f .. n FULL LEASED WIRE DISPATCHES m CIRCULATION IS OVER 4060 DAILY g FORTIETH YEAR-NO. 43 SALEM, OREGON, MONDAY, FEBRUARY 19, 1917 PRICE TWO CENTS ON TRAINS AND NEWB STANDS FIVE CENTS F REIGHTER SIS GERMAN DIVER Two Shots Fired From Steam . er and Diver Was Struck by Second FIVE MORE SHIPS LEAVE NEW YORK FOR EUROPE Several Ships Are Reported Sunk by Submarines During Day New York. Feb. 19. In a running duel nl. sen between the French line Freighter ftuayne :unl a German subma rine, the C-boat was sunk, officers Bad crew reported today on their arrival here from Bonleaux. The submarine, they declared fired three ineffective shots lit the ship and went down when the second shell from the (i." millimeter gun on the (iuayne struck her squarely. The, submarine, Captain appeared on the vessel'.' January 22 when the shi Etouseilot said port side on was ODe dnv (ut from Bonleaux. Two shots were fired by the Gunyse gunner, he said, and the second struck ils mark. The submarine, he said, dis appeared. The gunner aboard the lluayiie, a Rre ton. refused to discuss the incident, but others talked of it, paying tribute to the quickness and accuracy of his fire, Tac ship had to swing about while the sitlooarine was firing, they said, and narrowly escaped being struck. Both jjuunerR fired simultaneously as the ship swung into position for the fight, but each shot missed its mark by a few i'eet. .C;;! ... .'. . ; . Everyone aboard know that the next shot would settle the battle and that all depended upon the next shot. The breton fired a moment before the tJerman and the shot struck squarely. The l'-boat floundered for a moment, desperately striving to keep afloat, but finally disappeared. Captain Rousselol said his gunner stopped firing when he saw that the submarine had boon hit. The Guayne is a steel freighter of 2, 4UII tons net. She has carried millions of dollars worth of munitions to the al lies since the beginning of the war and has had her 115 millimeter gun aboard since the submarine operations began to be a menace The gun is the same as that carried by other French ships mounted astern so that the vessel must turn unless the submarine approaches from the stern. Captain Roussolot told his story of the sinking of the l'-boat at the French consul's office, where he went imme diately after landing. "We left Bordeaux January 21 in ballast." he said. ''It was about noon of the next day when we observed off our port side a freight steamship with two masts and one funnel. She was about; three miles away. As we watched, n submarine darted from behind her and slatted toward us. "I immediately swung the boat about to train our gun on the 'submarine, but before my gunners could fire a ahot fund the submarine fell 300 feet short of us. My gunners fired hurriedly as the second shell from the subm cnine at us. Neither shot was a ate. "1 hurried down t41ic stern, told the gunners to take their timt JllSt nine and and aim carefully. They did she. The uext shot struck the submarine and she ap parently collapsed, soon sinking. "The boat was in distress and I or dered my gunner to fire no more. We (Continued on page seven.) :(: ABE MARTIN ;: Trouble ei'd. T d an ' not rvire an" nir money IN RUNNING FIGHT Bt'lto Tax Railroad rant Lands Stirs Senate There was a b. royal Saturday afternoon in the sen. hen H. B. No. .'102 came up at 4 o'cMrk. By arrange ments made in the morning Representa tive Bean was asked to address the sen ate for 10 minutes iu explaining the bill and Representative Eaton was given the same time to show up his side of the case which was against the bill. la the final clash Eaton spoke but seven minutes, giving three minutes of his time to Bean to reply. .Senators generally took part in the debate which followed. Olson backed old man Oregon against the world, the flesh and the devil, so to speak, and insisted the senate had a right to tax the lands. "I am con cerned," he said, 'Mo know whether the state of Oregon is a -vassal or whether she shall assert her sovere gnty" to tax the land withing her borders." "If we are going to recognize the right, to take parts of our land off the tax rolls and put them in some sort of reserve then w e might as well surrender our franchise. ' ' "I believe that this declaration here in this bill is a declaration of our sov ereign rights that will safeguard the rights of the people." The senator was! ojnphntic and talked so fiercely that one folt he might declare Oregon a free I and independent nation, but he refrain-, ed, probably realizing Uncle Sam had I warlike matter enough on his hands without his attacking him "without warning." He, however, made a motion that the, senate go into committee of the whole,' whicli was done and there the bill was; amended by submitting the question toj the people at the next election, which saves the country for a couple of years at least, and at the same time passes the, bunk up t" the voters. Three Bills Acted Upon. The day had been consumed in acting! on three senate bills that were on the I calendar for third reading, and H. B. No. .'175, the inter-county bridge bill,' and others taken from the table or call-; ed up out of their regular order, so that! when the night session began there were! about 05 house bills ready for action. Of these some 19 were passed before I 10:30 at which time adjournment was; taken to Monday. The last bill acted' on was the only one causing any debate, but this started plenty o'f it. The Night Session. The night session in the senate was a hot one at its close, the bill, No. 226, to create the office of fire marshal for the state starting naturally a series of bril-j liaut fireworks, tip to that lime house t SPIES IN COUNTRY SAYS U. S. SENATOR Espionage , Bill Is Urged In! Order to Protect Country In Event of War Washington, Eeb. 19. There are 100,000 spies in the United States, Sen ator l,ee Overman declared on the sen ate floor today during debate on the espionage bill, for protection against the operations or' spies and malfactors in time of war. "I am told," Overman exclaimed, "there are now 100,000 spies on United I States Soil." Overman, as member of the judiciary I Committee in charge of the bill has I been in close touch with the depart j irient of justice, which drafted the meas ure. The espionage bill provides: Against the entrance of any person : "for the purpose of obtaining informa tion" upon any naval or military res ervation, vessel, radio station or muni tion plant. Against the unlawful possession of code books or information relating to the national defense. Against sending through the mails any invisible" writing, or false affi davits made to influence the course of the United States r foreign govern ment. Against impersonation of the offi cials of a foreign government. Against abuse of passport privileges and government seals. Against conspiracies to injure prop erty of a foreign country with which the United States is at peace. Against the inception within the United States of conspiracies against any "foreign prince or state''; re strictions upou internee! soldiers and sailors of belligerents. ' That the president may condemn arms and munitions destined for export in violation of neutrality laws. Against conspiracy to injure vessels engaged in foreign commerce. President Wilson, under the bill, is given also wide discretionary powers "to better enforce the neutrality of the United States." The naval code book recently stolen from a United States destroyer on the Pacific coast was stolen by emissary of a foreign government enlisted in the United States navy, Senator Lee, Mary land, declared. " lo j'ou suppose an Americau citizen stole that code book,1'' Lee shouted. "No; it was the Omifsarv of a for- (Continued from page two.) bills which were the sole program for the evening, went through as fast as read, 10 passing and one being tempo rarily laid on the table. Senator Ortou fathered the bill and told how much would be saved the in surance companies by the creation of this office. The companies all wanted it and as usual, "it would not coHt the state a cent, the companies footing all bills." Senator Farrell also had an affec tionate regard for the bill, saying it was proposed to make Bob Stevenj, present fire marahal of Portland, the chief for the state. Dimick objected, and BO did Eddy, an,l that indicates the character of the pyrotechnieal display. They both roast ed the bill. It was shown Senator St ra v er in his deep basso profotindo voice commenced punching holes in the bill that, the real blaze flared up. He ridi culed Orton's statement that it would cost the state nothing by reading from the bill showing it provided for making a host of officers all over the state who were to be paid out of the funds in the hands of the insurance commis sioner. And the Bill Passes. "Why," said Strayer, "it will mean that our homes may be invaded at all hours, by the meanest constable in the nearest town in the meanest county in the state." Someone asked a question, and he replied: "Yes, I mean Tult -nomah county." When he got through with it there was nor a peg for the ad vocates of the bill to hang a defense on, but it went through because the Mult nomah delegation wanted it, and what it wauts it gets. It was the same old argument that as the money was paid by those, insuring and not by the 'fax payer" that it cost nothing, but Strayer insisted that someone paid the bills and that those people lived in Oregon, Bills Were Fassed. The following bills were passed: S. B. No. 285, by Baldwin. Reimburs ing heirs or assigns of William Tullnck. H. B. No. 01, committee on education. Amending method of making school dis trict and municipal boundaries coincide. H. B. No. 125, by Roue. Limiting the time during which action may be brought to test validity of part district organization. H. B. No. 184. by Forbes. Empower ing public service commission to inves tigate interstate traffic and present fa -Is before interstate commerce commission. (Continued on page two.) FIX PIT PAPER Attempt of Paper Mill Com- bine to Fleece Publishers Is Stopped by Officials Washington, Feb. It). A deduction to between two and three cents a pound for news print paper, it was learned to day, is likely to be the maximum price which the federal trade commission will set, as the arbitrator jjf prices and dis tribution of the commodity. Prices re cently have gone as high as 8 and six cents and in-many cases some small publishers were unable to get print pa per a any price. The commission today began arrange ments to carry out the "voluntary" suggestion of the print paper n auutac turers, made after Bonn of them had been shown the result of Francis J. llency 's investigations into charges of extortionate prices and "an arranged paper shortage. ' The first work will be a series of brief hearings at which manufacturers and publishers will discuss the subject The commission declared today it ex pects to complete its work and submit its schedule by March I. One of the big questions to be set tled is the matter of recently made eon tracts at what the commission 's agents have said were unreasonable prices. These contracts, it is stated, probably will be replaced with contracts at the maximum price the commission decides on. In Canada. Also Ottawa, Ont., Feb. 19. Substantia! reduction in the price ef news print to Canadian publishers is forecast in a statement lsawd by Sir 1 nomas Whites department. The producers will determine their course on Wednesday next and it is be lieved will take action which will ren der it" unnecessary for the government to interfere actively. A satisfactory settlement will clear one of the most difficult problems with which the government has had to deal. Jt now seems certain that Canadian manufacturers of news print paper will substantially reduce the price of their product to Canadian publishers, last October the minister of finance conven ed the manufacturers and publishers in conference and asked them to ap point a joint committee to see whether the acute difficulties which existed could not be composed without execu five action on the part of the govern (Continued on page three.) PFOPLE Will VOTE ON NEW PRISON BUILDING PROJECT Bill Indefinitely Postponed Is Reconsidered In Senate Today CONSOLIDATION SCHEMES MEET CUSTOMARY FATE Lower House Passes Rural Credits Bill and Minor Measures The senators showed signs of weari ness this morning and I here was but lit tle scrappiness lett in them. In conse quence there was nothing doing except the routine business. It was expected house bill No. 550 bonding the state for six millions, would come up early but up to noon it had not been heard of. New Prison Bill. A large part of the morning session was devoted to taking bills up out of their usual order. Mouse Dill Jo. S18 -v this time .drs. Alexander Thomp which was indefinitely postponed Satur- Uon'had mounted the speaker's restrnni day, was on motion reconsidered and passed. It provides for submitting to the people the proposition ot building a penitentiary at a cost of $400,000. The present penitentiary has been in service tor ou years, saul Hurley, and either a new one will have to be provided or expensive improvements made on the present one." There was but little argument over it. Senator LaFollette suggested that he had been led to believe the passage of the bone dry bill would make penitentiaries use less as there would be no one now to send to them. For that reason ne was against the bill. It. however, passed. Usual Investigation. All real consolidation nreasures hav ing failed owing, as Senator Dimick claimed, to a vigorous lobby, house con current resolution No. 11, providing for a joint committee to investigate and re port at the next session on the method and advisability of consolidating meas ures was referred to the ways and means committee, it carrying an appro priation. Nine house bills of the 49 on the cal endar were disposed of, and about 20 others were reported by the committees which may conic up for action. A few of them will undoubtedly do so. This would a tile calendar stands at noun, leave about 00 bills to be acted on by the senate. Mere Bills Passed. Bills were passed as follows: H. B. No. 285. by Al Jones. Licensing dogs, and creating a fund 'for the pay ment of stock hilled by them. H. B. No. 428, by .Tones. Increasing compensation of commissioners of Lane countv. it. B. No. 3.11, by Forbes. Fixing sal aries of officers of Crook county. H. B. No. 600, by Rowe. Regulating manufacture of cheese, H. B' No. 258, by Thomas. Permitting state engineer to cancel permits when holders have not complied with the law. H. B. No. 4K5. by Clackamas delega tion, Providing for publication of legal notices. H. B. substitute, No. 31, providing for sale of real property on foreclosure. H. B. No. 454. by Crandall. Providing for military training in high schools, VI. B. No. 421, by committee ni edu cation. Providing for establishment of parental schools was laid on the table. RURAL CREDITS MEASURE PASSED LOWER HOUSE TODAY With only two made bv the house bill No.' 120, know measure, passed th minor amendments this morning senate i as the rural credits 1 house with pruetic Flie principal amend ally no oppositi ment was slight change in the designs tion of water rights to be considered in making assessments. The original read ing of the bill stated "water rights al ready adjudicated" which was changed to "water rights appurtanaut to the laud shall be considered." The various sections of the measure were adopted iu the committee of the whole with Repre sentative Burdiek in the chair. With the exception of the question of the indefinite postponement of H- B. No. 501, providing for a special election in June, 1017, there was little discnVsion in the house this morning when the ses sion was called to order by Sneaker Stanfield at 10:30 o'clock. Representative Schimpff moved that the bill be taken from the table and considered when the question as to whether or not the bill had not been in definitely postponed Saturday night or laid on the table came up. For a while there was a muddle as the record of the clerk showed no vote token on indefin ite postponement. There were various opinions expressed as to what the state of the-bill had been. However, after the business was halted for about 15 minutes and the records searched more carefully, it was found that the bill had been indefinitely postopend Saturday night but that Schimpff had moved to reconsider the vote, to which there was no objection. The bill therefore was ly ing on the table. At this pass, Sehimpif (Continued on page two.) Speaker Stan field Honored By Colleagues in House Although Saturday was a busy day i Hirer and Wasco counties who was not in the house of representatives and ev-j averse to having house rulo 66, relative entiling was being rushed expeditious-1 to smoking during the session, suspend ly toward a final dose of the forty oaejed, and therefore, with the compliments days session and 29 bills passed, three j of the smokers ei the house, of the were Rilled and 34 indefinitely post-.press, and the third house, he presented poned, yet the members of the house ! to Mrs. Thompson a beautiful statue of took time to pay a few honors. j" Winged Mercury. " Pausing iu the hea: of the session ; The tribute was for her effective de along toward the closing hours of Sat-bating on the floor of the house, to unlay evening's session, Hepresentati ve j her true sportsmanship, and to her de llean, who ran against Kepresrntativc I fense of the smokers in having house StHllf il'lil. of Stnnt'iplH fnr tlin ,- ,!... ) i; le titi ,n t ie n , I ... I At t'ti... unma t,,.. 'ship of the house, arose and in a short ' presentation speech that took Speaker ! had presided over the twenty ninth ses Stanfiebl by surprise presented a hand-jsion of the legislature, Speaker Stan some gold watch, chain and chsTm. i field presented her with the gavel and In stating his "personal privilege " i block of Oregon myrtle used during the at this time, Representative Bean de session. dared that at all times throughout the; For the first time in her life, Mrs. session of the twenty ninth assembly j Thompson said she was overcome and of the Oregon legislature he had firm-1 unable to talk with her iiBual fluency, ly supported the seaker and that nexti"I think the tribute yon havo given to having the honor to have nominated me is too much, but 1 certainly appro him for his present high position, he i date it. 1 wish to say that 1 havo been was glad to have the honor of present-1 associated with men in business the tng the chain and charm as a token to the appreciation of the members. II raid that he had been a members of numerous sessions but that no session had been Conducted with more fairness and efficiency in the dispatch of busi ness than the present one. Speaker Staiif'ieltl replied briefly but with sincere appreciation of the gift that, was presented. lie paid tribute to the loyalty of the members and said that if it had not been for their sup port the business of the session would not have progressed as smoothly as it aad. and when Miss Marie Briggs, Salem page, had given the chain and charm to Speaker Stanfield with the message from Representative Itean, she stopped! Bills Were Passed Miss Briggs and said she was in the Hills passing the house Saturday presentation business ailso. Accordingly, were: with a speech complimentary to the I H. B. 92, Mrs. Thompson, providing work of Miss Briggs during the session methods for committing feeble minded, and the hope expressed that, with the H. B. 4!)9, appropriating $200 for beginning thus made, she would srfhtc medal for .los. ('. I'oeschl for bravery, day be addressed as "Honorable Muriel H. B. 523, joint ways and means com Iiriggs" and have a desK in the house, I mittee, appropriating monoy for Ore she presented the Salem girl with a son state industrial school for girls. beautiful sold bar pin as a token of' appreciation Irom the members of thedion, to provide for the transfer of eer- 'house At this time Speaker Stanfield, who had somewhat recovered from his sur- II. B. 553, joint ways and means com prise, asked Mrs. Thompson to take thei mittee, appropriating money for library chair. He then told the assembly of a building at O. A. O, certain Greek god named Mercury who! H. B. 554, joint ways and means com stole fire from Mt. Olympus for thol mittee, appropriating money for an ad benef U of mortals, and he also told of a certain representative from HOQdj (Continued on page three.) SUFFICIENT TO MEET Ways and Means Committee Succeeds In Spite of 6 Per Cent Limitation The members of the joint, senate and house committee succeeded in distribut ing the money among the various insti t u t ions so that no hardships were entail ed upon any or them m Spite 01 the six per cent limitation law. The tax limitation holds the legisla ture down to a grgs expenditure of $0,306,506.82. The actual sums author-1 izeil total $0,21)8,433.40. Of this amount, 8)228,742,60 js to be produced by the millage (axes and continuing appropriations tor support of state institutions, and with which the, present legislature has nothing to do. Big Cut to Start. To get in under the limitation, the ways and means committee had to start with a cut of $!)4il,l87.50 from the bud get made up by the secretary of state from the estimates of all the benefienr. ies of tax-produced funds The budget! total was $7,010,447.01. The miscolrSn -, cous items for which no budget request was made were taken care of to the ex-1 tent of $231,423.40. How these cuts were made, and what I sacrifices had to be imposed upon all branches of state affairs in spite of i their expansion is a matter of liiNtory with the committer. Senator Wood and Hepresentati ve Kubli, respective chair men of the senate and house committees, expressed their gratification tonight that the legislative body had reposed such confidence in the work done as to accent nlninst pvprv nnni'iii.rint inn tiill wiiiiuiM a im'iHiuiciii . Institutions Sared For. With some minor increases put in the bills on the floor of the house, the1 surplus of $10,801!. 07 was realized as: the difference between the constitu tional maximum of expenditure and the actual. The appropriations take care of all; the state institutions, the expenses of administering the government, the; work of experiment stations, exten sion work, construction of some new. state buildings, stall' aid for eleemo-' synary institutions, fish and game1 conservation, flax and lime industries,; exploitations of the state to tourists, and all other activities of state. The balance was struck Saturday, night by John O, Sehroider, chief clerk, of the joint committee, after a careful; check wilh the records of the secretary of state. because she was the only woman who greater part of my life and I havo never been given any greater consideration and courtesy than I have been at the hands of the members of the house.'' One Bill Vetoed The first veto of the bills passed at the present session was wielded- Satur day when Governor Withyeombe return ed house bill 415, introduced by Repre sentative Mueller by request, putting the Columbia county roads within the city limits of St. Helens under the jur isdiction of the city, with his disap proval. The governor stated in return ing the bill that such a course would very much interfere with work now started and under cont meplation by the county court. I he objections 1 the measure seem to offset the probable advantages accruing. H. I). SSI, Deschutes county delega- . tain records to new counties from the counties from which they are created. I I Have Cleared Six Square Miles .of Territory and Inflicted Heavy Losses By William Philip Simms, (United Press Staff Correspondent) With the British Armies Afield, i'eb. .111. The German army of (Vown Prince Rnppreehit 's group has re ceived several sharp raps on the knuckles during the last thirty six hours. Following Suturdnv's cnejaire- inent at dawn, in the Miraumont reg ion, the British liuve further advanced and this despite fogs, thawing of the frozen ground and resultant seas of mud. Officers are ''quite satisfied with the result," they asserted today. The British lines now overlook Mii auinont at severul points. A violent counter attack by the dormant north of the Ancre yesterday ut noon was bloodily repulsed. North oft' Armentieres the British raiders penetrated 250 yards into Oer inan second line trenches, killing six ty. Many dugouts were cleaned by bombs. Other minor raids yesterday and last night were successful. Details of Victory London, Feb. 19. -Details todav of the brilliant Briti Miraumont impressr the preparations t made for the gnat Two days' fighting the (lennans from miles of territory ol importance and achieved despite handicaps in weath prisoners was expei somewhere near one Front dispatches sorces attacked w imminence of the cupied the more fa defensive operation hills of Miraumont. ih victory around I exports here with rent Brflitain ' has offensive of 1917. resulted in ejecting nearly six square enormous strategic the victory was the most severe r. The number of ted today to reach thousand. leclare the Herman re fully aware of assault. They oc orable position for I, being on the A heavv mist pre- vented British aircraft ing ranges for guns and from estimaf veiled the ob- lective for the men on the trench parapets. The attack was carried through with precision, exact ranges being obtained through previous recon naissances. The British did terrible damage to the Herman trenches. The success of the British forces (Continued on page three.) SITUATION IS UNCHANGED BUT I President Will Not Go Before Congress With Further . Request RELEASE OF ARROWDALE SAILORS IS DEMANDED Negotiations Still In Progress to Prevent Break with Austria By Robert 3- Bender. (United I'ress staff correspondent.) Washington, Feb. 10. Although un changed in its dangerous particulars, the German-American situation today was generally regarded by officials os more hopeful than at any time since the dip lomatic break two weeks ago. The situation is such that the United Press can state positively the president has "no present intention of going to congress to discuss it in any way.'" No "overt act has vet occurred anil officials see in recent actions bv 0:r- uiany, no apparent change of attitude toward this government. The purpose of the president is un changed, however. He does not intend to pause in the work of preparing, mere ly because there appears to be a ma terial slump in the daily "bags" of F- boats. Demand Sailors' Release. Formal demands have gone forward as was expected for release of the Am erican Yarrowdalo prisoners held in Ber lin. When on Saturday confirmation'of press reports that the prisoners Had been released failed to reach the state department the government cabled its demands. Twenty four hours later, Sec retary Lansing Was notified by the Spanish ambassador at Berlin that the prisoners would be released "soon." This, however, Lansing intimated to day, probably was not in response to Saturday's demands, but rathTr to in quiries previously sent. With this and other critical situations alleviated, the president today is laying plans for handling the situation after congress adjourns, March 5. Pacifists Are Encouraged. Congress members who have frankly expressed pacifist and pro-German ten dencies in floor speeches are much im pressed with reports from Austria to the effect that officials there are hoping for a complete congressional airing of German-American relations. Such mem bers have themselves expressed that identical view. This procedure is exactly what tho president wishes to avoid at this time. It is the one thing that might force his hand and make him fed he shnnld im mediately ask through the medium of adinistratioii leaders or personal appeal for the powers he is known to want in I handling the international situation. It was pointed out today that tho president has two alternatives. One is introduction by his congressional bad, ers of a joint resolution providing an appropriation and frte rein ond in hand ling the situation; the other is the per : i ..i.j i, .. .... , "ll.ll H)CU1 III WHICH 111' VWUtVI Ut' M" pected once more to outline the whole 'situation and suggest that, in view of the present critical condition of affairs, eongross should vest in him broad pnw ers to protect American rights, proper ty and lives as he sees it. Decision Up to President. It apepars a near certainty that tho president will reach a decision on these j two alternatives within the next few days necause or tne proxinury oi ad journment. It may be stated positively that unless the situation takes drastic, turns 'for the worse, the president noes ! not want, ami will do alt iu his power I to avoid an extra session. In Iho meantime negotiations tending jto avoid a break between Austria-Hungary and the United states continue. ; First Secretary Grew, formerly of tho j Berlin embassy, has arrived in Vienna, according to unofficial reports. Some jlhiug definite in the Austro-American situation can be expected at any time, Istate department officials hinted. That I Grew carried important messages from ; this country to Ambassador I'enfteM is admitted. With this information in (hand, Penfieltl will be able to explain 'iu detail to the Austrian foreign office (Continued on page two.) THE WEATHER I Oregon: To night und Tues day rain west ; rain or snow east po r t i on ; fresji southerly winds interior, moder ate south erly gale along tho coast. QUTLOOKHOPEFU I j