BREAK WITH KAISER;
PASSPORTS GIVEN
Wilson Severs Diplomatic Re
lations on U-Boat Mandate.
GERARD IS ORDERED HOME
President Addresses Congress in Joint
Session Break With Austria Ex
pected Bcrnstroff Gets Papers.
Washington, D. C Diplomatic re
lations with Germany have been
broken. Count von Bcrnstflrff has
been handed his passports and Ambas
sador Gerard has been ordered from
Berlin.
President Wilson addressed a joint
session of congress at 2 o'clock Satur
day afternoon.
In spite of the fact that this became
known definitely, officials at the White
House and the State department would
not discuss the situation in any form.
The President completed his message
to congress early Saturday morning,
and arrangements for his appearance
were immediately made.
Whether the break with Germany
would be accompanied by a similar
break with Austria-Hungary, could not
be learned definitely.
Inasmuch as Austria is understood
to have indorsed the action of Ger
many, however, this action is expected
to follow, if it has not already been
taken.
The State department notified Am
bassador Gerard to ask for his pass
ports. The decision to break relations was
reached after the President's confer
ences with the cabinet and members of
the senate Friday. The President, by
those conferences, came to the con
clusion that the country would stand
solidly behind him in breaking off
diplomatic relations with Germany.
Belgian Relief Ship First
to Sink in New Campaign
London Official information re
ceived concerning the sinking of the
steamer Euphrates shows that the
probable first victim of the new sub
marine policy of the central powers
was a Belgian relief ship.
The Euphrates had carried a cargo
of relief supplies from the United
States and was homeward bound in
ballast when she was torpedoed. Sev
eral members of the crew have been
rescued and have reached an outlying
port.
In connection with the sinking of the
Euphrates, it is pointed out that all re
lief ships, even when homeward bound,
conspicuously display the flags of the
Commission for Relief in Belgium and
carry balls at the mastheads, the latter
to prevent aerial attacks.
They also carry the safe conduct of
the German consul general at Rotter
dam just as loaded vessels carry a safe
conduct from the German consul gen
eral at New York.
The sinking of the Belgian steamer
Euphrates, of 2809 ton3 gross, was an
nounced by Lloyd's Shipping Agency
February 1.
New York The steamship Euphra
tes was under charter to the Belgian
Relief commission and would have
taken another cargo from New York
to Rotterdam had she returned safely
to America, it was said by representa
tives of the commission here Friday.
She carried a crew of between 25
and 30 men, none of whom was an
American, bo far as is known.
Five Killed In Train Wreck.
Omaha Five persons are known to
have been killed and several injured
when Chicago, Burlington & Quincy
train No. 12 was wrecked near Crom
well Station, Iowa, at 10 o'cock Fri
day night. The train struck a broken
rail and five Pullmans were thrown
down a 40-foot embankment into the
ditch. The engine, the tender and the
observaton car left the track but were
not ditched. The injured were taken
to Creston.
Ship Ordered to Stay in Port,
Washington, D. C At tho conclus
ion of the cabinet meeting Friday Sec
retary Lansing said it was his opinion
it would be better if the American
liner St. Louis did not sail from New
York Saturday, or until tho issue had
been decided, and that he probably
would bo advise the International Mer
cantile Marine.
LEAK PROBE HITS HOT TRAIL
Informant Had Excellent Resume of
President's Peace Note.
New York From the files of n Wnll
street brokerage house congressional
inquisitors Wednesday brought to light
private and confidential telegrams re
garded in some quarters as definitely
indicating that there was n "leak" on
President Wilson's recent peace note.
The most sensational telegram, con
taining a brief but remarkably accur
ate forecast of tho contents of the
note, was sent by E. F. Hutton & Co.,
one of tho largest brokerage houses in
the street, over ita private wires to
scores of other brokers with whom it
did business throughout tho country on
the afternoon of December 20, more
than three hours before tho first copies
of tho note were handed to newspaper
men by Secretary Lansing.
At tho time the Hutton messago was
sent, according to tho testimony of
Secretary Lansing before tho commit
tee in Washington, no one in this
country save persons connected with
the preparation and dispatch of tho
noto had as much information regard
ing ita contents ns the message re
vealed. Tho note previously had been sent
abroad in code. Publication of tho
note followed transmission of tho Hut
ton message to various brokers by
moro than 10 hours.
Information on which tho message
to brokers was based, Edward F. Hut
ton, head of the firm, testified, came
in another message, now missing,
from F. A. Connelly, of F. A. Connelly
& Co., a Washintgon brokerage house,
in which R. W. Boiling, a brother-in-law
of President Wilson, is a partner.
Hutton testified that his understand
ing was that Connelly's information
retarding the noto was based on gen
eral rumor. Indicative that other
brokerage concerns were in possession
of similar information, Hutton said,
was another messago he produced
which Clement. Curtis & Co., of Chi
cago, sent his house prior to Connel
ly's first message referring to a state
ment to be issued by the State depart
ment "intended to promote peace pros'
pectn. This message contained no
details.
Certain members of the committee,
however, privately expressed convic
tion that the person who originally
supplied the information on which
Connelly's missing messago was based
either had read the President's note or
obtained an excellent resume of it.
Relentless War on Sea is
Forecast; Warning to Come
Washington, D. C. Information has
reached here that Germany and her al
lies are considering communicating to
the State department a virtual warn
ing that Americans should keep off of
armed merchant ships of belligerent
nations. This became known Wednes
day following the intimation in official
circles quite recently that the United
States might issue soon a new memo
randum setting forth its attitude to
ward armed merchantmen.
It is not known just when or in
what mannner the warning may be
conveyed, but Germany apparently has
! been paving the way for such a step
several weeks past by submitting to
the State department a series of state
ments alleging specific instances in
which merchant craft of the entente
powers have used offensively against
submarines gunB carried ostensibly for
defense.
280 Lost When Ship is Sunk.
London About 260 were lost in the
sinkingjof the auxiliary cruiser Laur
entic, many of them having been
killed by the explosion of the mine
which sent the former White Star
liner to the bottom last Thursday, says
a dispatch from Belfast. The admi
ralty announces officially that a mine
and not a torpedo sunk tho Laurentic.
The dispatch says tho Laurentic
struck the mine off the North coast of
Ireland and sank in about 10 minutes.
A big hole waB blown in the aide of
the ship.
Russia Curbs Luxuries.
Washington, D. C Russia has add
ed many articles to her list of com
modities excluded by her on the ground
of not being necessities. The new list
of articles has reached tho department
of Commerce and among them are
most kinds of vehicles except those for
railed tracks, precious metals, jewelry,
wall paper and decorations and table
delicacies. Already there iB n general
restriction on importB except by spe
cial permit to RusBia ports.
Mercury is at Extremes.
Washington, D. C. A phenomenon
unusual in weather bureau recorda re
sulted Wednesday in a disparity of
moro than 100 degrees between read
ings in the southwest and tho north
west of tho United States. In some
parts of TexaB the mercury stood at 86
above, while near the Canadian Inie of
the Rockies it was 20 below.
Doings of State Legislators
"Bone-Dry" Prohibition Law
Passes House by 53 to 7
Salem Callnn, Kubli, Lewis, Mnc
kny, Schlmpir, Stott and Willett
these nro tho names of tho only mem
bers who voted against the bone-dry
prohibition bill Monday.
Tho bill wont through tho house late
in the afternoon after a four-hour
siego of oratory, by n voto of 53 to 7.
As soon as tho vote hud been taken
members of the house were served
with individual half-pint bottles of
loganberry juice, nnd tho entire assem
bly rested while the bottles were
drained.
Tho bill, as passed, merely carries
into effect tho constitutional amend
ment adopted by the people at tho No
vember election prohibiting the impor
tation of alcoholic liquors for beverage
purposes. It also remedies tho exist
ing prohibition laws so that it will be
impossible to buy pure grain alcohol
excepting on prescription of a physi
cian or permit of n district nttornoy
Inasmuch as tho mensuro carries an
emergency clause it will become a law
as soon as it is signed by tho governor
probably before tho end of tho week.
Five daya aro allowed, however,
after the governor signs tho bill, for
tho express companies to deliver goods
already ordered or in transit.
Grange and Labor Merge Support
for Modified Consolidation Bills
Salem Representatives of tho State
federation of labor, the State grange
and the Farmers' union, following a
long conference the first of tho week,
issued a statement indicating their
' combined attitudes on questions of leg-
i islation pending or proposed.
I They suggest a form of consolida
tion for the offices relating to labor,
modified from that suggested by the
consolidation committee; declare in
favor of state aid in marketing prob-
lems and outline their position on var-
j ious other phases of the legislative sit-
' uation.
"We. tho organized farmers and la-
borers of Oregon, are unanimously ask
ing your support of the following,
they say in n btatement addressed to
the various members of tho legislature.
Free Textbooks Rejected.
Salem Freo text books in public
schools were voted down by tho houso
at noon Tuesday, 38 opposing tho
measure, 22 favoring it and 1 absent.
The measure had been looked ujn
with suspicion since its introduction,
and when it went to the committee it
was badly revamped before it saw the
light again. The section providing
that text books could bo secured free
by other than public schools was but
one feature eliminated before tho bat
tle on tho floor was Btaged. Represen
tative Tichenor made a warm defense
of his bill, claiming that it was a bill
for the benefit of "the poor kids."
Limit Put on Commission.
Salem Representative Burdick has
introduced a bill in the house provid
ing a complete code of procedure for
the operation of a county government.
It defineB thu duties of county commis
sioners, who aro empowered to esti
mate the amount of money to lie raised
for county purposes and to make levies
in specified sumH. Tho county court is
restricted under this bill from under
taking the erection of any courthouse
or other public buildings costing more
than $5000 without the approval of a
majority of the voters.
Apprentice Limit Attacked.
Salem Representative Callan Iibb
introduced a bill in the houso intended
to make it unlawful to restrict the
number of fiersonB learning a trade in
any given profession. Labor unionists
on the ground aro opposing the meas
ure already. They Bay that it will
prevent them from enforcing their con
tracts with employers which fix tho
ratio of apprentices to skilled mechan
ics employed in various industrieB oper
ating under closed-shop agreements.
Four Appropriations Submitted.
Salem --Four appropriation kills
came into tho houso tho first of the
week from tho ways and means com
mittee, but did not get onto tho calen
dar, as tho houBO already had paBsed
that order of business. They provide
appropriations an follows: Oregon
National guard, $155,000; Naval mil
itia, $15,000; Insane hospital, $056,
936; Tuberculosa hospital, $75,562.
60; total, $902,498.00.
Labor Against Prison Plan.
Salern Organized labor will oppose
tho recommendation mado in the re
port of the Prison survey commission
that tho law prohibiting tho ealo of
convict-made goods on tho open market
ko repealed. Labor is strong ugainst
such a proposal, but have counter pro
posal of their own, which, they be
lieve, will solve tho problem of idleness
at the penitentiary.
Must Cut $1,630,116 Excess to
Keep Within 6-por-Cent Limit
Salem Up to date tho legislature
has ;i,ti:i0,12t. l5 to cut from the bud
get anil appropriations asked for, If It
keeps within tho fl-pcr-cent limitation
amedment. This Is according to fig
ures preparetl by John Schroodor, chief
clerk of tho ways and means commit
tee. Appropriation bills, howover, eon
tlnuo to come in and it Ih expected
that this will go well beyond the $2,
000,000 mark boforo long. It ineaim
that the joint wuyn and means commit
tee has u husky job ahead of it if it
keeps pared down to the provisions of
tho amendment.
Tho total reduction which so far has
been made by tho committee Is $215,-
091.10. At tho beginning of the ses
sion there was an oxccsh in tho budget
over what is allowed by tho amend
ment of $715.:t82.00. Tho cut of
$215,001. 10 made from tho budget re
quests, with not quite ono-half of the
budget yet considered, reduced tho
original excess figure to $500,200.00.
Tho $500,200.00. if cut from tho re-
quests of tho budget, will bring the
committee exactly even with the 0-Hjr-cent
amendment, without taking
into consideration any other nppropri
ations whatsoever.
But on top of that amount thu ag
grvgnto of appropriations which has
been nsked in tho numerous bills car
rying appropriations so far introduced
is now $1,120,8:15.70.
LEGISLATIVE NOTES.
Tho senate has become so tender
hearted that it rarely kills a bill. In-
I eluding nine that went through Thurs
J day, it has passed 81 measures this
session and has killed by indefinite
; xstponement only 17.
j Representative Sheldon has Intro
' duced a bill in tho Iiouho providing a
system of search and seizure of auto
I mobiles and trucks running across the
state line from California into Oregon
nnd suspected of carrying prohibited
liquor.
AfTairs of tho State fair boanl may
undergo reorganization us a result of
thu house passing a bill reducing the
salary of A. II. Lea, the board's secre
tary, from $11000 a year to $2000, and
requiring that tho accounts of his
office be audited by thu secrtary of
state.
A bill to regulate jltnoyB operating
on public highways is introduced in thu
houso by Representative Laurgaard.
It places the jitneys under control of
the Public Service commission and
fixes a license fee of $15 a year. A
cash dexisit of $50 iB required as evi
dence of good faith.
The joint ways and means commit
tee was saved $8-1-10 by the discovery
of a clerical error in tho budget. Tho
discovery was made when the chief
clerk was checking over some figures.
As a result it bringH the excess of tho
original budget over tho 6 per cent
limitation amendment down to $700,
01 2. 00.
Tho commercial fishermen of Ya
quina Bay have forwarded to Joint
Representative Fuller, of Polk anil
Lincoln counties, a petition to amend
the fishing law governing Yaquinn May
to close it to salmon fishing during thu
open season from 0 p. m. Saturday
evening to 6 p. m. Sunday evening of
each week.
No bill deniyng to Jnpaneso, Chincso
or other Orientals thu right to own
land in Oregon will be passed by the
present legislature. A drastic anti
alien land kill, aimed especially at the
Japanese, but including also Chinesu
and Hindus, was introduced in tho sen
ate early in the session. This measure
was referred to the senate committee
on judiciary, and there it has been re
jKising over Hince.
It will not longer bo necessary for a
resilient of Portland or any other city
of Oregon to own property in order to
voto at Hchool elections, if the sonato
concurs in tho action of the house in
passing Representative Sheldon's bill
by an overwhelming voto. Tho Shel
don bill, however, gocB only purl way
in removing tho property question
qualification!! for voters at school, elec
tions. It will permit any rogiBtered
citizen to vote for school director, but
not on questions of issuing bonds.
What iB known an tho Statu Land
Board's rural credits bill will bo re
ported out of tho senato committee
soon, where it has been reposing for
several dayH, but whether it will come
out with mlnoriy roportB attached re
mains to ko Been. Shankn and Bar
rett, both members of tho agriculture
committee, havo rural credits bills be
fore the committee in nddition to tho
land hoard kill, and both wish to nee
features of their own kills incorporated
in the measure which finally ia pro
posed. One dcsireH apprniserM ap
pointed, while tho othor wIbIich to nee
title examiners placed in tho attornoy
general'B office
U-BOAT WARFARE
IS UNRESTRICTED
All Hopes of Peace Are Blasted
When Kaiser Sends Note.
STARVATION OF ENGLAND PLAN
Washington Ih Stnggiml by Dec Won
to Uite Every Weapon Against
Alllcn--Stiper-Crll Comm.
Washington, I). C Germany has
declared unrestricted suhmarlnu war
fare. A starvation blockade of England,
the like of which thu world has never
seen, wnH announced to tho world
Wednesday In notes delivered to Amer
ican Ambassador Gerard in Berlin and
to tlit! State department hero by Count
von llernBtorir.
Thus begins tho long-feared cam
paign of ruthlessnesK, conceived by
Von Hlnilenburg, it Is mild here, on n
mugnituilu never oven contemplated by
Von Tlrpltz.
Again the United States faces sever
ance of diplomatic relations with Ger
many with all its eventual osslhlll
ties. President Wilson's repeated
wnrnlngH of "a-world-allru" and Sec
retary Lansing's " vurgo-of-war"
statement are being recalled in tho
capital with feelings of apprehension
anil misgiving.
Germany's action is super-crisis of
all those that havo stirred the Ameri
can government in two and u half
years of world war.
Talk of peace In Kuropo and of
means of preserving the peace of tho
wurld has gone glimmering. President
Wilson, incredulous at first when thu
unofficial text of Germany's warning
was brought to him, at once called for
the official document, which had just
been presented to Secretary Lansing
by tho German ambassador. Mr. Lan
sing absolutely refused to comment.
President Wilson began immediately a
careful study of thu document.
Thu President has tho task of decid
ing what shall be thu course of the
United States. Three immediate
steps appear among the possibilities.
Tho United StatcH might solemnly
warn Germany against a violation of
her pledges; it might Ihj decided that
the German warning is sufficient no
tice of an intention to disregard those
pledges and n ttulllcient warrant for
breaking olf diplomatic relations; it
might be decided to await thu rusultH
of thu blockade and dulermlne the
course of the United States as the ac
tual operations develop.
On almost every side Gurmany'a
drastic action is Intorrpri'ted as an
open confession of the effectiveness of
the British food blockade. It Ih re
garded as a determination to strike
back in kind.
German olllclnlit in the United
States estimatu thu food supply on the
British Isles will last a month.
Admittedly, the plan is to carry
Btravation to the door of Knglaud with
swift, staggering slrokcH, as a fulfill
ment of Germany's announced deter
mination to usu every weapon and
agency at her command to end thu war
quickly. She counts on thu operation!)
of an unheard-of number of submarincH
to deliver blows to bring Knglnnd to
her knees within 00 dayH. Onu Ger
man official here predicted the war
would Ihj over in a month.
Plot to Kill Lloyd George and
Others Laid to English Women
Derby, ling. Four persona were ar
raigned in tho Police court at thu
Derby Guildhall Thursday, charged
with plotting tho murder of Premier
Lloyd-George and Arthur Henderson,
thu premier's right-hand-man in thu
war council.
Tho accused persons Indlgnatly de
nied thu charges, declaring they had
been trumpted up uh punishment for
their conBcientiouH objectionH to com
pulHory service.
ProceedingH at tho Guildhall, ovor
which tho mayor presided, wore merely
of a formal nature. No details of thu
charges or evidence were divulged, al
though gossip has been busy with ru
mors of various dctailB si ucu thu news
of tho arrest was received.
Britain to Koop Colonies,
London Tho colonioB captured from
Germany during tho war will never bo
returned, said Walter Hume Long, hoc
retury of stato for the colonioB, spook
ing uh a representative of the OversciiH
DominionB, in an address Thursday.
"Wo acquired possession of different
German colonies in various parts of
the world as a consequence of this
war," he said. "Let no man think
thcBO territories will cvor return to
German rule."