Morning Oregonian. (Portland, Or.) 1861-1937, October 04, 1917, Image 1

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    BERNSTORFF GIVES
STILL LOWER FALLS
LIBERATED RUSSIA
CONGRESS TO END T
NEUTRALS CUT OFF
NOVEMBER 15 LAST
GIFT MAILING DAY
TO REAR
GUN FIRED
RECORD OFSINKINGS
SESSION THiS WEEK
MILLIONS FOR SPY
SEIZED BY SOVIETS
THIRTEEN CRAFT LOST IX
WEEK, ENGLAND'S REPORT.
THREE RIG MEASURES WILL BE
'ACTED ON".
.SOLDIERS ABOARD ARE TO GET
PACKAGES CHRISTMAS.
FARMERS
FIRST
German Funds Kept in
American Banks.
BOLO PASHA ACTIVE IN U. S.
Evidence Will Be Given France
for Use Against Spy.
CHECKS TELL OF INTRIGUE
Details of German Agent's Work Are
Withheld, but Evidence Is on
11 lc Further Diselosurcs
.Expected From Accounts.
NEW YORK, Oct. 3. Proof that Ger
man money wan furnished in this coun
try by Count von Bernstorff to Bolo
Pasha, under arrest in Paris as a spy,
will be forwarded, tomorrow to the
French government, it 'was announced
here tonight by Berton E. Lewis. State
Attorney-General.
The Attorney-General, who investi
gated Bolo Pasha's activities here, at
the request of Ambassador Jusserand,
aid that it was a preliminary report
submitted by him to the Ambassador
at "Washington last week which result
ed in the arrest of Bolo Pasha in Paris.
Checks to Tell Story.
"The conclusions will be substan
tfated by a mass of documentary evidence,'-
the Attorney-General's etate
roent said, "including photographic re
productions of the checks, bank rec
ords and other proofs of the disposi
tion of the German muney furnished
Bolo Pasha in this country by ex-Am-fcassador
Bernstorff."
Bolo Pasha, who was in the United
States between February 22 and March
17, J916, came here, according to Mr.
Lewis, to arrange for the transfer of
German money to Paris through New
York banking institutions to further
peace propaganda in France. He suc
ceeded 'in getting at- least Jl, 800, 000
over to the French capital, through J.
P.(Morgan & Co. and other banking in
stitutions, the Attorney-General's in
vestigation disclosed.
Money Sent to Newspaper.
Tart of this money, it was revealed,
went to Senator Charles Humbert, own
er of Le Journal, a Paris newspaper,
which, however, according to cable dis
patches, he refunded after becoming
suspicious of Bolo.
Several weeks ago, Mr. Lewis' state
ment said, the French Ambassador
asked the assistant of Governor Whit
man in the effort to obtain Informa
tion as to the activities of Bolo Pasha
in this country. The Governor asked
Attorney-General Lewis to render all
assistance possible and Mr. Lewis had
a public accountant examine the ac
count of Bolo Pasha in the banks of
G. Amsinck & Co.. the-Royal Bank of
Canada, New York branch, and J. P.
Morgan & Co.
French Ask Copy.
The accountant submitted his -report
last week, the statement continues and
it contained such important facts that
it was submitted to the State Depart-,
ment at Washington and Ambassador
Jusserand was shown a copy. The Am
bassador declared the report provided
him with valuable information which
he cabled to his government, the state
ment said and the arrest of Bolo Pasha
followed.
Examination of the accounts of Bolo
Pasha revealed. Mr. Lewis stated, that
$1,683,500 had been deposited to the
credit of the alleged spy. The monev
had originally been on. deposit to the
credit of the Deutsche Bank of Berlin,
with the National Park Bank and the
Guaranty Trust Company here, and was
transferred from these banks to Am
sinck & Co.. and later to the Royal
Bank of Canada.
y.V0O Is for Lecturer.
The transfer of the money, it was
alleged, was made on order of Hugo
Schmidt, a director of the Deutsche
Bank, now in this city.
A letter written by Bolo to the Royal
Bank of Canada in New York and made
public by the Attorney-General, in
formed the bank's officials that they
would receive from G. Amsinck & Co.
about fl. 700, 000, of which amount $1.
160,000 -was to be placed to the credit
of Humbert. The sum of $o000, Bolo
i'asna wrote, was to be entered to the
credit of Jules Bois, French lecturer,
then in New York, for his personal
needs.
Boln Said to Be Dupe.
It was explained tonight by the Attorney-General's
investigators that Mr.
Bois was "used as a cloak of respecta
bility" to cover the activities or the
plotters, but that the lecturer was not
aware of the schemes of his associates.
An' additional sum of $524,000 was to
be transferred to the credit of Madam
Bolo and a balance of $$1,000,000 was
to be held "subjeet to my instructions."
This balance of $1,000,000. it was stat
ed, had been left on deposit with J. P.
Morgan & Company and afterward was
checked out to Perier & Company, Paris
bankers.
Checks Are Photographed.
The transfer of the money to G.
Amsinick & Company was not entered
on that firm's books, it was announced,
but was recorded by transfer of checks
by direction of Adolph Payenstedt, sen
ior' member of the firm at that time,
who is reputed to have been an inti
mate associate of Bolo Pasha. Paven
CuncluOt.il ou I'a.a J, Cuiuiuu i.
Monthly Losses in'; World Shipping
Average 600,000 Tons, or Near
Two-Thirds Germany's Claim.
LONDON. Oct. 3. Eleven British
merchantmen of more than 1600 tons
each and two vessels under 1600 tons
were sunk by mines or submarines last
week, according to the British Ad
miralty statement made public this
evening'. The shipping summary fol
lows: Arrivals, 26S0; sailings. 2742.
British merchant vessels sunk by
mine or submarine over 1600 tons, in
cluding two previously, 11; under 1600
tons. 2.
Fishing vessels sunk none.
.British merchant vessels . unsuccess
fully attacked, including seven previ
ously, 16.
The foregoing statement of the Brit
ish Admiralty again lowers the aggre
gate of merchantmen sunk by mines
or submarines during any week since
Germany began her intensified subma
rine warfare. As against 15 vessels
sunk the previous week, which was the
low record since February, only 13
merchantmen are shown to have been
sent to the bottom last week.
LONDON. Oct. 3. The total losses to
world's shipping since Germany's ruth
less U-boat war went into effect ag
gregate about . two-thirds of those
claimed by the Germans in a statement
issued September 1. At that time the
Germans alleged that an average of
900,000 tons had been sunk monthly for
seven months.
The actual total of tonnage sunk
compiled here shows that not even dur
ing the most successful month for the
U-boats April have the figures
reached any such proportions, while
the August losses dropped to almost
half the April figure.
STRIKE MEDIATION SLOW
Conferences of Unions and Employ
ers Held, With No Results.
Conferences between committee rep
resenting; the striking ship construc
tion unions and the yard owners were
continued yesterday, but with no defi
nite results. Adjournment was taken
until tomorrow afternoon at 4 .o'clock.
"The conferences have brought about
nothing definite," said G. Y. Harry,
Federal mediator,-"but as long as the
committees are holding meetings there
is hope for a settlement of the diffi
culties." On the presumption that there are
Issues involved which are not fully
understood by - the .general public, the
joint committees instructed Mr, Harry
to prepare a statement.
Meanwhile, the yards In and 'around
Portland are standing idle with but
few exceptions, and about 7000 men are
ou strike.
CITY TO SELL FISH TODAY
Council Authorizes Humason to Run
Club's Market.
The city goes into the retail fish
business, today.
The City Council yesterday author
ized City Investigator-Humason to take
over the Portland Ad Club's fish mar
ket and continue it in -operation pend
ing a complete investigation of the
whole fish situation.
The market was established 10 days
ago by the Ad Club and has been doing
a land office business ever since. Both
frozen and fresh fish from Newport are
being sold. The action was taken yes
terday by-the Council in spite of a vig
orous protest by fish dealers, who claim
the city has no right to compete with
them.
MERCIER WOULD SEE ROME
Belgian Primate Has Political Sub
. ject to Of rer Pope.
LONDON, Oct. 3. Belgian news
papers announce, according to a dis
patch from Amsterdam to the Ex
change Telegraph Company, that Gen
eral von Falkenhausen. the -German
Governor-General of Belgium, has re
ceived a request from the Vatican to
permit Cardinal Mercier, the primate of
Belgium, to visit Rome some time be
fore Christmas on an important po
litical errand.
General Falkenhausen is understood
to. have replied that he could only grant
passports to the cardinal on the prelate
undertaking not to misuse his trip for
purposes of anti-German propaganda.
DRAFTED MEN ARE FETED
Aberdeen Gives . Demonstration in
Honor of 61 About to Leave.
"ABERDEEN. Wash., Oct. 3. (Spe
cial.) Over 1000 members of patriotic,
fraternal and military organizations
marched through the streets of Aber
deen last night In a demonstration for
the 61 drafted men who will leave Ab
erdeen and Hoquiam tomorrow for
American Lake.
The selected men- were much ap
plauded along the line of march. Fol
lowing the parade there were speeches
at the Grand Theater. Preceding the
parade a banquet was given the draft
ed men at the Washington Hotel.
Oregon City Is Distributing Center!
OREGON CITY. Or.. Oct. 3. (Spe
cial.) The postoffice in this city is to
be designated as the central
office of Clackamas County and the 35
posioitices or this county will be fur
nished With SUDnlles at thia nl T .
has been customary for tfto potoffices
of the county to be supplied with the
uecessitiea . from Washington, D. C.
Councils Usurp All
Power to Selves.
NATION IS TORN BY ANARCHY
Socialistic State Demanded by
Radical Dreamers.
MURDER IS MADE SAFE
Stories of 'Utmost Brutality on Part
of Soldiers Come to , Light.
Cities Are Filled With
Idle Men in Uniform.
BV RHKTA CHJT,DE DORR.
Spronl ot a daily series of "a rtlcles telling
the lnnirle story o( Russia's revolt. Copv
rlKht, mi7." by thn New York Mail. I'ub-
iisnea oy arrangement.)
About the first thing I saw on the
morning of my arrival in I'etrograd
last Spring was a group of young men,
about 20. I should think, marching
through the street in front of my hotel,
carrying a scarlet banner with an in
scription in large -white letters.
"What does that banner say?" I asked
the hotel commissionaire, who stood be
side me.
"It says "All the Tower to the So
viet,' " was the answer. '
"What is the soviet?" I asked, and
he replied briefly:
Soviet Only Government.
"It is the only government we have
in Russia now."
And he was right. The Soviets, or
councils of soldiers' and -workmen's
delegates, which have spread like wild
fire throughout the .. country, are the
nearest thing to a government that
.Russia has known since the very early
days of the revolution.
Tb most striking parallel between
-the" French and the Russian revolu
tions lies in the facility with which
both were snatched away from the
sane and intelligent men who began
them and placed in the bands of fanat
ics, who turned them into mad orgies
of blood and terror. The first French
revolutionists rebelled against the the
ory of the divine right ot kings to gov
ern or misgovern the people.
Mob Seises Revolution.
They wanted a constitution and a
government by consent of the governed.
But the mob came in and too'k posses
sion of the situation and the result
was the guillotine and the reign of ter
ror. Miliukoff. Rodzianko. LvofT and their
associate's in the Russian Duma re
belled against a stupid, cruel autocrat
who was doing his best to lose the war
and to bring the country to ruin and
dishonor. They wanted a constitution
for Russia and for the time being at
least a- figurehead King, who would
leave government In the hands of re
sponsible ministers.
Russia Torn by Anarchy.
But the Petrograd Council of Sol
IConluded on Page . column 1
L TALK J
. .''!. . t . I .
i " 111
Jfe
Progress "so Rapid That Adjourn
ment -May Be Taken Friday-
Until Regular Session.
WASHINGTON, Oct. 3. Congress will
end its extraordinary war session,
which began April 2. Saturday or pos
sibly Friday. Agreement of the Sen
ate today to take a final vote late to
morrow on the Administration soldiers'
and sailors' insurance bill and the adop
tion with record-breaking speed of the
conlerenre report on the war defli:loicy
appropriation bill paved the way for
adjournment until the regular Decem
ber session.
Arrangements for the final formali
ties were made by Senator Martin and
Representative Kitchin. majority lead
ers. Representative Kitchin is pre
pared to introduce in the House to
morrow a resolution proposing ad
journment at' 5 o'clock Saturday. Such
speed was made on legislation in the
Senate late in the day, however, that
Senator Martin said tonight it might
be possible to finish Friday instead.
The military insurance and deficiency
appropriation measures are the only
important bills awaiting final action
which will get through at this session.
Leaders are determined to pass over
all other legislation until December.
But brief time is expected to be re
quired for conferees', agreement on the
Insurance measure after the final vote
in the Senate tomorrow, and prompt ap
proval by the House of the deficiency
appropriation final draft also Is sched
uled. LUTHERANS VOTE TO UNITE
Merger of Tliree of Larger Bodies
Under Consideration.
HARRISBURG. Ta.. Oct. 3. The
Eastern Synod of the Evangelical
Lutheran Church, in session here this
afternoon, voted approval of the pro
posal to merffa the three large Luther
an bodies in America.
The action of the Eastern synod, one
of the most powerful in the country, is
regarded as a forerunner of the ap
proval of the union by the remaining
synods.
Y. M. C. A. WILL SEEK FUND
Thirty-Five Million Desired for
AVork. in . Ail-Army- Camps.
CHICAGO. Oct. 3. A war fund of
33.0OO.00O for the benefit of the
American Army now in Europe and
for American troops In the Army can
tonments will be solicited throughout
the United States by the Toung Men's
Christian Association in the week be
ginning November 11, according to an
announcement today.
CHILE BUYS UP NITRATE
German Holdings Are Resold to
American l-'lrni.
SANTIAGO. Chile. Oct. 3. The Chil
ean government has purchased all the
nitrate of German companies and sold
it to an American firm. By this opera
tion it was possible to acquire from
Germany nearly 30.000.000 pesos of
Chilean gold deposited there as a guar-
ntee of paper money.
IT'S THOROUGHLY AROUSED NOW.
J . A v V u . r v- " S sb.A N "V I
FROM ALL SUPPLIES
England Sets Embvo
at U. S. PrwSsi '
ALLIES ARE UNITED IN POLICY
Economic Pressure Brought
to Bear on Germany.
BLOCKADE YET IN EFFECT
Embargo on Coal to South America
Expected to Prevent Materials
- Getting to Central Powers
From Western Neutrals.
WASHINGTON. Oct. 3. Great Brit
ain's embargo on the export of all
supplies to the Northern European
neutral countries. Just announced, was
declared after every phase of its pos
sible effect was gone over in confer
ences between American and allied
statesmen.
American officials. It was learned to
day, initiated the discussions and in
sisted that the British step be taken
to make sure that there be no nullifi
cation of the purposes the United
States Government had In view In put
ting into operation its own embargo.
Allies Get Together.
The step indicated that the allies
have united in a decision that the neu
trals but cut off the - shipment of
all supplies to Germany. The new pol
icy can be accomplished through rigid
embargoes applied by all the allies.
The neutrals cannot long exist. with
out British and American supplies and
within the next two or three months
all of them are expected to declare flat
embargoes on the export of their com
modities to all countries. This will hit
England as well as Germany, but the
British, who can draw on the United
States, are in a position to do without
neutral goods, while Germany, cut off
from the rest of - b world, cannot ex
ist, officials here say, if neutral ship
ments cease.
To those familiar with the military
and economic situation in Germany
the new policy . indicates that the al
lied governments have come to the
conclusion that by making every use
of economic weapons the war will be
ended much more quickly than by mili
tary supremacy alone.
While the American and British em
bargoes cut off virtually all supplies
to the European neutrals there still Is
the chance that some goods will reach
them from South America, despite the
British blockade. To meet this situa
tion the Uhited States and Great Brit
ain are prepared to embargo coal ship
ments to South America If necessary,
and are ready to refuse bunker coal to
European neutral vessels that may at
tempt to engage in this trade.
The new embargo on shipments of
practically everything to Sweden. Nor
way. Denmark and The Netherlands is
regarded here as a most important
Concluded on Pasn 2, Column
SBSBSBSBSBBBJSBBBJSBJSMBSBBBBJBI
Parcels Must Be Wrapped to Admit
Inspection Baker and Daniels
Ask People to Co-operate.
WASHINGTON. Oct. 3. With the
tme approaching to give thought to
bringing cheer to the American soldiers
and sailors abroad, Postmaster-General
Burleson and Secretaries Baker and
Daniels, in a joint statement issued to
night, warn the public that Christmas
paskages for the fighting men in Eu
rope must be mailed not later than No
vember 15.
Arrangements have been perfected, it
is announced, whereby the Christmas
mail to the expeditionary forces it to
be delivered Christmas mornng. but
this can be accompalished only by the
fullest co-operation of the public.
"The three essential respects in
which the public can aid n securng
a happy Christmas at the front." says
the statement, "are to mail early, ad
dress intelligently and pack securely.
Every package must bear conspicuous
ly the words 'Christmas Mall.' the com
plete address of the person for whom
It is ltnended and In the upper left
hand corner the name and address of
the sender.
. Every parcel must be packed and
wropped so as to admit the easy In
spection by the postmaster. No parcel
will be dispatched to France which has
not the postmaster's i-ertfcate that it
contains no prohibited articles."
The rate of postage is announced at
12 cents per pound.
SURPLUS PUT INTO BONDS
Associated Press Invests $200,000.
and Will Aid Employes.
NEW TORK. Oct. 3. The directors of
the Associated Tress, in session here
today, unanimously resolved to trans
fer the sum of $200,000 which the as
sociation has In its emergency reserve
rund to an Investment in liberty loan
registered bonds, as was done in the
case of the first issue.
It addition It was unanimously re
solved that the executive officers be
authorized to encourage the subscrip
tion ror liberty loan bonds by employes
on the partial payment plan, the as
sociation to carry the bonds and de
ferred payments until fully paid for by
employes.
POST THIEF GETS $1000
Payday at I-'ort Stevens Reason for
Bis Haul.
ASTORIA, Or.. Oct. 3. (Special.)
Approximately $1000 In currency was
stolen today from the office of the
paymaster at "Fort Stevens.
This was payday at the post, and
that Is the reason so much money was
on -hand. So far as can be ascertained
there Is no clew to the thief.
Portland police were requested last
night to watch for any man in uniform
or otherwise who appeared to have too
much money to spend. The request
came from Fort Stevens.
WEDDING AT CAMP LEWIS
Bridegroom Not Soldier, but Bride's
Brother Is Drafted Man.
TACOMA. Wash., Oct. 3. (Special.)
The first marriage performed at Camp
Lewis was last evening. Miss Ltona
Springer, of Everett, becoming Mrs. E.
L. Sundstrom.
More than 1000 soldiers witnessed the
ceremony, which was performed in the
Army Y. M. C. A. building, by Religious
Director G. L. Clark.
The bride's brother. Edward Springer.
Is one of those recently drafted and not
being permitted to leave camp, the
ceremony was performed where the
brother could attend.
STORK HALTS ARMY ORDER
Wasco Soldier Presented With 8
Pound Boy When Due to Report.
WASCO. Or.. Oct. 3. (Special.)
Uncle Sam's draft orders were tem
porarily suspended today In the case
of Ernest Manning, of Wasco. He was
scheduled to . leave for Camp Lewis,
but the stork stepped In to back up his
request for a short respite.
as farewells were being said at the
depot to other Sherman County youths
on their way to war Sirs. Manning gave
birth , to an eight-pound bov.
Mr. Manning will not have to leave
for Camp Lewis for about 10 days.
MEN IN DRAFT MUST WAIT
Congress Kills Proposal to Examine
All of Military Age Xow.
WASHINGTON. Oct. 3. The nronosal
to examine for military service all men
registered for the Army draft and not
yet called was killed, for the present
at least, today when the Heuse and
Senate conferees eliminated an appro
priation for the purpose from the wnr
deficiency bill.
The conference report was nromntlv
accepted by the Senate. The House
will adopt the report tomorrow.
MAFIA THREATENS DEATH
Seattle Women, Vnaeatialnted. net
Black Hand Notes.
SEATTLE. Oct. 3. Blackhanri r.n..
with death threats, have been turned'
over to the police bv Mrs. Frori
mussen and Mrs. T. Lawson.
The two families are not aennaintd
and both claim to have so enemies.
LibertyLoanCampaign
Opens Sunday.
HENRY E. M'GINN, SPEAKER
'It's the Lord's Work,"
Judge, "I'll Go."
Says
MEETING FIRST OF MANY
Patriotic Appeal for Bond Purchases
Is to Be Taken Directly to
Rural Population In All
Parts of State.
SIIISCHIPTIOS TO LIBERTY
BOSiDS RKPORTED YES.
TKRDAV.
City of Portland
Bank of California $ 2,450
Canadian Bank of Com
merce 4.000
Hibernia Bank 500
I .add & Tllton Bank P. 600
Headquarters 6.050
Portland total $26,Si0
State
First National. Mcdforrl 1.000
Cltisens Bank. Ashland... 40
Astoria National Bunk.... 50
Bank of Shedd 100
Douglas National. Rose
burg 3oo
First National, Pendleton 35.500
Total $37,850
Farmers will hear the first gun of
the liberty loan speaking campaign
next Sunday afternoon at the school
house In District No. 10. six miles west
of Newberg, in the Upper Chehalcm
Valley. .
Judge Henry E. McGinn, of Portland,
will preach -the gospel of the liberty
loan to the farmers of the Chehalcm
Mountains. That the message should
be given first of all to the farmers Is
thought singularly appropriate, for at
every crisis in the history of the Re
public they have rallied to the flag and
all that It stands for.
"It's the Lord's work," said Judae
McGinn yesterday, when asked if he
would go and address the Sunday meet
ing. "I'll go."
Farmers of the Chehalem Mountains
were the first to ask for Information
on the second installment of the loan
and the need for Oregon to subscribe
its 116.500.000 allotment. They asked
the Newberg Commercial Club for a
speaker and the request was relayed
to bond headquarters at Fifth anH
Stark streets. Arrangements were,
made at once.
All Will Be Kxplalned.
Judge McGinn will speak on the pa
triotic demands of the hour, or the is
sues Americans must meet and he will
tell how the bond sales will help win
the war. Another speaker, not yet
selected, will also appear and explain
the bond issue, as well as answer ques-'
tions that may be asked about It. '
The meeting Is scheduled for 2:30 in
the afternoon and the Newberg Com
mercial Club and local committee will
run auto excursions to the little coun
try schoolhouse in District No. 10.
The Federal Reserve Board has sent
In a special request that, the patriotic
appeal in connection with the bond
sales be taken direct to the farmers,
and It is felt that if this is not com
plied with Justice will not be done in
this respect.
""- V. Dolph is chairman of a com
mittee of farmers of - the Chehalem
Mountains who sent the request for a
speaker. This meeting will be the first
of a series of Sunday gatherings
throughout the state where the liberty
loan will be discussed, and the country
meeting nlaces. rather than the towns,
will be iosen for these gatherings.
Cyrus Pierre Is Coming.
Speakers are to play a big part in
the liberty loan campaign. Allen L.
Chlckering. of San Francisco, general
chairman of the speakers' committee
of the Pacific Coast district, has as
signed Cyrus Pierce, of San Francisco,
to deliver one or two addresses In
Portland Tuesday, October 2.1.
During the first bond campaign Mr.
Pierce developed into ' the leading
speaker in California on this subject
and in the present drive he will give
all his time to speaking on this Coast.
He will appear In leading Pacific Coast
cities and will give one day to Portland.
Another effective ally for the bonds
was enlisted yesterday, when the
women's liberty loan committee for
Oregon. Sarah H. Evans, chairman, met
and got down to a working basis. They
were addressed by State Manager Mil
ler and pledged effective work.
"Bonds for Women: They Follow Our
Boys to France." was adopted as the
slogan for the campaign, and this will
soon appear on stickers and other' lit
erature that will carry with it appeals
to everyone to buy bonds.
Merchants to Be Qulssed.
Pressure will be brought to bear up
on merchants of the city and state to
label their packages with the stickers
and also to display bond posters and
literature and work for the bond sales
Concluded un i'ato 7. Column j.
V
G: 106.2