THE MORNING OREGONIAN, MONDAY, OCTOBER 21, 1918. 3 GE1IS BY MR REVERSES Overtures for Peace Engage Attention of Leaders. AUSTRIAN EMPIRE PASSING Emperor Carl Declared Resigning Himself ' to Inevitable Break Up of Dual Kingdom. BT ARN'O DOSCH FT.ECT.OT. SfStaff Correspondent of the New York World. Copyright by the Press Publishing com pany. the New Work World. Published by Arrangement.) COPENHAGEN", Oct. 19. (Special.) The Vbrwaerts says the reply of Presl dent Wilson to the peace overtures by Germany was the subject of detailed discussion by the war cabinet in Ber lin on Thursday. Prince Maximilian, the Chancellor, presided. Statements were received from the military commanders. Severay days may elapse before another note may be com pleted. Members of the Bundersat have been consulted in the matter. The meeting- of the Reichstag was postponed because the note was not ready. The Germans have been so numbed by the catastrophes tumbling about their heads that they are apparently unable to react to Austria-Hungary out of the war and the turn of the Slavs and Czech people against the central powers. The Hamburger Fremdenblatt ac knowledges that Emperor Carl of Aus tria remains only as supervising direc tor of new federated states and casts considerable doubt on the willingness or the states to federate. Solntloa Merely Promised. The difficulties are so many, the newspaper says, that It finds In the Em perors proclamation no solution of the troubles, but merely a promise of a so lution. .It says the Emperor Is unbur dening himself of tradition and is eld ing with President Wilson. The connection between the new fed eration and the hope of peace Is easily seen, the Fremdenblatt adds, resigning Itself to the impending breakup of the Austrian Empire. The Czechs and Ukranians, with no guidepost in Vienna, count on outside forces to help them construct independ ent states. Nor will the Poles let their future be decided in Vienna. Emperor Carl says he will not try to prevent their independence. The editorial ends by saying the Ger mans view with sorrow the passing of the Austrian Empire. The Vienna correspondent of the Vossiche Zeitung telegraphs that the Czechs, Southern Slavs and Ukranians liKve politely refused to meet with Baron von Hussarek to discuss the for mation of a federation and that the Poles are counting on Warsaw for ori entation. Old Austria Vanishes. "Old historical Austria is gone," says the Vorwaerts, now the administration paper. "Will a new Austria follow? The Poles are free to leave Austria-, but perhaps the Austrian Polish sentiment is not dead. The fact that they are no longer bound to the house of Hapsburg may lurmsn the best argument for a Polish King- from that house. The Czechs and South Slavs are taking new attitudes of reserve, "Herman Austria must lean on Ger many should a new economic union prove impracticable. The Czechs and Slavs will certainly demand the forma tion of separate states if the Hungari ans do not And a basis for rapid agree ment with the entente. "It is incomprehensible how they can resist the demand of the Czechs and Slavs who are supported by President "Wilson." The Vossiche Zeitung admits that Poland is seething. It has a dispatch telling briefly of the killing of Ger man gendarmes in Warsaw. There is revolt in Ciechanow, where the Ger mans have imposed penalties and taken hostages to check further outbreaks. Worklnsmea Are Warned. Today's issue of the Vorwaertx spreads over the front page a warning to workingmen which is significantly remindful of the early phases of the ltussian revolution. It shows that the new government fears both the Pan Uerman reactionaries and the Bolshe viki, and it confirms the impression' conveyed by the German press in the last few days that the moderate liberals who are behind the new government are sincere In their expressions of fear that extreme action of some sort will follow continuous military defeat. Vorwaertx, which, as the organ of the majority of the Socialists, has come warmly to the support of the new gov ernment, has an editorial explaining why the Moderate Socialists see salva tion for Germany in the Maximilian Alinistry. The ministry is staking all on an armistice and on democratization and the paper says warningly: "Dark forces of counter revolution are at war against this peaceful revolution," in a caution against reactionaries and also against the Bolsheviki. . The editorial continues: People Held Dmivei Tan-Germans. Chauvinists, fanatics, profiteers and irresponsible camarilla with mendacious posters and high sounding palaver have enveloped the Gcinian people in a cloud of lies. They have not reached the limit of their in famy by trying to turn anger against the new movement The Pan-Germans have become so bitter that possibly they will Induce agrarian elements to i'oease the difficult.es of the new iroernmen'. by w ithholding foodstuffs." Dealing with the other type of coun ter revolutionists the Vorwaerts warns workincmen against Bolshevik phrases demanding revolution mado by irre sponsible people who hope to stir up the working people to . strikes and demonstrations against the govern ment, thereby making peace and demo cratization more difficult and also thereby supporting the Pan-German re actionaries. It begs the working classes to refuse to become the tools of counter revolution or of imperial advocates of force. "The recovery of Germany." it says, "cannot come through the creation of Bolshevik chaos or by unfettering civil war which would bring fresh disaster and add streams of blood to the blood streaming front. We are on the road to peace and democracy. All revolt against the government can only serve the cause of counter revolution." TURK DECLARES ARMENIANS ARE ENEMIES AND MUST BE CRUSHED "We Have Got to Finish Them," Says Talaat Moslem Admits That He Makes Mistakes, but "We Never Regret." BOCHES DECLARED STRONG Kcichstas Member Says Humiliating Peace Not Necessary. AMSTERDAM. Oct. 20. Advices re ceived from Berlin say Mathias Erz berger, member of the Clerical center in the Reichstag, and member without portfolio in the German government, has sent this telegram to the center party: "The new government must labor with all resoluteness and energy to give the fatherland peace after the hard struggle.. The German people are o strong they do not need to conclude a humiliating peace; but useless blood shed must cease." BY HE.NET MORGANTHAU. Formerly American Ambassador to Turkey. (Published by special arrangement with The McClure Newspaper Syndicate. Copyright. 1K18. by Doubleday. Page 4b Co. All rights reserved. Copyrighted in Great Britain. Canada and Australia. All rights reserved for France. Belgium, Holland, Italy, Spain, Russia and the Scandinavian countries.) INSTALLMENT VIII. My repeated protestations evidently persuaded Talaat that at least I was entitled to an explanation of the offi cial attitude of the Ottoman govern ment. Inthe early part of August, therefore, he sent a personal messenger to me, asking If I could not eee him alone, as he wished to. go over the whole Armenian situation. This was the first time that Talaat had admitted that his treatment of the Armenians was a' matter with which I had any concern. The interview took place two days afterward. It so happened that since the last time I had visited Talaat I had shaved my beard. As soon as I same in the burly Minister began talk ing in his customary bantering fash ion. "You have become a young man again," he said; "you are eo young now that I cannot go to you for advice any more." "I have shaved my beard," I replied. "because it had become very gray made gray by your treatment of the Armenians." Armenians to Be Crashed. After this exchange of compliments we settled down to the business in hand. "I have asked you to come to day," began Talaat, "so that I can ex plain our position on the whole Ar menian subject. We base our objec tions to the Armenians on three distinct grounds. In the first place, they have enriched themselves at the expense of the Turks. In the second place, they are determined to domineer over us and to establish a separate state. In the third place, they have openly ten couraged our enemies. They have as sisted the Russians In Caucasus and our failure there is largely explained by their actions. We have therefore come to the irrevocable decision that we shall make them powerless before this war is ended. On every one of these points I had plenty of arguments in rebuttal. Talaat's first objection was merely an admission that the Armenians were more industrious and more able than the thick-witted and lazy Turks. Mas sacre as a means of destroying busi ness competition was certainly an original conception! His general charge that the Armenians were conspiring' against Turkey and that they openly sympathized with Turkey's .enemies merely meant, when reduced to Its original elements, that the Armenians were constantly appealing to the Eu ropean powers to protect them against robbery, murder and outrage. The Ar menian problem, like most race prob lems, was the result of centuries of ill-treatment and injustice. There could be only one solution for it, the cre ation of an orderly system of govern ment, in which all citizens were to be treated upon an equality, and in which all offenses were to be punished as the acts of individuals and not as of peo ples. I argued for a long time along tnese and similar lines. No Vse for Argument. "It Is no use for you to argue," Talaat answered, "we have already disposed of three-quarters of "the Armenians: there are none at all left in Bitlis. Van. and Erzeroum. The hatred between the Turks and the Armenians is now so intense that we have got to finish them. If we don't, they will plan their revenge." "If you are not Influenced by hu mane considerations," I replied, "think of the material loss. These people are your business men. They control many of your industries. They are - very large taxpayers. What would become of you commercially without them?" "We care nothing about the commer cial loss." replied Talaat. "We have figured all that out and we know that it will not exceed five million pounds. We don't worry about that. I have asked you to come here so as to let you know that our Armenian policy is absolutely fixed and that nothing can change it. We will not have the Ar menians anywhere in Anatolia. They can live in the desert, but nowhere else." I still attempted to persuade Talaat that the treatment of the Armenians was destroying Turkey in the eyes of the world, and that his country would never be able to recover from this in famy. Turk Errs but Never Regrets. "You are making a terrible mistake," I said, and I repeated the statement three times. "Yes, we may make mistakes," he re plied, "buf-rand he firmly closed his lips and shook his head "we never regret." I had many talks with Talaat on the Armenians, but I never succeeded in moving him to the slightest degree. He always came back to the points which he had made in this interview. He was very willing to grant any request I made in behalf of the Americans or even of the French, and English, but I could obtain no general concessions for the Armenians. He seemed to me al ways to have the deepest personal feel ing in this matter, and his antagonism to the Armenians seemed to increase as their sufferings Increased. One day, discussing a particular Armenian. I told Talnat that he was mistaken in re garding this man as an enemy of the Turks; that in reality lie was their friend. "No Armenian," replied Talaat, "can be our friend after what we have done to them." One day Talaat made what was per haps the most astonishing request I had ever heard. The New York Life Insurance Company and the Equitable Life of New York had for years done considerable business among the Ar menians. The extent to which they insured their lives was merely another indication of their thrifty habits. Turk Conld Use Money. "T wish," Talaat now said, "that yon would get the American life Insurance companies to send us a complete list of their Armenian policy-holders. They are practically all dead now and have left no heirs to collect the money. It, of course, all escheats to the state. The Government is the beneficiary now. Will you do so?" This was almost too much, and I lost my temper. "You will get no such lists from me, I said, and got up and left him'. One other episode involving the Ar menians stirred Talaat to one of his most ferocious moods. In the latter part of September, Mrs. Morgenthau left for America. The sufferings of the Armenians had greatly preyed upon her mind, and she really left for home because she could not any longer en dure to live in such a country. But she determined to make one last Inter cession for this poor people on her own account. Her way home took her through Bulgaria, and she had received an intimation that Queen Eleanor, of that country, would be glad to receive her. Perhaps It was Mrs. Morgenthau's well-known interest in social work that led to this invitation. Queen Eleanor was a high-minded woman, who had led a sad and lonely exist ence, and who was spending most of her time attempting to improve the condition of the poor In Bulgaria. She knew all about social Work In Amer ican cities, and a few years before she had made all her plans to visit the United States in order to study our settlements at first hand. At the time of Mrs. Morganthau's visit the Queen had two American nurses from the Henry Street Settlement, of New York, instructing a group of Bulgarian girls in the methods of the American Bed Cross. Queen Hears of Horrors. My wife was mainly interested In visiting the Queen in order that, as one woman to another, she might make a plea for the Armenians. At that time the question of Bulgaria's entrance into the war had reached, a critical stage, and Turkey was prepared to make con cessions to gain her as an ally. It was therefore a propitious moment to make such an appeal. The Queen received Mrs. Morganthau informally and my wife spent about an hour telling her about the Armen ians. Most of what she said was en tirely new to the Queen. Little had yet appeared in the European press on this subject, and Queen Eleanor was precisely the kind of woman from whom the truth would be concealed long as possible. Mrs. Morganthau gave her all the facts about the treat ment of Armenian women and children and asked her to intercede in their behalf. -She even went so far as to suggest that it would be . a terrible thing if Bulgaria, which In the past had herself suffered such atrocities at the hands of the Turks, should now be come their allies in war. Queen Elean or was greatly moved. She thanked my wife for telling her these truths and said that she would intercede im mediately and see if something could not be done. Teuton Duke Displeased. Just as Mrs. Morganthau was get ting ready to leave,she saw the Duke of Mecklenburg standing near the door. The Duke was in Sofia at that time attempting to arrange for Bul garia's participation in the war. The Queen introduced him to Mrs. Morgan thau; his highness was polite, but his air was rather cold and injured. His whole manner, particularly the stern glances which he cast on Mrs. Morgan thau, showed that he had heard a con siderable part of the conversation. As he was exerting all his efforts to bring Bulgaria in on Germany's side, it is not surprising that he did not relish the plea which Mrs. Morganthau was making to the Queen that Bulgaria should not ally herself with Turkey. Queen Eleanor immediately interest ed herself in the Armenian cause, and as a result the Bulgarian Minister to Turkey was instructed to protest against the atrocities. This protest accomplished nothing, but it did arouse Talaat's momentary wrath against the American Ambassador. A few days afterward, when routine business called me to the Sublime Porte, I found him in an exceedingly ugly humor. He answered most of my questions sav agely and in monosyllables, and ' I was afterward told that Mrs. Morgan thau's intercession with the Queen had put him into this mood. In a few days. however, he was as good natured as ever, for Bulgaria had taken sides with Turkey. - Talaat Indulges in Boast. Talaat's attitude toward the Armen ians was summed up in the proud boast which he made to his friends: "I have accomplished more toward solving the Armenian problem in three months than Abdul Hamid accomplished in 30 years." (To be continued.) NOTE OF PRESIDENT LIKED BY SENATORS Highest Expectations Held to Be Fulfilled. SPIRIT OF U. S. IS SHOWN Austria Regarded as Savins Merely Duplicated' Germany's Appeal for Negotiated Peace. WASHINGTON, T. C, Oct. 20. (Spe cial.) Members of the Senate yester day expressed their entire approval of the attitude taken by the President In his reply to the Austrian note. That the President had advanced from his position of January 8, when he stated that the peoples pf Austria-Hun gary "should be accorded the freest opportunity of autonomous develop ment," was acknowledged and indorsed both as the inevitable result of the altered conditions in the dual mo'n archy and a step in the highest degree in accord with the spirit in which the United States entered the war, and to which the President baa again given diplomatic expression. The Austrian note, it was felt, was practically e. repetition of the German government's appeal for a negotiated peace. Senator Hitchcock, of Nebraska, chairman of the Senate foreign re lations committee, said; "The President's note to Austria ful fills the highest expectations not only of Americans who want trie full fruits of victory exacted but of those repre senting the oppressed nationalities of Austria, who depend on the United States so largely for the recognition of their claims. Old Terms Not 'Accepted. Tt is to be presumed that Austria will feel that the President is adding to the conditions of peace which he made last January, and to some extent he is, Tmt since those conditions were laid down in January without being accepted, the United States has publicly entered into obligations to those sub ject nationalities which the President very wisely and justly purposes to live up to. We nave recognized the Czecho-Slo- vak peoples, not only as part of the Austrian Empire, but as a nation at war with Austria, and the same In sub stantially true of the Jugo-Slavs. "What the United States has done with regard to Poland and Bohemia and the Jugo-Slavs, Great Britain, France and Italy also have done, and the Presi dent's note merely puts the matter into proper diplomatic form to require the assent of Austria as a condition of peace." Senator P. J. McCumber, of North Da kota, a member of the committee on foreign relations, said: "The reply is just what it should be, it represents the sense of honor which requires the protection and defense of the Czecho-Slovak nations, which we have recognized, and whose countries Austria should yield. . Penalty Most Be Paid. "She entered upon this war of aggres sion to seize territory that did not be long to her. Let her pay the penalty In losing territory to which she never had a right." Senator Brandegee, of Connecticut, Republican member of the foreign re lations committee, said: "I am much gratified that the Presi dent has declined to accept the invita tion to enter into negotiations with Austria-Hungary. "Personally, I am opposed to any ne gotiations by the Government of the United States with either Austria or Germany. I think an armistice with either of them would be ruinous. "When Congress declared war on the Central Empires it pledged the re sources of this great Republic, both in men and money, and directed the Presi dent to carry the war to a successful conclusion. "I do not believe that this war can be carried to a successful conclusion in any other way than by smashing the armies of our enemies on the field of battle. When this has been done, there will be no need for any negotiations." Note WUI Help Czechs. Senator Pomerene of Ohio, Democra tic member of the foreign relations committee, said: "The effect of this note will be fur ther to arouse the revolutionary spirit of Austria. It is a distinct recognition of the Czecho-Slovaks claim for inde pendence. It will correspondingly In crease their strength and at the same time weaken the AustrojHungarian government. It indicates very clearly that this is in truth a war of democ racy against the powers of autocracy, and our allies will applaud it." Senator Simmons, of North Carolina, Democrat, said: "The reply of the President is very proper in the circumstances." Senator Kenyon, of Iowa, Republi can, said: "The splendid note, particularly that part relating to the Czecho-Slovaks, should seal the doom of Austria." pIPLy "A saving nation vj 4 i is an earning Nation," so says the Com- ' f I ' I IT U. S. DEALS WELCOMED MILNER nOPES FOR CLOSER ANGLO-AMERICAN TIES. Suggestion Made That Present War Is Due to Wave of Material ism in Germany. LONDON, Oct. 20. Viscount Milner, British Minister for War, presiding last night at a lecture by Professor George Santa Y Ana of Harvard University, on "Materialism and Idealism in 'America," at Bedford College for women, said it. was a happy inspiration on the part of the authorities of Bedford College to give the British public the opportunity of becoming better acquainted with American thought. He said it was a subject of most pro found interest at this time, when our two countries are more closely asso ciated than they ever before have been in an enterprise which is bound to have the most momentous consequences on the future of the community. , "It is the hope of all of us,'! Lord Milner continued, "that the ties which have sprung up between the two na tions through their fellowship in the war will lead to a fellowship in peace productive of immeasurable benefits to the whole human race. "How much of the catastrophe which Is baffling mankind is attributable to the wave of materialism aggressive materalism -which during the last 50 years has swept oyer the Intellectual centers of Germany? ' "And, on the other hand, what could do more to repair the consequences of that calamity than' the growth of a nobler philosophy and a higher concep tion of national duties and aims that is obtaining possession simultaneously of the leading minds of America and this country?" POINT WON F0R CHROMITE War Industries) Board Requests That Imports Be Reduced. OREGONIAN NEWS BUREAU, Washington, Oct. 20. After further conference today with Senator McNary regarding the chromite mining indus try in Oregon, the War Industries Board made a formal request on the War Trade Board to prohibit all im ports except from Canada and Cuba. It was decided not to fix a price for chromite as that might stimulate the opening of new mines with bad results but it was deemed probable that if im ports were cut off the normal market would pay a profitable price for the output of mines already in operation. . OLD MANILA CABLE BROKEN Line That Dewey Cut Again Out of Commission. NEW YORK, Oct. 20. The old cable line between Manila and Hongkong, which Dewey cut in 1898, is tempo rarily out of commission, interrupting direct communication between the United States and Souta China, it wa3 announced here today by the Commer cial Cable Company. The interruption is believed to be due to natural causes. Communica tions with Hongkong and South China are being routed via Shanghai until the cable is repaired. is an earning Nation," so says the Com monwealth. , . " . That is sound psychology. The nation that has tasted the delights' of saving, felt the national self-respect, that it engenders, will be spurred on to achieve bigger things. It applies to individuals as well. The man who really gets into the game of sav ing will endeavor to increase his earning capacity, so that without skimping he may save yet more. . ' . - His example makesit just' that much easier for the man next to him to save, so that the contagion of, thrift will spread through an office or a" community. This pioneer bank will, by its facilities and wisdom born of long "experience, aid depositors in all ways consistent with bank ing service. -' LADD & TILT0N BANK 1 " ' 111 ' JFEDRAL RESERVE.. x: yem r Oldest in the North; Washington and Third 'Mr1 ' r ! 'Ml S & J ' I i ' 11 ' r I T f " Mi t t i S S3 .1 ill: t : I west rA"SW . Si YANKEE GALLANTRY PRAISED FIELD MARSHAL HAIG IiAUDS 2 7TH AND 30TH DIVISIONS. American Boys Slam Bodies Back Many Miles in Three Weeks and Take Over 5000 Prisoners. LONDON, Oct. 20. A resume by Field Marshal Haig of the operations of the American troops fighting Qn the Brit ish front, given .out tonight, says: 'In the last three weeks the 27th and 30th Divisions of the Second Amer ican Corps, operating with the Fourth British army, have taken part with greatgallantry and! success in three major operations, besides being en gaged in a number of lesser attacks. In the course of this fighting they dis played soldierly Qualities of a high or der and have materially assisted in the success of our attacks. "Having fought with the utmost dash and bravery in the great attack of Sep tember 29 in which the Hindenburg line was broken, and having on this occa sion captured the villages of Bellicourt and Nauroy with a large number or prisoners, ' on October 8 the troops of the second American Army Corps again attacked in the neighborhood of Montbrehain. In three days of successful fighting they completed an advance of 10 miles from Montbrehain to St. soupiet, over coming determined resistance and cap turing several strongly defended vil laees and woods. Throughout the last three days the'two American divisions have again attacked daily and on each occasion with complete success, though the enemy's resistance was most obsti nate. - "Fighting their way forward from St Souplet to the high ground west of the Sambre Canal, they have broken the enemy's resistance at all points, beat ing off many counter-attacks and real izing an advance of nearly five miles. Over 5000 prisoners and many guns have been taken by the Two American divisions in these several engage ments." 1 without the sign of an accident, not a strut or stick being out of place when the machines were returned to the hangars. RETAIL FOOD PRICES SOAR Cost of Necessities Increase 4 Per Cent in Month. WASHINGTON, Oct. 20. Retail prices of food increased 4 per cent from Au gust 15 to September 15; 14 per cent from September, 1917, to September, 1918, and 72 per cent from September, 1913. to September, 1918. This was announced by the Bureau of Labor Statistics today. Soldier Sends Liberty Bonds Home. PASCO, Wash.. Oct. 20. (Special.) Through the War Department the Bank of Pasco has received for safe keeping a liberty bond purchased by Captain Donald O'Leary, a Pasco boy who is now with the 161st division, A. E. F. Western States Press Claims. WASHINGTON, Oct. 20. Request that more Government war work be diverted to Western states was laid before Chairman Baruch, of the War Industries Board, and officials of the War Department yesterday by a dele gation of Western Senators. It was said the conference was en tirely satisfactory. Tneres. something about them yotilllike LANES BOOST LOAN DRIVE Remarkable Exhibition of Aircraft Witnessed at San Diego. SAN DIEGO. Cai:, Oct. 20. What is declared to have been the largest and other respects one of the most re markable airplane exhibitions ever given in this country was that given here yesterday by Army aviators from North Island to- mark the success of the local liberty loan campaign. For nearly two hours 115 machines swept massed formation over the city. some of them "bombing' the streets with printed liberty loan appeals.- The machines were of three types and of three different speeds, ranging from 70 to much more than 100 miles an hour. All of them ascended and descended almost exactly on schedule time, and iTreedom's V PEN rii VICTORY imBREAD Oriental Cafe Cor. Broadway and Washington (Upstairs.) OPEN 11 A. M. to 2 A. M. Finest Grill of Its Kind on Pacific COHI. JttrCSIC AND DANCING. American and Chinese Dishes. Service at All Hoars. TRY OCR DAILY LUNCH. 11 A. M. TO 8 P. M. 25c 30c. 35c, 40c to 75c. Including; Soup, Vegetables. Drlnka, Dessert. SPECIAL SUNDAY ' TURKEY DINNER, 75 HISTORIC SPOT RAVAGED Columbus Monument in Porto Rico . Washed Away by Sea. SAN JUAN, P. R., Oct. 15. The mon ument marking the landing place of Christopher Columbus, near Aguadilla, was washed away by the recent tidal wave. Charles ..Hartzell, chairman of the Porto Rico chapter of the Red Cross, has requested $10,000 from the Na tional Red Cross for the immediate re lief of the homeless of Mayaguez, Aguadilla and other towns affected by the earthquake on October 11. The chairman also asked the Rotary Club to raise J 5000 locally. The greatest task at present is to provide shelter for the homeless. Tele phone and telegraph lines are gradual ly being restored, but it will be sev eral days before trains can reach Mayaguez. COLDS INTERFERE WITH BUSINESS Dr. King's &ew Discovery Re lieves Them and Keeps You Going on the Job. 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