. . . - 'Si FULL LEASED in WIRE DISPATCHES .. " ... . CIRCULATION IS OVER 3800 DAILY THIRTY-EIGHTH TEAR SALEM, OREGON, WEDNESDAY, AUGUST 25, 1915 PRICE TWO CENTS ON TRAINS AND NEW! STANDS FIVE CENTS M MM to mmd tat I iraem . RUSS AN STORY DENIED Y GERMAN OFFICIALS Much Heralded Victory Is Pronounced Fake At Berlin German Loss Was Oaly One Torpedo Boat Advance Into Russia Goes On Unchecked and Russians Retire After Little Resistance-Allies Claim Progress Made At Dardanelles Berlin, via Amsterdam, Aug. 25. Denial that the drendnaught Moltke and ten other German warships were sunk by the Russians in the battle in the Gulf of Riga was made by the" aduiir illy today. The official statement from Pctro griid claiming that a drendnaught, two cruisers and eight torpedo bouts were destroyed was declared to -be without foundation. "(iermuu warships," mentioned by Hi.' Russians as having been destroyed were probably old vessels, sunk by the Germans themselves to barricade the entrance to the harbor and bottle up the Itussinns, the admiralty doclnrcd. Some f these vessels had been previously captured from the Russians. "Neither a large ship or any cruiser wr.s sunk or damages, " the statement mid. "Our warships silenced the enemy land batteries near Pernay." It was further declared that the re port from Petrogrnd thnt the Germans .ittempted to land troops on the shores of the Gulf of Riga was false. No transports were accompanying the squadron, which, attackod the Rus sians and the only German losses were one torpedo boat sunk and two dam aired, as previously reported, Only Bear Guard Actions. Berliu, via Tho Hague, Aug. 25. Delayed only fear guard actions of the Uussinns, Field Marshal Von Hurtle n burg is closing in upon Vilna. The Slavs to the south and east of Kovno are again in full retreat after having endeavored to block tho Ger man advance by counter attacks and the Teutonic forces are again drawing nearer the junction point of the War-stnv-Petrogrud railway. The capture of Vilna is expected here within a few days. During the "post two weeks the Rus sians are declared to have been con stantly preparing for tho evacuation of tho city and with the final thrust of Von Hindenbnrg 's forces, Vilna is expected to fall quickly. Kovnb and Kovel, the northern and southern extremities of the new Russian defensive line are now held by the Austro-Germans. The center of this line is Brest-Litovsk and Field Marshal Von Mnckensen is steadily tightening the ring about this fortress. Military critics believe Grodno and Bielostok, the two fortresses still in the hands of the Russians to tho north will surrender soon and that the Slavs will then mnko their final stand before Bicst-Litovsk. Despite the swampy ground about the fortress base toward which Von Mack ensen and the Bavarian forces of Prince Leopold are now centering their attacks satisfactory progress is being made, it was stated today, In tho enveloping movement of the Teutonic forces. it fell to tho Austrians to seize ICo vel, the southernmost point of the Rus sian line. The forces which captured the town arc now moving northward to ward Dotin, pushing the Slavs back to ward the lakes in this region. 1'ress dispatches received here report that the Austrians took many prisoners in seizing Kovel and throwing the Rus sian line further to the north. Balkan Affairs Critical. London, Aoc. 25. With tho Serbian consul of ministers meeting nt Nish, the Balkans ngnin hold the center of the diplomatic stage today. The min isters will frame a reply to the proposal the allies that Serbia cede Sorbian Macedonia to Bulgaria in retuprn for 'he hitter's participation in the war "gainst tho central powers and Turkey. It was predicted in some quarters 'hut a decision will be reached within two days. Should Serbia agree to make the territorial grant to Bulgaria, it is expected that Bucharest will then seek assurances that Czar Ferdinand's arm '" will not attack Rumania. A decision 'v Serbia and Bulgaria, it is believed, will be followed by action from Greece nd Rumania. The British press was exceedingly op timistic at to the Balkan negotiations '"lay, but this feeling wss not entire ly shared by diplomats. Unofficial re from Berlin report the negotia tions between Bulgaria and Turkey as 'losi-d. One section of tho German press ,r"s Ths pnncliiHinn -that itn no-reement lias been reached. Allied Cruisers Bombard. Athens, Aug, 23. Two allied cruisers '"tered tho Dardanelles yesterday and JjoniliBtdcd the Turkish batteries at Kistnnca with considerable effect. Dispiitches received here todnv re- '"'r,u"F. engagement also declared British, submnrine penetrated the "'us and sank four Turkish sloops "io Turkish vessels were carrying "oops from Lnpznki vo Gullipoli. Mytilene dispatches hero today report - "avy f iyhiinu nd Ari Burnu regions. .Determined as- r Doing made against the Turk ish positions by the allied forces. About Suvla bay the Australian colonials are declared to have captured a Turkish treucli yesterday during a bloody en gagemcnt which resulted in heavy muuguier or tne Turns. Aviator Sinks Transport. Taris, Aug. 25. A French aviator sank u Turkish transport anchored in the Dardanelles, north of the Naeara roads, an official statement announced here today. Tho airman circled over the transport, hurling bombs which explod ed with deadly effect. One of the most important single gains made by the British forees on the Gallipoli peninsum was also an nounced by the statement. British troops, it was stated, stormed Turkish positions in the northern .Gal lipoli zone and captured 800 yards of enemy trenches. The gains made by the British were in the Suvla bay region where rein forcements were landed recently. French troops captured an observation post on the southern tip of the pen insula by a daring attack, the statement declared. 1 The French fleet, on August 20, suc cessfully shelled Acba Shiliman, on the European side of the straits, it. was stated. Drop Bomb on Lorracu. Paris, Aug. 25. A French aviator dropped bombs upon the station Lor rnch, Baden, 28 miles from Frieburg yestordny. The official communique an nouncing the bombardment aid not mention -he damage done. Grenade fighting continues around Souchez Neuville, Jhe communique stat ed, but no infantry fighting is report ed. Artillery engagements 'occurred during the night north of Arras. About Roye artillery exchanges continue with out cessation. Advanced Positions Taken Berlin, via wireless to London, Aug. 25. The advanced Russian positions about Brest-I.itovsk have been pene trnted by tho forces of Field Marshal Von Mnckensen. An official statement today declared the Germuns had broken through the Slav line at uouDynua. Constantinople Bombarded. London, Aug. 25. A Russian aero nlnne snundron is reported to have bom barded Constantinople Monday. A news agency dispatch from Athens received here today reports that 41 persons were killed and wounded during the aerial attack. Eight of the victim were Greeks. Twelve Civilians Wounded. Berlin, via Amsterdam, Aug. 25. Tirnivo civilians were wounded at Of fenburg, near Karlsruhe when a French nvSntnr rironned bombs unon the town", according to dispatches received here todav. Several of the wounded may die. Tj, s. Proclaims Neutrality. Wnaliiiurton Aiiir. 25. President Wil son todav issued a proclamation of neu i.,,!!!. between Italy ond Turkey. The proclamation was similar to others which have been issued as various ropean powers have declared war. YET TO BE FEARED So Far No Warring Nation Has Felt Any Real Financial Stringency ( By J. W. T. Mason.) -;,..,., fur tne United Press.) v,,rU Anir. 25. That alarm is tJt ninoiiLT financial interesU of the belligerents over me uemrunu - ... nf i.er..t nieetinifs in Berlin aml i-etrogruii m n.v. :- ruptev bv Germany and Russian was admitted' must be accepted with re- serve. Tl,n flnnneiers del not fear bank ruiitcv i.,,t nil her lnnoverisnineiiv an ... ..n hpn cOelarea. nussiu iik runt, if for no other rea .., than that she is being underwritten i, v.nn,.. und Eunland. There is no danger of Germany going into i bank rui.tcy while she has the state rai ' ' A .,..,.. Nnt on seldom ttl WBVS IO IIluiiH"'. " , loW the danger of bankruptcy to stand u- firi.urt!tton ot war: n i. not probable that the fear of Insol vency ! causing uneasiness at any oi BANKRUPTCY NDT 1STEMBESS DE (THE UNITEQ PRESS WAR STAKE Oil! WAITING f W - FROM GERMANS - I - 'HI".. A r imt 11 II s ''i I I jr . x -.vrr. ft i xyyA Pictured herewith are eight of the reasons 'why the Daily Capital Journal has held its supremacy in war news ever since the greater . European con flict uegnn. Tne names or tue eignt men are: Keen, Shepherd, Simms, Wood, Klioe, AcKerman, MOBqti and rorresi all staff carrespondenta of the United I'ress Associations. You've rend-Aheit stuff day '3t-day and have noted the human quality in it. Note now thnt they are real flesh and blood people like other reporters you know. Tiint's all they pretend to be reporters. All that's claimed for them is that titoy are extra good re porters, possessed of a little extra en ergy and speed and not inclined to for get the viewpoint of the average read er. They've done a whole lot to make the war understandable to America and have earned their place in the sunshine of tho Capital Journal s columns. These reporters and the United Press' system have enabled the Capital Jour nal to keep from an hour to a week ahead of its competitors month after month. A salient feature of tho United Press system has been its direct de pendence on its men in the field. Keen in Londrtn, Simms in Paris, Ackorman in Berlin and the ofliers have hail very simple instructions. Thoy have been told to report every development that would interest tho average Amer ican rcador and report it first. They have done this. Each has built up news sources in his particular territory with this thought in iiiiiid. And this txplnins, in Inrge, part, wny: The Capital Journal told first that French mobilization had beon ordered; the Capital Journal was six hours ahead on Uermany a declaration or. war atrainst France: the Capital Journal was eight hours ahead on the death of the I'ope; tho Capitul Journal carried tno first uncensored story of Germany in wartime: the Capitul Journal was U) hours ahead an Austria's declaration against Japan; the Capital Journal had the first interview with Migiaml s lorn of the admiralty; thj Capital Journal was 24 hours nheud on tho fall "of Lem burg; the Capital Journal was 24 hours ahead on the conviction of the assassins in Serbia whose act precipitated the war; the Capital Jourunl had the first interviews with the. Merman crown prince.- Admiral Fisher, Lord North liffecount Zeppelin, Crown Princess! the capitals. The belligerents scarcely nave negun to nay for the war. Almost the whole of tho f(i7',000,000 a day which the Ger man minister of finmica estimates the wnr is editing, has been rnised by loans. Hardly any war taxation has been im posed In Europe. Germany has an nounced that she will fight to the end of tho war on loons. The English cab inet is reluctant to act In this matter, lesnito the fact that England has been used to levy heavy luxes. If the war last much longer tne chief result will be a pile of debts which will reonire doubling of present taxes to meet -the interest and establish a sinning mini, i nen uie ujt? pov erty which the war is preparing will be felt and epochal economic revolutions will become possible. Possibly the lemters are tailing sicps toward calling attention to the need of lessening this distress, rather thnn guarding ngninst bankruptcy. BUtLTHKOWINO TIZZLE. San Francisco. Aug. 2.". Hull throw ing was a complete fi.zle at the ex position todny when the "bull fight" concession on the Zone closed its doors. Patronage did not warrant the payment of hospilal bills for matadors and torea dors. One bull, However, which was responsible for several ambulance calls, was standing peacefully in a stall ready for another fight. The bull'i name Is "Grace." , . - i j w tin I i Correspondents who have been telling about the war in Dlain American language. Cocilie, Bleriot, Cardinal Gasparri Lord Bercsford, Premier Viviani, Minister Atigagneur, the crown prince of Sorbin, King Constantino, r.nvcr Pasha1, ( ban- collor von Jagow, and ninny others. The Capital Journal was first to car ry Grand Admiral com Tirpitss' an nouncement of Germany's submnrine policy; the Capital Journal was first to toll that submarine war was under way; tho Capital Journal was ahead on tho bombardment of the Dardanelles: the Capital Journal was hours ahead on the Gorman victory in tho Mazurin lakes; tho Capital Journal was first with eye witness stories of trench fighting an tho different fronts; tho Capital Jour nal had tho first story of the British retreat from Minis; the Capital Journal had tho onlv eye-wit noss stories of the bnttlo of Ypres; the Capital Journal was first in practically every develop ment in Italy; the Capital Journal was able to print Bcores of less important stories earlier than any rival. Above all. why tho Capital Journal's news of the war has been the sort of news; you've wanted to get. Ed. L. Keen, general European man ager of tho United i'ress, is a seasoned "war correspondent." He snw servico in the Philippines with tho American army and in China and Japan during tho 'march to I'ekinu of the allied forces! during tho Hiissii Jap war. He was for I American tt'mervcr hiivo aroused the . pnrienco In tho Milwaukee, Chicago, vears manager of the Washington tin-1 widest comment in England, where lead- Haleigh, Columbus mid Washington bu reau of the United I'ress, and wns in! ing metropolitan and provincial papers rea us. Forrest was the first American charge at various times of sevonl other! accorded them big display. newspapermen to resell Qiieenstown aft- important bureaus. Ho became general j William Philip Simms begun his: cr the Lusilanla was torpedoed, and his European manager in 1912. newspaper work in Cincinnati, lie spe- graphic story gave the American press newspaper work in St. Paul.1 Later he William G. hhcpiierfl Hid nis first United States Proposes I Protectorate Over Haiti; Washington; Aug. 25. Secretary of State Lansing todsy confirmed that the! United States hud proposed the estab lishment of a protectorate in Huiti. Jt was explained that the approval of tiie United Slates senate must be ob tained beforo the urrangement now con templated can be carried out. Secre tary Lansing declared the plan of es tablishing a pruMtorato in Huiti wus "to help the Haitians avoid exploita tion by professional revolutionists." t THE WEATHER. Oregon; Fair to night and Thurs day westerly winds. ' ns am. twf Tryle To 60 -) beenmo staff correspondent for tho j Newspaper Kntorpriso Association, travoling ovor tho United States and J abroad. Ho joined the United Press at I the tinio of tho Madero revolution in Mexico, entering ilexico City wmi Ma-j dero. Lea vine there later, ho went , abroad, covering the Olympic games for the United Press, and returning j again to Mexico City at tho time ot l tho overthrow of the Madero govern ment. His world scoop on the liunling j of tho Americnn marines Bt Vera Cruz was tho most brilliant of a long series of exclusive stories which he filed with the United Press. At the outbreak o! tlin Kiironenn war. Shepherd was recall ed froiii Mexico City and sent abroad on a "roving commission. " Up to duto he has been at the front with tho Ger many army, with the British army, with the Austrian army at Przemysl, nt tho Belgian front, with tho French in the foremost trenches, down through Italy und Spnin, and, more recently, in Switzerland to cover the north Italian advance. Shepherd is tho only repre sentative of nil individual American I iiiess association or organization who has so far been permitted to visit the liri'b-h front. His human interest und eye-witness stories of the llrit ish troops niid their fiiihlinii particularly at the battle of Ypres, wiure ho was the only I eiiilixeil in came worn wneii nc junn u the United I'ress staff in II10H, being Believe Killing Outgrowth ofj:'-' Utterances Against Euro pean Allies (!,.rv. In,.. A. 2.V- Blond hounds' ' ' " , ! were taken to the spot where the bodyi of Kev. Ed mu ml Kaiser was found ti- day in an effort to trull down thel murderers of ll... t.i,i1,.on in Kt..r. who is believed to have been killed be cause nt pro-German sympathies and Th niiliu.rlties were i.rnctlcnllv con vlnced this afternoon that Kev. Kniscrjlng equipment clause in the LiiFollottc wm killed bv funut elil svmniithiwre of the allies. ''They learned that he had received threatening letters from tun 1 1,,,, l.u firal l.li ll nil frlvilllT exnrcSslotl to his pro-German sympathies, Thel minUli.1- stunned mnkiiitf Bnv piibllo utternnces with regard to the war for a while, but renewed his denunciation assigned to tho Paris bureau. He re turned to tho United States to take over tho cable desk in tho New York office a few years Inter and was re assigned to Paris after noarly a year in Amerien. Carl W. Ackerman, a graduate of the Columbia, School of Journalism, joined tno unttel I'ress in mm a. lie saw ser vice in the New York, Albany, Philn di'lphia and Washington-bureaus. In the last-named bureau, Ackerman was assigned to tho "diplomatic run" covering too various emliansies and lo nations. He made a special study of loreign nfrairs and languages, fitting himself fur n foreign post. Ho was transferred to London enrly in the year, nun within a tew wcelis to iterlin. Mjss Alieo Ituhe, mnnagor of the Homo buruau, first gained fnmo by her work for New York papers several yoars ago. She whb one of the first of tho modern typo of womon reportors not just teaturo writers, but gonorul assignment reporters. Hho had consid- erablo experience in foroign wiirk prior to her assignment ns head of tho Rome bureau in 1914. nry Wood Is another mld-westorn product, getting his first nowspnper ex perienco ill Ohio. Ho is one of tho oldest nienibers of tho United Press foreign staff in point of length nP om ployuiout, iiiul up until six months ago was in rhurgo of the Homo bureau. He ing succeeded bv Miss Alice Hoho Wood traveled extensively in tho Bill- linns and Inter was attached to the Paris bureau. He recently left here for a trip through Sorbin, Grooco. Rumania mid Turkey, and on June 7th cabled from (.'(t'lstiuitlnople an Interview with Knver Paslm, Turkey's "man of des tiny." It was Wood who scored the famous eight-hour bent on tho news of the death of Pnpo Pius. Wilbur 8. Forrest, ono of the staff of tho ! iilon bureau, was in charge of Mm Cleveland bureau of tho United Press up to tho time of his transfer, early this year, to the other sido. He has had wide general United Press ox- : n npiionuii pn iuro oi me mirrors oi itnti I disaster. of tho allies a few days ago. "Move awuy or dynamite will move you," Is declared to have been one of the threats the minister received "Before the leaves turn, you will bo stretched under the ground," another threatening letter said. The firo.Gcrinliii statements it Itev. the St. James Evangelical Lutheran church, of which he was pastor. The body of the minister wan found in a vacant lot near the church lust night. He was apparently killed In his Imiiie. however, and (he body then drag- K"" "" " "''"""' v' " 11 . . .1- l.. , 1 1. I discovered. A struggle evidently tooK trt,. th parsonage us the furniture in tlm living room nod dining room wns found overturned and two bullets wero imiMMiucd "1 "" " "' '" CLAUSE IS NULLIFIED. - Washington, Aug. 25. The life snv nuns mt Is be leved to bo virtually i nullified In an opinion given President , mn by Attorney General Uregory ' I mill V. Gregory, it was said, Indorsed the views of Solicitor Tliurman that this clause conflicted with earlier legisla tion on this subject, . l. Situation Not Likely To Be Changed For Week Or More BERNSTORFFS REQUEST MAY NOT BE ANSWERED But State Department Ex pects Germany To Give ; Facts By O. P. Stewart. Washington, Aug. 25. "We- - &r wniting." This was all officials had' to say today in discussing the Arabia case. ; Tho administration is waiting on Germany. Germany is waiting on the sub marine commander who is supposed to huvo torpedoed the White Star liner, . caused tho denth of two Americans and brought on tho latest crisis. It is likely the situation will con tinue thus for a week or more as a re sult of Germany's request that no ao-' tiou be taken by the United States un til official rcportB could be received from Borlin. .Secretary of State Lansing declared ho could not say whether the request made by Ambassador Von Bernstorff would bo answered. Others - said no answer was neoilod except the com pliance of the administration and 1 it could bo supposed the ambassador took this for granted.. .With tho evident disposition of Ger many to explain the sinking of the Arabic, the situation was viewed only with the greatest optimism today. It was said today that the adminis tration is so sure of a satisfactory out come in the Arabic case that President Wilson will likoly return to Cornish soon, To Observe Wilson Ruleg. Tho administration has learned through confidential channels that Ger many somo time ago ordered her sub marine commanders to observe the rules under which President Wilson in sisted the submarine wurfure BhouM be conducted. These include the stop ping of a ship, determining whether sho is a hostilo craft and carrying; munitions, and giving ample time for the remnvnl of pnssengers and other non-combatants beforo sinking the ves sel. Tho administration vehmontly pro tested ngninst tho torpedoing of ship without wnming. Starting from the basis of bavin ordered these rules ohservcu, uarmany will not find it hard. It wns declare today, to make a satisfactory showing to Washington in the Arabic case. It was suggested that Germany may sny the torpedo which struck the Ara bic wns intenileil ror ine iunmii.y wnu-ji Wns sunk nearby, or that the kaiser might disavow the action of bis sub marine cnmmniider, calling him to ac count for violating orders. It was reported that Ambassador Von Bernstorff left New York for Wash ington at' midnight. Ho had not ar rived nt tho German embassy at ID o'clock today. WELSH COAL MINERS Cardiff, Wales, Aug. 25. For tho sec ond timu within a few weeks Great Bri tain wus today threatened with a strike of 200,1100 Welsh coal miners. At llufors 1,000 men wulkeu out to day, declaring thut the agreement un der which they returned to worn recent ly lifter Lloyd-George, minister of muni tions intervened, Had not neen rumen out. The miners claim the government has tried to play Into the bunds ot tln mine owners. Thnt other miners are in sympnthy with those who etrtick today is evident, und a general waniom m threatened unless an early agreement is reached. The miners' federation executive council today uppoin'tod a committee to confer with I.loyl-teorge ami present the grievances of the men to mm. u m believed here the munitions minister will see that the agreement entered into Is observed by the operutors. The min ers, It is said, do not trust Walter Hun cimuii, president of the board of trade. Hunclmun hud un uctlve part in the ef forts to bring tho Inst strike to an end but the miners will plueo their reliance in Lloyd-George in the present difficul ty, The miners conciliation bourd will be culled for a meeting shortly, but it w stnted no agreement had yet been reached s to action to be tuken in case, the appeal to I.loyd-Geotg" f'l.