F A.
FULL LEASED
WIRE DISPATCHES
41
CIRCULATION B ,
OVER 4000 DAILY
a
FORTIETH YEAR NO. 30
SALEM, OREGON, SATURDAY, FEBRUARY :?, 1917
PRICE TWO CENT? ON trains and newh
-SO STAN DM PTVH fWM
sttsmK
DIPLOMATIC RELATIONS WITH GERMANY ARE SEVEREDJODAV
mm mm mmwm m ma mum tiro m
WALL STREET BROKERS RISE TO
OCCASION TO BOOST PRICES
All Leading Stocks Rise In 'Today' s Trading and Patriotism
Rules Exchange American Flags Bedeck Streets Sur
rounding Financial "Center Brokers Hold Impromptu
Celebration Led by the Veteran Henry Clews German
Brokers Are Checkmated
New York, Feb. :. In a wonderful demonstration of
patriotic exhortation and concerted pool action by big
interests, the stock market was turned upward and be
came a booming war market today.
It was reported on the best authority in the street j
that the big German houses which have been selling short
in anticipation of a break on news of the submarine crisis
were caught by the upturn.
American flags appeared in the street soon after the
news of the break with Germany spread and brokers
jumped upon chairs in their offices and made speeches
to their customers, advising all to cover their short sales.
Henry Clews, octogerarian member of the exchange,
was one of the speech makers. j
"I advise everybody in this house to cover," he said.j
The United States is entering a period ot tremendous
prosperity.
"I've been through the civil war myself and I believe
the United States is unbeatable."
Similar scenes were enacted in dozens of offices.
The market which had broken one to five points,
turned upward with a rush, advances ranging from one
to ten points, amid a whirl of patriotic enthusiasm.
The general understanding in the street was that
Standard Oil and Morgan interests joined in planning a,
big coup, one of the greatest in Wall Street history, when
it became apparent that a break would come and that!
German houses were selling
oil Lilt; KAjJtscttJU ueumie. xiie iiilcicslo cujjjui lcvi mc
market and today there spread through, the street stories
predicting great railroad and industrial earnings should
war come.
The German crowd has planted in the market reports
of successive crisis, passports for Bernstorff and "bear J
stories" of various nature for months. At each successive
crisis, real or imaginary, they have been short and have
covered on the decline, making big profits. Wall Street
rumors have connected Von Bernstorft himself with these
operations.
The coup of big American interests today apparently
turned the tables on the German crowd, which has been
reported piling up a gigantic short interest for weeks.
The obiect of the drive upon this group is to leave them
hanging on a limb, short probably to the extent of mil -
J ions, and with no chance to
lurk market received th.
to In
ik with Oe
jun nv
n the
ivs exciromcm louav in;
i.-iginal submarine orders caused, initia
breaks bring confined u 1 to." points.
There was : flurry of nerv-nusnes
and excitement, after which shorts Wit
sold yesterday in Itaticipntiou of :
break began to buy.
This buying temporarily steadied th
market and there were recoveries.
.Steel -broke-; 100 5-8, off I 1-2. five
minutes after the news reached the
street. New York f'entral yielded but
half a point; International Mer untile
11a line prefererd sold off :i to 66.
A flood of hundred share sales orders
from small holders of stock and concert
ed action by bear operators caused a
second break shuttle nfter 11 o'clock.
SU.trl Crtl.I oo I.O. Dnl.l,..:.. i :..!
made a now low at 43j Heading dropped
to ss 5-9( Crucible to 50 3-4. and j.ouiul-
ing on marine preferred sent it to
tie I S.
Big bankers were quoted as s. tying
they had been expecting the develdop
ment for several days and were prepared
to meet it.
I Here is now a Heavy short interest
in the market, ivhere, nt the lime of theLries,, break with Germanv. dispatches
original peace proposal and Wilson's j-ived at The Hague from Berlin to-
m.-ssagr an mrui was lopnca y
with long accounts. Margins had bVojmn optimism over belief that the sit
. .u,-ii.-w. mug mi'iiiiiiiB nmni our aim ; nation would not result in a crisis,
big hsterests had come to the support of; Surh dispatches were fled, of course,
'the market. Wal' street v as better pre-, before the Berlin public was aware of
pa i d to meet a shock than at any time : President Wilson's action. They report
i" ''oaths. cj that in Berlin -'a break between
Vfaav brokerage houses today got out j Germany and America was now regard
their flags and within a few minutes led as unavoidable."
in anticipation of cashing .in
cover except at nuge losses.
. I
in Washington.:
co in dozens ot
;
: ;:
after tin
Old Glor
flash came fn
- was in evidor
ENGLAND IS JUBILANT
I.oi.don, Feb. .1. News of
America's break with Germany
electrified London. livening
newspaper extras sold furiously.
The American colony was
particularly jubilant.
Conference With Officials.
Washington? Feb. ;!. Imme
diately upon returning to the
white house from the capitol,
President Wilson called Secre
tary of War Baker and Secre
tary of the Navy Daniels into
his office for a conference.
.
!
:
J
i
German Opinion Is
Beginning to Change
,,.,,,. was electrified bv news of Am-
; ,jay indicated a sudden change in tier-
mi INT lVJY AFKH.T(il?rf:
r
PLANS ARE PERFECTED
IN CASE WAR COMES
yITil 0 CI) MAM r y n 1 n r
fill H ULRiTOl L P 1 1 1 1 L
Steps Taken At Once To
Protect Ports and Naval
Stations
ARMY AND NAVY SOON
TO BE ON WAR FOOTING
'American Munitions Factories
Will Be Put To Work On
Army Supplies
Washington, Feb. Four plans of
immediate action in ease of war with
Germany, have been worl
general staff of the armv
d out by the
it was learn-
ad today.
They involve!
Using the regular army and national
guard as a nucleus to train au army :
of two million a year, sending no troops
to Europe during IliaJ. period.
Obtaining immediate passage of a
universal military service law and call
ing out the first three-classes under it.,
i Extensive establishment 'of training
1 piKS' munitions ,.it
ami other factories to woik furnishing
i supplies and munitions fur an armv of
two million men and converting other
fa(.turies for this work,
Jt .,! ,t, f lttilo, army men say, to
send any of the present army to Europe.
Russia tost eighty thousand officers in
lu,, f i rst HI months of the war, they
T said more than the total strength 01
! the 1'nited States.
! General staff plans call for one huii-
died army divisions of 20.0011 enli. Kit
' ty thousand officers would he needed.
At present there arc 8,000 officers avail
able. Yoi(iu reaching the years of 19.
I and 20 the first year would be called.
, Kach year one million boys reach each
of these ages. One-third of them it is
! esfimated, are unfit physically for mil
'itary service leavingSibout 046,000 in
j each class. This would be available at
once, and staff experts believe thoy
: would insure an army of two million in
a year and four million in two years.
' The plan snggested i that of Japan.
; which has sent no troops-to Europe but
j has defended its own waters and liais
prepared steadily for any possible Iron
bio. This, it is declared, is the luuica'
plan for the United 8tates.
Tg Protect New York.
New York, Feb. 3. Acting Police
Commissioner Leon (. (iodley, in the ab
senee of Commissioner Arthur Woods,
took immediate steps to protect proper
ty in New York, following the an-
DOUnCe nCC nt that the United States had
severed relations with Germany.
Speeial guards were sent to all
bridges and to the aqueduct which
brings the city's water supply from the
Catskill mountains.
(Continued on page seven.)
IN SPEECH TO CONGRESS
GERMAN'S HAVE BROKEN PLEDGED FAITH
Washington, Feb. :i. The president 's'
Speech to congress today follows:
"Gentlemen of the congress:
"The Imperial German government j
on the thirty first of January nnnounc- i
ed to this government anil to the gov i
eniments of the other neutral nntiuns
that on and after the tirst day of Feb
ruary the present month, it would 1
adopt a policy with regard to the use I
of submarines against all shipping seek I
ing to pass through i crtain designated
areas of the high seas to which it is;
clearly my duty to call your attention.
Negotiations Reviewed
"Let me remind the congress that
on the eighteenth of April last, in view I
of the linking on the twenty fourth e
March of the cross channel passenger
steamer Sussex by a (ieriuan stlbma
fine, without summons or warning, and
the subsequent loss of the lives of sev
eral citizens of the United States Who
were passengers aboard her. this guv-1
eminent addressed a note to the Im
perial QvroUUt government in which
it made the following declaration:
''If it is still the purpose Of the Im
perial government to prosecute ruthless
and indiscriminate warfare against ves
sels of commerce bv the use of subma
rines without regard to what the gov
orsnient of the 1'nited States must eon
aider the sacred and indisputable rules
of International law and the universal
ly recognized dictates of humanity, the
government of the United States is at
last forced to the conclusion that there
is but one course it can pursue. Unless
the Gcriifan government should now im
mediately declare anil effect an aban
donment of its prescnt';methods of sub
marine warfare against passenger and
freight carrying vessels the govern
ment of the United Stales can have no
choice but to sever
llpjomatk relations
with the ierman empire altogether
The German Reply
"In reply to this declaration tin
German government gave this govern
meat the following assurance:
" 'The German government is pre
pared to do its utmost to confine th
operations of war for the rest ot
its.
duration to the fighting funis of he
belligerents, thereby insuring the tree-
dom of the seas, a principle upon which !
the German government believes itself,:
now, as before, to be in agreement with ;
We government of the. United States. government is convinced that the gov
" 'The German government, guided' eminent of the United States does not
by this idea, notifies the government think of making such a demand, know
of the United States that the German j ing that the government of the United
naval forces have received the follow- States has repeatedly declared that it
ig orders: is determined to restore the principle
" 'la accordance with the general or tiie freedom of the sens, from whnt
principlos of visit and search ami de ever quarter it has been violated.'
struction of merchant vessels reeog-
nr.ed bv international law, such
PRESIDENT SAYS
I
both within and without the area
declared as naval war zone, shall not
he sunk without warning and without
having human lives, unless these ships
attempt to' escape, or offer resistance.
'.''But,' it added, 'neutrals cannot
expect that Germany, forced to fight
for her existence, shall for the sake of
the neutral interests, restrict the us-'
of nn effective wennon if her cnenn
: permitted to continue to npplv at will
methods of warfare violating the rules
of international law. Such a demand
would be incompatible with the char
actor of neutrality and the Gorman
u.outinued on page seven.)
PRESIDENT STATES POSITION
OF GOVERNMENT TO CONGRESS
German Ambassador Received His Passports at 1:57 This
Afternoon-Later President Wilson Appeared Before
Congress to State His Reasons for the Action Taken
Country Realizes at Last Situation Is Serious and Re
sponds with Wave of Patriotism and Pledges of Support
By Robert J. Bender,
(United Press Staff Correspondent.)
Washington, Feb. .---Diplomatic relations between
the United States and Germany are severed.
German Ambassador Von Bernstorff was handed his
passports at 1:57 this afternoon.
A few moments later President Wilson appeared be
fore a joint session from the house and senate, informed
congress of the action that had been taken and, looking
toward the future, said:
"If American ships and American lives should in fact
be sacrificed in heedless contravention of the just and
reasonable understanding of international law and the
obvious dictates of humanity, I shall take the liberty of
coming again before congress to ask that authority be
given me to use any means that may be necessary for the
protection of ouV seamen and our people in the prosecu
tion of their peaceful and legitimate errands on the high
seas. I can do nothing less. I take for granted that all
neutral governments will take the same course."
When the president closed he was met
with a tremendous outbreak of cheers
and applause from both sides of the
chamber and from the galleries repub
licans and democrats alike.
The president arrived at the southeast
of the capitol
minutes be-
was schedu'i
begin speak- j
edly emptied I
n. ' As it as-1
on the street
a demoiisl ra- j
An
'ts
elevator
cargo of
igrt
I. a cheer froi;
the first tim
tiou has been h
ml,
through the
corridors.
president Wilson
or, strode into the
mediately adjolnlni
first of
speaker
after s
path f,
to the
the cloynt-
room, hit'
cret servic
lll Hie 0l(
had
r to
leareil :
ndditii
servic
li
it seer
i i in .
The
It 11:1
liven
ui.l atl
galleries had filled rapidly ni
" there was not a vacant seat.
the dip)
mat ics
mined
nin.l executive
lith diolomuts
and
left
It
thin
look scats in
along with tl
was the first
iia ve digni I'ie
first row at the
v t( s )
in memorv'that ,
house witii their j
lime
I the
hict .111
Wl
tin
-lite
of the group.
At IrW members of th" semi
ed the house chamber.
Chairman stone arid' mewtboi
foreign relation- committee wc
rti
if the
given
places in I he trout low.
Mveiy face showed deepest anxiety.
There was none of the customary greet
ings and handshaking. Every senator
and every representative sat tense and
expectant, many with heads bowed.
When the president was announced,
there was an outburst of applause, punc
tuated with cheers from the democratic
side, principally, and also from the gal
tones, lint the demonstration was snort ,
or than several occasioned by previous;
presidential addresses during the Euro-1
pea n war.
As the president entered, all members i
of his cabinet also filed in and took'
seats adjoining those occupied by mem-j
bers of the supreme court.
The president greeted Speaker Clark!
and Vice-President Marshall with
drnwn face and turned to the house.
There was just n trace of a smile as he
teknOWledgSd the welcome ot congress
when Speaker Clark announced:
"Gentlemen of the Sixty-four'
urth con-1
gress, 1 present the president ot the,
1'nited States." j
But it was only a flash and as he be-;
gan reading, his face set again in the!
grave lines that had marked it as he ;
entered the chamber.
As the president read there was
scarcely a sound from any pa rt of the
great auditorium, until, after reading j
how Germany hail withdrawn all form
tl pledges and given notice of unre i
ti ictnl submarine warfare, he declared j
that he had already severed diplomatic
relations with the Qerman empire.
Thunderous cheers and handclappi ng
even a Chautauqua salute of handker
chiefs from the galleries followed.
Senator Lodge, ranking republican
member of the foreign relatione commit
tee who docs not attend White House
functions because of his feeling on the
president's international attitude led
it heartily. There was commendation
in every movement he made.
From that point, every emphasized
statement was applnuded.
The president's voice at times seem
ed strained, rising thinly above the
murmur from the galleries that, would
nut be suppressed. Generally tho presi
dent's delivery is perfection.
He was Interrupted for th
demonstration when he said
solem nly :
" shall take the liberty
biggest
wly and
coming
is'i that
authority tie given me to use any means
that may be necessary for the protection
of our seamen and our people in the
prosecution of their peaceful and legiti
n. ute errands on the high seas."
lie paused a moment to let that sink
in.
There was a moment of silence. Then
from all villi's of Ihe Inn'.-e there broke
f Storm of cheers. It v.a.s the biggest
moment of the day.
As the president finished, the cheers
were, renewed.
The house and gnlleric arose, stand
ing sib ntl.v. some with bowed heads, as
he passed from the chamber back to
the speaker's room and the White
House.
Then the house, as if nothing had
happened, re-met, resolved Kaelf into
committee of tin- whole on tho state of
the union and resumed debate on the
navy bill with the usual smattering of
members mi the floor.
For the first time since Germany 's
startling declaration, the people of
Washington at congress and in other
government cireiei appear today to
begin to realize the possibilities grow
ing out of the new crisis. With this
realization came a practically uudivid
ed support Of Wilson in the senate in
any step he takes.
The country, too, apparently jjow to
arouse, appeared today for the first
time, fully awake to the danger ahead.
Hundreds of telegrams reached tho
white hoi.ee assuring the presideat of
a w ide s atilnent of support for a
break, thirgh mingled with many
peaceful messages.
Whether or not there is an actual
declaration of war following upon the
president 's action depends upon Ger
many. This country has made all prepara
tions for an eventuality. The prepara
tions have been going on for weeks it
was learned today. Announcement of
tho president's decision, reached yes
terday morningi was held up in order
(Continued on pago seven.)
I