FORECAST
Tonight mid Tomorrow
FA lit.
Fortv-alxth Year.
Pldlv Kh-VMlth Year.
BLUE LEDGE
Judge Hamilton at Roseburg Over
ly1 rules Demurrer to Injunction Re
straining City, Southern Oregon
Traction Company and S. S- Bullls
4, From Entering Into Contract for
Sale of $300,000 Bonds to Build
Blue Ledge Railroad.
In a decision rendered Tuesday at
. rtoseburg, Circuit Judge J. H. Hamil
ton lias overruled the demurrer filed
by the city and other defendants in
the Injunction proceedings filed by
Charles H. Colby and other taxpayers
of Medford against the city council,
the Southern Oregon Traction com
pany and S. S. Ilullls, to prevent the
city from entering Into the promised
contract for the sale of $i!00,000 of
Itlue Ledge railroad bonds.
Tho decision sustains and perpetu
ates the injunction, Is sweeping In
ils scope, rendering It practically
useless for the city to undertake to
proceed further in the matter as the
court holds that the contract entered
into between the city and the South
' ern Oregon Traction company is not
the contract authorized by the voters,
but one entirely different, and not
binding the company to build any
stated amount of roadr or in any
manner following out the intention
of the voters.
Conspiracy Clinrftes.
The court also holds that the as
sumption of the J57.000 mortgage
upon tho Rogue River Valley rail
road by the city Was not authorized
'by tho charter amendment. Suffic
ient evidence of conspiracy and fraud
Is declared existing to invalidate pro
ceedings through the agreement de
clared In the complaint existing be
tween tho city and Mr. Bullis, where
by the transaction is merely a loan
of credit by the city to the traction
company.
Tho demurrer was argued before
Judge Hamilton at Roseburg by At
torney F. J. Newman, on behalf of
plaintiff, the city being represented
on the demurrer by City Attorney
McCahe, Judge Crewes, C. M. Thomas
and Ous Newbury also appearing on
the demurrer.
IK'cision As Itendered.
The decision In full is as follows:
In the Circuit court of the State of
Oregon, for Jackson county.
Chas. D. Colby, plaintiff, vs. City of
Medford et al., defendants.
Opinion.
The plaintiff alleges that at all
of the times stated in his complaint
he was a voter, taxpayer and citizen
of the City of Medford and It ap
pears from his statements that there
has been submitted to the voters o!
said city tbe question of amending
the charter of Medford so as to en
able the city council tor and In behalf
of said city to build, equip, acquire,
lease, own and operate railways
Running from a point within the City
of Medford to other towns, cities and
points without the' boundaries of
cald city and to create a railway
construction, maintenance and re
demption fund; and to authorize a
mlllage tax to provide the same; to
authorize the" Issuance of general ob
ligation bonds not to exceed JSUfl.
"00 In aditlon to the warrants and
honds authorized In section 72 and
"2a of said charter.
Situation Reviewed.
The ballot title of such proposed
nmendment reads as follows: "An
Act to Anir.d the Charter of the City
of Medford by adding thereto section
IS!), authorizing and empowering the
council to borrow $300,000 to build,
equip and operate railways within
or without the city, and to that end
(Continued on Page Six.)
PARIS, .Jan. 12. The Zeppelin
alarm which was Bounded here last
nlulit, was, ai it turned out, due not
to Zeppelins !iut to airships. As soon
ns the warnin? was received the city
was plunged Into darkness and the
street ears slopped. There was lit
tle excitement.
ROAD BONDS
111
f.MEDFORD
-. r-
UMMUHUPt
OF EARLY PEACE
Officials View Situation With In
creasing Soberness Entente State
Terms, Refuse Conference, While
Central Powers Refuse Terms,
Consent to Conference.
WASHINGTON, Jan. I 2 Presi
dent Wilson today began a careful
examination of Hie entente's reply to
his peace note, to detennine v.lir.t
opportunity it presents for a I'tiithcr
move on his part and la what way
one may be accomplished. The en
tente note was discussed nt the res
ular meeting of the cabinet and pri
vately between tho president :ind Sec
retary Lansing.
All quarters agreed that wiiil! the
entente had made a conipio'e rc.ily
to the president's requeU for a state
ment of terms, the note seemed to
offer no hope for nn early end of the
war but, fortunately, still did not
close the door on further efforts o!i
the president's part.
Possible Answers.
Several sources of action lie before
the president. Among them is an
other move to ask Germany to state
specific terms, as the allies have
done. Diplomats say that with re
plies from both sets of belligerents
in hand it would be legitimate to
communicate tbe answeiof one set
to the other.
Tile licrnuiu diplomats here were
outspoken in their denunciation of
the allied nolo and their declarations
I hat such terms never would bo ac
cepted. Admittedly the note was more se
vere, than even they had been led
to expect and they declared the Ger
manic allies were, prepared to fight
on.
Vtmost llcliherulion.
Tbe next steps by the I'nited States
will be chosen by the utmost delib
eration and because of the delicate
stage which the negotiations are cer
tain to enter from this time It would
lno surprise if they were conduct
ed entirely in secret, without publi
cation of the exchanges until some
definite point has been reached.
President Wilson discussed both
the entente and German notes with
Colonel K. M. House, who arrived
here last night. Colonel House had
engagements with a number of gov
ernment officials and planned to re
turn to New York late today.
It was stated officially that wheth
er the entente reply will be forward
ed to the central powers and the lat
ter's reply forwarded to the entente
had not been derided pending a care
ful examination of the w'hole situa
tion. Situnllnli Clarified.
Ilrieliy, officials feel that tbe al
lies have staled terms while refus
ing a conference, whereas tbe Ger
mans have suggested a conference
without stating their terms. Now--theless,
It is felt that tbe Intern:, I.Win
al situation has been decidedly -l:.r-lfied.
Official; o' viously view the future
with increasing soberness. President
Wilson's original statement In ta
note that neutrality was becoming
Intolerable and Secretary I.ariiK's
statement the fnited Slates was be
ing drawn to the verse of war were
recalled in view of 'he probabilit"
that host'ittics are likely to coiiiinue.
.mb:i-..ror Hernstorff's r.dierat
,,1 assui: . that Germany !! T.t
violate vt : '" -marine pledges to Ibis
country Is held not incompatlW wi'h
activities that i li! not be tom ated
bvtlils country b'lt might be eor.dmi
ed on the basi ' that there If such a
divergence of view as to tbe inter
national law invo -e l.
COLDEST WEATHER
AT
XKW VOWK. -Ian. 1'-'. --Sew Yurk
laceil il- e.ihle-t day i.f the winter
Imlny. iie'iiidini: t weather bureau
reei.rd-. At ") a. m. the temperature
stood lit 7 decrees above zero, mid
eobl weather wn M-nlieted tor !
nid.t. A niiv. -toiin and unu-aallv e..l.!
wealliernt -c a were refilled liy .a---i'!;er
and tramp -teanier- wliieh ar
rived today. Tin' veeU H'aebed
pott coated with ice.
MKDKOHD;
FIRST PICTURE OF DEPORTATION OF BELGIANS
'tVi'KsS i tTi, i,sV
rszu it.
This iM'l!U'( c'luivo to the M;il TrihiiiU'. is v tirsl in roach lln
wcrp, Hi'liitin, pri'iuuatoiy to (Icpni'tntiini into (iennany, when thev arc
sliov:i iinilcr (ieiinan htilitary yuaid. It i ,thi ilcportalion aizainst wliicli
PKTItOdllAI). Jan. 12. In the!
OUuz valley on the Northern Unman-1
inn front, tiic Kusians have boon ;
l)rosKed hack farther hy tho Teutonic,
forces, the wnr ofi'h'o nnnouncos. In 1
the region near the Kasino river the ,
Unmanlans took tho offensive and j
drove, hack their opponents more
nan one mile. ' j
IltOltl.lX, .Ian. 12. The Ituman
ian town of Luhurtca was capture;!
yesterday hy the invadins Teutonic
troops, the war office announces. The
ltusslans were driven hack toward
tho Seretli between Mraila and tial
ntz. There1 appears from today's Her
man headquarters statement to have
been a renewal of heavy fighting on :
the Somnie front north of the Ancre. '
Two attacks by the Hritirdi are re- j
ported, neither of which resulted in j
a net iialn for them, although near!
Ilaucourt initial successes were won.
On tbe northern end of the Itus-
sian front, the battle is increasing in j
intensity and scope. The Russians '
have been attacking both alon the j
Dvina and in the Ittea recion and
south of Dvinsk.
IlKlil.l.V, .Ian. 12. llcnvy rif.lit
inc, wlifch increasod in violence yos
iprdav. is in nrotiross on the northern
end of the llimsliiii front, both along !
the Dvina and south of Dvinsk. The
HusKians attaclied alons the Vilna
Dvinsk railroad, but were repulsed
with heavy looses, army tieadfpiartera
annonneed today.
I'.KIi'I.IN". .Ian. !'!. It i- announced
that the Truman bud-jet for 1D17 to
be presented to parliament will pro
idc lor a eon-idcrable in-rea-e in
rci-cipts. say- an Overseas News a.-j
onev statement today. j
t ,i ,.;,,i ,.- ii. r-.it.
, , , ,t , I
way service, it is pointed out that!
railroad I rat fie iM-ncrully i- eejtial 1o
that of peace times and fici'.dit traf
fic even better than normal, the in
come from the-o -otirce- of revenue
bciny -iillicicnt. it i- said, to meet
credit .demands ami leave a balance
for loans.
SECRETARY OF STATE
WASHINGTON. Jan. 12. William
I'hillfps of Massachusetts, third as -
siftaiit secretary of state, was iiomi-
nated by President Wilson as assist -
ant secretary of Mate to succeed John
K. Osborne, who recently resigned.
Breckinridge hong, a St. honls
lawyer, was nominated as third assis
tant secretaiy of Mate.
YORK PHILLIPS ASSISTANT
I
aAIL TR
OlMKiOX. l'MMDAY, .lANl'AKV 12. 1917
. '.crwuAu. 'Mil:- T
I'.KIil.lN, Jan. l.-A l'.ritih
eruieii nl' Ihc Juno tie. ."ilitMI-ttm
vc.-td, has been destroyed hy Turkt-h
.nn fire, it aniioiiuccd in the Turl;
ish hcathiunrtcrs ttepoil ((f .Ian. 11.
IIKIM.IN'. .Jiiu. The loss nl (idO
lives hy llie desl njcl inn of an Italian
battleship is reported by tlie Auzeiier
of I'asel, Su ilzcrlnnd, according to
Ihc Uver.M-as Xcwm agency.
"The Anzci.uci' of Itasel reports
Iroui Uottic the destruction of the
Itulian battle-hip K'eina Mat-:lnrita,"
says the news agency. ''It i-. con
t'irmcd that she ua- nnk off Avloiia.
Albania, by a mine .or a torpedo. Six
hundred out of Kit) sailor- perished."
F!
LOAN A SUCCESS
VIKN'NA. -Ian. Inromplclc r-
turn- from (he firth Austrian wai
loan show -1,-1 1-J.4HMI.IHKI crowns -ub-seribcil
with appnfxiinalely .'tHi.Odd,
tuni already siib-ciibcd, but still out
standing. The loan is lints the laru-e-l
yet rai-cd in AiMrin.
Tbe lir-t levy was L'.J 1 7.0lK).ii00
croons, the second J,(iSH.:'J(),(MiO, ihc
third I.JtiJ.tWlb.dliu, the fourth 4.-"J0,-:;ilO,(MHI.
The new loan makes the to
tal raised lor war by Austria about
1H.-Ill0.tnil) erown-.
The Hungarian returns arc si jn-
i ipfetc. but show about half ofl
what Au-fria ha- iai--i d. This smn, j
the Austrian and Hungarian loans,;
make- ihc -uin rai-cd by Ihc dual i
monarchy for wju purpn-es o' JH,-j
Hllll.ltlMl.lltHI i-rouu-.
WASHINGTON. .I,,,,. 1J. l,esi-
i n
dent Wd-oii todav recognized I he
braciv of two liarbuda citizen ulien
111- -nil in fjii'll il ti piiiiiii "Mills
suitably in-cribed, as a reu a rt for
l4. rr rc-etie of tin- erew of the wreck
ed American sr-h'iulcr KaiilteSd. The
men, Henry Hani-- and Frederick
.lelfivy. look from Ihc Fairfield Cap
tain M. i. I tow and hi- crew of seven
when the e--cl went on the lock- off
the -luiid oT liarhmhi; Wc-I Indies,
Novcniher 17, l!il"i.
The two men -warn lo the wrei'k
with n line alter every loat on the
i-land had linen up the attempt to
re-cue the crew.
' ARNOLD DALY TO RECOVER
! FROM RECENT OPERATION
j
j NKW Yui.'l, Jan, 1 -Arnold
I tidy ha- -o imp) '.
announced )d; . 1 1
are complicat i"p- t la
d. In- ph;. -iciai
at tilde-- then
pat lent v ill re
opci a led on rc-
Mr. Oil
cntiv.
:v- - i,
coiiiitry, shitwiiiu Itclians Ikmiju atlif'tvil in the piihlic -,ti;irc at Ani
ent tti work in (Ii-nnaii licli!.- anil I'Mc-turics. Tiic llclians, at Icli, aro
a stoini nt' pintot lias arisen.
FROM
IN II
WEEKS'
1'1I!LAI)KI.1IIIA, Jan. V.- Harry
K. Thaw-, wlio slashed bis throal with
a razor and cut an art civ in his wrist
in an attempt to ciemnit suicide here
yesterday, will he able to leave the
hospital within two weeks, uulc-s lie
also swallowed poison tabids, av
cordiim U .,sliitemeuls ol liis ph si-,
cian curly' today. Seeial poison
tablets which piodm-c a slow deallt
were found in his pockets, and if he
took any of I hem il may be twenty
four hour.- before the symptoms man
ifest themselves, ihc doctors -ay.
U'clalivcs arc on smird at Thau'-bed.-idc
and a warrant lor hi- nrrc-l
is ready to he served the moment he
U considered out of danger. A--i-t-ant
District Attorney lUack of New
York was expected hen1 today to
make a rranyenieiit s to hac him
taken to New York as soon as pos
sible. I'aiicnt l inler (iuanl.
Thaw's allcmpt at scl f-de-l ruction
wa- the (dimax to a search for him
which beau hen' on Tuc-day. Me U
wanted by the New Yolk authorities
on charges of kidnaping and a-sault-ii.Lr
Frcdciick (lump. Jr., Ihc l!)-ycar-old
Kan-as City hiuli -chool youth.
The patient, under iiiinrd of two de
tectives and a tiiir-c, spent a uood
ni-lil and slept well, lie ha- had lit
tle to say since he was brought o the
ho-pital. Thaw a.-ked lor his doctor
during the uiiilil, but did nol ak for
any member.- of his family.
Hr. Kirby said he found Thaw's
mind still somewhat hazy Ibis morh
iu.y a- lliotejli lie were suffering from
Ihc uiler ett'e -t- d' a dint: ur liquor,
i'o Ite Ari-aic.ucd,
When Thaw i- able to leave the
ho-pital, Caplaiu of ctceiic Tate
-aid, he will he a ira i'jncd before a po
lice mai-t i a te on a eha i lie of at -tempt
!ia. suicide. Whether the fata
ily will cotite-i i be efforts of the N'ev
York -talc uuthoritic- ,t huve Thaw
-uiieiulcri'd to I Ih-iii is not delinitdy
knout) here. It i- -aid a conference
of member- of the Thaw family ann
c!o-e friend will be held laler in the
day to determine wh;it -h-p- to take
In condiat the New York charge-.
Aecoid'ti- lo priv ate deject ivi- in
llie ciitplov of ihc Thaw family, llie
fiinnp ehai'e- arc looked upon a an
attempt al blackmail.
Mr.-. Thaw, it i- -aid, will not con
here utile - her -on'- cotidttion d-maml-
her pre-erice or mile-- he in--i.-l
- ilia) -he be -ent lor. The bo-pi-t.l
nut roi il ies here are kcepi" itr
i'i loi nicd of ii eotidit ion.
OlD AGE PENSION
WASHINGTON, .bin.
1
Iv
American citit-it over (i'i wlm i- iti
eapabje of iiiMiieai labor and wlto-c
annual income i- ie-s t Iuiii .'o() w oii'd
get a pen-ion ii. ;i
htil bcforct the hoii--e
inittce today. h'cpic
v. ecu under a
pen-ion cntM
ntatuc S:ier-
Wi
id of Oluo i- ailhor of the bill.
IBUNE
lUJi4't'4Mh'Cr;
IS! PLOT
ALLEGED IN TRIAL
; HAN I'RANCISCt), Jan. 12 Anar
( eh 1st plotM to assaHriinate (loveruor
jlMrani W. Johnson, I'nited States
senator elect from California, were
I revealed in letters seized in the of
; l'iee of Alexander llerkman several
I weeks uno, Assistant District Attor
! rje.y Kdward A. Cuaha told Judge
U'rnnklin A. (tritt'fn in. tho Moouey
j murder t I'ial todny. ,
( "1 found evidence in those letters."
jCunhii declared, "lo prove that. Merk
maa and others conspired to destroy
government, blow up California and
I kill (it vernor Johnson." lie was
j pleading with Cril'lin not to permit
ithe defense In the Mooney case to
huive access to the letters, which the
i court Impounded.
" I f on havt! -such evidence why
don't you place it before the grand
jury I in mediately V Judge (iril fin
asked. ,
"1 wanted to use the letters as evi
dence in this ease and I can get Herk
nian and his conspirators any time,
Cuaha replied.
ha. -it week W. Dourko Cockran,
chief counsel for .Mooney, succeeded
In having the court impound llie let
ters, after several had been published
in newspapers.
.Mjss Kleatior Fitzgerald, associate
cil f I or of Vterk man's paper "Tho
Ulast," was on the witness stand, tell
ing how Cunha's agents Injured her
when they raided "The Ithtsl'' two
weekH ago and took I he correspond
ence. She showed a bruised arm.
"I'mb r the common law of the na
tion there can bn no such secret file
au the district attorney contends for,"
declared ( ocl; ran.
"These letters are direct evidence
in this trial and they show a con
spiracy, as I said before, to destroy
government and kill Coveruor John
son and it Is proper to keep them se
cret, ' Ciin ha replied.
filtAND l.-I.ANI'. Jan, 12.
After iiu all-day sc-on t ttie flnun
t lal cominiiic,- of Hie uraud lodge,
Ancient ():dir of Cnlictl Workmen,
during wliieh the ai ouuts of Treas
urer K. h. I fodder of Omaha, who
(committed ."Uictde !it,.t week were in
! vest iiratcil, it w as v i von out that a
short ii L'e f $ I t;.t was iudicaled,
and that a oomph te statement would
be made as" soon as the two expert
acf ountants put on the books today,
had compl'-ted their audit. The
older Is protected from ;:ny loss that
I may result by a surely company bond
1 in the sum of $.i,oni'i.
SEIZE FISHING SCHOONER
FOR BOOTLEGGING
SKA'I Thi:. Wa-h.. Jan. 1J. - The
I'ooih l'i-i.i t ie- com pa n v -tcMiucr
j CI
'.o w.i- -eicd by the polici- dry
-ipiad I tn'a - on a -ca rc w it rt a lit
cbar-ne'j that the Chicago btoiight
t'oilv ca-e- u Inpior int'i Sca:tle un
der h-h label-.
UnfcwIK Oregon
Library
.
WEATHER
Maximum Yesterday .(;
Minimum Today
t
XO. t."() tic
-- - lb-
HOUSE
Taunted by Rciiuhlicniis, Wl.o Charg
cil They Dat e Not Investigate Fur
ther, Democrats Abandon Plan for
Casing I niitiry Lnwsoti to be Re
called and Punished for Contempt.
WASHINGTON, .If". I'-. Taunt
ed by iv publican, who charged they
did not dare investigate further the
cbargi's of a stock market leak on
Fre-idcul Wil-on's peace note, the
hou-e democrats today abandoned
their plans I'm closing the inquiry and
recommitted the Wood resolution to
the rules committee for further ac
tion without a vote.
ronl'Ilctlng Keiirnt.
The democrats bad solidly contend
ed Ihere was absolutely nothing lo
Mipporl the leak charge-; of ThoiniK
W. haw-son and nrinied further that
anot her re.-olutiou for investigation
-till was pending until It'eprescntative
t'antrill of Kentucky, a democrat id!
the rules coinmillee, broke away from
his colleagues and said he believed
there should he further investigation.
Some applause from the democrats:
and a how) of delight from the repub
licans reeled his action.
( 'n nt rill declared he was at odds
with both the majority and minority
of the connuillee and wanted hdWsoil
brought in mid forced to answer
ijue-lions on pain of being brought
before the house for contcmut. hnw
son had declared he could name u.
cabinet officer, a senator and
banker who shared profits in n stock
Liiiubling partnership.
The "leak" investigation wits
brought inlo the, house today with ti.
repinl by the dcimtcrtilu majority of
the rubs committee that no evidence
had been found and opposition from
the republican minority which con
tended I hat evidence of a "leak'' had
been shown,
h'epre-etilutive Campbell of Kam-
-as, republic diarged that the
"leak" to Wall street on President.
Wil-on's peace note went from Wasli
iiiglon over the private wire of F. A.
Connollv Co., local brokers. That."
i ihc linn in which li. W, Moiling, a
brother of President Wilson's wife, is
The majority report wa brief. Pre--ctitcd
by Chairman Henry, it merely
said 'ho evidence was adduced sui
laining the cliargcs in the (Wood)
rc-olulion.
Henry's Stnlenient,
'Nol one particle of evidence wns
adduced to sustain the resolution of
fered by b'eprc-ctitative Wood," said
Chairman Henry. "No democrat will
submit that there wa any warrant
found for Ihc-c charges, ami surely
no republican will assert that there
was any evidence found to Hiistiliti
them.
"There i- another rcsolut ion, the
original resolution for an impiirv into
I he lea k in I he president's message,
-till before the committer. A sub
committee has been nnnoiutrd to eon-
1 -idcr the conduct of a eonl innneioiis
I wit, Thomas W. haw-on, who refused
to answer certain (piestions. Thoa
I mailers niay he considered by tho
commtilce ami I lie house Inter.
WoclP StntenienU
Peine-enlativv W 1 of Indiana.
author of the 're-olui ion, addressed
the house, dcidaring In- had no npol
o'j o make for hi- action.
'I wa- compelled to introduce the
re-olui ions.' -aid Wood, "been itst
everywhere, ludti in and out of eoit-gre--,
Ihere wvre reports that men
in high places h;id profiled m
slock inaiket through advance infor
mal nm. Then -till i- a general be
lief throughout the country that there
is onietbing wrong -omcu here. That
! I her wa- a leak, every member of
Ihi- hou-e believe. To deny it would
be ridiculous.
ST, JOHN', N. U,, Jan. 12. Tbe
purchase by the Canadian govern
ment of the International railroad of
New llrniisvvick, which extends from
Canibcllton. near the Quebec lino, in
Si. Leonards on Hie Maine border,
was reported today. Tho price,, It
was Mated, was between ?2,oOO,fiQt)
and (.hntH'.fino
ORDERS
LEAK SCANDAL I
PROBE RENEWED!
nil
10
on
ile
ty
44
a
o-
en
f