Ur.l o-s!ty of Crejcn . X Library X WEATHKR Maximum Yeslmlav, S2; Miuimum Totlav, 41. FORECAST Toiiiglii and Tomorrow: Fair and "Warmer. Medford Mail Tribune JACKSON COUN1Y III ( ( BAROMETER W. J J. Quota (or 1918, $258,666.00 Sales to Juno 12 87,180.00 BUY WAR SAVINGS STAMPS Save and Buy for Victory Buy W.S.S.Thritt Stamps woX Safest Investment Forty-eighth Tear, Dally Thirteenth Year. MEDFORD, OREGON, TUESDAY, JUNE 18, 1918 NO. 74 ITALIANS HOLD LIE AGAINST AUSTRIAN BA1TLE IN ' MOUNTAINS DOWN Holding Their Lines Intact Along Virtually All 90 Miles of Front. Italians Administer Severe Check to Enemy Million Austrians Hurled In Vain Casualties Fright fulOnly Gain Is Siinht Advance Along Piave RWer. UOOX1K, June 18. Ilattlo on the rr-.ountninous sectors of the Italian front has died down, but is fiercer from the mountains to the sen along the i'inve river, aoeor)nr to the stt.tcmciit issued by the war office to duv. LONDON, June 18. The Auslriuns according In the Kvening Standard, now occupy the west bank of the 1'iave from the Cuneglinno railway to tlie Benson bend, a distance of a mile and a half. Thoy have thrown fourteen bridges across (lie river. Those, however, are under the Italian fire. IlntUo Uno Held By the Associated Press. June IS. Holding their lines intact along virtually all the ninety miles of bat tle front from the Adriatic to tho Asiago plateau, tho Italia us and allied armfos appear to have given the en emy a serious check. Approximately one million Austrians have been hurl ed against tho Italian front but havo gained llttlo except along the I'lavo river, where their progress Is scom lngly too slow to be threatening to the allied positions. Losses which are described as frightful have been Inflicted upon the Austrians in tho areas where the principal fighting had taken place In the mountainous country whore the Tlrltlsh havo been holding their positions solidly, thousands of tho enemy havo perished, while thoy havo paid heavily for every foot they havo advanced along the Plave river front. Austrian (Jains Costly In tho Montello area on tho upper Tiavo tho Austrians seem to have gained a foothold on the west bank of the river. North of Zenson loop and at Capo Silo, lower down, they havo also moved wostward. but their great est gain does not escccd 2 or 5 miles. It seems that, so far In tho baltle tho Austrians havo gained tho most ground at Capo Silo, a village sltuat cd west of tho Plave river and sur rounded by lower marshy land, which In Itself does not lend Itself readily to a rapid advance by the Austrians. Tho vital mountain sector along tho upper reaches of the Hrehta has not been broken. On tho contrary, the Ilritlsh claim to have defeated the foe. As long as this front holds firm ly, according to military experts, tho stability of, the Italian line Is assured, unless a serious breach should bo made along tho Plave river east of Trovlso and Montebol'luna. Counter Offensive Hinted There are hints of a counter otfen- (Continued on rage Two.) WASHINGTON". .Tune 18. The treasury indicated in n statement to night that the interest rule n the fourth Liberty loan would not be rais ed above 4' a per cent, tho rate ol the third loan. 'The inference drawn in pertain inornimr paper that the l ends nf the next loan will hear interest at 4 1 per cent, is wholly without informa tion." Mail) the Matemcnt. Tlio i.n .f rrtifipii(p. ill H!l- tifipntion ul (lie fourth hum hearing interest at 4'-j per cent, foreshad ows no i hnnye of interest in the rate bvurue by bonds of the fourth luau.' COUNTER BLOW COST AUSTRIANS FIRST WINNINGS Successful Thrust Made By Italians Regains Initial Territory Taken By Enemy Heavy Fighting In Pro gress "Hunger Offensive" Is Name Given By Austrian Prisoners. ITALIA'N ARMY HUADQUAIt TBltS, Juno 18. (By the Associated ress. ) Bitter fighting Is In progress along tne 'l'lavo river. The Austrians are sustaining large losses from the concentrated fire of Italian batteries. Repeated counter-attacks are being made by 'Italian rhfantry, Inflicting heavy casualties on the enemy. HOME, Monday, 'June 17. An of ficial statement by the war office is sued last night says: "On the mountainous front and around Montello tho enemy did not renew his Infantry attacks. Ducing tho day a successful thrust was car ried out by our troops. We occupied several positions, capturing machine guns and some hundreds of prisoners. Important actions developed south of Montello and along tho IMave In tho zono between Zen son and Fos- salta, but tho enemy everywhere was stopped by our counter-attacks. Sev oral hundred prisoners wore left In our hands. "Enemy attempts to cross the river between Mascrada and Candelu (northeast of Treviso) woro bloodily repulsed. On tho lowor Piavo other counter offensive actions In the course of development reunited ad vantageously for us." 1 1 linger ' ffcnslvo Tho "hunger offensive'' as the Austrian prisoners descrlbo It, Is be ing carried on with the greatest 'sev erity on the Plave front where It Is apparent the Austrians have massed largo bodies of men. In the moun tain regions to tho north the fighting for the present is limited to local at tacks and counter attacks. lHsporato Kffort Tho enemy is making a desperate; flfTort to retain tho positions ho ob-1 tained during tho initial stage of the offensive on tho western bank of the IMave, at the points whero ho still has a footing across tho river. Thoso operations are costing him heavily. Fierce fighting Is taking place In the Nervosa zone, whero tho river em erges from tho Alps to tho plain, and In tho region of Fagare, midway be tween the Alps and the sea. There Is no question that tho spirit of tho Italian troops is oxcnllont. Xcvertoless the general situation Is regarded as serious. In view of the fact that tho Austrians, so it is stated have brought Into action allthcir available forces In the hopo of break ing thru the Italian Hue and scoring such a decisive victory as to put Italy out of the war. IS DDI 7 BIW FOUNDS I .OX I ION. June 18.- Great ltrit , in' daily average expenditure dur in if the euiTcnl fiscal quarter was (,- SI8,IMMI pounds, said Andrew Honar Law, chanccllcr of the oxecquor, in introducing a vole of credit fur fillll. liuijllill pounds in the house of ooin i:ions today. Mr. Honor I. aw said Hint the pres ent vote, which would bring the to ial war credits to 7.:i 12,01111,11(111, would cover expenditures until the erd of August. The debt due Great llritain from hi r :illie is 1,:i70,iMiii,mn, Mr. Ilonm l..iw said, while the dominions owe L'Oii.ono.llon pounds. . WASHINGTON', June IS. odilien tioii nf the railroad enihurtfoes where necessary to facilitate the movement of wool, particularly to eastern man-ul'to-turcrs, w:s announced todny by (he ruiiioud administration. 49 NAMES UPONARWufMILLION YANKEES FIGHT CASUALTY LIST I WIPI Pn AHAIMQT WAY BACK OVER WASHINGTOS. Juno IS. Tho army casualty list today contained 4!) namos divided as follows: Killed in action 10; died of wounds 2; died of airplnne accident 1; died of dlseaso died of accident and other causes wounded severely li:'.; wounded slightly 1. Tho list Includes Private Ray Brent 305 Clancy St., Helena. Mont.; killed In action: William Conlon, 211 bast Seventh St., Anaconda, Mont; John K. Uocy, Pony, .Mont.; Jos. Kelly, 121 Anaconda Road, Butte, Mont. Killed In action: Lieutenants Les lie II. tiroscr, Brooklyn; William G. Ilorrington, Klines, Gu.; William Campbell Johnson, Kau Clalro, Wis.; John U. Jluthls, Americus, da.; Ser geants Edward T. Muginlsku, Chica go; James Mareum, l.a Folletto, Tenn.; Privates Ray llrent, 3(15 Clan cy street, Helena, Mont.; Michael Jay, New Haven, Conn.; Thomas V. Larson, Berkeley, Oil.; -Michael lia- karavesch, Brooklyn. Died of wounds: Musician Julius S. Johnson, Lurny, Kans.; Prlvato Samuel Mlzo, Klton, Wis. Died In alrplano accident: Lleuten ant Hurry Walter Princo, West Phila delphia, Pa. Died of disease: Private Hubert F. Ward, McKecsport, Pa. Died of accident and other causes: Prlvato Luther II. Chorn, Coun'11 Illuffs, la. SOLDERS BY MAIL WASHINGTON'. June 18. Th war department announced today that brrjHis of congestion of the rail roads in Frunze, no exception can b made to the recent requirement that persons desiring to -hip parcels post packages to the soldiers overseas, must present at the postot'tiee an or der from the major or higher officer commanding the unit to which the soldier is attached. Thin rule ul.-o applies to perOf! abroad atached to the Y. M. ('. A., Ited Cm-- and Hiui lar organizations, THE ROUND-UP j iiuullu nuninui ITALIAN FRONT 92 Divisions of Austrlarts Launched Into Greatest Battle Italy Has Yet Fought Comprises Three-fourths of Austrian Army and Its Choicest Troops. PA It IS, Juno 1 8. Ntncty-two div isions of Austrians consisting of eighty divisions of Infantry and twelvo of cavalry were launched Into tho grcatost battle that Italy has yot fun n lit. according to an official an nouncement from Homo received horo thru the Uavas ugeney. Seventy-one of these divisions havo already been identified. Tho forces engaged, comprise threo- fourths of tho whole Austrian army and the choicest troops undor the command of Field Marshal Boroovlc. (The number of men In an Austrian division Is not exactly known hut th number of, divisions engaged would Indicate that approximately one mil lion Austrian soldiers have been thrown Into tho hattlo.) 1'apers found on officers show that after forcing the passage of the Plave the first day's objective was tho Tro- j vlKO-Moutehlliinu railroad. In two days of fighting the enemy columns had succeeded only In realizing tho minimum assigned for tho first day, Recording to the olficial note Issued at Koine. Hut one allied aviator has been lost during tho Austrian offensive, while 41 enemy machines have been brought down. "Jn artillery and airplanes Austria ifl using all her available resources," says the olficial noto. "Not less than 7G 00 cannon of all calibers havo been brought into action. Three Austro Huugarian armies under tho com mand of Field Marshal Boroovlc are engaged In fighting desperately with enoiyuous military means. Ordered to advance at uny cot, without thought of blood sacrifices, the Austro-Hun-gariaif regiments readily obey. Thou sands of corpses strew the battlefield overlooking the rnoiintatnoiiB Italian sector and accumulate along the Plave but tho objectives which tho enemy was to rneh are yet far away." LARGER FORCES WASHINGTON, June 18. -A story of a fiorco fight botween thirty Amer icans and a German patrol of forty, in which most of the Amorlcans fought their way back to their own linos, Is told in a dispatch today from Genoral Porshlug, continuing yostor day's rommuiiio.no. On tho Lunovllle front enomy raid ers havo captured a few Amorlean prisoners whllo In the Vosges, In Al sace, Amorlean gunnorB broko up a German raid. Particulars concerning destruction of a German piano In the air fight of June I J, as reported In American of ficial commuul'iuo Juno 14 nro as follows: "Destruction nf one of tho Gorman pianos occurred during tho course of a fight botweon the Amorlean patrol and a group of 12 to 15 German Albatross scouts. It has not na yot been definitely stated to whom tho destruction of tho piano, officially confirmed by tho French army corps Is duo. Tho second hostile piano was doslroycd at S : 1 7 o'clock In tho mor ning near St. Mlhlcl. Hero an enomy biplane of tho Hnviovor typo wao at tacked by LleutenantH MolsHner, Wlnslow and Taylor. During tho course of tho fight tho German piano turned over, burst Into flumes and was Been to crash." CHEER IN 1UR1ENI KOMI-:, June IH.The Hnimber of deputies adjourned today until Sep li'inber utiles extraordinary events require that it convene nt mi earlier ujiIc iitnid scenes of tremendous ex eilemctit. Premier Orlando puid t glowing tribute to the Italian army which, he declared, wits aiding in eer lain ielory for civilization nml tl ri'ht in the world loiifliet, us well as the deliverance f oppressed peo p!f s. "he chamber wits in n great uproar of applause, as the premier eulogized Kintf Victor Kmrnaniiel and those who had been instrumental in helping the cnmhfitimlM and he civil Hpulations in diftiCsjs there, RAIDS E Letters of Hundreds of Government Contractors Seied Exposing Hold up of anfuacturers By Agents for Illegal Contingent Fees Criminal Procecutlon Ordered. NEW YORK, Juno 18. All army officer whose name is withheld, was arrested here today by sju'eiai agents of the treasury department. It is said the arrest ras made in con nection with the nation wide investi gation of alleged war contract graft ing. WASHINGTON1, Juno 18. Several thousand letters and documents con taining proofs of an elaborate system of obtaining government contracts on the illogal contingent fee basis woro rocclved today by the lopart mont of Justlco from Its agents who conduotod raids on hundreds of con tractors' buslnoss offlcos lute yos torday. Tho commission paid on these con. tracts, It was disclosed, rangod from fivo to twenty per cont and tho ag gregato fees probably ran fa to mil lions of dollars. Evidence was dis closed of hundreds of contracts made under these arrangements here tofore unsuspected by the department of justice Threatened Munufnctiirors Manufacturers woro throatoncd In many cases wltli bolng deprived of contracts if thoy negotiated with theso agents on a commission com pensation plan. Somo agonU roprn- sontcd that thoy had special Influcuco ovor members of congress. In addition to thoso documents, other Information camo to tho de partment from manufacturers who had been solicited by contract com mission agents located in Washing ton. Tho manufacturers offered tholr asslstanco in stamping out the Illogal syBtom, An lmmcdlato result of tho dis closures was a letter sent by Attorney Gonoral Grogory to heads of all gov ornmnnt departments making war contracts proposing that all future contracts Bhould contain a claiiso pledging tho manufacturer not to em ploy any third party In negotiating with tho government. Offices nro Jtaldcd Tho government will proparo a roc- ord of all contracts now being execut ed, on which It has proof of tho puy ment of contingent fees, and may do duct from tho payment of theso con tractors tho sum covorcd by tho com mission fee. Officials culculato roughly that this will save millions of dollars to tho government. There is no ground for taking criminal action against tho manufacturers. .Neither can commission agents lie prosecuted for accepting fees, nltho In many cases It is demonstrated that thoy worked with others In u conspir acy to violate tho law forbidding con tlngont fees and sub-lotting of con tracts, and consequently nro liable to prosecution under conspiracy laws. Officials today declined to say dnf. Inltoly whether they wero planning arrests in addition to tho four mado horo yesterday, but it Is considered certain that action will ho ' taken against a number of commission agents now known to havo operated In Washington, and to a lesser extent III New York and other cities. E IMPORT AND EXPORT RATES WASHINGTON, Juno 1 S. -Now rates on export and import freight nn a basis of something over 25 per cent lncreaso over existing rates was or dered toilay by tho rullroad adminis tration to bocomo offectlvo next July 25. This modifies tho recent rate order which cancelled existing export and Import tariffs and applied do mestic rales to Uiat tariff. . EPOS GRAFT SYSTEM CONTRACTS AMERICAN SUIAIE GETS U-BOAT United States Diver Torpedoes Ger man Pirate Off Virginia Coast With All Aboard American Steam ship Scores a Clean Hit, Either Sinking or Crippling Another Ger man Submarine Off the Virginia Capes. AX ATLANTIC PORT, June 18. members of the crew of an American teauisliip arriving here today, re ported an engagement witli a German submarine off tho Virginia Capes vesterday, in which tho ship's naval gunners made a clean hit and cither sunk tho undersells craft or disabled her. Tho American vessel was not damaged. Hiibinarliio Sinks U-ltnnt AN ATLANTIC POUT, Juno 18. A German submarine and its cntiro crew was destroyed by an American , submarine off tho Virginia coast sev eral days ago, according to a report . brought hero today by passengers aboard un American steamship. Officers of tho vessel claimed to have been told tho story of tho sub murino combat by members o tho victorious American undersea bout's crew. Tho American liner had put into tho mouth of Chesapeake Hay for . shelter in response to submarine wumings and there anchored near nn American submarine tender alongside which wns moored Ihe undersea crnfl which w-iis taking on provisions and fuel, officers of the vessel stated. An ii terchango of wireless messages fol lowed ill which tho sulmitirmo crew is reported to havo told of its vir- ' lory. jorM'(io useu Tho U-boat wns sighted wliilo tho American craft was patrolling with ci-l.v her neriseope visible, nccordin? to tho stop- the American skipner is alleged to have told.' When within range u torpedo was relensed and 0 seconds later microphones re corded a lerriffie explosion, ho wns quoted ns saying. Ifising to the sur face, Ihe American submarine cir cled aboiil on the lookout for survi vors, hut oil coining to tho surface was Ihe only trace found of tho vnn- piished raider, uin-ralors of the story laid Hie hud hecu lold. KILLED OR CAPTURED . PARIS, .Itmo IS. Over fifty thousand Germans were killed 4 and raptured during tho offen- slvo between Montdldior and Noyon, Captain Andrew 1 ir f dleu, who accompanied Premier Cleinenceau to tho front on Sun day, told Manid llulin, editor of tho Kcho Do Paris, upon his n't urn to Paris. "This Is a flguro which should mako oven Ludendorft refloct," ho said. AOVISE REPORT ON WASHINGTON, .Tune 1R. An ad verse report on the proposed ilu provemcut of Columbia river from SI. Helens, Ore. to tidewater, wns nado to congress today by Major General Black, on the basis of a re port of n board of engineers,