N v FULL LEASED WIRE DISPATCHES Journal CIRCULATION IS OVER 4000 DAILY FORTIETH YEAR-NO. 28 PASSPORTSARERtISED TRAVELERS TO EUi OPE FROM UNITED STATES ; i First Step Taken To Meet German Decree For Unrestricted Submarine Warfare-Further Developments May Follow Quickly President In Consultation with Secretary Lansing and Other Advisers and All Sources of Informa tion Guarded Carefully Situation Is Grave and Tense SALEM, OREGON, THURSDAY, FEBRUARY L 1917 THESE SOLONS HAVE SPECIAL HOBBIES PRTf!F TWA rffXJTO ON TRAINS and news i , vmo STANDS nVM CENTS n i i . n j ADMITS He's THe if you WANT TO START SOMETHING JUST MCNTIO, 'RORAKCRCOtT) Of. Booxe ' TO se haxo SHANKS mMmsrssz mmm THE NATtoNAty MAD RUSH TO UNLOAD CAUSES BREAK IN STOCKS By Robert J. Bender (United Press Staff Correspondent.) m Washington, Feb. 1. President Wilson is about ready to announce this government's answer to Germany's warning of future unrestrained naval warfare. Acting upon instructions from the president, Secre tary Lansing has prepared a communication, the nature of whifh is mifli'HpH in acnraov , , , . .J' , , , . , house of representatives convened, and inl At tne same time, tne state department has issued an ! when the assembly adjourned is mill- it wonli order refusing passports to travelers planning to sail for 1 S tSVff Im were i if HiitroDean norts. b. no. ffiSn by the state department served to teJ? &tt&& House Favors "Cascade ": j II IIT P U U f C t I A I O 'UUIUII ILUULL Another Sterilization Bill jj Qf J!..W,ith 41i billH up for third reading and than animal and that this bill violates' tlUfll Passage thin mmnintr when th. tj... Kill ,:1. ... .l.:i. 1. 1 . o " - o - ttKino nimu ominous I'rilt'l : house of representatives convened, and inhuman romiahm.at ir- j i ,! . . . . ...... ......... i, . . .lv ... i ould take 50 years to prove whether as a success. B. No. 102. bv Representative Peek es-' "Il 1 eJ," sepnine lavoreil ttio Ho : IN WALL STREET TODAY Hundreds of Thousands of Shares Are Dumped On Market As Result of Germany's New Submarine Pohcy -Leadrnf Industrials and Shipping Stocks Slump--Chicago Wheat and Produce Markets Are Also Badly Demoralized By New Phase of Naval Warfare NEW NAVAL POLICY ouiiumiuiug an ucvciupinciiLb 'uuttv, lUllUW-,:"""" ' p'uviuc tor me sierm- declined the world wm hcinn- tWnd fo ing receipt of the German note. r5KS !.tttH 7ttatTwt7n Smlc It was pointed out that tfusal to-issue passports might iiTCSSJK sSClra thfC mean either that this government was planning to take j Ztt&2S2 T j J at htUat frimil" r h.noKn nnfn v. J -., ... : i i t .4.. ais aie made ana not born: he snvs more auuii dnuiutwdw an ItltJVlLaoie DreaK in reia- j arc born than made. He said the onlv I , .. , , ay to cope with the animal w.-ih n ink Both bills produced desultory olmteiit by the horn. laat lastea long ami w-as, tor the aiost. Representative Mueller asked who President Wilson has determined to modify his former stand, prevent Americans from traveling on the high seas and thus maintain this country's neutral status. Kollowin( an hour's conference with the president this mornii.f;, . t li i i nS j Oil A M AFI HDIllfPI ADCC wlii.l, the foiUieomins; i o.nmuuetUiun !ftHuLLLUllf UiulJTltLU 1 wui mir iii'im 111 nan u inv u?all, j Lansing deoMred he would protiably seo j the newspapermen at ;i:30 this after! noon, causing general belief that there nfay be an official announcement olj this government's decision at that time.; While no hint was available from any! OUnrtei' HA to the lirelident 'a fttfniairiar'i in the case, tlje gravity of Secretary CHALLENGE ACCEPTED ROR FI6HT TO FINISH lansing's eiprewjou after talking with! y n j. II 11 u i j f wi Dcuunann-noiiweg inaKes aa . 1 he nre.siHfiil iitd'tltasA nlainlt- il.n most serioug situation has developed. Aiiueu to wis, tne announcement, ol the new passport regulation led to the; conviction that- break with Uermany! appears imminent. It wan a rather weary gesture that! Lansing, after leaving the white house,! ttin-u' down (in tho Cviinl anna a hi ...... ! rlajje the little black portfolio, which, dining the last two years and a half, he has carried between the state depart ment and the white house, all ot the eomintalcatitoUl and memoranda bear ing on the many crises this country has gone through with Gerany. It was also with a note of some de letion that Lansing, flanked on all sides bv newspaper correspondents, as . Wont let muJ part rather uninteresting. After Rep rcsentative Peck had explained the measure and features of the steriliza tion measure, the opposition was taken up by RepreseutatSvo l.aureaard wbp muu inat it was oseit on hereditary was able to stale or indvp xvhrh person was or was not weaker and feeble minded. He averred it might be, all right for criminals but it would be hard to draw the line on feeble mjnded. He aoid it was ridiculous to try to regulate so theory and not on practical faets. Helcial instincts and traits. He thoimln v declared that normal children arc o'ften i was a vicious IjM. born to feeble minded parents, and that j Representative Crandall was in fh -or few cnminitls are due to heredity but I of it as it was oae of the most important are made by environment instead of i matters of legislation that has come be- birth. More the lomalnfU-h KnJ.. nj t. e ....... uvu, iu invum-a .1 He said the proposition had been re jected twice by the legislature, vetoed once by the governor, and rejected once elianuc of the live nd m-i.-t civilization. MA, according to his opin- iuii, is 10 a certain extent h hrn h. Steamer Epsilon Was Tor pedoed In "Barred Zone" Early Today ENGLISH PRESS COMMENT MOST BITTER YET PRINTED Reprisals Against German Naval Officers Is Demanded rs by Some Pane New York, Feb. l.-In a mad rush to unload, started by tKe German submarine proclamation, traders on the stock exchange today dumped hundreds of thousands of shares to stocks, causing a break of 2 to 26 points Leading industrials, shipping shares and "War brides" crashed downward six to 26 points. The widest loss was in Bethlehem Steel which sold at $:575. Rails broke 2 to 7 points. United States Steel common broke 12 points to 100 re covering 3 to 4 points when the market found support International Mercantile Marine shares were among those hardest hit, preferred breaking 17 to 65 and com mon. Steel was ? points above its morning low at noon, There were recoveries of one to ten points before 11 oclock. Thiw fnmi'fovo vF o milUn-, oLr,,,,-. j .1 . . I o ii a. uimiuil OliaXCB WCIC UUIIipeU 11110 j the market during the first hour of panicky selling. -1 vm '"oil iJinu UUWI1 U-O at XJ, i-O, Steel sold below par at 99 this morning for the first time in months. Of 1,1000,000 shares of stocks sold on the exchange in the first two hours, ;!57,000 was Steel com mon. Steel was 3 points above its coming low at noon, Anaconda, four points; Marine preferred four and Quar ter and Central Leather four. u Address to Reichstag Ut tering Defiance h Amsterdam, eb. 1. Germany ac cepts the challenge to fight to the fin ish and is staking' everything to win. The imperial chancellor, Von Beth mau-Hollweg thus summed up Ger many's attitude in a speech whieh he made yesterday to the main committee of the reichstag. Dispatcbea today from Berlin quoted the chancellor as follows: "tt'e have been challenged to fight to the finish; we accept, and kte stak ing everv7nuir. " New York, Feb. I. Francis A. Con nolly, partner of K. W. Ilolling in the firm of K. A. Counolly unit company ot Washington told the house leak com mittee todav he did mat auec of the telegram he. sent to K. K. nutton ana company the day before I'resident Wilson 's published. He said he merely knew by Vnnr nf Pi.i,i. m:i. , . ms own survey ot- tne situation that i,i, . ,, i """uu" someijiing snouii hapiien. agree with -our aims," the imperial' ,? -,. r :.' , chancellor said. "But the enen.v's con- i ( t",,noll' SH1,'1 ho MUeved " sdtnethnig ditions mean that ciern.nv' .w..,..;.. "".a""ut ro WPe" "'. force would be destroyed.'' (Continuing the chancellor, after enumerating and commenting ou "tho by tho people. He said the people, doier's keeper and it is necessary for him not want the bill. In other states he ! to consider the welfare of his fellow be- S8ld it Was not en'foreed in union 1. I iuo Tin . 1.... il. v,n - ... .. , ' - -f""B- "-v o.v oii; vi me oiu ne de clared unconstitutional. W nvnrml if m,i n. ,.:.. - ... . . . .v ...u ..no mi mkii io a trial uv a lurv w as only an experiment and was too drastic. He stateiT that man was morel (Continued on page eight.) Connolly Failed to Realize Importance of His Telegram ntered his earrilge. said '' I can say nothing now, boj yofl please close the door and no on?" Lansing is Disturbed Alter conferring wi h I'resident Wi! smi for some time, Secretary of State ia using this afternoon positively de clined to make any statement concern ing the German-American situation. The premier .appeared disturbed- and lie. ic than Usual I v solemn. lie etime nervously to the trout door " neiny s designs." declared: ' I can 2 T """. Peered hurriedly out not express tt more strongly than to early on December 20 of an impending tor his carnage, lighted a cigarette and, sa that Germany accepts the effalleiu'o neaee message iron. Pmi,W v:u,,n to figt to a finish and is staking .lames R. Keillv, manager-editor told' everything. ' the coinmittee. lie said Harold P. ,lr,h- 'Jn their reiilv to our neaee iffer I son. a renorter Infornuol Mm nf mm. tach much imporlante to it. lie said he sent the message only to Htttton and company, but regarded it only a matter of gossip. He said it wfis of no ini portance in his mind. "Why didn't you write it?" Chiper field asked. "I can't say; I didn't nonsidcr it urgent." Henry asked By Ed L. Keen. (United I'ress Staff Correspondent.) Umdon, leb. l:-ftermany's new sub marine campaign of ruthlessness is un der way. Tho Dutch steamer Kpsilon was the first victim to be sunk in the new "barred zone" today. Three British fishing smacks, the Merit, Watt and' weuiemi were also among the first vessels known to have been sunk in pursuance of the new Oerman order. The Kpsilon was a steel screw steam er of 3,211 tons gross, built in Rotter dam in 1913 and owned by the Vroeli tvaart Maats Bothnia. She was reg istered at Amsterdam and Lloyd's register gave her master as K. Hyke boer. v The text of the note was not re ceived in time for the morning news papers, but. with its appearance in the early afternoon editions, editors op ened their full broadsides of denunci ation and vituperation. United States commerce as well as American travelers are plainly threat ened. Frightfulncss is now unlimited una tne war may therefore assume NO STATEMENT OF "E GOVERNMENT'S NEXT MOVE HAS BEEN MADE Secretary Lansing Will Make Definite Statement But When Is Not Given Out (Continued on page two.) ABE MARTIN our opponents declared, they wanted on ,ly a peace which they dictated," the "chancellor continued. ' "flina tl. ,.-i.i ,l. . At - IU1 IIIC I III' flT Tlll ---- .. . 1 1 i i i r i . H clerk in the United States treasury de- an ent$y fw aspect shortly." pertinent, who, Connolly saM, occasion- y" e.irrieH wore not mornine newsoaners. haven W" A.! 2 u'" V' "... ' 7, , , "iBoanni-B IU ' ini'MKU Oil JJCICniliCl SUT Jtepreseatativ-e Campbell asked. ' Henry ashed. tne au t reel Journal and its al-; "N0 sir. I know no one in Chicago bed news ticker service was informed ; and we have no correspond.-!, fhcro?' in response to queries by IJppresentn tive Lenroot of Wiscousui, Connolly said he had been asked by K. P. lint ton regarding the source of the tele gram. He said he had not at that time recalled 'it. Washington, Feb. 1. Withholding an expected announcement of this trovern- ment's contentions in the crm-. rifh Oermanv. Seeretarv nt sr,,.. tannin.. ui . T e V " .iesi: i i,ivermore, reported to havo this afternoon refused to comment in'sold tiftv th.,wi any way on the situation. I ,.., ,i... t. ....'j r .1 .u . I .7 vn.T-iuaj, tn vnv rit 1 1 y cieillleo Willi . " luv ""vspapenncii at .i:.(U having played both the stoet, exiibsn Brokers' wires again carried the oft ' repeated rumor that, Ilernstortt had been handed his passports. Jnw of j the sinking of a Oerman ship in the i Charleston, K. tl,, harbor also was a bear I infhieocc around the noon day period. The selling movement today was bs- ea on the war notes sounded through out the country hy tho press and ley public men. The market was similar to that of the days preceding the out break of the European war. Thousands of orders to se.K "t the market" were in brokers hands when the opening gong sounded. There w " " ruui puni IO posr, Its OrOK- crs fried to ejocute orders in many different stocks before the break widened. Wall Htroet today was convinced that certain (k-rman houses yesterday s'art ed selling short in anticipation et the break today, having been informed of the action Germany contemplated. ors at 11:30 a. in. Reilly said he immediately wired Washington correspondents and was guilt of the war's continuation falls !lu'' Secretary Lansin:; would issue an nonn nnnhnul. n I .... :- . t , I ., i f. . ..l....l. vu. wywvHiuua itiuoe. ( oiiiiirioilS i " I ' ..v....i, ui. int which thev made are onlv accented bv ! ''forts were made to link th i) clock tw ports. Connolly followed E. P. Hfton on the stand. Button exjiresscd doubt that (leorg A. Ellis, Jr., a member of the Mutton firm, reaeh here before Hnn day for tesiimony. Be 'rcsentative Campbell dragged Con !,. .i .u ", "- I nolli lliiough events leadinc ira to the s' . u.u.rm na .-i adoption of r. k. Bom. 0 the con , v" SW.t prospect ,110), firm ti Menird Klli,,- a totally defeated ueool 'I'resident Wilson's speech i senate shows the sincerity of h sire fur peace.''. iiscussing the new Submarine tBe chancellor said: l ito 1 . .. -ince last Autumn tlie t no th., has Will Adjourn to Capitol New Vbrk, Feb. 1. The house com mittee investigating the leak to Wall Street on the president 's note to bel ligerents, will adjourn this afternoon to meet at 2 p. nuin Washington toinor row, a member of the comittee said. onlv sur i n nun m-n. i ment of sea. terrnriMin tnt th., nniol confirmed whal they had understood and anticipated for some, time, it was to take advance measures against just such a plan us Uermany now announces that the recent conference of naval officials of ajl the allies was held in Ijondon. The recently announced. North Sea mine blockade was likewise i decided upon because England ex- peeted such an announcement. Only fragmentary extracts ami l! general synopsis nf the terms of the j note were available for the morning. papers. J-or the most -part they with : he said: "I hwve nothing to say to you, nor will 1 answer any questions bearing on the present situation," If the state department intends hand ing Ambassador Bernstorff his pass ports it has not done so yet. This was ana tne cotwin marltet short on a heavy scale for several da3s. C-overing by shorts who led the bear drive on the market was a feature of the afternoon trading. I'nited States Steel closed at 102 3-4, off OVi; General .Vfotois at 104: Ma il , j . -" oil ;r-,(; lil'UiTIU .uuiois at iu: Ala- officially learned at the department common at preferred ut liiM , ate tins tftaniAfiii u-V,u i m-,o n. . r- . 1 late tins afternoon when il nounced that "we have not communi cated" with the German ambassador since he delivered the Oerman war note yesterday. This 'announcement, the single offi cial statement of the day, was supple mented by the declaration that there had been no additional communication from Germany. In telling the newspapercn he. would say nothing, this afternoon, Lansing added that there would be nothing tonight. When the news as to the adniinisfra 1...1. .. i: , . it- -. m.iu ' m,' ,, ciMiiincni on me ii( ie, , , ,. ., ... , . .. .. 'ition s course is mad " ..K ....... ...r ... ...o,Kii.i,i,i oi ,,,,.. ;.. ,, H'i,.;i (,.,., UaBMBX-it was said, but when this niny mid fteadinsf at fl.'l It was .'1:07 before the stock exchaugs ticker cleared the report of the last sales on the exchange. Sales today were H,0",8,"0u shares. Wheat Market Demoralized Chicago, Eel). 1.- The grain market closed with wheat showing substantial recovery from the low figures of the session. May closed at $1.(13 Vi above the opening but Si eeats below last night's close, duly closed at $1.41 1-8, 1-8 above, the opening and .") below Wednesday s close. 3k NOT UNITED PRESS MATTER Je of success, we can undertake the en terprise. Tlieretore, we must not wait longer. " uections had anything to do with his Situation Is Grave. London, Feb. 1. ''It is impossible to dispute tne gravity of the situation, declared former Premier Asquith to day, addressing a meeting at Ladvbank clothes get th ' bread coal loll thew bin. folks plent; they'll hustle When a jell a has investment of $30,000 in the Connolly linn. "Isn't it a fact," Campbell thund ered, "thaU-Str. Boiling was a strug gling young real estate dealer in Wash ington!" "1 wouldn't cull the owner of one Of tho liiirnnst ,.iA.,mnnl ... 1 n :td commenting on the German l.tncli . ! Washington a si rnuj li , vnnncr man " j adc order. , Connolly replied. "But with the navy suppleuientiug Campbell wound up by asking regard such other measure m tKa nr, ,.;,, n4 i in'i speculations of members of the Cnn- inecidiatnicn and acceleration of new ! u0".v firm, t.'onnolly denied he had t.-.i. ........ .. 1 - A I dealinps for hia own I t' .w..wi(,, . iMU, nuue w couilieraer . . it,'' he added. Representative Chiperfield tried with' It was Asquith s first speech to the ' out su'a!, Kl t 11,1 admission fromi constituents whom he formerly renre-' ConBolly ,nal rllmor ,oulli not ..have!. sented in parliament since his retire . I prompted the message wired to Button ment -n Fairlin.l'a nir..o s.;wn. ... i'aud company or the pence move. I n il I wd tave Z ,. , hiisd ield expres.se., doubt that ru- " v' y had started the message. Connol-I (Continued on page eight.) 'Ij't''M: ! Xew Vork, Feb. 1. A con cern operating out of Cleve land, Ohio, is sending to news papers in this country a great deal of free copy, favorable lo the liquor interests. This copy (onus in envelopes bearing the return address "The I'nited Bress Association, Cleveland." The I'nited Press Association with general offices in New Vork and bureaus in many eit- ies throughout the country is in no way connected witii or responsible for the concern that is sending out this unti prohibi- tiun propaganda propaganda and it has instructed its attor- neys to institute proceedings to enjoin the methods which mike ic appear that the United Press Associations has abandoned its : course of distributing only rcg- ulsr news matter. - ucnnaiiv s n iiiiniim -einent that she in tended hereafter to sink ships. This move was icgnrded as only a part of Germany's future policy of unbridled warfare at sea, regardless of the con ! sequences. Tliere was much Speenla jjcjtion but no official hint, of (he clmr- lacter of the threatened TtlTtish re- ' prisals. EngUsh Press Comment. Comment of th" I'all .Mall tlazette was typical of all the other afternoon iapers today. "This i Germany's supreme apoca lypse of horror", the editorial assert ed. "The kaiser MtnndMaihi. rteelnrpd protagonist of indiscriminate bestial slaughter on a prepared plan while h be se da I ! i expecti ret as all th, left just as great a other moves of flit: " OFFICIAL MURDERED Known, it will i The kaiser's submarine ultimatum was (he sole cause. May wheat opened down 11V cents at the start, fell 3 3-t cents more, but subsequently regained part of the loss, at neon standiug at '(il.ti01.,pne half cent above the open ing. Jiijji. opened down six 7-8, later, ; ing down an nddi.ional i- point to tl.i'J1-... September cheat opened at $1.29, regained ,1V4. later going la Olympia. Wash.. Feb. 1. E. W. Olson, chairman of Ihe in dustrial insurance commission, was shot and killed in his of fice in the capital building here at 1:30 o'clock this afternoon by A. C. Van Ib-ll, said to be a disappointed office seeker. Olson was shot through the head and died instantly. Van Del! was taken into tody a few minutes later. c us- .'; even ia sheddino crocodile tear aw - to tne runner desolation or ttie-war ot which he is the prime agent. " I ivilization merely re sterner tone its previous ai will so lame the boast that the world ,f that 0enMajl r8id(.r'H ,.,,; hgR need never fear aga.n'. ' r(,n, ,iep n th(. A ,. flaR The Evening -News held the note it HhoW8 ,, kn0W() tl, )in(,.t loo(illft frankly declared Germany's intention flag on earth when he sees it. to 'wage sea warfare hereafter without! mercy and regardless of the laws of! In the ease of Tom Lawson, a fist class secnurio writer was spoiled 'to (Continued on page eight.) 'moke a mighty poor leaker. (Continued on page twe.) :!;;!! sk 9k A Ac Sx THE WEATHER ITS (iQ(C To KlErCoiOBoJ Oregon: To night and Vriday fair except un settled, piobably- thwi rly