ptto GAIN WEST BANK FAILS Acstro-Germans Try to Gain . Territory on Piave River l ut Are Thrust Back with . Vigor by Italians DEFENDERS LOSS IS I VIRTUALLY NOTHING Detain Front Quiet; Allied Air Fleet Makes Bomb i Reprisals A j . HEADQUARTERS OP THE. ITAL IAN ARMY IN' NORTHERN ITALY. Wednesday, Jan. 2.; The enemy to day attempted to gain the west bank of the Piave river to offset the. loss cf Zcnson." but met with a quick re pulse, anct the entire west bank now ia definitely clear and held by j the Italians. .i A landing1 ; party on .; flat baats . attempted to cross near! In trstadura, but an Intense .artillery and machine gun fire concentrated on the boats led to the abandonment cf the attempt before the west bank v as reached. - . y. :t- -. The general commanding the army corps -In tbeZenson sector is receiving high encomiums for ifhe tactics which brought about the rout f f the enemy from the only nest tley were able to maintain on the vest bank with, heavy enemy losses and virtually no Italian losses. This nneral informed the correspondent, . 3 mentioned in a dispatch forwarded 1 Christinas that he would not sac rifice his men by useless frontal at tacks against machine guns, but would slowly wear out' Jthe enemy by c rmtlnaous concentrations of artll I ry on their positions In the bend v! the river. - ' 1'any doubted the general's abil ity to carry this out, but his success riDecember30- la clearing out tfae r ' -Tiy and saving his own mentis tiag with -the highest praise, j f Tlie momrtaln"; front' 3s compara- vtly inactive, tie enemy giving .: ! attention, to air: raids.! which i ntinae against Bassano, Trevlso i r -;d Mestre, near Venice, without talle damage or casualties.' The Jlan and allied air fleet Is making Porous reprisals, bombin?? stations r -1 troop columns in movement. An impressive'1 public funeral f V'-e victims of the Padua raids was MERCHANDISE ! Is passing through a transition period ; o vjng to ; present conditions. s . Government needs are enormous. . Even for the first equipment of the Army and Navy and the first supply is only the benniiigr. All supplies must be replaced repeatedly- owing to' the severe usage. As the Army grows, more and more factories will le 4 devoted omilitary w-ork with the result that less goods will be hiade for civilian use- : There is a real shortage in raw material: and mills -are experimenting with all kinds of substitutes, Some may prov6 satisfactory Many will iiot. . Many merchants, arc. sacrificing quality to keep near old prices, but we have always considered quality first during our - - 26 Years in Salem for we believe that the future of the store depends npon : satisfactory merchandise and we shall continue to handle standard brands that have a reputation to maintain- -. In consequence of shortened proiluction, prices which are already high will continue to advance. . OUR HEAVY STOCK in all departments, bought months' a?o, will enable us to keep our retail prices below the market value for ia gootl part of the year 1918. Every dollar you spend for merchandise at present prices Mill be a profitable investment for you 7 V -OA TRAINS CARRYING PASSENGERS TO BE ELIMINATED Clearing of Freight Conges . tion atj Early Date Sought in East FINANCES ARE U TODAY Recommendations for Com f pensation to Roads to be Made by Wilson WASINGTON. Jan. 3. Hundreds or passenger trains on railroads east of " the Missippi will be withdrawn front service under orders soon to be Issoed by; lrecior General McAdoo, based upon ? recommendations made today bpr a commit te of Eastern pas senger traffic officers. The commit tee was divided as to the advisabil ity of withdrawing ; most parlor and sleepcars. leaving only those con sidered most necessary for 'import ant travel pontes. , . Wage problems under government operation were) disnssed by the di rector general with heads of the four railroad brotherhoods and the ques tion of wages will $e taken up to morrow. "JiJ ' "'' ; Congress Heaif Wilson Today. Tomorrow President W.'lson goes before congress with recommenda tion for legislation' providing a basis for. compensating railroads under government operation and for contin ued 'financing with government as sistance. Bills approved by the rail i oad - administration will be intro duced immediately and indications are that . they ? will be ' rushed to speedy passage.. , WjJ v ?- ': . With regard to 'passenger ! train reduction, it was made plain. today that thero is no intention of " inter fering with commuter or lnterurban traffic or with any other trains neces sary for daily or regular travel. Some of the director general's advisers have urged that practically all par lor and sleeping cars be withdrawn from service and. the people , be re quired to travel largely In day time in ordinary coac hes. It is : not con sidered - probate, ; however that Mr. McAdoo will approve such a drastic coarse at this time- . i Congestion To Be Cleared. .v; The brotherhood leaders spent nearly three-hours with the director eeneralmost of the time being def- voted to discussing the ' possibility that the government may call on rail way? employes to work much over time in order to clear present freight Continued rn paf .V FRENCH LOSE BUT 50 MEN; KILLING 560 Recent Successful Operation ' on Monte Tomba Sees 1400 of Enemy Taken Prisoner, Officer States SPIRITS ARE HIGH AS INVADER IS ATTACKED Two German Officers Cap i tured Are Told What to I Expect as Prisoners. ;. ITALIAN HEADQUARTERS IN NORTHERN ITALY. Wednesdar. Jan. 2. The French In their recent successful operation on Monte Tomba captured1 more prisoners than they had men engaged, according to a vet eran officer who witnessed the fight. "It was a record-breaking fight in many respects, he declared. Just think, the French took more prison ers than they had men engaged. They also captured their first Aus trlnn nrUnncra "wJiioli tti nMlmr ,mileston for tn'em as heretoforo they had captured only Germans. 'In addition to the 1400 prisoners we counted 560 dead on the ground, and no one knows . how many more were in the caverns and underbrush. The perfect French military system enabled them to accomplish this with insignificant loss less than fifty men. ;.fi ' - French Troops Highly Trained. "Tl Fiftieth Austrian dlTision. which was the one attacked, is cn sidered a good fighting organization. But the Austrians were accustomed to fight Russians and Rumanians and this was the first time they had met the - highly trained French troops. The result was that jaw aess and ' Indiscipline were swept away before discipline and training. .-,s"WJiett the prisoners were brought in. I .never -saw a more- miserable. pitiful, starved lot of soldiers. They looked like the? riffraff from the slums of some big city. Even the officers, appeared underfed and un derclothed, and I saw only one with a whole pair oT breeches. - "When the officers were lined up there were fortytwo Austrians and two Ctermans. Tbe Austrians were toHl fhey would receive tbe usual treatment Riven officers and gentle men, but the two Germans were told plainly, that they would reeeive ex actly the same treatment given French officers in Germany. The group of Austrian officers was Im pressed ! greatly gat this and openly declared their -hatred of tbe Ger man.. 'A little later wo heard the Austrian soldiers cheering, and it turned out they were cheering their Freneh cantors. Spirits Are llifth. i "The success shows the necesRlty for trained troops, asd untraine troops could not possibly hive secur ed such resnlts. It was exactly the same as getting 15 per cent on your money instead of. 2 per cent, "The "spirit and enthusiasm of the French .troops as they, leaped Into the enemy , trenches is beyond all praise. . Their earnestness not only carried them into the trenches, but actually far beyond them. Some de tachments kept on going until they reached the upper Piave back of the lines held by the enemy." '. Suffrage Leader Would r Make Men Go to Work 1 j 1" JAMAICA, N. Y., Jan. 3. Mrs. Alfred J Eno, cuff rage leader of Queens county, announced at a meet ing here tonight that she had draft ed for IntttMiuction In the legislature a bill which would comjlel every man In the state between the ages of 18 and 50 to go to work. Lnder the i.rnvloifYna nf thft bill all men WOUld be required to register, and the gov-H ernor could assign mem 10 worit either for the state or for privato em ployers requiring help. ' Mrs. : I 'no said the bill would be Introduced by Assemblyman' Decker ol queens. German Skips to be Towed 1 ' Oat to Sea and Blown Up - I SAN FRANCISCO. Jan. 3. Three Interned German ships la th port or Calete Bueno Chile, will bo blown np an soon as they tare towed to sea according to Captjain Peter Rasnius Btn, skipper of a jboat arriving here fmm tho BCnthem nort. Dv- namite bombs anid catridges placed around the masts or tne snips, tno captain said, -would explode as soon at- the masts began to work In their steppings. . :..':V: ;i,'v! He said: "I was invuea nooara one of the ships for dinner. I was shown what had been done for the preven tion of "cruelty to Germans." Capt ain Rasmussen said he had seen the bombs and' cartridges at the base of the masts and; that the Germans boasted of It." " .. COMMITTEE ENDS EXAMINATION OF HERBERT HOOVER Food Administrator Sharply Answers t Attacks of Chairman Reed WHEAT PRICES HIGHER Flour Price! Reduced and - Millions tc Saved on SurrBIU 3U WASHINGTON Jan. 3. Examin- atlon of 'Pood A nlnlstrator Hoover day by the senate 'gating the sugar .s-.after Chairman ?rer Jiad enlivened with a clash that i since the inquiry was completed committee inves and coal shorta Reed and Mr. Hi the proceedings had been expectf started. Yesterday wh ii Hoover took the stand Senator R ed, a critic of the food adminisfratpr, since the begin ning of his workf yielded the task of questioning tb I ?nator Lodge and the examinatioj; proceeded very smootbly. Tocf'y, however, the chairman went 1 ato cross-examination himself mos vigorously. He at tacked the poliej s of tthe food ad ministration, saia Hoover had usurp ed nowers In han ling the wheat sit uation and soug t to develop that sugar price agr4 ments were made to benefit easter ; refiners. Mr. Hoover's! replies were as sharp as the qut stlons. The wneat situation, he sale was handled with President Wilson the approval of and the farmers now were getting more for their wleat while flour was selling for less, tie denied all of the chairman's charges smd said .the food administration wbnld save the peo ple on sugar 'alone between 'three and fire million : dollars In the year beginning October 1... Senator Jones of New Mexico, questioning the wit ness about support given the- food administration by the country,-drew a ripple of apnlanse from spectators retort when Chairman t Reed Inter rupted.', i-'?: - s--v v: ; When Mr, Hoover left . the ; stand the committee h&Xrd a statement on the coal situation! in Ohio byr Joseph II McGhee, attorney general of that state, i Mr. McGhee blamed priority orders for shipments to the lakes for most of the trouble and told of In effectual efforts to get Tellef through tbe fuel administration. The neople are still suffering 'for want ofj. coal, he said, adding that he thought' the situation would Improve under gov ernment operation, of railroads, r ' Tomorrow the committee will -return to the sugar Inquiry and hear Frank C. Lowery, secretary of the Federal Sugar Refining company. Machinist, Calling U. S. Soldiers "Bums," Painted WATERLOO. Ia.. Jan. 3. Frank Rruner, a machinist at the Illirioii Central railroad 'Shops here, ; exs pressed an opinion that, "85 percent of the American soldiers are bums" this afternoon. , The shopmen 'paint ed him yellojv from head p teet and the company approved the Job by discharging him. The United States commlssiojier practically toldjhlm, ht got oft easy. .. Bruner , is a .German-Russian, twelve years In the United. Stated and 40 years old. In'the back ofhis watch f case he carried a pidturer of the kaiser. i IRON WORKERS' STRIKE ENDED Emoloyers Grant 5000 Men Ten Per Cent Wage In- crease for War SAN FRANCISCO, Jan. 3- A strike of approximately 5000 iroa trades mechanics In this district was ended tonight when their employers granted them a 10 per cent Increase in wages which, by agreement, will prevail during the period of the war. The men now will receive the sahae war bonus paid to iron trades work ers engaged In shipyards. ; The strike had been in progress mie week and effected several : In dustries identified with war work activities. The-men contended that their work outside of shipyards was just as important as that within ant for that reason they. should receive the. 10 per cent war, tonus recently granted shipyard Iron trades work ers by the federal shipbuilding wage adjustment board. . : : - ' One clause of the agreement spec ified that, during the llfo of the agreement there would be no strike by the: employes (nor lockout by the employers. ; London, Jan. ?.---A d'stpaeh' to some-' of them ealed attention to tlw lusted by firm representatives and union representatives lit conference the dispute "would ho submitted to Mortimer FleJschhacker. ' represent ing the wageJ adjustment board, for Investigation - and , recommendation. RUSSIA MY RESUME WAR ON GERMANY Government of Workers Re jects Peace Proposals and Armj of 3,000,000 May Be Sent to Front PLEDGE OF DEFENSE MADE BY SOLDIERS German Delegates Return to " Brejt-Litovik Hoping ' for Success ; LONDON, Jan. 4. Development in the Russo-Cerman negotiations, the Dally Chronicle, says, are likely to cause the western powers to give the defacto recognition to the Lenine government in Russia.-A statement of enfentA allied nnllcv nf r it,mu cratic ' character, .it adds,, shortly wiii do sent io xvusstaj ! -PETROGRAD, Jan. ! 3 --The Bol shevikt foreign minister, . . Leon Trotsky, declared today that the gov eminent of the Russian - workers would 'not consent to the i- German leace proposals. ; . f .'1 M. Trottky's declaration was made before the central committee of the council; of soldiers 'and workmen's delegates, during - an kddress ' In which he denounced In scathlns terms "Germany's hypocritical peace proposal." Asserting that the gov ernment of Rusrian, worker would not consent to such conditions, he said that If the eentral powers did not agree to free disposal) of the destiny of Polish and Lettish: nations it would be ? urgently necessary to defend ; the Russian revolution. He said the needs at the front would be satisfied, whatever efforts might be necessary. . ' - : ; :-;. : Resumption of War Piscikssed. Representatives, from - all the fronts who attended the meeting de clared the- troops: would defend, the revolution, but said bread and boots were necessary. . ; , ( The halt in the Rosso-Gem an ne gotiations and indications of a Geri man refusal i to remove the, conferi ence to Stockholm have revived uni versal dkcussion i in Petrogrsd of a resumption of fighting with a great ly reduced army, ; probably' , 3,000, 000 men. U:.', ' : ; "Even the most radical Bolshevik! and the most ardent peace? advocates have-been aroused by .the German proposition. They declare. that a re sumption of ' hostilities is Imminent and express the belief that, it is pos sible to organize and make effective a small army. Principles Are at Stake. i Indications are. that, the German attitude is harmonizing - domestic differences and is convincing Rus sians that they must fight to save their revolutionary principles. ! ' ' Chairman ' Joffo,: of the Russian peaceelegatlon, today sent an off I4 clal telegranii to the chairmen of the German, Austrian, Bulgarian1 and Turkish delegations.: saying the Russian republic deeina It necessary to conduct further peace negotia tions on neutral soil, and suggesting a transfer of the conference ta Stock holm. The telegram n declares that replies to the message are expected by Russia In Petrograd. , - Articles 1 and 2 of the Atistro German terns submitted "December 12, (December 25 new style), the message says', are In direct conflict with the principles of self-definition of nations insisted npon by the Rus-' sian peace delegation and supported by the Russian republic and the cen tral executive committee of the con gress of Worknfen's and Soldiers' delegates. ",;- Prew ISlames Imperialism. Petrograd i newspapers are unani mous In declaring that the Germans and Austrians Have, after one week, thrown off - tho mask anf made , it clear that the central powers do not want a' real,; democratic jjeace. The Pravada says: "German imperialism is again be ginning to sho wits claws." . Germany's: apparent unwillingness to give Poland. Lithuania, Livonia, Courland and Esthonla the privilege of free self-definitfon. Is the rock upon which jthe negotiations have split. Otheri peace conditions are Ig nored by the; Bolshevik! leaders, who say that Germany opposes the. most vital principle underlying the Rus sian revolution. . In an Interview with newspaper men, ; Foreign? Minister Trotxky said that4- peace 1 negotiations probably would not be resumed at Brest-Llt-ovsk.'as thel Russians oppose stoutly the principle of annexation. ! Terms Unanimously Objected. ! On Tuesday evening at a. .Joint meeting of the central executive com mittee of the Congress of Soldiers' and Workmen's lelegates, represent atives of the peasant' deputies, the Petrograd Workmen's and Soldiets" Council and representatives of' the General Army Congress for- the de- mobilization of tho army, a resolu tion was adopted unanimously de claring that the Gertnan peace terms were nnjusi. 'Undenounced ' Cer- (Continued on .Pase 6) MOST CONTRACTS GIVEN BEFORE TiIEN APPOINTED Investigation Shows Work Done Prior to Maniifac turers' Service NEW LEGISLATION READY Chamberlain Has Bill Provid ing Cabinet for Buying Materials i WASHINGTON, Jan. 3: In fur ther Invest! cation of clothing and other army supply contracts negoti ated by tbe civilian supplies com mittee of the council of national de fense, the senate military committee today received from Charles Elsen man, vice-chairman of the contract ing committee, a statement of mer chandise . bought f Jm firms whose members 'or employes are or were connected with the committee. Of supplies worth about $800, 000,000 bought during the last eight months, Mr. Eisenman's - statement discloses that $128,830,000 worth came from such concerns, but that all except $14,830,064; worth was contracted for before tbe contractors' representatives became - connected with the committee. , ' Before presenting the statement asked for by Senator McKellar yes terday, Eisenman la concluding his testimony, , staunchly defended tne committee's work, upheld the'pollcy of secrecy in advance of letting con tracts and again insisted" that the men given the much, discussed scrap sorting contract would nave Deen limited to a nominal profit, j Xew Legislation Ready." -- Members of the military commit tee tonight were prepared to launch legislation, the first results of the Inquiry. Chairman ' : , Chamberlain plans to introduce tomorrow a bill to create a new cabinet memDer Known as the secretary of munitions, to have complete charge of all war ma terial purchasing. - It is promised virtually unanimous committee sup- Another bill 'which Senator" Mc Kellar plans to introduce tomorrow as a result of the investigation would amend the naitenal defense act cre ating the council of national defense, so as to abolish all civilian advisory committees and prohibit the council members or their agents from being directly or 1 1ndirectly interested In supply, contracts. - ?i , Nine firms were ; named in Mr. Eisenman's statement as being among those who had received army supply orders from the committee, and. whose representatives . served with tbe committee.- . ' The firms named.ithelr represent ative on the committee, the. amount of the contracts received , and the total of contracts for .tha kind of merchandise In which They were In terested follow: : ':. . , ; r :'; Con tract Are Cive. American Woolen company. F. R. 4dington. $92,755,D00 ($33,692, 000): W'elllncton. Sears & Co.. Mr. Bailey, $5,675,000 ($101,372,000); William Iselln & Co., Lincoln Crom well, $1,029,000 ($74,825,000); J. Spencer Turner, A. L. Scott, $8,437, 000 ($101,372,000): U. S. Rubber company. A. W. Lawrence, $3,762, 000 ($26,979,000): WVH. McElwaln company. J. F. McElwaln $6,330,000 ($9,556,000) ; U. S. Bunting com pany, George Stevens $1,546,000 ($90,319,000): Cleveland Worsted company, Charles Eisenman, $4,057,- 000 ($149,338,000.) j Of the contracts " given to the; (Continued on Page 6 HERTLING MAY RESIGN, RUMOR Talk of Intrigue to Make Prince Von Buelow Chancellor Heard . LONDON. Jan. 3.- A dispatch to lb Ktrhanrn elerraoh from Amster dam gives a Berlin report that Cbunt von Hertllng, tne imperial uerman chancellor, is indisposed. The cor respondent adds that a rumor. In po litical circles is to tne erred, xnai there In Intriguing to induce Count on Hertllng's; -resignation on "the ground of 111 health in order to make way for Prlnc von Buelow again taking up tbe post of Imperial chan cellor. A dispatch from Copenhagen No vember 16 said the German crown prlnco recently had a long confer ence with von Buelow, vlsttlng the hotel In Berlin where Prince von Buelow was stopping.: Tho dispatch added that all tho Berlin newspapers referred to the meetfng and that some of them caled attention to the fitct that Prince von Buelow was a candidate for his old post, von Buelow has been-believed to be In accord with the V lews of the crown prince regarding the war, wh,ile von llertling Jaf; known, to be an expon ent of the policy to which. the crown prince is opposed. . SINGLE m HILL MeL.L Provost Mirshal Cto;C:t fc. 'h Reccsnends neI:lrw':: a of Men Attaining Agb cf 21 to Take Whole Burden 700,000 ANIOJALLY AVAILABLE IS CLAi: Million Now Waft in Clizz 1 ; New Basis fcr Qucl3 ' : Suggested WASHINGTON, Jam. S.A11 nv for the war armies still to be rai; by the United States will come frf i class one under the new seleetivo service plan. That means the ra tion's fighting Is to be done by yon -men without families dependent t , -on their labor for support anj -skilled in necessary industrial or t z ricultural work. Provost Marshal ' Crowder r i -nounced the new policy in a tc: on th operation ot the select; draft law submitted today to f - : tary Baker and sent to corij-rrs:3. says class one should provide n for all military needs of the o-ir.t-and to. accomplish that ot t urges amendment of the drp n I so as to provide that all ma have reached their ,21st LIrt" slnee June 5, 1917, shall be re;u: to register for classification. - - 3Cew leasts Propoise!. Also'ln the Interest Of fair d!:' -button . of ' the milttary burden, : proposes that the quotas of state ? c districts be determined hereafter i the j basis of tho number cf men ! class one and not' upon tts i ' . -latlon. -, Available figures Indicate, the r -port says, that there are l.OHO.f ; qualified men under the present n -istration who will be found in r! one .when.-aU . qustionnalr" ! been returned, and the classifies iir t period ends February 15: To t! tho extension of registration to r turning 21 since June 5 of last yc r and. thereafter wiH.add 700.003 r a year. Class one comprises: f; . gle men without dependent reltiv- , married men who have batitur,::- failed to support their families, vI i are -dependent upon wives for sup port or not usefully engaged, sr I whose families are supported lr i -comes 'indenendent of their labor-: unskilled farm laborers, unskli: ,1 Industrial laborers, registrants by r r In respect , to whom no defcrr ' classification i claimed or ma ! and all registrants not included S i any other division of the schedule. Single Men to FtshC- The plan 'places upon unattar. I single men and married men with in dependent incomes most of the weight of military duty, for t: number of men In othe- other divi sions of class one is very small. General Crowder1 finds that tr .i first draft surpassed the highest ex pectations and Pay high tributo o the thousands of civilians wl. services made the plan a succcfs. '.'At the.presidenfs-call," he pnv. "all ranks of the nation, relnctar.t Iv entering the war, nevertheless In stantly responded to the first call r ! the nation with a Igorou and inr - fish co-operation that sunmerpe r a Individual Interest n a single cnJ s vor towards the' consummation ef the national task. I take it that r great national project xras ever at tempted with so complete a re'.i.-.- - noon the-voluntary co-operation f f cltJens 1 for its execution. Cert; -r. no such burdensome and pp.cri flcial statute had ever before lf i executed. without a great hlerarc of officials. "This law has been administer -by civilians whose official relatl lies onlr in necessary powers v.. which they are vested by the pre -dent's designation of them to r -form the duties that are laid tip them." They have accomplished t task. They have made some i takes. " Iemocratie Ker1ce PmlscxI. " ."But. the. great thing they wr r called upon to do they have dr The vaunted efficiency of absni . Ism of which . the German em; stands as the avatar can offer nf ing to compare with It. It remn. th eultlraate test ana . proor or i intrinsic political Idea upon wl American Institutions of democr: and self-government have I based." Analysing the first draft. CT,r . Crowder shows that 9. 586. SOS i between the. ages of 21 and 31 y registered. Up to late in IV ber, only 5870 arrests had I made of those who souRht to rv registration, and of that nur 2263 were released after having Istered. and there remains f only 2095 cases to be prosorv The report declares that In th f analysis of ' theserecordg, it v, l; Fhown that only 0.0002R per re f the men within draft age ca : I -Istration. A rough figure fof 8.? rcr r given as the numrber of rc- l Continued. on pa- 2)