llouraal
FULL LEASED
WIRE DISPATCHES
CmCULATION IS I
OVER 4000 DAILY
(Ik- Ilaili) ffia
THIRTY-NINTH YEAR
GERMANY AND HER ALLIES PROPOSE PEACE NEGOTIATIONS
, , r
WOULD LEAVE SITUATION ABOUT
AS T WAS WHEN WAR COMMENCED
GERMANY ASKS HER NOTE
BE SUBMITTED TO AEEIES
Chancellor Asks Negotiations Begin at Once and Hands Note
to Representatives of United States. Spain and Switzer
land, With Request They Be Sent to Allied Nations
Other Teuton Allies Send Like Requests
Berlin, via Sayville wireless, Dec. 12. Proposals by the
central powers that peace negotiations be entered into
forthwith were made in notes handed to representatives
of neutral countries which are representing Germany in
belligerent nations today.
Chancellor Von Bethmann-Hollweg called the diplo
matic representatives of the United States, Spain and
Switzerland to his office, one after the other, and handed
this note to them. The full text of the note will be read in
the reichstag today. The chancellor asked the neutral
rations which represent Germany and her allied powers
at the capitals of the nations with which she is at war to
bring these proposals to the attention of Germany's
enemies. "
The propositions which Germany advances in these
negotiations are, according to Germany's belief, appro
priate for the establishment of lasting peace.
The governments at Vienna, Constantinople and Sofia
transmitted identical notes.
The text was also communicated to the Vatican at
Rome and to all other neutral powers.
The exact text of the first announcement of Germany's
intention, as wirelessed by the Official Press Bureau to
day to neutral countries, was as follows:
"The chancellor this morning re
ceived, one after the other, representa
tives of the United States of America
and Spain, and Switzerland that is, of
the states protecting German interests
in hostile foreign countries.
"The chancellor transmitted to them
a note and asked them to bring it to
the knowledge of the hostile govern
ments. "The note will be read, complete, to
tiny in the reichstag, by the chancellor:
"In the note, the four allied pow
ers propose to enter forwith into peace
negotiations.
"The propositions which they bring
fot such negotiations are, according to
their belief, appropriate for establishing
"The governments of Vienna, Con
stantinople and Sofia transmitted iden
tical notes. The text was also com--i
unieated to the Holy See and t.o all
fftlier powers."
Hy handing the note to the represen
Wiley Tanger has had trouble
wun ms arencs ever Muee ne came;
ui nai rooteu rer vtuson- in om-.
xasuioDC.i noss trader tuat una a run i
away hoss anq woman could drive
now has a son who has a practically new
car that has only bee"n driven, seventy
five thousan' miles.
r
:
NO. 267
tatives of United States, Spain and
Switzerland, Germany really transmit
ted it directly to her enemy nations.
Under existing conditions this is the
only possible course o'f diplomatic in
terchange between the central powers
and the entente allies.
The procedure in transmission of Ger
many 'fi peace proposals will be identical
in the cases of all the neutral powers
whose aid is invoked.
The diplomatic representatives of Am
erica, Spain and Switzerland will for
ward the note handed them by Bethmann-Hollweg
to -their respective capi
tals. The foreign offices, or state de
partments, of these neutral nations will
then transmit the text to the Amer
ican, Spanish and Swiss ambassndors or
ministers at the capitals of the entente
allies. These ambassadors will, in turn,
formally deliver the note to the gov
ernments of the entente nations.
The same procedure will be followed
in the case of formal replies to the
peaee propositions. England, for in
stance, will probably give to the Amer
ican ambassador, the Spanish ambassad
or and the Swiss minister, identical
notes detailing their response to Ger
many's nronnsiils. These will lie trans-'
mitted to the capitals of tht
United I
States, Switzerland and Spain and
through diplomatic channels formally !
handed to Germany through the agency
o'f the American, Swiss and Spanish dip
lomatic representatives at Berlin.
The Chancellor's Statement.
Berlin, via Sayville wireless. Dee. 12
Chancellor Von Bethmann-Hollweg 's
clfitpmpnt tn flip : . -1 . i . T ! i iuuiioit V.v
the press bureau, is as follows:
"Chancellor Von Bethmann-Hollweg
today announced in the reichstag that j
Germany, togetlter with her allies 'con-
day announced in the reichstag that
scions or tneir responsibility oeiore. " . . - -- - f .
r. . , ... .. . .eratelv. The oueiiinw was lower bv two
God
, ueiore tneir own nation and octore
...
humanity
? TIL r,r: .u ' "v.. "
to the hostile powers that they enter!,
peace negotiationg. " I ,
l'ractically an members of parliament! !M jowll 4 5.8' tents at 1 C9 3-8 and declared their belief that a peace pro
appeared iu answer to an unexpected jjuy jown 7. t $ 44. j'a ! posal from Germany at this time does
summons. . A il. .....i .!.. .1 , not mean oeace. Durini? the first hour.
A crowded house and thronged
leries listened in respectful silence when tnc I100n figure and July !' cents. I '! hour's business, but by no means a Navy Daniels' significant statement at
the chancellor arose for his speech in j At that hour May was (i 5-8 cents be-! record. . :the house naval committee hearing,
which he first, outlined extraordinary ; iow the opening, a net loss of 7 3-4 1 Dn the curb losses in several o'f the which was today credited here aa be
political situatiou and then, insisting1 P.nts and July 4 3-4 cents from last j more active munition shares during the ing his informal way of setting at rest
upon the achievements of the central I night"s close. December was firm, 5VI j 'rst few minutes amounted to only one reports and rumors that he would quit
powers, made the, announcement which 1 cents below ytsterdav. or two points. his post.
possibly may act as the turning point 1
m the war, which for more than twolVi at 88 3-4 cents; May down lVt at
j-ears has held the world under a spell.
ine cnanceuor said it was tortunnty4fOg cents
that the reichstag had not been adjourn-
(Continued on page -ijc.;
SALEM,
VON MACKENSEN IS
T
Has Captured 10,000 Prison
ers in Three Days Fight
ing Still in Progress
Berlin, via wireless to Sayville, Dec. .
12. Occupation of Urziccui and Mi.ilj
by German forces under Field Marshal j
Von Mackensen was announced in to-;
day 's official statement of the Human
ian campaign.
The army group 5f Field Marshal '
Von Mackonsen especially the Ninth!
army, in the last three days captured
from the Rumanians more than 10,000 j
prisoners, several canuou and much '
field material.
" Fighting progressed on the whole
front," the statement declared.
Fighting on the sSnune
Berlin, via wireless to Sayville, Dec.
12. On the battle field of the Somme
the fighting activity of our artillery
which since the end of November had
considerably diminished was tempo
rarily' increased again in the afternoon,
said today's Gorman official statement.
"Along the east bank of the Mouse
and near Moselle there was strong can
non and mine throwing firing without
infantry activity."
"Entente troops suffered one more
severe sanguinary reverse on both
banks of the Ccrna yesterday," today's
official statement of the Macedonian
fighting declares.
' Eyery day, with desperation, the ,
entente troops, especially the Serbians
storm against the German and Hulgar
ian positions on both bun";s of the Oer
ua," the statement commented.
"Also yesterday they suffered there
one more severe sanguinary defeat."
Kaiser Notifies Troops
Berlin, Dec. 12. Kaiser Wilheliu no
tified his troops in the field today that
he had made pence proposals to the ene
my. "Soldiers," his message said, "in
agreement with soverigns of my allies
and with consciousness of victory, 1
have made an offer of peace to the ene
my. "Whether it will be accepted is still
uncertain. Until that moment arrives
'ou will fight on."
News of Peace Proposals
Greases Skids and Price
Drops 10 Cents
Chicago, Dec. 12. Announcement of
Germany I peace terms caused a sen:
sational decline iu wheat today, com -
pared with last night's close. Deocem-j
ber lost 10 84 cents, May 9 .i-8 cents; Exceptions were Atlantic Gulf and'
and July S cents. December closed at Wtem with a gain oi 1 3-4, Central
$1.54; May ILIB 3-4 nnd July $1.43. j ticri w,ich sold up 3-4 and Pressed
The market closed very weak, heavy fgtee ;ar) whi. h advanced 1 3-8.
declines being registered in the last The entire market was very weak and
hour. I in Mih trfent confusion that ticker re- I
When the news broke just after the;
eniug the market longs i poured their ,
Srum pl" v ' 3 ,
downward. Later speculators saw thc
possigmiy uiai lerms uenuuj
P""R'"i " '"' )
"er f not eptable to the
; . r - , , r. .-r" ' .
'iwnitrn. creel.! in tne chka til nvamlur.
"iwhieh opened 0 3-4 c.
, mhft watj ut fa
... , , at t, 57i
gal-i,,,i ,i,:.. i.. ,. !ntu i,ia,
corn was lower. December was down'
90 1-8 cents and July down 3-4 cent at
Oats were down slightly. December
(Continued on page aix.)
OREGON, TULSDAY, DECEMBER 12, 1916
Transport Sumner
Ashore Off Barnegai
New York. Dec. 12. The United
.(States transport Sunnier is ashore off
jParnegut, i. J. Wireless messages from
.the vessel, which went ashore in the fop
! last night , indicated early tolay she
. was expected to be floated again before
j i veiling. The sea is light and the Sum
ner was resting easily, according to her
I reports.
j The coast guard cutters Mohawk and
j Seneca rushed to her assistance at the
! first "S. O. S. " call nnd many stenm
j eri also answered the call. The heavi
i ness of the fog compelled all of these
I to proceed with caution until daylight.
The Sumner has troops and civilion
employes brought from Colon, from
which port she sailed December I. Cap
tain Webber commands the vessel.
STIR THE ANIMALS IN
Bears Get After Bulls and
All Stocks Feel Effect
of Raid
IX m York, Dec. 12. Chancellor Holl
neg's announcement that Germany had
formally proposed pence c msed a near
panic in Wall street today and prices
on the stock exchange broke two to
five points.
In spite of the mad rush of bears to
sell, the stampede apparently had been
halted an hour .lifter the Berlin flash
appeared, by the belief of conservative
traders that the announcement docs not
mean peace is near,
Anglo-French bonds, which yesterday
dropped to a new low level, advanced
1 1-2 to 64 1-2 as the result of the
Hollweg announcement. Great Britain
and Ierlaud five per cent sold up half
at 18 :i-4 and City of Paris six per cent
bonds sold at 95 1-4.
More than a million shares had been
dumped into the market at noon and of
this tutal 200,000 shares was U, S. Steel
common, which dropped from 123 3-8
to 119 1-4, then moved uncertainly be
tween that figure and 120.
At 1 o'clock nearly 1,500,000 shares
had been traded in.
The crash carried Bethlehem Steel
down 9ti points to $000, but aside from
this "war bride" leader prices held
remarkably steady and fractional recov
eries bad been made at noon.
It was reported that many traders
who believed the market was due for a
slump, following several weeks of gen
erally upward movement, had sold short
and made big killings today. On the
other hand, small speculators who had
bought for a rise, saw their margins
wiped out and their accounts closed.
In the foreign exchange market Ger
man marks and Vienna kronen, both of
which sold at new low records yester
day, advanced today. Mnrk cables were
quoted at 00 L-S, against Ob i-i yester-j
0y, aad kronen rallied from 10.82 to
The scene on the curb was of great
u:uvjij unu uuirug ui Ul Ul I s uj. it Kim
4:..:i i i . .1-;,,.. i .. iu
1 tening pavement while darkened skies
alternately spilled sleet and snow. The
curb brokers jostled one another, clad
iu raincoats and wearing "slicker"
, hats of various colors, the colors denot-
i lag their firma.
It Was Bruins Innings.
New York, Dec. 12 Bear traders
raided the stuck market with success in
many quarters during the first 20 min-
.utes trading today, sendilifi V. S. Steel
to 122 12, off nearly a point, and cans-
! recessions of a point or more in most
of the more active stocks.
,s of salt,a ud quotBtions lagged far
beniml actua) transactions. "War:
t brides" felt the force of the peace an-
; llouncem,.ut of tbe German chancellor to
r,.ater extent than did the standard
greater extent than did the standard
.J There waa tt mad scrBlnl)ie 0f
'trading, moos ot uroKers Howling uuu
i . .r.' . . .. .
signal ing orders around tne steel aau ;
! 'B " . n v
munitions post.
. The first flurry of excitement was
followed by quieter trading as traders
1 4H0.O00 shares weTe sold. This was a
inai me peace pruponm jroiu irr-
many created no irreat flurry in Mor-
gan circles was regarded with consider-
..! 1. i . i
able significance. It was taken to in -
dicate that the American financial rep -
(Continued on page six.)
UNITED STATES
NOT TO ACT UNTIL
Will Forward Notes at Once
If That Is All That
Is Asked
BUT WOULD HESITATE IN
MAKING SUGGESTIONS
Would Have to Consult Other
Neutrals Before Taking
Any Action
By Oarl D. Groat.
(United Press staff correspondent.)
Washington, Dec. 12. If Germany's
peace proposals are such that she mere
ly wishes tile United States to act as
courier in transmitting them, this gov
ernment will pass the proposals along
without any comment of her own.
On the other hand, if Germany's pro
posals are that the United States it
self, along with other neutral nations,
shall make proposals in their own name
in Germany's behalf, the administration
will study the proposal before taking
action.
This does not mean, however, that tho
United States would not transmit the
proposals under the i ecohd plan.
These facts were officially revealed
at the state department shortly after
Secretary Lansing was shown United
Press dispatches from Berlin saying
that Germany had initiated a peace
move. In the absence, however, of exact
information as to what Germany thinks.
Secretary of State Lansing withheld
comment. His only statement for pub
lication: "1 know nothing about it and
have nothing to say."
He would not indicate whether the
proposal came as a surprise to him, but
his manner indicated more clearly than
words that the German news was prob
ably the happiest word he had heard
from Berlin in months.
Insofar as the United Press dispatches
show, Germany's course, officials point
ed out, is unprecedented. For that reas
on, Secretnry Lansing was unwilling to
commit himself as to the United States'
attitude.
If Germany's offer involves merely
the use of the United States as a mes
senger, the state department will send
along her note as a matter of course and
diplomatic courtesy.
But a larger question is Involved in
case Germany wants neutral nations to
do the sounding out or to make definite
proposals. In that case the attitude of
the allies, tested out by public opinion
( b l and bv Heerct American dip..
matu, investigation, will have n broad
, bparillg upon wiat this government
I ('oe8-
Would Make No Comment.
Washington. Dec. 12. "No comment
at this time," was the first word sent
out from the White House after Secre-1
tary to the President Tumulty was read j
tne (.niTeci ness wcnmui pwt Liivyvwi
dispatch.
White House officials would not say
whether this meant anything would be
given out later.
Copies of United Press dispatches
were sent to the White House by special
messenger 'and after reading them Sec
retary Tumulty rushed with them to
,var.i' the president 's offices'
1 , m -
m'tt til P. UT;41 P-il
Will All StEV With CXCeptlOD
of Attorney General
Gregory
Washington, Dec. 12. "I will recom
FULLY INFORMED
i mend next fall," is Secretary or the
1 no HiuLcuiriu t.uBc.j ,iunvncu
formal announcement by Secretary of
i tho Treasury McAdoo saying he has no
. 1 ..,,.!;. in.
: intention of resigning his portfolio. Au-
1 thoritative declarations were also made
(Continued on page six.)
a. MavAaa imu
1 !
CHANCELLOR'S POSITION
licrlin, via London, Dec 12.
"If in spite of today's offer
of peace and reconciliation, the
struggle between the nations
should continue, Germany and
her allies are resolved to con
tinue the war to a victorious
end, but they solemnly decline
every responsibility before hu
manity and historv," was one
of Chancellor Bethmann-Holl-
wcg s outstanding declarations
in the reichstag today.
A
E
E
English Officials Say Partial
Disarmament .Must Be
Peace Feature
FIRST ENGLISH COMMENT
London, Dec. 12. Today's
peace proposals are not likely to
affect the course of the war. de
clared the London Evening Star,
in the first published comment
on Germany's pence move.
"Unless tho central powers'
new found consciousness of re
sponsibility to God has brought
them to tne stage of surrender
ing Constantinople and the
Straits to Russia and destor.ing
Alsace and Lorraine to France,
the evacuation of occupied ter
ritories and the mnking of due
reparation, today's proposals
are not likely materially to af
fect the war," declared the
Star.
Washington, Dec. 12. Premier Lloyd
George will "diaeuae" Chancellor Von
Bethmann-Hollweg 'h peace proposals
when the former addresses the house of
commons, in the view of British embas
sy officials here today.
These officials said they believed the
premier might outline England's ideas
on peaco proposals.
Pending his coming speech, the em
bassy referred to Lloyd-George's recent
statement to the United Press for Eng
land's ideas on peace. They had no
reason to believe, they said, that Lloyd
George's views on that subee! had
changed since then.
Speaking privately, embassy officials
said when given the German embassy's
forecast of Germany's peace terms, that
the important question of limitations of
armament or perhaps partial disarma
ment must not. be omitted if any dis
cussion is to be initiated and continue
for any length of time.
Another official said that the whole
principle of continuing the war is to
convince the German people of the
"evil German militarism." Whether the
German people yet realize that "evil"
is the question which England must de
cide before she can talk peace, he said.
Seeks Basis for Peace.
Berlin, via London, Dec. 12. G
many's note to Pope Benedict declares
Germany is ready to give peace to the
world by setting before the world the
question of whether it is possible to
find a basis of understandings.
Make No Statement.
Undon, Dee. 12. The Iitish for
eign office will make nf statement re
garding Germany's Mace proposals un
til the terms proposed from Berlin are
officially known and all allies have
been consulted.
Deeply Interested In What It
Will Do Toward Financing
China
Tokio, Nov. 25. (By mail.) For
eign powers interested in China ami her
riches are turning watchful eyes to
wards America and her inclination, re
cently shown, to tsac a hand in financ
ing the Celestial republic. Ihi-s has been
illustrated by the action of the Four
Power Land Group Germany being no
longer considered a member in address
ing an inquiry to the Chinese depart
ment of finance concerning the loan
concluded by the Continental Commer
II 4k.
(Continued en page six.)
UBil Akj
wands itvb aara
LEFT AS THEY WERE
WHEN WAR BEGAN
Would Restore Belgium, Par
tially Restore Rumania
and Serbia
TO EVACUATE FRANCE
AND MAKE POLAND FREE
German Colonies To Be Re
stored, Some Changes in
Balkan Lines
Washington, Dee. 12 Germany 'a
peaee proposals, according to a German
embassy official, will include a sug
gestion that the territorial slatim of
the nations engaged be returned "prac
tically" to what it was before the war
started.
The exceptions are establishment of
Independent kingdoms of Poland and
Lithuania and some readjustment of in
ternational boundaries in the Balkans.
On the latter question, it was said,
the situation is so complicated (hat -it
is hard at this time definitely to sug
gest anything like positive terms that
would be accepted By all belligerents.
The one concrete suggstion made is
I hut Bulgaria probably will want tbe
return of the territory she lost in tho
second Balkan war, and It is supposed
Germany guaranteed this when Czar
Eerdinand cust his lot with tho central
powers.
The peace terms, the United Press
informant said, include the evacuation
of northern France, restoration of the
kingdom of Hilgium, tit least a partial
restoration of Serbia and Rumania, and
tho return to Germany of her lost colo
nies. The factors which arc said to have
led to the German peaee proposals at
this time are:
The favorable military position of
the central powers.
The fact that the winter at band will
necessitate cessation of hard fighting
for three months.
A desire to "smoke out" the allies
to announce just what they aro fight
ing for.
Desire to convince the world and the
German people wherever they aro That
Germany is not fightiijg a war of ter
ritorial conquest. f
Desire, if war continues, to lot ta
world know GermAiy will not be re
sponsible for further bloodshed.
Tne peace tonus outlined, the Ger
man official intimated, are not neces
sarily Germany's final proposition.
"The important question is to find
out whether the allies will talk peace,"
said the official.
"Germany makes the proposal in
order to find out whether it may be
more reasonable to stop fighting be
fore either side is able to get in what.
Lloyd-George called, in his interview
with the United I'ress some days ago,
' a knock out. ' "
Although he has no appointment, it
is expected Ambassador Von Bern
storff will sec Secretary Lansing and
thoroughly discuss with him the whole
matter. It is believed possible Von
Bernstorff may shortly express a de
sire for an audience with ('resident Wil
son. It is not believed Ambassador Ge
rard had any definite information of
Germany's peace proposals, when he
l.'t'i Berlin. In diplomatic circles it waa
said Germany 's action might have been
partly determined by the success of tho
Ftumaninn campaign and by cabinet
crises in England and France.
The peace conference, if it comes,
probably will be held either at Hcriio
or at The Hague, it was predicted.
Regions having a semi-arid climate
can proluce alfalfa successfully in near
ly all types ot soil and through a wue
range of temperatures.
t THE WEATHER t
HoP" 0
r , . 1 T -
a r.iiJ f
ivr"-i j ,
uragwi to
night and Wed
nesday rain west,
rain or snow Sist
portion; winds
mostly easterly.
Itiriniin iiinni n nr
NA UNSWUU UHt
5