COMPANY CUTS MELON Payment of 7 Per Cent Dividend Is Reported to Commission. SALEM. Or., Sept- 2. (Special.) The Portland Gas & Coke Company paid a 7 per cent dividend on its preferred and common stock for the year ending June 30 last, according to a report filed with the Public Service Commission today. The net Income for the year totaled J312.6D4.30, the preferred stock div idend being $140,000 and common stock dividend $210,000. There was a surplus of J6S.865.70. Operating revenue to taled 11,276,821. and operating expenses 1543.980. Its common stock authorized Is J3.500.000. Its preferred stock author ized is J2,000,000. WASHINGTON DRYS WARNED Minister Says AVets to Continue Eight Against Prohibition. SPOKANE, Wash., Sept. 2. (Special.) Ltluor interests of the state are well prepared to continue the fight against prohibition and churchman must be wide awake to prevent its repeal. President Floyd L. Daggett told the members of the Laymen's Asso ciation of the Columbia River confer ence of the Methodist Episcopal Church todaj Mr. Daggett Indorsed the efforts of Governor Lister to obtain from the Leg islature a special appropriation for the enforcement of the prohibition law. SHERIFF PAYS FOR SMOKES Hereafter Roseburg Prisoners Will Have to Buy Their Own Tobacco. ROSEBURG. Or.. Sept. 2. (Special.) As the result of an ultimatum issued by the County Commissioners here 'to day, prisoners confined in the county jail will be deprived of tobacco and other luxuries hereafter, unless the same is paid for by them or their friends. The ultimatum came follow ing consideration of a bill for $3, which represented tobacco purchased for the prisoners during the past three months. The bill was disallowed by the court and will have to be paid by Sheriff Quine. AVIATOR DROPS INTO BAY Silvio Pettirossi TTnharmed by Pall of Several Hundred Feet. SAN FRANCISCO. Sept. 2. Silvio Pettirossi. an Argentine aviator, fell from a height of several hundred feet Into San Francisco Bay late 'today while giving an exhibition flight from the Panama-Pacific Exposition. He was picked up by a tug. Beyond suffer ing slightly from the shock of his sub mersion he was uninjured. The fall was caused by the breaking of his steering gear. His wife wit nessed his fall. BRITAIN PAYS FOR COTTON Embassy Remits $323,0-00 for Cargo Taken From American Ships. WASHINGTON. Sept. 2. The British Embassy today remitted $323,000 to W. Gordon McCabe. of Charleston. S. C. for American cotton taken from the steam ships Carolina and Baltic by British au thorities several months ago. The payment represented a valuation of 9 cents a pound, while the invoiced value was more than 10 cents. It was understood the difference would be paid later. . PORTLAND. OREGON, FRIDAY, SEPTEMBER 3, 1915. GERMANY WILLING TO YIELD BELGIUM Freedom for Poland and Finland Demanded. POPE SENDS PEACE PROPOSAL Kaiser Would Leave France, but Wants Colonies Back. WILSON UNABLE TO ACT President in Sympathy With Hu manitarian Idea us Presented by Cardinal Gibbons, ' but Allies Would Resent Move. BY JOHN C ALLAN O'LAUGHLIN. WASHINGTON, D. C, Sept. 2. (Spe cial.) Cardinal Gibbons, the senior prince of the Roman Catholic Church In the United States, today presented to President Wilson an earnest mes sage from Pope Benedict suggesting that he use his good offices with a view to the restoration of world peace. The message, which was in writing, will be made public tomorrow after noon if by that time authority from Rome shall be received by the Cardinal. Three Nations Favor Plan. Enough has been learned regarding the contents of the document, however, to say that Pope Benedict desires the United States, as the greatest neutral leader, to move with the allies to ef fect the termination of the war. Those who are in a position to know say the message makes clear the be lief of His Holiness that he has the sympathetic support of Austro-Hun-gary and Italy, which are Catholio countries, and Germany. They say fur ther that there is information in re gard to the terms which Austro-Hun-gary and Germany would be prepared to accept. For example, the independ ence of Poland, which is a Catholic country, is a feature of the peace plan: The message was received by the President with the grave consideration its distinguished origin deserved. President Is Hesitant. While in thorough sympathy with the humanitarian desire of the Pope, and ready and willing at a propitious mo ment to aid the belligerents in resolv ing their differences, the President holds the opinion that no good, but harm, might come through action by the United States at this time. How ever, the President expressed to' the Cardinal his gratification over, the re ception of the message. But to take action, that is another matter. Several days ago the Administration learned authoritatively that Germany and Austro-Hungary were -willing to accept -mediation by the United States. From the allied powers, however it was informed that an offer of media- concluded on Page 2. Column 1.) J NOW IT'LL RUN ALRIGHT! j I Ji&t Wm fvdc,; KiSN-i I . j?tp INDEX OF TODAFS NEWS The Weather. YESTERDAY'S Maximum temperature. 7 degrees; minimum. 57 degrees. TODAY'S Fair and warmer; northerly winds. War. Germany offers to submit Arablo and Lusltanla compensation claims to Ta Hague. Paso 5. Big profits reaped by many neutrals. sars James CKDonnell Bennett. Page a. foreign. Vice-President of China resigns. Page 1. Foreign financial commission sails to take uu exchange question. Page 1. Mexico, Mexican bandits kill two Americana Page 1. National. President calls on Secretaries of War and Navy for definite defense programme Page 2. Germany's peace proposals submitted to President Wilson by Cardinal Gibbons. PaSo 1. Dumcsth. Georgia erand Jury indicts no one for Frank lynching. Page 8. Australian commission m-anta to duplicate Oregon fair building at home. Page 6. Mrs. Kliza.br ih Mohr, accused by negroes of paying them to kill husband, la re leased on $10,000 ball. Page 3. Pacific Northwest. Ideal weather and big crowds mark open ing of Astoria, regatta, page 1. Sports. Robert A. Gardner only Western man left in golf championship race. Page 12. McLoughlin and Williams win. but play la erratic page 13. Coast League results; San Francisco IS. Portland 3; Salt Lake 4. Oakland S; Los Angeles 3-1, Vernon 2-3. Page 12. Drawings made for interclub golf matches. Page 12. Commercial and Marine, Columbia River fleet is reporting in with pack from Alaskan salmon catch. Page 11. Estimates of Oregon hop crop are farther reduced. Page 17. Chicago wheat market continues upward movement. Page 17. Liquidation of securities by foreigners aids exchange situation. Page 17. Portland and Vicinity. Weather report, data and forecast. Page 17. Teachers at institute hear of elements of success. Page 11. Captain R. P. Grecnleaf. well-known sur veying engineer succumbs. Page 33. J. M. Haberly confesses to many robberies of blind cigar dealer a t city Hall. Page 11. Jobs multiply and city salaries soar under commission form. Page 14. Electrical contractors protest School Board proposal to do own wiring. Page 7. Public night schools will be opened to pre pare immigrants for citizenship. Page IS. Mill water meter hearing is set for Sep tember lo. Page 0. Multnomah County Fair boosters consider plans. Page 5. General Goethali would consider city man agership with full authority. Page G. Wide interest being taken in Q.-W. R. & N. cooking contest. Page 7. DOGWOODS IN BLOOM AGAIN Old-Timers at Vancouver Are Puz zled by Second Blossoms. . VANCOUVER, "Wash., Sept. 3. (Spe cial.) Oldtimers are loolring for a reason why the dogwood trees on the road between Vancouver and Camas are blooming a second time this year. These trees were covered with beau tiful white blossoms at the usual time last Spring. The same trees have fully blossomed out a second time- The blooms are just as large and there are as many. This is true of all which can be seen from the river road be tween Vancouver and Camas. WILSON VISITS THEATER Amusement Sought for B'irst Time In More Than Year as .Relaxation. WASHINGTON, Sept. 2. President Wilson went to a theater party tonight for the first time for more than a year. He was persuaded to go as a relaxa tion from the work he has been doing recently on foreign problems. FOREIGN FINANCIAL C0HWS5SJI SAILS Britons Say They Are Not Seeking Aid. BUYING MAY GO ELSEWHERE Europeans Say America Must Adjust Credits or Lose. GOLD SHIPMENTS EN ROUTE English Buyers Indicate Willingness to Pay In American Gold Eagles If Necessary . and Adopt These as Standard. CAINS IN FOREIGN EXCHANGE IN DAY'S TRADING AT NEW YORK. Open. Close. Pounds, sterling.. 84. 544 84.62H Francs (No. per dollar) .09 5.95 Llres (No. per dollar) 6.54 6.45 Reichmarks (per cent of par).... 80 S0i LONDON, Sept. 2. Plans for cor recting the abnormal exchange situa tion and putting on a stable basis the entire machinery of setling trade bal ances between America and Europe will be clarified within the next few days on the arrival in New York of the French and British financial com missions. Both commissions are now en route. The British authorities have re quested that details regarding the British commission be not discussed until the delegates are well outside the danger zone, after which all reserva tions will be removed and the subject opened to the fullest discussion. Britain Need Ne Aid. Meanwhile It is known that the com missions are in the position to correct some misapprehensions which are be lieved to exist in the United States con cerning British. French and Russian dependence on America. One of the best informed authorities said today; "The Idea seems to prevail in New Torlc that we are on our knees and begging America to come to our as sistance. The situation Is exactly the reverse. America wants to sell Europe its goods, and if Americans hope to continue these sales they must find a means of giving the usual credits and stabilizing exchange." View in London Hopeful. The British commissioners are fully conversant with the attitude of the government, which does not regard the present situation as alarming. On the contrary the government's view is de cidedly hopeful and serene, as the re cent success In floating the glgantie war loan has given It confidence that (Concluded on Page ;i. Column 1.) WORK ON 0LYMPIA CUT-OFF TO START O.-W. It. & J. TO COMPLETE IJXE WITH IX SIX WEEKS. $500,000 Task to Be Pressed as Rapidly as Rails Can Be Laid tor Distribution on Grade. Track will be laid on the O.-W. R. & N. Company's new grade from the Point Iefiance line to Olympia at once, according to officials of the company, and within six weeks it is expected the new road will be ready for opera tion. This line will connect with the Te nino cutoff of the Northern Pacific, over -which the O.-W. R. & N. Company has an operating lease, at Chambers Prairie station. approximately 7.5 miles due east of Olympia. Its cost, which includes Olympia terminals, is approximately 9500,000. ""We are going to start work right away." said J. P. O'Brien, general man ager, last night. "The grade has been ready for the rails for some months and all that remains to be done is to spike down the stee! and ballast the track. "The work can probably be completed within six weeks. This will depend, however, on rail shipments. We will get the line ready for operation Just as soon as the steel is received and can be placed. The new line was graded last Sum mer by Twohy Brothers, of Portland. Work was completed early last Fall ana at tne time the gradlncr wa h gun it was the purpose of the railroad company to open the line last No vember. The work of laying rail will be un dertaken and wili proceed rapidly to completion. PENCIL MARKS ARE AGED .III-- -rk " "ai"s amo on irecs au xears Ago Perfectly legible. HOOD RIVER, Or., Sept. 2. (Spe cial.) William Rand, who has just returned from a timber cruise in the southern part of the county, says he found SIt-v.nr.nlil Ttnr.il . . i. " " ius.ih. on trees as legible as on the day they t ci rj written. - -. . uiativo, cays Mr. Rand. "I found the name of W. I Clark. Who- 3ft Var a rn n-. - -l ... : his father. Newton Clark. Sr.. of this " government engineer, lay. lng out the section lines of the for ests." - Mr. Clark, now a merchant of this wj. tim-nmcrs marking tne line trees. Thursdays War Moves ALTHOUGH on all the battlefronts sanguinary engagements are in progress, peace talk is in the air. Cardinal Gibbons has conveyed to President Wilson a message from Pope Benedict regarding peace a. sugges tion that the time is now ripe for pro posing the opening between the bel ligerents of discussions having as their purpose the cessation of hostilities. While neither the Cardinal nor the President has made known the details of the conference at the White House, or disclosed the text of the message from the Pontiff, the Curdinal admitted that peace was discussed and that he had told the President that the United States had been placed in a very ad vantageous position to be of service in bringing to an end the conflict, owing to the apparent settlement of the sub marine issue between the United States and Germany, which had greatly aided the cause of peace. Germany is desirous of having the claims for compensation arising out of the sinking of the Lusitania and Arabic submitted to The Hague for adjudica tion. The instructions issued to Count von Bernstorff, the German Ambassa dor at Washington, according to a dis patch from Berlin, authorized him to make this offer to the American Gov ernment, while at the same time im munity from attack without warning to passenger steamers Is provided for. Official circles in Berlin are report ed to be optimistic with reference to the successful Issue of the negotiations between Germany and the United States respecting the German submarine policy. The Germans and Austrians, accord ing to Berlin and Vienna, are contin uing their progress against the Rus sians on the eastern line from North western Russia through Eastern Gall cia. On the northern sections of this line, except In the region of Riga, the Russians seemingly are falling back toward the new and less extended front which Grand Duko Nicholas has as signed to them for a possible stand. Just where this line is has not been made known. As for days past artil lery engagements and fighting by means of bombs and petards are In progress on the western front and on the Austro - Italian fronts although there have been on the latter front some Infantry engagements at isolated points. On the Gallipoli Peninsula hard fight ing is going on between the Turks and the allies, with both sides claiming vic tories. In the Dardanelles, where there have been no operations for some time, allied mine sweepers have been at work trying to clear the straits of Turkish mines, but, according to Con stantinople, they were driven off by Turkish guns. September 3, 1814. French capital moved to Bordeaux. Russian disaster, in which three im portant Generals were lost, admitted by Petrograd. French and German aviators battle in air over Paris, one German plane bc.ng brought . down. Rumor that Turkey had declared war on Russia. . . PRICE FIVE CEXTS. THREE-DAY REGATTA OPENS AT ASTORIA Ideal Weather and Big Crowds Mark Start. QUEEN TYYNE RULES CITY Speedboats Run First Heat, Oregon Kid Seating Pace. VOGLER BOY QUITS, SINKS Brilliant Marine Spectacle Held iu Which Numbers of Vessels of All Kinds Participate Army and Navy In Parade. ASTORIA, Or., Sept. 2. (Special.) Nature was kind to Astoria today and provided perfect weather for the open ing of the three days' aquatic carnival, the 20th annual regatta, and the affair statrted under auspices that insure Its success. Large crowds were present and Ions before the hour set for the first event on the programme, the grandstand was filled and the wharves were lined with people anxious to enjoy the day's sports. Amid the booming of cannon the royal party arrived at the grandstand promptly at 8:30 o'clock, and with a ceremony that was both simple and beautiful. Queen Tyyne was Introduced by King Neptune and was crowned by Admiral Wilson as sovereign of the regatta. Races Prove Thrllllns. Immediately afterward Admiral Wil son declared the regatta open and directed that the races begin. Smooth water with no drift and the speedboat Hoodoo conspicuous by its absence combined to make the racing events an unqualified success. As the racers sped away up the course their engines humming evenly and as softly as the purring of the typical house cat and the white spray thrown up by their plunging bows glistening in the sunlight, they made a beautiful picture. Vogler Bay Sinks Near Shore. After dropping out of the free-for-all race, the speedboat Vogler Boy sprang a leak, apparently from the hard pounding while racing, and sank witn ln 200 feet of the clubhouse. A diver will attempt to raise her tomorrow. , Only two of the craft suffered any engine trouble; the result was pretty races and good time, although no records were broken. The feature of morning events was the showing made by the Oregon Kid which covered one five-mile lap in the free-for-all race at a 30-mile rate and ran the entire 20 miles at the rate of 38.95 miles an hour. That she could readily have exceeded that is the belief of those who watched her antics as only in spurts was she speeded up to anything like her limit. Vogler Boy and Wanderlust Win. The first race was the initial heat in the contest for 16-footers, a distance of nine miles for points valued at $o each, the winner getting five, the sec ond three and the third boat one point. The entries were the Vogler Boy, La wana and Red Nose and they finished in the order named. The entries in the handicap cruiser race were the Doodle Bug, Katata, Elosa. Columbia and Wanderlust. The latter won with the Elosa second and the Doodle Bug third. The third and last race of the morn ing was the principal one of the day. It was the first heat in the free-for-all speedboat contest that not only carries a purse of J10 a point, but also includes the international championship of the Pacific Coast and gives the winner a. trip to San Francisco to enter the "ex position contests. Oregon Kid Gains Lead Early. This race was a distance of 20 miles or four times around the long course. The entries were the Oregon Wolf. Ore gon Kid, Vogler Boy and La wan a, and the race was as pretty an exhibition of expert handling of speed craft as was ever witnessed on the local course. All the racers got away In a bunch, with the Wolf about 10 feet in the lead, the Kid second and the other two not five feet behind. They headed up the course at a terrific rate, but the Kid slowly drew away and before com pleting the first half lap was probably 100 yards ahead of the Wolf,- which was hanging on tenaciously, while the other two craft dropped farther behind. In fact, the Vogler Boy developed more engine trouble and was forced to drop out at the end of the first lap. Third Last Nose to Nose. The first lap was made by the Kid at the rate of 38.5 miles an hour, while the Wolf was 38 seconds behind. On the second lap the Wolf gained 28 sec onds on her rival and beat the Kid's time for the first lap by one second. During the entire third lap the two racers retained about the same posi tions, but it was the fastest of the race, the Kid maintaining a rate of 39 miles an hour, the best time made. On the fourth lap the two contest ants maintained exactly the same 1 speed, a rate of 38.75 miles an hour nd the Oregon Kid finished first, her time for the 20 miles being 30:49. or an average speed of 38.93 miles an hour. The running time of the Oreson Wolf was 31:45 and her average speed was "7.8 miles an hour. The Lawana missed the big lank buoy on the third tCwncludea o& Pas 5, co.uiaa )