Daily capital journal. (Salem, Or.) 1903-1919, December 15, 1916, Image 1

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Feeling Now Is That the Allies Should Consider the Offer,
and Make a Statement of Terms That Would Be Satis
factory to Them Germany's Willingness To Consider
Disarmament and World Peace Causes Change
By Robert J. Bender,
(United Press Staff Correspondent)
Washington, Dec. 15. For nearly two hours today
President Wilson and Secretary of State Lansing con
sidered the question of supplementing the forwarding of
the German peace proposals to allied capitals with some
suggestions from this government.
At the conclusion of the conference neither the presi
dent nor Secretary Lansing would throw any light upon
what, if any, decision was reached.
"I have nothing to say now. There is no announcement
to be made at present. There is no conclusion to discus
sion," summed up Lansing's reply to inquiries from news
papermen. It was indicated after the conference that, the state
department at least has little on which to work in the
way of expressions of public sentiment in this country,
except as voiced in the newspapers.
In the past the department has been flooded with tele
grams, giving individual views of what ought to be done,
but in this instance none has come.
Cabinet Takes It Up.
Washington, Dec. 15. The whole sub
ject of peace and the part America can
jplay, it' any, will undoubtedly be thresh
ed out in this afternoon 'a cabinet ses
sion. Confidential Information from Secre
tary Crew of the American Berlin em
bassy dispatched with Germany 's pro
posals, is scheduled for presentation to
the members along with consideration
-' past official reports and recent un
official versions of foreign attitude to
vard peace.
The state department was reliably un
derstood to be collecting this forenoon
a'l its past information bearing on the
subject of peace. This, taken with news
messages, indicated a sentiment ou the
rtilies' part against yielding up the
struggle to diplomacy at this. moment.
Would Discuss Points.
Meantime, German official hints here
pointed to a willingness to talk at least
B partial disarmament and likewise a
v.illingness for introduction of a world
guaranty of peace.
The administration now feels that
t! ere may be instructive discussion of
t ie peace proposals among the allies,
lut has had no reason to believe that
the present proposals themselves will
at once point the way to peace.
Petrograd 's semi-official statement
that Germany is deluding her own peo
ple and trying t1 east the responsibility
for continuance of the war elsewhere.
Is regarded as a general allied view
point. In these circumstances President Wil
ton and his advisers are admittedly still
T jwled to 'know just what attitude and
what action, if any, to take.
It was expected that the cabinet ses
sion would serve to clear the official
'atmosphere and that it might be pro
tective of some definite information to
Men may be lookiu' further ahead 'We proposed to mediate to the ene
t:esc days, bat not as high. Who re my," the kaiser was quoted as saying.
members when a feller used t' h!-- :
per when he ordered a plate o' beansf 1 (Continued on page two.)
the public as to what this government
proposes to do.
English Feeding Changes.
By Ed L. Keen.
(United Press staff correspondent.)
Loudon, Dec. 15. A steady increase
in sentiment that the allies in refusing
German peace plans should set forth
their own terms of peace, was manifest
here today. Notwithstanding the con
tinued illness of Premier Lloyd-George,
it is known that the allies, through the
foreign office, have already logon an
informal exchange of views on Von
Bethmann-Hollweg's proposals
There are three views entertained as
to the course which the allies should
adopt in answering the German note,
based on the realization that the en
tente powers must carefully avoid the
pitfalls of the Teutonic nations. Three
plans are:
First A blunt rejection of the note.
The advocates of this course are con
vinced that this will be the only way
in which to prevent the situation being
maneuvered to advantage by Germany.
Opponents of the plan hold, on the other
hand, that.it would be a serious mistake
not .to meet the issues raised by Vou
Bet lima nn-Hollweg.
Second That Germany name her
terms on the assumption that these
terms yet to be made known officially,
really may be worth considering and
might be considered without damage to
allied prestige.
May State Their Terms.
Third That the allies do not ask Ger
many's terms, but detail their own sen
timents as to peace; their terms and
Suggestions made in the press of neu
tral nations and particularly develop
ment of such an idea in the United
MlateThas aided in developing senti
ment for this third course. Moreover,
it is seen by the news from Germany,
that the government did not expect a
favorable response to its proffer: there
fore Knglaud regards the main purpose
of Von Bethmann-Hollweg's proposals
as manifestly two-fold, to impress neu
trals and the German public. Advocates
of the policy of the allies listing their
tefms argue that in such a situation as
presented now, the entente have a splen
did opportunity to put before the out
side world as well as the people of. Ger
many whom they have always believed
generally ignorant of the real issues of
the war a clearest, definite united
pronouncement of the allies' aims and
There was every indication today
that the allies will adopt their course.
It is fully expected that J.luyd
George will be sufficiently recovered
from his illness on Tuesday to give in
his speech before the house of commons
n more or less positive statement of the
allies' position.
By Carl W. Ackerman
..(United Press staff correspondent)
Berlin, Dec. 15. Germany expressed
i ....
;a willingness to enter peace negotia
, tions because she is now fully victori
ous. Kaiser Wjlhclui told German troops
in -visace. in an nmircsa
; nnrc m ir.f with
uu,u MU ,UL """
Russian armies
German Advance Losing Momentum-Russian
ity Increases
London, Dec. IS. The allies have
made known in semi-official statements
their rejection of German-made peace
at this stage and today their armies
in the field were backing up that re
fusal by force of arms.
Statements from the cast indicated
winter has caused no let up in Russia's
Offensive in the Carpathians. Nor has
there been any diminution of the fight
ing in Rumania, The German advance
is slowly losing its momentum in the
face of the Rumanians' strong rear
guard resistance, made ns they retreat
to the strategic line of the Basau river.
Before long there will be complete
consolidation of the Buzau river line
of Rumanian defense with the Rus
sian Carpathian line of offense. Russia
is likely to reinforce this whole line
Great interest was manifested here
in a dispatch from Paris connecting
op Monday's violent German attack
ou the French lines nearest Pasis with
Von Bethmann-Hollweg's peace pro
posals of the same day. The assault was
declared to have been carried out by
the flower of the German troops and
I with a force of probably 10,01)0 men.
The attack has not been specifically
mentioned in official statements.
Apparently bitter fighting is still go
ing on in Macedonia, with the allied
forces under General Herail continuing
satisfactory progress. England looks to
see division of German forces to aid
the Bulgarians here very shortly with
a consequent increase in the intensity
or' the fighting.
French Attacks Fail.
Berlin, via SayviHe wireless, Dec. 15.
Three vain attacks by French forces
on the west bank of the Meuse were
reported in today's official statement.
The assaults were directed against
trenches ou height No- .104 southeast of
Malencourt, captured by German forces
a short time ago. -
On the east bank of the Meuse the
French also repeatedly launched attacks
preceded by a strong artillery prepara
tion, which extended far into the ter
rain behind the lines.
Further "storming waves" frif?ed on
the Pepper Ridge.
Development of an attack on the
south slopes before Fort Hurdumout
was made impossible by the Germans'
destructive fire.
Germans Take Buzah.
Berlin, via SayviHe, Dec. 15. Bu.ah
has been captured by the German forces,
today's official statement declared.
" Under the most unfavorable weath
er conditions," the statement said,
"the allied troops rival each other in
the plan liot to let the enemy rest on
the inarch. On the mountains the en
emy offered resistance in forcficld posi
tions, but were pierced.
"Buzau was captured.
"Tho Ninth army reported four thou
sand prisoners as captured yesterday
and day before yesterday. Near Fete
sti strong Bulgarian forces crossed the
Russiansd Make Gains.
Berlin, via SayviHe wireless, Dec. 15.
"On the hcjght the enemy succeeded
tin gaming a tooting, said today s OI-
ticial statement, describing the tCnsslan
offensive in the Carpathians.
The attacks on the Transylvania
fronts failed, as on preceding days-
Burned the Villages.
Berlin, via SayviHe, Dec. 15. Bus
I sian forces retreating in Kumania left
burning villages through great Walla
ehia, today's official statement report
Rumanian Cabinet Quits.
Copenhagen, Dec. 15. Resignation of
the Rumanian premier at .Tassy, the new
capital of that monarchy, was an
nounced in dispatches received here yes
terday A new cabinet has uot yet been
$ i(
Washington, Dec. 15. In ac
knowledgement of his service
in Mexico, President Wilson to
day recommended the promotion
of Brigadier General .lohn J.
Pershing to be. a major general.
He also recommended the pro
motion of the following colon
els to bo brigadiers: Kben Swift
Francis H. French, Kdwin St.
Greble audjt'harles D. Treat.
Seattle, Wash.. Dec. 13. Boy
cott ou potatoes, butter and eggs
has beeu started by Seattle wo
men members of the Hoinekecp
ers' club, it was announced to
day. They held three mass meet
ings to discuss wuya of reduc
ing the high cost of living be
fore they to6k action. There
nbout l.uot) women members of
the club and they intend to
work among their neighbors.
The resolutions rule against po
tatoes costing more than l1-..
cents a pound; butter over 40
cents s pound; fresh eggs over
45 cents a down and storage
eggs over 35 cents a dozen.
War Brides Worst Hurt But
Whole List Feels
the Jolt
New York, Dec. 15. The fourth day
of panicky Jumping of stocks on the,
stock exchange, which was started on
luesday by Germany s announcement
of peace proposals, saw new low lev
els established this afternoon.
United States Steel, which has felt
the force of the pounding hour after
hour since the Initial upset, wns quot
ed at 109 1-8 at one time todav and at
that figure showed a loss of 20 a
share from the high record price estab
lished recently.
The mad scramble to unload has re
sulted in four days trading averaging
two and a quarter million shares or
more. At uoon todav 1,300.000 shares
had been dumped on the exchange
rloor, a inrge aprt 01 it on orders from
business men of the country who had
played the hup i side consistently
through two mouths of the greatest
bull market Wul( street hus known
since TH! ' Ww""-'
Koassuring statements that no brok
erage houses have been weakened or
endangered by the near-panic which
has seized the country's speculators
have been issued during the past 24
The extent to which fortunes have
been made or wiped out by the 2,000,
000 share market is yet a matter of
guess. Country traders suffered in the
first clash and hundreds, perhaps thou
sands, saw their speculative nest egg
wiped off the boards. Professional trad
ers, in many instances, had sold short
and coined money on Tuesday. Since
then the market has been whip sawed
this way and that, uowling amateur
dabblers and professional speculators
without preference.
yesterday a man died of heart fail
ure in a broker's office while reading
tin? ticker. Today it was reported that
one brokerage firm declared a bonus,
only to have their employes nipped of
theirs Christmas presents, with which
they had taken flyers in the market.
Two million four hundred thousand
shares Tuesday, 1,780,000 shares Wed
nesday, 2,300,000 shares yesterday and
an outlook for a two and a half mil
lion day today tells the story of the
rush to unload.
The loss in the four day bear market
(Continued on page two.)
Expect to Save Submarine
If Storm Does Not Prevent It
Eureka, Cal., De?. 15. Plans to drag
the I'. S. submarine 11-3 out Of the
breakers where she has been rolling and
pitching for 24 hours were rushed to
completion today by Lieutenant Com
mander William B. Howe, following the
rescue tit' tin' 2(3 members of the crew
through the medium of a breeches
Despite the divers' perilous position,
Howe declared today he believes she
can be taken off if a storm does not
blow up. In response to a request sent
to the -Mare Island navy yard for n
vessel with geur for handling the sub
marine, tto- coast guard si
M el 'nUoch
came here todt
the work.
The two officers and 20 men who
were tuken off the submarine just be
fore nightfall yesterday are all suffer-,
ing from severe bruises and some
broken bones but none is in a con
requiriug more than temporary
N'one of the men would discus
w i t h
accident in de ail but from their stor
ies it was clear that the submarine lost
its way in the dense fog and drifted
into the breakers when its engines de
veloped trouble.
Members of the crew said that, until
they were rescued, they had no definite
idea as to the location of their vessel.
So dense was the fog that it was impos
sible to get their bearings yesterday
morning and Lieutenant Bogusch b-
lievecr he was several miles south of
Humooldt bay when he suddenly found
his craft inside th line of breakers.!
A moment later she began to scrape,!
the men said and tho engines went outj
of commission.
This left the craft helpless. For
While Pit Howled Price Drop
ped 9 Cents In Few
Saks Enormous and Market
Chicago, Dec. 15. After a rally just
before noon, wheat again started down
and fell as much as five points before
the close at 1:15 p. m. December closed
at $1.42 1-2, 11 points below yester
day's close and 4 1-2 blow's today's op
ening. May closed at $1.55 1-2, 11 1-8
below yesterday's close, and 7-8 below
the opening. July was $1.32 1-4, 10 3-8
below yesterday's close, and li 1-4 under
the opening.
Peace Talk Caused It.
Chicago, Dee. 15. Grain took a big
tumble today when news that Germany
is willing to consider proposals for the
limitation of armament frightened spec
ulators into turning loose heavy hold
ings. Wheat fell heavily when the market
opened, losing as much as nine cents
shortly after trading began, in a tumult
uous pit. Before noon the market, re
covered a little of its losses and Decem
ber was $1.47 1-2 up, 1.8 above today's
opening and six cents below last night 's
close; May was $1.58 1-4, down 4 1-4 be
low today 's opening and 8 2-8 below
yesterday's close.' July was $1.38 1-8,
down 2 3-8 below today's opening, and
0 1-2 below yesterday's close. The mar
ket was still very weak and nervous.
During the morning transactions were,
enormous and price changes quick and
Bciow is a comparison with wheal
prices last Saturday and at noon today:
Last Noon
Saturday, today. Off.
j December
1.H5 1-2 1.4 7 1-2
1.77 1-2 1.58 1-4
.1.49 3-4 1.30 1-8
1!) 1-4
13 5-8
duly .
Corn 'followed wheat in the early
drop, but later recovered and at noon
i today December was at 88 5 8, up 1 5-8
j above today's opening and 3-4 below
yesterday's close; May 89 3-8, up 3-8
lover today's opening and down 1 3-4
j below yesterday's close; July 89 1-4, up
7-8 above today's opening and 1 1-2 be
low yesterday's close.
Oats showed heavy fluctuations for
! that commodity, losing more than two
points at the opening. Later recovery
left December at 18 at noon, up one
over the day's opening and 1 3-4 below
yesterday's close; May at 51 5-8, down
3-8 below today's opening, and 1 7-8
below yesterday's, July at 4!l 1-2, up
1 1-8 over today's opening and 1 3-8 be-
I low yesterday.
Provisions were higher than at to
I day 's opening.
hours, they said she
about wildly at the
Several times the .
wholly submerged,
lurched and swung
nercy of the waves.
mining tower was !
.red, so sharp was thej
the bout reeled. Hut the !
angle at which
I no serious discomfort !
it into the batteries and
van released. This forced
r to abandon the interior
in til water g
'lilorine gns
ii a i m I
and to stmt
a under the
128 men sat
his crew off in
conning tower.
a tiny roo
rhere the
huddled togetlfTi
best they, might
pitched and tosi
bans ted when 1
aboard that tin
strength to mal
might never hac
not been for th
Werner Sweinns.
he lentK'd from ;
i clinging together as
while the submarine
Bd. They were so ex- j
fe lines were- shot I
y did not have the i
e them fast. They I
1 been reseued hull it 1
i courage of Surfman i
Despite his own peril,
surfbont to the slip-
pery deck of the submarine and finally I
made fnst a line after he had twice been
washed off and (twice had fought his
way back. Sweinns wns the hero of
Lureka today.
Commander Howe declares that he
expects to have salvage work well under
i i 41... .:,u 41...
wav neiore noon uno mm, wmi
combined efforts of the monitor Chey
enne, parent ship of the submarine flo
tilla, and the McCulloch he believes
the 113 will be saved.
Naval officers here were advised dur
ing the morning that Admirnl Caperton,
commanding the Pacific fleet, was pre
paring to call a board of inquiry to in
vestigate the accident to the H-3.
Crowds still lined the shore today
watchiug the salvage work being con
ducted under supervision of Lieutenant
Commander Howe of the Cheyenne.
London, Det 15. According
to the request of the I'nited
States, the allies have consent
ed to grant Count Tamowsky,
the newly appointed Austro
Hungarian ambassador to Wash
ington, safe conduct to America.
Count Tsrnowsky was appoint
ed ambassador to the I'nited
States to succeed the Count
Dumba, who returned to Vienna
because he wss no longer per
sona grata to America. The
I'nited States made known its
displeasure at Dumba's action
and he was recalled. When Tar
nowsky was appointed his suc
cessor several weeks ago, the
allies refused him safe conduct,
first on the ground that his en
tourage was entirely too large
to be bona fide.
America made formal request
for Tamowsky 's safe passage.
It remained unanswered and
second request was recently
made of England.
That Crew Was Saved Due
to Heroic Act of Life
Guard Sweinn
Eureka, Cal., Dee. 15 The exact
causes of the wreck of the I'nited
States submarine 11-3, which stranded
in the breakers of Humboldt bay, will
not bo known until on official investi
gation is begun by the naVy depart
ment. Lieutenant H. E. Bugseh and Lieu
tenant Kric F. Zeemke, officers of the
diver, and Lieutenant Commander Howe
commanding tho submarine flotillri, ab
solutely refused today to discuss for
newspapermen the details off the mis
hap. One of the members of the rescued
crew, however, gave the I'nited Press a
graphic story of the experience.
"We knew that we were in the vicin
ity of Eureka but we could see only a
short distance from the boat," he said,
"The fog was very dense and we moved
slowly, even though we thought our
ship well out from shore.
"Suddenly there came a scraping,
followed by a heavy bump which threw
us all to the floor of the boat. "By the
time we found out the trouble, the ves
sel began to careen. It rolled tremend
ously, milking it impossible for us to
stand or to make deck. It seemed that
every moment the craft would turn tur
tle, so fearfully did she roll and pitch.
"We lashed ourselves to the nearest
objects on the vessel. Finally, after
the tossing ceased somewhat, we made
deck and signaled to shore, but could
acocmplish little because of the tre
mendous roll which was so heavy that
the periscope touched the water fre
quently. Our wireless apparatus WnS
useless anil our efforts to signal with
the whistle proved ineffective.
Swcimu a Hero.
"Finally, us the fog lifted, one of the
boys got on dock and announced that
he could see people on shore and that
they seemed to be signaling to us to
keep up our courage. Then the fearful
rocking began again and we had to get
under deck, I'ltimnlely this rolling in
the surf brought water into the interior,
flooding the batteries and generating
chlorine gas.
"We saw
to do sometl
iuted. So
mads our w
where we lr.
Kor several
that we would ba
ickly or be aspbj
lened ourselves a
the conning tow
ogether in the co
,o waited there, n
daring to venture on t
Then we learned that
shot a line aboard but we couldn't inak
it fast. Finally the life guards senl a
bout and a Surfman that man Sweinns
did about the bravest thing I ever
saw when he stuck to the job ami made
that line fust in spite of the danger to
himself. 1 take my hat off to that
"After he had got through with his
work it was easy to get all hands ashore.
Lieutenant. Bogusch was the hist man
to leave the ship. ' '
Lieutenant Hogusch today paid a high
tribute to the courage and discipline of
his men.
"If it hadn't been for the splendid
courage und discipline of the men we
wouldn 't all have been rescued. At all
times they showed perfect discipline un
der most trying circumstances and in
the face of the gravest danger. It was
an honor to command such a body of
men. ' '
Work of salvaging the vessel proceed
ed rapidly today.
Take Russian Trenches.
Berlin, via SayviHe wireless, Dec. 15.
German forces entered Kussian
trenches north of the railroad from
Mzloczov to Tarnopol and brought back
M prisoners, today's official statement
Gergo Is Better. ,
London, Dec. 15. Premier Lloyd
George was much better today, his ill
ness having subsided. His physicians
indicated he would be able to speak in
commons Tuesday-
Wheat Is Only 88,359,000
Bushels Below Crop's Fire
Year Average
Oats, Apples and Hay Are e
Excess Cotton One
Fourth OIF
Washington, Dec. 15. The total es
timated production of wheat in tho
I'nited States during 1916 was 639,
866,00 bushels for U15 and 738,225,
000 for a. five year average, the Wait
ed States bureau of estimates reported
The totai production r.t rorn (taring
the year was 2,883,241,000 bushels a
guinst 2,01)4,793,000 bushels for 1915
and 2,732,457,000 bushels for fiva
year average.
Total productions of cotton during
191(i, according to latest estimates, was
11,511,000 bales against 11,1,820 in
1915, and 14,259,000 bales for a five
year average.
Total production of tobacco was 1,
150,622,000 pounds against 1,062,237,
000 pounds and 991,958,000 as a fivo
year average.
The total production of winter wheat
was 481,744,000 bushels, and 01 spring
wheat 158, 1 42,(100 bushels.
Tiw. ,,., I r,M,.iin ,,f . I QK1 .
992,000 bushels against 1,549,030,000
D 11 Basis tor 1915 and 1,107,961,000 bnsn
els as a five year average.
To'.al production of barley was 180,
927,000 bushels against 228,831,000 in
1915, and 186,208,000 as a five ysar
Total production of rye' was 47,383,
00(1 bushels against 54,050,000 bushels
in 1915 and 37,508,000 for a five year
Total production of buckwheat was
11,840,000 bushels against 15,056,000
bushels in 1915 and 17,022,000 bushels
for a fivo year average.
The total production of tame hay was
89,991,000 tons against 85,920,000 tons
in 1915 and 66.234,000 for a five year
average; of wild hay 19,795,000 tons
against 21,343,000 ton's for 1915.
Total production of apples was 67,
695,000 barrels against 76,670,000 bar
rels in 1915 and 65,966,000 for a five
year average.
Total production of potatoes was
883,437,000 bushels against 350,721,000
bushels in 1915 and 360,772,000 for a.
five yenr average.
Total production of oranges wns 23,
835.000 boxes against 21,220,000 boxes
in 1915. , -
Additional Reply To
American Protest Received
Berlin, via SayviHe wireless, Dec. 15.
An additional portion of the Oer
! man reply to the American protest over
deportation of Itelgian workmen waa
made public here today. It said tha
Belgian unemployed had been sent
front central receiving places in Hal
l tengradow, (lube, Kassel, Mesehede,
; Mnenster Soltau and Wittenberg.
'Of course," the note said, "occn
j pillions to which a hostile population,
according to international law, cannot
be coerced are excluded.
''If the American government at
taches importance to this matter, it
1 will be a pleasure to admit a member
of the embassy in Berlin to obtain ia-
formation about conditions under which
these, persons live by a personal visit.
t'The German government highly de
plores that both the slandering press
I campaign of her enemies' the con
j ililions .explained above have been com
! pletely distorted in the I'nited States.
Tho German government, likewise
not the least in the interest of th
I Belgian population would greatly de
j plore it if by these distortions the
i highly beneficial action of tho relief
i committee should be hamiiered and
asks a way in which they may be aon
! tinned."
-0 (ftt
Oregon : To
nigh t and Satur
day fair; wiods
mostly southerly.