fr ( FULL LEASED WIRE DISPATCHES .1: l OVER 4000 DAILY . . Sv THIRTY-EIGHTH YEAR SALEM, OREGON, WEDNESDAY, FEBRUARY 9, 1916 PRICE TWO CENTS ON TRAINS AND NEW STANDS FTVE CENTS o ii r i t i IF J 111 "" j.v ji i ...... . 1 llll r"Vi i TW It VIII yCV(VrAVA Tv I ill ;i n n 0 BELGIUM DECLINES THE SEPARA - Germany Was Ready to Grant Very Liberal Term, $ o Con quered Nation Assistance In Rebuilding I, royed f Property and Guarantee of Neutrality Dui Re mainder of War PromisedThe Hague Given As source of Rumor Which Seems To Be Well Founded, Although Denied By Belgium Officials London, Feb. 9. Belgium has rejected overtures for a separate peace with Germany, according to a Rome dispatch today. Cardinal Mercier, it was reported, conveyed this in formation to the pope. Terms on which Germany wanted Belgium to conclude the separate peace were said to be: An agreement for complete restoration of Belgium, with certain privileges for the Germans at channel ports. Germany to pay a large sum for rebuilding destroyed structures in Belgium, and for maintenance of Belgium neutrality during the remainder of the war. King Albert, however, indignantly rejected the pro posals and declared he will not consider peace until the allies are victorious, it is reported. Belgium sources recently denied any overtures had been made, but The Hague reported that negotiations were actually under way and proceeding satisfactorily from the German standpoint. Substance was lent to the peace reports from the fact that Sir Douglas Haig recently went to Havre on a "special mission" to meet King Albert. No announce ment of the result of his trip has been forthcoming, how ever, though it is thought he must have determined Albert against acceptance of separate peace, if indeed the Bel gian king had seriously considered acceptance. London, Feb. !. Tn a sudden smash i in the Artois roy ion, the Hermans cup-l tureil 800 yards of 'French trenches, snid the Berlin official statement to-1 day. They greatly improved their po-.l sit ion on tne miy heights and provid ed further safeguards against aa al lied offensive toward Lens from the south. The Paris war office conffrmell ths attack, lint claimed the Teutons after ward were driven out by counter moves. The German chimed to have captured 100 prisoners and five ma chine guns; Paris said the attack was preceded by a heavy bombardment of a three iniie front north of Arras. Artillery battling in the Vosges was announced, too, by -Paris. Zeppelins Destroyed. Amsterdam, Feb. P. Destruction of two Zeppelins recently was reported today by the Kcho Beige. This paper said French fliers siiot down one near Aith; and tiint another returning from the. Paris raid of Jinuarv 29 struck a tree near Lignc, collapsing and hittingl houses as it fell. Lveryone of the crew were said to have been killed. Lieutenant Acquitted. London, .Inn. 22. (By mail.) Lord Edward Seymour, second lieutenant in the Koyal Warwickshire regiment, was acquitted of the eiiarge of drunkenness by a court martial at Grantham today because he was able to say "round the rugged rock a ragged ruffian ran," without a foozle. Witnesses testified that Lord Ed ward wis a littb slow in rounding the corners, but was able to walk straight and could enunciate "royal artillery" as fast as thev desired. Lincoln Bound For London. London, Feb. 9. Ignatius Lincoln, Abo Martia r Th' louder a feller talks th' les he knows. Miss Fawn Lippincut is keepin' company with a young Ford owner. If PEACE m an alleged German spy, who escaped from New Vork, is en route to Europe incognito, according to an unconfirmed report today. His wife is reported to be en route to Germany. England Balded Again. London, Feb. 9. Two German aero planes bombarded Eomsgate and Broad stiirs at 3:30 o'clock this afternoon, but the admiralty announced that they '.id no damage. Ramsgate is a seaport town of Kent, G7 miles from London. Broadstnirs is a watering place two miles from Kams Kflte. That the aeroplanes were the new Fokker type which England has feared would raid her coast, is likely. Kitchener Rumor Denied. London, Feb. 9. Well informed per sons denied today Earl Kitchener, war lord, is going to Egypt soon or that Lord Derby is to succeed him in his present post. It was said no changes in the ministry are contemplated. Italy Will Declare War. London, Feb. 9. Italy is expected to declare wir on Germany and an nounce iier participation in the Balkan campaign ns a result of Ifrem er Bri a nil's trip to Home, Paris repoits said today. Briand is leaving Paris for the Italian capital today. General Townshend Safe. London, Feu. 9. General Towns hend 's British garrison at Kut-elam-ara. Mesopotamia, are in no danger of capture, said dispatches today. Though they are surrounded, they could join the Aylmer relief expedition 20 miles to the east, with only slight losses. NEW MEXICAN CAPITAL Washington, Feb, H. Queretiro, 110 miles northwest of Mexico (.'ity, has been decreed by General Garranza as the temporary Mexican capital, said a message to the Mexican embassy to day. After the republic is completely org mixed, the capital will again be es tablished at Mexico City. (aiieretaro is somewhat of an unusual city, capital of the province of the same name. It was there that the em peror, Maximillian, made his last stand ahd was shot to death. jjc . TODAY'S ODDEST STOBY. .. Pt. Paul, "When I Minn., Feb. 9. get this blindfold ott, I'll show you a points." said Louis W few Hill, president of the Great Xorth ern railroad, equipped with a pair of boxing gloves while be- ing 1 ii i tinted int the Some fellow in front of had tapped him several Elks, him times with a gloved bund. Just then tho blindfold was snatched off. Mike Gibbons, probably world's middleweight champion, stood in front of Hill, who fought. WHERE FLOODS HAVE Back country near San Diego, Cal., where floods have played havoc. Scores of lives have been lost and property valued at hundreds of thousands of dollars has been destroy in the flood which has just viaited southern California. The storms were most destructive in the vicinity cf Sk .Piejo. INDICTED GERMAN CONSUL DECLARES HANDS ARE CLEAN hian Francisco, Feb. 9. German Con sul Bopp and Vice Consul .Schack, in dicted in a wholesale "clean up" of alleged bomb plotters and neutrality violators declared today they have nothing to fear from the government action. Both indicated that, their hands are clean, but government authorities intimated in return that the case against these men and the many others indicted is "air tight." Business circles were stirred at the extent of tho indictments. Many of the most prominent men in shipping and other lines here as named as neutrality violators in connection with the expedi tions of the steamers Sacramento, Ol son and Mahony, Aetrievcr and Mazat lan as alleged supply ships for German war vessels. Named in indictments charging con spiracy to violate the Bherman anti trust law by attempting to dynamite munitions plants and thus thwart trade; and likewise charged with setting on foot a "military expedition" to Can ada to blast railway tunnels were the following: German Consul Boppj Vice Consul Von Bchack; Attache Von Brincken of the local consulate; Johan nes H. VanKooilbergen, alleged Ger man spy, said to have been engaged to blast the tunnels, but now held by Can adian authorities ns an alleged forger; C. C. Crowley, consulate detective and his secretary, Mrs. Margaret Cornell (both of whom were under previous bomb plot indictments). List of Accused. The list of alleged neutrality iolat ors, as announced by United Mates Dis trict Attorney Preston were: Vice Consul Von Schack; Chancellor Henry W. E. Kaufmnnn. of the German consulate; Turkish Consul Hall; Local Manager Robert Capelle of the North German Lloyd Steamship company; John and Julius Rothschild, prominent local grocers; George and James Flood, well known shipping men; Attorney J. I. Bied; Dr. Simon Keimer; C. D. Bunk er & Co., customs brokers; Northern & Southern Steamship company; Swayne & Hoyt, shippers and customs brokers and. individually, R. H. Swayne and John O. Hoyt of the company; President Thayer of the Northern 4 Lusitania Incident Affects Market Little (Copyright 191fl by the New York Ev ening Post.) New York, Feb. 9. On the whole, it must be said that additional Washing ton particulars regarding American ac ceptance of the German terms in the Lusittania fell rather flat on the stock exchange today. This may have been because this outcome was expected ,or that there was nothing in the settle ment to excite more than perfunctory gratification. Most of the activity today again occurred in industrial shares, but even they declined and recovered alternate ly and then movement was indefinite. Railroads were in the background. Some abrupt activity in the closing hour car ried up railway and industrial issues and the market closed strong. TAKEN SCORES OF LIVES NEAR SAN DIEGO j rrrT- 4 -i ; r i,v 4t: Loim Southern Steamship company, C. D. Bunker and Joseph u. Bley, of C. D. Bunker & Co.; Captain Anderson of the Sacramento; Benno Klocke, Adolph Wimmel, Gustav Traub and T. R. Johan sen of the Sacramento crew and Fred Williams and George Phillips. ' A.S in the recent Hnmkiircr- A nrneinn A neutrality violation cases at New York, I the defendants here are said to bo j charged with use of false clearance papers in their alleged outfitting of a German snuadron bv sending nut snnnl ships from tho Pacific coast. f Indictment Expected. J Hints that Bopp would be indicted i' had been current for oome time. Wash-1 ington dispatches recently indicated, however, that the federal government. wa3 withholding action until o,i.i, ;,o, as the Lusitania case was settled. An nouncement of the indictment against him followed directly upon word of a satisfactory ending to the Lusitania ne gotiations. This is the firut indi.fmnn4 A . I foreign official since the government started probing alleged nationwide bomb plots. , In most of the cases, tha federal of ficials will merely serve notice of the indictments as soon as they are public ly recorded, and rely upon the promin ence of thfl defendants to insure their remaining in the city for hearing later Ships Wera Supplied. Revelations in the Hamburg-American case tended to strengthen tho be lief of authorities here that money, di rect from Germany, had been sent to nan Francisco for the iiinnlv Previously, some of thoan n m .1 . present indictments had been indicted iu me nacrnmento expedition" case. The Bunker company is snid to have acted a disbursincr airont nf , ,.!:. tioa. Williams and Phillips arc desig nated as purchasers of supplies for the expeditioa, while Dr. Reimer is reported to be a German naval officer who helped load the supply ships. ; iruun ana luocne are said to have had only a small part in the case. tederal officials suggested today that the Sacramento case will be prov-1 en even more easily than, were the cases acrninst the Ham iiir.(.inin... i - -n ..Mniu iii'ims at Iew lork, where sentences were omoined. i Among other charges iu connection' with the bomb plot indictments are thit the parties named conspired to blast the Hercules Power plant at Pinole, Califorin, and plants at Gary,' Indiana, and rshpeming, Michigan, as well is conhnirinff in onimMtUn ;.(.' destruction of a munitions laden barge at Seattle some time ago. During tiie day, a number of those iiK'ted offered to Hnrrender them selves, but as no warrantu hn.l vat v. issued their proffer was not accepted. Headquarters at Boston. Boston, Mass., Feb. It. That German agents, active against Canadian and Ameri'nn munitions plants, have moved their headquarters to this city is be lieved here today. Indeed, reports say that Federal Agent Schmidt, acting on a tip from British Ambassador Spring- (Continued on I'3ge Five.) . , OREGON If IIEtl FAVOR MAKING OF LIGHT BEEH Internal Tax To Be Used For Construction of Hard Sur face Roads ASSEMBLING DEPOT TO BE MADE IN DISTRICTS New Plan Will Reduce Cost of Handling Crop to Grow ers 50 Per Cent The Oregon Hop Growers' associa tion went on record at their business moeting yesterday aiiernoon as favor ing an amendment to the law of this state which would permit the manu facture of beer and to put on a tax of 1 1-2 cents per quart to be used in the construction and maintenance of hard surface roads in the districts where the sale was made. A resolution was also passed favoring national legislation in the interests of Amorican hop growers, and recommending that all imported foreign grown hops be stamped with the name of the country and province in which they are grown. As to the manufacture of beer in this state the resolution asks that the state law be amended to permit brewers to make beer which would contain not in excess of 2 12 per cent alcohol and thnt the beer be distributed from the brewer ies and not through snloons. The reso lution recommends that the beer be sold under the provisions and limita tions of stringent laws against exces sive indulgence and the association in no way favored the re-establishment of saloons in the state. As an aid to the stnto wide movement in the interests of good roads it was advised that the tax of 1 1-2 cents per quart be exempted in the district where the beer was consumed for hard surface roads. The growers consider that all of the money now being sent from Oregon to California points could be well spent in this state and also tin' money spent for the shipment of tho liquor could be saved and invested in the form of a tax to be put upon the Oregon roads. Will Organize Hop Centers. It was decided at the business meet ing to lease or erect five or six ware houses in the most convenient points of tho hop growing sections of the state where the hops could be received from the grower, sampled nud inspect ed and the samples scut in to the head quarters of the association where they could be graded and put into shape for more successful handling nnd selling. It is proposed to eliminate the expenses of. sampling and double inspection by this means and also to relieve the in (Continued on Page S t., USITANIA AFFAIR IS ALMOST CLOSED Only the Arrangement of Technical Details Now Awaited Before final Agreement Will Be MadeReport of Colonel House Said To Have Greatly Influenced Presi dent to Accept the German PropositionSettlement Will Form Basis of International Law Governing Sub marine Warfare In Future Washington, Feb. 9. The day awaited only the arrangement of technical details for a final, satisfactory ending. Berlin will receive shortly by cable America s provis ional acceptance of the German "last word" in the case; and this acceptance will be complete when Foreign Secre tary Von Jagow at Berlin the informal memorandum Ambassador Von Bernstortf presented to the administration. The memorandum, which President Wilson yesterday agreed would be acceptable when it was translated into a formal note, specifically concedes American demands. In effect, it is a real disavowal of the torpedoing, with loss of American lives. But, what the president consid ers is even more important, precedent and basis for international law to govern sub marine warfare. The immediate cause for this satisfactory termination of a dangerous controversy is known to have been the report Colonel House forwarded as President Wilson's personal envoy. While the contents of this report may never be made public, it is understood that the colonel emphasized condi tions he found in Germany to have been: A spirit that Germany had made her final concessions. A growing demand for resumption of unrestrained submarine warfare as a result of the' feeling agaisnt America. A feeling that severance of diplomatic relations would inevitably result in war. Ambassador Gerard also forwarded pessimistic re ports of what would happen if the president did not ac cept Germany's "last word." The two sets of reports therefore convinced the administration that Germany would not offer any further concessions in an effort to settle the case. WHAT THE LUSITANIA SETTLEMENT IS The informal Lusitania mem orandum, sent to Berlin to be formally made into a note, re plying to the American note, says in effect: "Alt'uougli the sinking of tho Ijiisitiinia would have been justified as an act of reprisal Mguinst the illegal British blockade, the fact that Ameri cans were aboard made tho sinking unjustifiable in this in st ince. "Therefore. Germany admite financial liability for the denth of American lost aboard her. "Germany expresses the hope that, in line with suggestions mado by tho Vnited States in its formal Lusitania note, it will be posible for the two countries to co-operate in ef fecting greiter freedom of the seas. ' ' While the German proposals arc ac- i 1" -J. '":. .... i" ,"' ;i ... ft".: ....... . .wv - 'V " sires. The forthcoming reply from flcr ininy, it is understood, will not contarn the word disavowal, though the admin istration all along insisted that tnis must be a disnvowal. Instead, it will set forth in effect that belligerents can not legally order any act, even a re prisil, that endangers neutral lives. It does not specifically admit that tiie Lusitnnia incident was illcgnl. In the mutter of reprisals, America held that they may be justifiable some times, but never legal. In this con- 44 i . THE WEATHER J A i iii( c A .AN 'S 50VE x4 P)RTeR,m, Oregon: To night and Thurs day rain; south erly winds. I mm 3 ci Lusitania negotiations to substitutes a formal note for is that the reply furnishes a noetion, however, Germany has agreed to 'admit that reprisals are un.justifi ablo when involving neutrals; and this means, therefore, that the Lusitania sinking was illegal. America pointed out that illcgnl acts include unjustified acts, and therefore the administration icccpted Germany's admission that the) Lusitania case was unjustifiable a equivalent to an admission that the. case was illegal. EngUsh Not Pleased. London, !Fcb. 9. Lacking official confirmation, Washington reports that president Wilson had virtually accept ed Germany b latest proposals in the Lusitania case were accepted reserved ly here today. Tho newspapers, however, expressed the hope that Wilson had not receded from his demand for a disivowal of the torpedoing. " It is obvious" said tho Daily News "that he cannot now surrender on tha Lusitania issue without suffering irre parable personal disaster and without gravely discrediting his country. If he aecptsc anything short of a decisive victory, his persistence will hive been that of a man who entered tiie struggle without counting the cost. We do not iiiiikr lit? 19 (I think he is that sort, and we do not think he will surrender the great hu- mnn trust, of which he is the cham pion. TRENCH BUYING HORSES Los Angeles, Cal., Feb. 8. A French government commissioner will arrive bore Thursday to sieud $2,000,000 buy ing every horse ho can get in Arizona, Southern California and Lower Califor nia, according to tho statement today of K. K. Cassab, horse contractor, hi has been looking over the ground for never it weeks. Spot ca.-ii is to be paid for all accepted. They will be placed on fast trains here and will be on the firing; line 22 days after they are pur chased. WAR NEWS or ONE TEAR AGO TODAY The prelude to tho big Teu tonic drive on Russia was be ing executed in some of the fiercest fighting of the war, in the Carpathians. The I'. S. was considering asking Germany whether American lives and ships would be safeguarded from submarines in Germany's underseus blockade of England. y. 4