I
The Statesman receives the fjtf f (9 f?
- DAILY EDITION
r
i
KIXTV-F.IGHTII YF..lt NO.
LIBERTY
SUCCESS
First Flight of Squadron of
18 De Haviland Planes
Successfully Carried Out
Behind German Lines on
- Western Front in France
SETS AT REST RUMORS
AIMED AT SEAPLANES
Indications Point to Fact
That Large Number of Re
serve Planes Are Now Op
erating for Pershing's Army
WASHINGTON, Aug. 16.
General Pershing today advised
the war department that early in
August a complete squadron of
eighteen De Haviland four air
planes built in the United States
and equipped with Liberty mo
tors, successfully carried out tha
first 'reconnaissance flight of
American-built machines behind
German lines. They returned
without loss.
' In making this announcement
Secretary Maker sad that Briga
dier General Fonloisr of the Amer
ican air service led the expedition.
Secretary Baker said he had no
other information regarding the
flight except that Lieutenant
Blair Thaw was on the trip. The
secretary withheld the time and
place.
The annonnccment was con
sidered by officers as setting at
rest rumors that the De Ilaviland
machines were not a success and
also as showing that the Liberty
motors have now proven them
selves in actual war conditions.
The machine, each carrying a pi
lot and observer, are equipped with
four machines, a recommendation of
General Pershing made many onths
ago.
The flight undoubtedly was a
scouting trip.
No recent figures' on the produc
tion of the De Haviland fours are
available and Secretary Baker would
' not sanction their discussion. The
production of the one thousandth
- machine at the plant of the Dayton
. Wright company was recently cele
brated and since then another great
plant has come into quantity produc
tion. (Continued on page 6).
SWEDEN SEES PEACE HOPE FADE
Swedish Premier Declares Belligerents Seem To
Hare No Desire for Peace. Negotiations Just Now
LONDON, Aug.' 16. According to
a Copenhagen dispatch to the Ex
change Telegraph company, Pro
fessor Eden, the Swedish premier,
replying to a deputation from th
Swedish organizations of Good Tem
plars, who asked whether one of
the neutral states should take the In
itiative regarding peace negotiations.
LAUNCH HEAVY ATTACKS ON YANKS
.
, Germans Use Gas, Artillery and Airplanes in Vain
; Assumption That Americans Are Bringing Up Troops
Yflj Jfc Amciatcd Press)
WITH THE AMERICAN ATIMY
ON THE VESLE FRONT. Aug. 16.
Tho Germans launched a combined
Ms. artillery and air bombing attack
Pon the French and - American
along the Vesle early Fridav morn
ing. This was in retaliation for a
bombing raid by American airmen
n bridges over the A5sue late on
Thursday.
The "German artillery continued
"helling the cross roads south of the
Vesle for hours, on the assumption
that the French and Americans were
hringlng up troops. German aviators
boubed the wood? and villages south
or the Vesle, apparently working In
relays.
Industry of
State Declared to
Be In Grave Peril
PORTLAND. Aue. 1S n.A.
dairy industry la in grave peril, ac
cording to 11. 11. Itawl, chief of the
dairy division. United States dennrt-
ment of agriculture, who has been
touring ine Willamette valley coun
ties ua an inspection tour.
"There Is but one snllltirtn " ta.
clared Mr. Rawl. "and that la fri
consumers to pay enough for milk
and dairy products to Induce dairy
men to remain in business."
rortiand now cost the
consumer $4 a month for a quart de-
uverea.
NORTHCUFFE HAS
PRAISE FOR THE
C. S. AIR OUTPUT
Declares It to Be Greater
Than That of Austria and
Germany Combined
ALSO ASSERTS IT LARGER
THAN GREAT BRITAIN'S
Declares America Has Ac
complished One of World's
Greatest Miracles
LONlON, via Montreal, Aug. IB.
- lord Northcliffe today entertained '
at luncheon a number of Canadian.
Australian and American editors and
a number of statesmen and promi
nent citizens of the dominions.
Lord Northcliffe said the way the
colonies had been coming over to
help the ola country was one of the
met touching things in history. He
spoke of Gallipot! and Ylmy. ride.
and also dwelt on what the Ameri
cans had dono at Chateau Thierry.
The Americans, he said, had proved
to be "the goods." What the Ger
mans had called a mob uniform had
proved to be an entirely new and
most erricient mna or an army.
Lord Northcliffe also touched on
the output of air engines in the
United States and declared that this
was far greater than the combined
output of Austria and Germany, or
of the whole British empire. The
new American Liberty motor, he
paid, was a wonderful production.
He estimated that the United States
(Continued on page 2)
German Bandmen To
Renounce the Kaiser
and Old "Valeriana"'
CHICAGO. Aug. 16. Qerman
members of the Chicago Symphony
orchestra today renounced the kai
ser, the "Vaterland" and such of
their kin as are fighting in the ene
my armies, at. a meeting of the Chi
cago Federation of Musicians.
Loyal alien members will not be
expelled as was formerly announced
Joseph Winkler, president of the or
ganization, who announced the
change in policy, said all disloyal
members would be expelled.
said as there was no reason to be
lieve that the belligerents were will
ing to consider mediation Sweden
could not commence negotiations.
Sweden, the premier added, was
following the present developments
with great Interest and was at the
disposition of the warring powers
should any desire for mediation be
expressed.
r i-nii n f i 9 American aviators
to"""!' -" m
participated in the raia on me Aisne
hrMjres. Farlv Fridav other Ameri
can fliers went up and took photo
graphs for tne purpose or asenaiu
inr tho effort of the bombs dropped.
A great deal of traffic had been re
ported passing over the Aisne bridges
and the French anu Amenrans m
oronsprf the fire of thein heavy guns,
As a result of the reports ofob
the French and Americans
laid down a box barrage during
Thnradav nlcht on machine gun
nt ninniF the hills to the northwest
of Fismes. Observers and patrols
reported Friday morning tnat ma
chine guns had been ucstroyea ana
every German gunner Kuiea.
80 PER CENT
TAX ON WAR
PROFITS GOES
McAdoo Plan Decided Upon
by Committee General
Outline for Excess Profits
Tax of Corporations Reach
, ed.
DIFFERENTIAL PLANNED
ON EARNED INCOMES
Returns Upon Income Tax
Law Also Will Be Posted
in Every County
WASHINGTON, Aug. 16. An 8
cent exemption In addition to a spe
cific $3000 exemption on the excess
profits of corporations, with a tax
of 4 per cent on all excess profits !
between t ight per cent and 20 per I
cent and a tax of 60 per cent on all
excess viol its exceeding 20 per cent,
was agreed upon today by the house
ways and means committee.
The committee. In writing this
schedule into the $8,000,000,000 rev
enue bill, also adopted the treasury's
alternative plan for a flat 80 per cent
tax on war profits. The comittee
agreed to three classifications of
business for purposes of deduction
from the war profits.
The deduction for pre-war earn
ings is: Financial and transporta
tion corporations, 8 per cent; manu
facturing, farming and general busi
ness. 10 per cent, and mining and
kindred hazardous business, 12 per
cent. Ninety per cent of business
corporations. It is estimated, will be
affected by the war profits tax and
the remainder by the excess profits
tax.
Estimates show excess and war
profits taxes will yield a total or
$3,000,000,000 which would bring
the total of the bill much nearer the
$8,000,000,000 goal.
Chairman Kitchin of the commit
tee, said today that the treasury ex
pected to submit tomorrow some fur-
further suggestions regarding the. In
come tax. He said unless there Is
something to change the situation
the normal income tax rate will be
gin with 5 per cent on the first $4,
000 and 10 per cent on all Incomes
between $4000 and $5000, the sur
tax beginning at $5000.
The surtax schedule. Chairman
Kitchin said,, probably would stand
as agreed to, with the following per
centages: $5000 to $7500. 3 per
cent; $7500 to $10,000, 6 per cent;
$10,000 to $15,000. 10 per cent;
$15,000 to $20,000. 15 per cent;
20.000 to $3,000. 20 per cent; $30-
000 to $40,000. 25 per cent; $40.-
000 to $50,000. 30 per cent; $50.-
000 to $60,000. 40 per cent; $60.-
000 to $70,000. 45 per cent; $70.-
000 to $80,000, 4G per cent; $80.-
000 to $90,000. 48 per cent; $90.-
000 to $100,000. 49 per cent; $100.-
000 to $200.000., 60 per cent; $200.
000 to $400,000. 55 per cent; $300.
000 to $500,000. 6 per cent; $500.
000 to $1,000,000. 65 per rent. anT
$1,000,000 to $5,000,000 70 per cent
AH Incomes over $5,000,000 would
pav a surtax of 75 per cent which
added to the normal tax. would
make such Incomes taxable to the ex
tent of 85 per cent. Chairman Kitch
in made this statement tonight:
"We changed the plan for payment
of the taxes by Installments, at the
suggestion and request of the treas
ury department, so that one-third
(Continued on page 2)
SPAIN PLANS TO
COMPENSATE SELF
Will Work Reprisals on Ger
many for Damage Done to
Her Shipping
I.OV'DON:. Aue. 16. Spain has no
tified Germany of her Intention to
compensate herself for future out
rages against Spanish shipping i7
confiscating a corresponding amount
of tonnage from German shipping
that lias found refuge in Spanish
ports, says a dispatch to the Times
from Santander. There are about 3
German steamers voluntarily In
terned in Spain.
MADRID. Thursday. Aug. 15.
Premier Maura and Foreign
Minister Dato left Madrid
today for summer resorts, hav
learned officially of the reception
given by the German government t
the Spanish note on the torpedoing
of Spanish vessels.
fi Liberal savs the SDanlsh gov
ernment already knows unofficially
th imnression made on the German
government by the note. Accordjn
to El Sol. the note will be published
in full as soon as the Madrid cabinet
hears it has readied Berlin.
HAI.KM. OKK;o, kTI ICMAY MiiltMVJ, At GI ST
Looked Like Smith
and Almost Served
In Jail as a Result
A year ago Jesse Smith of Salem
deserted his wife and two small
children and left for parts unknown.
Three months later another child
was born. Yesterday Mr. Smith
saw a man who looked like her him.
band go Into a local theater. She
rushed to District Attorney Gehlhar'a
office and swore out a. warrant for
his arrest, chancing non-support.
Deputy Sheriff ltuwers wu called
and went with Mrs. Smith to the
thinter where the man was found.
"You are arrested for non-support.
said llowers as he huHtl.il the
captive out of the playhouse.
The man was indignant.
"ou have madf a uiixtake, he
said. "I lert my wife at Albany this
morning and she hasn't any rrason
to charge me with non-support."
"You are my husband." Mrs
Smith retorted.
"I am not." be denied hotly.
The argument was continued at
the of rite of Justice of the Peace
Webster..
"To prove you are my husband
I 11 have my father at the Soauld
Ing mill identify you." declared Mrs.
Smith.
An officer escorted the pair to the
mill.
'No. that man Isn't your husband"
replied Mr. Smith's father when his
daughter appealed to him for proof.
was Rush and that he lives at AI
ii ueveiopea mat tne man's name
bany.- He was turned loose.
MACHINE GUN
UNIT OPPOSED
IN HOME TOWN
-
Recruits, Aroused, March to
Governor's Residence and
Present Cause
WILLIAMS IS VISITED
Leaders Say Line Company
Promoters Want to Grab
Off Recruits
Opposition that has arisen In Sa
lem against the organization of a
machine gun company for the new
National guard regiment now being
formulated In the state, caused be
tween GO and r.0 men who have
been recruited for the machine gun
company to march to the residence
of Governor With) combe last night
where the situation was placed be,
fore him. The governor said he would
investigate today and find out if
there Is any reason why Salem should
not have th1 regiment's machine gun
company. The governor will com
municate with Adjjutant General
Williams.
An effort also is Wing made here
to organize a Hnc company for the
new National guard, and according
to the machine gun 'adherents, it Is
come of the promoters of the pro
posed line or Infantry company who
are trying to keen out the machine
gun company. The l-eanon for the
opposition Is said to ho a desire to
enlift the recruits who already. have
been procured for the machine gun
unit
Those fighting the latter are said
to be circulating a rumor that the
machine gun unit Is c rtaln to be
formed In Portland and that there
Is no chance for it to come Salem's
way,' hence that to sign for It is fu
tile. Captain !Roy Hewlett and
Lieutenant I R. M. Pierce of the
machine gun company's preliminary
organization conferred with Adjutant
General Williams In Portland yes
terday and were told by him that no
authority has been delegated for the
organization of a machine gun unit
In Portland. This authority has been
delegated to Salem, the local men
being first to apply. Already 57
men. the minimum number required,
have bn received. Adjutant Gen
eral Williams invited Hewlett and
Pierce to attend a meeting of the
general staff In Portlanl net week
when the subject will be threshed
out.
A report recently has been given
out here that those Joining the new
inrantry company will stand a good
chance to be sent to Siberia. The
machine gun supporters brand this
as "all bunk" and declare It Is an
effort to get the pick of the recruits.
World's Record Stepped,
by Four-Year Old Runner
SARATOGA SPRINGS. N Y.i Aug
1C. A new world's record for a mile
and three-sixteenths was established
br Cnmander .1. K. Ifc Ross' four-year-old
Cudgel In the fourth race
"the Schennectadv handicap" ther
this afternoon. Cudgel carried 131
pounds and covered the distance I
1:56 flat. The old record wasl:56-3-5.
established by Milton It. at La
tonia In 1913.
THK WKITHEIL
Probably fair, except showers near
the coast; moderate southwesterly
winds.
17." I win
DEPARTURE
OF ALIENS
RESTRICTED
Government Places Embargo
on Enemies and Will Re
quire Them to Secure Pass
ports After September 15
OPERATIONS OF ENEMY
AGENTS ARE CURTAILED
New Move Beliered Will
Block Spies Who Report
to Superiors Abroad
WASHINGTON. Aug. 16. FW
doru of departure from this rouatr)
of aliens by means of which a num
ber of dangerous enemy agents have
been able to e0ipe from the an
thorltiea will not be permitted after
September 15. under a proclamation
signed by President Wilson and an
executive order. The proclamation
and exeeutlv order puts Into effect
the alien control law passed hy con
gress last May.
I'nder the eiecutive order aliens
after S-ptembr 15 will be required
to obtain, permits before leaving the
United State and additional re
striction will be plactd on the en
try of aliens. Attempts to evade the
draft, through leaving the country,
which officials believe will Increase
with passare of the bill eitendlng
the draft age, will b rendered less
easy x
"Heretofore, American citizens
have been required to make applica
tions for passport In order to go
abroad and to explain to the satis
faction of the state department, the
necessity of their trips, while aliens I
v-T-n yri umiru iu n-i t.
iy vkimoui making applications lor
or explaining their trti, raid an ex
planatory statement Isaned by the
state department tonlitht. Tb nw
law now place aliens la this reepeet
on a basis similar to that of rlti
tens.
"It Is believed that many aliens
have been leaving the l'altd Statea
as German axents. carrying Informa
tion abroad for the use of the ene
my. The new law Is designed to pre
vent the departure of all such ene
mies of the Fulled Statea. There
have been numerous Instances of the
operations of such German-paid
agents and spies who have left the
country because there was no la
to prevent their departure.".
In this connection the state de
partment statement pointed oat the
freedom with which such perrons as
Robert Fay. organiser of German
bomb plot: Frana von Rlntelen. and
Fay'a assistant. Dr. Walter it
Scheele. have been able to escape
The new regulations, according io
th slat department statement will
operate as follows:
"Aliens desiring to leave the I nil
ed States will be required to maae
nbllratlon to the Immigration ln-
snector or United States db trlet at
torney nearest his last place of resi
dence. Aliens living east or tne
Mindiudppl shall make such applica
tion not less than fourteen daya nor
more than 2S day before the date
of the proposed sailing. Those liv-
lnr west of the Mississippi snail
make application not leas than It
days nor more than 2t days before
j date of sailing. Each alien must
so submit a passport Issued, rene
ed or vised within tea daya prior
the date of his application and must
bring with Mm aa witnesa aa Amerl
(Continued on page 2)
TANK STEAMER
U-BOAT yiCfITil
May Have Furnished Oil to
Submarine After Fuel Is
Exhausted
riPAiTniiT. N. C. Aug. 1C. A
large oil tank steamer Is afire about
25 miles oH Cap Halieraa. accora
inr to renorts broucht her tonljrht.
A submarine la lying close by. The
mrtubfis of the crew have been tak
en ofr by life guard. It la presum
ed the submarine is a German and
the tanker set on fire by shell fire.
WASHINGTON. Aug. 16. At the
navy department tonight it was said
"there Is nothing else to give out
regarding the attack on a large oil
tank Meamer by a German submar
ine off Cape llatteras. reported In
a dispatch from Ileaufort. N. C.
It Is generally believed that the
German U-boat, probably the same
one which recently destroyed the Di
amond Shoals ligrtshlp off Cape llat
teras. had run short of oil and had
attacked the oil tanker with the pari
pose of replenishing Its supply. Aft
er taking aboard the needed oil. It
was thought probable that the sub
marine bad shelled and set fire to
the tanker.
Salem Woman Is
Vice-President &
of War Mothers
INDIANAPOLIS. Ind.. Auk. 16.
Mrs. Alice M. French of Indianapo
lis, was elected national war mother
at the closing- aeaaioa of the conven
tion of the American War Mothers
Otbt-r officers inclade: Mrs. Km 111"
Hendricks. Kalciu. Ocflrsl ikr-vir
mother: Mr. Mary Huberts KJ De
hart. rittfthnriC. hirtortaa: directors
Mm. Knirrta V. W. St a ad rod. I'oea
lello. Ida.; Mrs. Cart is Joseph Lord
Can Jo. X. and Mrs. Grar Fable,
of Toi-ka. Kan.
CANADIANS AND
FRENCH STILL
MAKE ADVANCE
Between Goyencourt and Lau-
court Push Forward on
Three-Mile Front
GERMANY DEMANDS THAT
AUSTRIA SEND -TROOPS
Insists That From Ten to Fif
teen Dirisions Go to West
ern Theater
PATHS. Aug. 16. French and Ca-
nadlaa troops have made progress
araint the German over a front of
more than three tnllea Mrs Cy-
eneoart aad Laacourt. west of Hove.
according to the French official rfa-
mun (ration Irsaed this eveolag. The
I (ol lira LAfM. fll tnll Brtuf k lrt
Koj9 hxn h,u pointed deep.
by th t utCDte,
1XI0 Aag. IC The ItrlUsh
Thursday evening repaired a stroac
Germ&n counter a'tack at Daraery
and today la co-operation with the
French made substantial progrea la
the direction of Fresaoy-e-Roy aad
rranvirt. atmrhlag to th official
report from Field Marshal llalg's
headquarter in Frane i saved to-
nlrht.
it.m Ike A;t'4 rvaa
F.vbVatly It Is not la th plans of
th allia to leave the Gerneaaa
earm la their poessioa of th lia
between th HontQi aad th Otee.
Although the front from the south
of the Homme past Chaulnea through
Koye to Noyon has bee Mndded with
fresh reinfnrrrmeata and Inaamara
ble guns to keen back th allied
(Cob tinned oa pag C).
W. Al Jones in Critical
Condition at Father's Home
Th condition of V. Al Jones oae
of Marion rountt'a Republican nom
inees for the state senate, who for
aoveral weeka baa beea ill at the
hom of hi fath-r. T. II. Joaea. 41?
North rommcrrUl street, was ex
tremely critical last nlcht. Mr. Joaa
illaesa Is a recurrence of aa lilacs
with malarial feirr. He had ap:ar-
kently recoved when he aaffered a r
JapM.
ASK VERMONT GOVERNOR TO QUIT
Alleged Old Peculations When He Was State Acicr
Responsible for Demands
llCRUNGTON. VU Aug. 16.
Governor Horace Graham today was
asked to resign his office, la resolu
tions adopted by the Republican
state committee at a special execu
tive session. This week dicrep-
anries amounting to $:. tr
vld to have been found la the ac
counts of the governor when he was
stat auditor.
BILLION DOLLAR
Director General McAdoo Finds Ante Most Be Hit Up
Now To Meet Demands for
WASHINGTON. Aug. 16. The so-
called billion dollar budget a proved
early this year by Director Genera)
McAdoo for railroad Improvement
and equipment haa proven lasuffl
cient to meet war neda. and It aa
b-ea ncreas-d to t l.".2.0o. o
1 156.009.000 more than th or1tlna
aggregate of budgeta of all federal!
eootrotk-d road. This was die!o
today la dealled report f capital ex
penditures authorised to date.
Most of th tnreas waa mad nec
essary by the growing need for ears
and locoraotlvea. Originally IS6.
000.000 waa authorised for purrhaa
of new rolling stock, but this haa
been raised t 655,6S6.000 by hug
10 EXPEL
GEB '
INVADER
GoTennnent of Northern Rci
sia Formed Issues Stress
Platform of Democracy and
' Demands Re-Creallsn cf
Russian Army
RENEWAL OF WAR ON
EAST FRONT DEMANDED
Co-cperation and Aid Pledg
ed to Entente Connected
Story of AdTance Tells cf
Assistance Chen by Amer
icans LONDON. Anz. 11 (Brtlkli
Wireless Eerric) Tit fOTers.
meat of Northern Essxta Lu beea
formed with M. Tchsikorsky, u
preside nt aad midster of fcrel-a
if sirs. Th other , ambers cf
the rorer&aBt inclad sodxl
Uts of rixkrcj parties.
Tber pdSical protTsa cf ths
new forei Timer!, which hi jzrt
been ixraed, ecctiits th fellow,
lug cliutes:
First The recreation of Kct
atari democratic power; seeoad,
the reeaUbliab merit f lotsl for
eminent oa a basia of cairerttl
suffrage; third, the reerestioa cf
the KosaUa national arraj tad a
renewal of the war on the cut
era front; fottrth, the expaliioa
of the German invaders aad other
enemies of Rut la, to b earned
oat with the aid of, aad la eo-cjv
eratioa with the rateate allies,'
HARRIS. Monday. Af. ll-fEy
Th Associated Preas) Oa tioa
saad Csecha oa their way to c!
Central RmlBoff arrived her today
aad were give aa eathaalarUa rw
reptloa la which th allied eossala
aad member of th Amrteaa rail
way rommlaaioa took part.
WASHINGTON. Aug. 11. Tk
Bulgarian aad Tarktia mlfilsUra t
Russia hate arrived la llertia fre
Moaow. areordlag to aa official .
patch from Fraae today. Qatics
th Maairh Near Machrlctca. tea
dispatch says th Germans ar grU
ly diaappolated at aot being ahl t
dVpead apo th Bolahrvikl rat.
AH3TF.RDAM. Aug. II. -TU firs
(CoaUnaed oa paga ).
Made bj State Cozznittee
Governor Graham was ! a cited t
th meeting, hut did not attend. I
a public stateaaeat Governor Cra
ham admitted that k waa al faait
la handling hla salary aad amcUi
exp,w. but said h was aot avara
asked th peopl of th Stat to suft
aked the peol of th Stat to ts
pead Jadgmeat pending aa &aata
atioa of hla ccoaata,
BUDGET TOO LOW
Railroad Improvement Needs
trdera placed by th railroad aflmla-
Ut ration.
For addition aad betterment. In
cluding new yarda aad Industry
tracks, termiaal fariL'Uea. static a
nd bridge, th budgets of th first
rlaa roads provided originally for
SU3.000.000. This taa beea pared
down to 1101.000.000. efcargcaMa t
capital aeouata. but additional work
muag 1 105.000.000 haa ba aath
orlsed to he charged to operation ex
pens. Th S20.009.OOt approved
early this year, for extentloa aa
braat-h tracks Baa beea raised t
SSS.001.000.
(Ca tinned oa yago 2)