TITE MORNING OKEGONIA:, TIIURSDAT, FEBRUARY IT, 1916. LUSITANIA ENTERS HEW AFFAIR PHASE German Policy Toward Armed Merchantmen Causes De , lay in Negotiations. TERMS AGAIN STUDIED V afhlngtoii Fears Jt May Find It . bclf at l'oliit Mlicre It Stood in Karly Days of Sub marine Crisis. VAriHIXGTON". Feb. 16. The subma rine controversy with Germany cannot be cloned until the United States has fully considered the possible effect of the declared intention of the Germanic now? in inv nil firmed merchantmen of their enemies without warning after February 29. This announcement was made by Sec retary Lansing- today instead of the long-expected announcement of a sat isfactory settlement of the Lusitania negotiations. Perfected bv months of negotiation. the Lusitania agreement was presented todav bv Count von Bernstorff. the (iprnmn Ambassador, in a form which -would have been acceptable to the. 1'nited States had not the Germanic powers announced their determination .11 m r.t ufm.il merchant shins of I their enemies as warships. Specific Information Sought. The Lusitania agreement now will not be accepted as finally satisfactory to the United States until President TtV'ilson and Secretary Lansing have de cided whether any of its terms would be nullified by the principles of the new submarine campaign. It is practically certain that the "United States will ask to be specifical Jy informed that the assurance pre viously given for the safety of neu ' trals and non-combatants at sea have . not been and will not be altered by ' the latest declarations of the Berlin and Vienna admiralties. Government officials are afraid they may find themselves at the point, where they stood In the first days of the submarine crisis, with the United States contending unreservedly for the principles of law and humanity in naval warfare and confronted with a long series of diplomatic exchanges, the result of which they cannot foresee. Bernstorff Given Opinion. Count von Bernstorff told Secretary Lansing today that it was his personal opinion that in the new submarine campaign his government intended to abide by its promise not to sink un resisting liners without warning, given in the Arabic case and rererred to in the Lusitania agreement. Mr. Lansing informed the Ambassador that such a declaration from his government would be highly desirable The Ambassador suggested the possi bility of postponing the effective date of the new submarine campaign if It would give time for negotiations to clarify the confused situation. but the Secretary did not commit himself. This is the situation now. As a re Fult of the correspondence in the Lusi tania and Arabic cases, the United States had rested secure in the belief that the future conduct of submarine warfare on humane lines and in ac cordance with the established princi ples of international law, modified somewhat by the new conditions de veloped during the war, had been as cured. The State Department had been proceeding lately on the theory that all that was necessary to be done in the Lusitania cat was to cover the past. not the future. Anuranre Regarded as Nullified, Now the Austro-German notice of in tention to sink armed merchantmen ap parently is regarded as having de stroyed that assurance, and It is deemed useless to try to adjust a past issue while the future is left open, with the almost certain assurance of new cidents arising which may lead to the most serious results. . Officials fear a closer study of the Lusitania agreement may disclose that it is not sufficiently comprehensive to embody the guarantees required for the future. They are quite certain that it cannot qualify, amend or replace the Austro-German notice. A specific surance on that point would have to he given by Germany and later, per haps, by Austria. The recent American circular note to the entente powers proposing disarma ment of merchant ships is not regarded as in any way involving an abandon ment by the United States of its con tention that the belligerents should adhere to existing principles of inter national law in submarine warfare, tiermaa Politics at Serious Stage. It, was Issued In pursuance of a dp pign to induce both sides to ameliorate the hardships of such warfare and pre vent the loss of innocent lives. Its rejection would simply have the effect to leave standing and in full force the principles of international law. and among others that which permits bet ligerent merchant chips to carry de fensive armament. American officials contend that at no time has the United States relinquished the claim to ex emption from attack to unarmed ships. Tt is true that at one place in the Lusitania correspondence the point was made by the United States that the ship was unarmed. That was only to meet the German assertion that the Lusitania had mounted guns when she left New York. The internal political situation In Germany is regarded here as making ihe situation grave, because the Von Tirpitz element is understood to be re asserting itself with considerable effect and the subject requires delicate handling because an upset of the Von Bethmann - Hollweg administration would be regarded as unfavorable in its effect. , Berlin to Ask Question, Too. What form the next step in the ne gotiations will be in is not disclosed, hut there are strong indications that the German government will be asked to assure the United States that mer chant ships, armed for defensive pur poses only, will be exempt from un warranted attack. From German sources tonight came the statement that it was probable Berlin would give such assurances, but that in doing so it would request in formation as to what the United States considers to be defensive armament. Extended negotiations may follow on that point State . Department officials, pressed for statements, replied that they con sidered the situation where it was sev eral weeka ago,- when it was described as grave. Diplomatic correspondence will con tinue with Austria as well as with Ger many. Austria has given assurances in the Anconi case which this Govern- I ment has no Intention of relinquishing. The United States will, of course, continue ita efforts to Induce the en tente allies to disarm their merchant men, and in the event of their refusing, the State Department probably will further limit the character of arma ment which It considers defensive. RUSSIANS FINISH TAKING ERZER1 Official News of Fall of Gate way of Asia Minor Is Ac claimed in Petrograd. ASSAULT LASTS FIVE DAYS NEW RESERVE OPPOSED ROSEBIRG ATTORNEY OBJECTS TO STATE LIEN LAND PROPOSAL. B. I,. Eddy Asserts Cost of Patrol Would Be Considerable and Loss of Revenue Factor. ROSEBURG, Or., Feb. 16. (Special.) Attorney B. L. Eddy, of Rosetturg. has undertaken a propaganda by which to fight the possible creation of a new state forest reserve from the lands due to Oregon for the benefit of the irreducible school fund. According to Mr. Eddy, the state. by an act of Congress passed in 1859 was granted sections 16 and 36 of each township for the use of the schools. Some of the lands, however, had been previously taken and in lieu of them others were to be chosen. Action which Mr. Eddy opposes was started recently to exchange these scattered lands for part of the National forest reserve, some 60,000 acres thus to be procured which would be in compact form. To take care of this large body of timber. Air. Eddy asserts, would be to maintain a separate patrol to care for it. while the state would lose a large return now obtained through the National, forests, as well as deprive the farmers of the use of the funds from the sales of school lands, which have been loaned to them in the past. Mr. Eddy today received a reply to a letter ent to Senator Chamberlain in which the Senator said he was con sidering the matter presented by Mr. Eddy and thought St was sound rea soning. Mr. Eddy was connected with the local United States Land Office for a number of years and is well versed in land matters. Grand Duke Nicholas Announces Victory in Dispatch to Czar Ger man Commander Is Said to Have Had 80,000 Men. $250 PAID FOR LETTER ROBERT LOUIS STEVENSON SALE TOTALS $73,477 The Servant Problem who ever heard of it in the home where the housewife knows Shredded Wheat? In five minutes you can prepare a wholesome, satisfying meal with Shredded Wheat Biscuit without kitchen worry or work. For breakfast heat the Biscuit in the oven to restore crispness and serve with hot milk. For lunch serve with sliced bananas or other fruits. Made at Niagara Falls, N. Y. Unpublished Epistle to Author's Mother Brings Top Price; Notes 'Written in Samoan Language Sold. NEW YORK. Feb. 16. (Special.) The top price at the sale of Robert Louis Stevenson's autograph letters was brought by an unpublished letter to his mother on December 13, 1881, in which he mentions the Bmall sum he received for "Virginibus Puerisque. "I got only 20 pounds for "Virgini bus Puerisque.' I could take Paul by the beard and knock his head against the wall," he wrote. He refers to the publisher, Kegan Paul. The letter which was signed "Robert Louis Stev enson, his autograph price 2d colored and Id plain," was bought by George D. Smith, for $250. The sale today consisted of autograph letters to his mother and father, which Mrs. Salisbury Field, of Santa Barbara, inherited from her mother, Mrs. R. L. Stevenson. It included letters from his earliest scrawl to a letter written by him in Samoa, in the native language, July 4. 1894. The letter was written to "Malietoa. Old Tupu O Samoa," King of the Province of Malie and signed "Tu sitala," Stevenson's Samoan name, which means "writer of tales." It was bought by T. W. Bickerton for $195. The total for today's sale was $8983. The grand total for the sale to date is $75,477.95. GALE MENACES HOLLAND GIANT WAVES DEFEAT EFFORTS TO STRENGTHEN' DIKES. PETROGRAD via London, Feb. 16. Official announcement Is made that the Russians have captured Erzerum. Grand Duke Nicholas has telegraphed the Emperor as follows: "God has granted the brave troops of the army of the Caucasus such great help that Erzerum has been taken after five days of unprecedented assault. 1 am inexpressibly happy to announce this victory to your Imperial Majesty." The fall of Erzerum. which had been confidently awaited since the news of the taking by the Russian forces of nine of the 18 forts guarding the gate way to Asia Minor, is the cause of great elation tonight in Petrograd. Controlling the roads through A menia, with access to Trebizond. Tabriz and MesoDotamia. the capture of Erzerum is calculated to have immens strategic importance in the Russian camDaicn in the Caucasus. It will in directly affect the Balkan campaign by relieving the pressure on the allies at Salomki. Plan of Defense Destroyed. The conviction entertained by all Russian military observers that Erzerum ultimately would be force to canitulate was based on the fact that the. remaining nine forts were of considerably less , importance than those already in Russian hands and could be readily flanked, or eve ignored, in forcing the evacuation the Turkish stronghold. The taking of the first fort is be lieved to have destroyed the plan defense, since the impregnability of Erzerum rested on the assumption the German engineers who constructed the fortifications that the position was safe against assault from the south In spite of the intense cold and deep snow, the Russian troops took Kop Mountain and dealt the Turks the first staggering blow. Having driven them from this position, the Russian artil lery broke through and flanked th other positions, which went like house of cards, the result of the Rus slan onslaught exceeding all expecta tlons. Russians Well Supplied. The Caucasian campaign derived great benefit from the Russian domina tion of the Black Sea, which enabled the army to receive a plentiful supply of provisions and munitions. Th number of men garrisoning: the Turk ish position before the recent retreat o the Turkish army was estimated at 80,000. ' LONDON. Feb. 16. Reuter's Petro grad correspondent telegraphs that Erzerum has been captured by tn Russians. Possession of Erzerum is of consid erable strategic importance, as it the chief city of Turkish Armenia and the center of a system of roads. Press dispatches from Petrograd re cently said German Field Marshal Baron von der Goltz was in comman at Erzerum with 80,000 men; that their escape had been cut off and that they had provisions for only a lortnignt. A relief expedition was sent by th Turks, but It was reported these forces had been defeated by the Russians, with heavy losses. Erzerum is about 60 miles west of the Russian border. Its capture. accomplished, as reported, represents one of the few definite accomplish ment 3 of the Caucasian campaign. MERCHANT BODY FORMS WILLAMETTE VALLEY ASSOCIATION ORGANIZED AT WOODBIRV. Objects Stated Are to Advance Mer cantile Cause, Social Interests and to Benefit Patrons. Hundreds of Laborers W ork Feverishly, but It Is Feared Large Part of Tons Will Be Destroyed. AMSTERDAM, via London, Feb. 16. The storm now raging over Holland is causing great anxiety of further floods and disasters. Day and night hundreds of "laborers are working fe verishly to prevent fresh ruptures of the dikes. The force of the storm is such that all kinds of strengthening material are speedily rushed away by the giant waves breaking across the dikes. Should the storm continue it is feared that two-thirds of the town of Monnikendam. in the province of North Holland, a few miles from Amsterdam, will be flooded. In several other towns the waters have washed through the sluices and have reached many houses, the occupants of which have been obliged to evacuate. LONDON. Feb. 16. Dispatches from Amsterdam say a violent storm is rag ing in the Zuider Zee districts and threatens fresh inundations, particu larly at Monnikendam. seven miles northeast of Amsterdam. There. despite a precautionary strengthening of the dikes, it is feared the water will burst through. AVater Permit Allowed Yoncalla. SALEM. Or.. Feb. 16. (Special.) State Engineer Lewis today approved a permit for the city of Yoncalla to appropriate water from Adams Creek for purposes of a municipal water sup ply. The cost is estimated at $20,000, it being necessary to build a six-inch pipeline from the creek to town, a dis tance of 5.4 miles. Lincoln Candidate Known Here. NEWPORT. Or., Feb. 16. (Special.) J. H. Anderson, candidate for Sher iff on the Lincoln County Republican ticket, is well known in Portland, for a number of years having been in busi ness in that city. Five years ago he erected the Hotel Nicolai, .overlooking Nye Beach. TVOODBURN, Or., Feb. 16. (Special.) The Willamette Valley Merchants' Association was organized at Wood- burn today by merchants from Hub bard. Aurora, Barlow, Canby, Gervais, Silverton, Scotts Mills, Molalla and this city. Officers elected were J. W. Sadler, Aurora, president; A. W. Krause Aurora, vice-president; F. W. Haskell, Woodburn, secretary; A. E. Austin, Woodburn. treasurer; George Fletcher, Canby, and George Cusiter, Silverton, advisory board. Objects of the association, according to the preamble to the constitution and bylaws, are to better conditions of merchants locally in a social and busi ness way, taking up matters of general Interest and working in behalf of the interests of North Marion and South Clackamas counties. The association proposes to advance the mercantile cause of this section, and to benefit the patrons of the houses represented. The charter members are: Messrs. Nibler and De Jardin. of Gervais; Rosenkrans & Fletcher, of Canby; Tait, of Scotts Mills; Mays. of Donald; Knight & Painter, of Hubbard; Wurfel & Erickson, of Barlow: Cusiter, Aim, Benson & Wolford, of Silverton; Bobbins, of Molalla; Sadler & Kraus, of Aurora; A. E. Austin, F. W. Haskell and H. M. Austin, of Woodburn. The regular meetings of the asso ciation will be monthly. STUDENT IS CALLED HOME Clifton Dorris, of Eugene, Learns of Father's Death in Butte Disaster. EUGENE, Or., Feb. 16. (Special.) Clifton Dorris, a student at the Eugene Bible University, this morning received a telegram from his mother announcing that his fatherhad been killed in the Pennsylvania mine disaster at Butte. Dorris. who is a freshman at the Bible University, studying for the min istry, left at once for home. The first news he received was that his father was among the missing. This was in an Associated Press dispatch. Play Is Given at Clackamas. CLACKAMAS Or., Feb. 16. (Special.) The play, "The Old Maids' Conven tion," was given here Monday night The Christian Endeavor and the women of the Congregational Church, who gave the play cleared more than $22. Miss Win S. Osborn won the prize as the best character representation. DXD The women of America are not spending two million and six hundred thousand dollars every year buying a magazine that doesn't satisfy them. They are too careful spenders for that That's a good deal of money for women to hand over to one magazine. But they doit. Why? Because of the very simple fact that they want this particular magazine and are willing to give up their money for it. No other reason could exist. That is the answer and back of the answer lies American womanhood's over two million and a half of dollars. It is a convincing answer and it. lies in any issue you may buy of atiLtes' URNAL Its only 1$ cent BROOKLYN WATERFROXT FIR LAID TO DEFECTIVE WIRING. construction crew which completed the line between Eugene and the coast. The line to Marshfleld will be com pleted by the time train service on the railroad is inaugurated, he says. . MINING. ACTIVITY LOOMS Loss of Probably M,UOO,(MK Includes Three Steamers, Many Small Craft "and Pier One Man Missing-. NEW YORK, Feb. 16. No evidence of ncendiarism has been found, it was announced tonight, in connection . with the fire on the Brooklyn waterfront early today which caused the destruc tion of three British steamships. 37 lighters and barges, a new 900-foot pier belonging to the New York Dock Company, and Jl.000.000 worth or mer chandise consigned to the entente allies. The total loss is estimated at between 3. 000,000 and $4,000,000. Although nearly 300 persons were mperilled by the flames, which raged for several hours, only one man, a member of the crew of one of the steamers, was unaccounted for tonight. Several persons were injured, however, and there were many sensational rescues. There were reports throughout the day that the fire was started by anin cendlary, but they probably were based, on the fact that the immense quantity of merchandise on board the vessels and on the pier was destined for European governments now engaged in war, A rigid investigation conauctea by officials of the fire department has convinced them that defective electric wiring was responsible for the flames. Coast Telegraph Line to Be Started. EUGENE, Or.. Feb. 16. (Special.) onstruction work on the estern Union telegraph line from Gardiner own the coast to Marshfleld, parallel ing the Willamette Pacific Railroad, will begin within the next few days. according to J. W. Buis, foreman of the Kc-Opeiting of Cinnabar Property Near Cottage Grove Expected. COTTAGE GROVE, Or., Feb. 16. (Special.) Developments of the past week presage mining activity that will greatly benefit this city. Reopening of the Cinnabar mines at London, which have been Inactive for a number of years, is likely, as a result of the ad vanced price of quicksilver, caused by the war. W. B. Dennis, who formerly managed the property, has made hiB first visit since the property was closed down and has taken in a small crew and provisions. The property has been kept up during its inactivity, and op erations could be resumed on short notice. Another strike, said to be the richest ever made in the district, is reported from the West Coast properties in the Bohemia distrjet. 20 Join Coast Artillery Corps. EUGENE, Or., Feb. 16. (Special.) Twenty new members have been added to the second company of the Coast1 Artillery Corps. Oregon National i Guard, as a result of a recent recruit ing campaiern. A banquet was given In honor of the new member armory Monday night. it Uu Monmouth Creamery May OjucriiU-. MON.M'H'Tlf. r.. Feb. 16. (Spe cial ) It seems highly probable the. Mon mouth creamery will be re-organized and operated 'us a co-operative con cern. A meeting of the stockholders has been called to consider the change. The co-operative people held a meet ing yesterday and reported progress in procuring pledges, but will do nothing toward forming a new company until tho stockholders of the old organiza tion have reached a deelsion. MARLEY 1VZ IN. DEVON 2Vi IN. ARROW COLLARS of the smart cut away type 2 for 25c Cli'ett, Pea body & Co., inc. Analyze the Advantages THE desirability of banking with the Northwestern National Bank is di rectly in proportion to its location, fa cilities and service. The location is conveniently ac cessible from any home in Port land and within a stone's throw of the majority of business houses. Facilities incorporate every department of banking under one roof, as well as the most modern equipment. Serv ice based upon the personnel of Directorate, Management anil Staff insures careful handlinR of funds and accommodations to patrons. oranmiiRNilMri(ML'BMK Northwestern I!!!:! Bank Building