Daily capital journal. (Salem, Or.) 1903-1919, January 02, 1918, Image 1

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Daily capital journal., January 02, 1918, Image 1

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Newspaper Page TextTODAY'S WEATHER 4,400 SUBSCRIBERS (22,000 READERS) DAILY Only Circulation in Salem Guar anteed by the. Audit Bureau of Circulations. FULL LEASED WIRE DISPATCHES SPECIAL WILLAMETTE VAL LEY NEWS SEEVICB . Oregon: Tonight and Thursday rain west, fair east portion, fresh south easterly winds. en. il I mmwm Ii l Ml i f i 1 1 II ft it ii II if ll ? -r f'-nni - r- . : ' t-r - -er w -V y FORTY-FIRST YEAR NO. 2 I Rill I POSSIBLE House Commission In Report Today Makes Important Recommendations-Greatest Possible Unity With Allies Urged Shipping Program Should Also Be Hastened In Order That Artillery and Munitions to Place Large American Army On Effective Basis For Offensive Cam paign Against Central Allies May Be Transported Washington, Jan. 2. American fighting forces must be dispatched to Europe "with the least possible delay incident to training and equipment," Colonel House's mission to the allied countries has recommended to Sec retary of State Lansing. Speed and systematic co-ordination in shipbuilding are likewise primary requisites while unity of effort military, naval and economicbetween the United States and the allies is essential, according to the other two prime recommendations. . The full text of these recommendations follows: "One That the United States exert all their influence to' secure entire unity of effort, military, naval and economic, between themselves and the countries associat ed with them in the war. "Two Inasmuch as the successful termination of the war by the United States and the allies can be greatly hastened by the extension of the United States shipping program, that the government and the people Of the United States bend every effort toward accomplishing this result by a systematic co-ordination of the resources of men and material. "Three That the fighting forces of the United States be dispatched to Europe with the least possible delay in cident to training ana equipment, These recommendations mean that nil the allies will hereafter work to gether in unity; that the period of training and equipment of American i forces will doubtless be shortened if this can be accomplished, with the ship- ( iping apd other resources at hand. The recommendations for co-ordination in the shipping program empha size more strongly than ever the ur gent appeal of the allies for more ships more, speed in building them and less bickering and attention to details. Summary of Coh.iiel House's report to Lansing shows that the special war mission "succeeded in its purpose of Teaching a definite working plan for the prosecution of the war' In making public the summary, the state department expressed its gratifi cation as the result of the mutual help less spirit manifested and by the plans outlined "will greatly increase the ef fective oi the efforts now beinj put forth by the Vnited States and the allies iff the conflict against permany nd Austria-Hungary." COLD WAVE BROKEN IN NEW YORK TODAY 0 m m Southern California Experi ences Hot Wave and Sun . strokes Are Reported New York, Jan. 2. After four days of below zero weather, resulting in more than a dozen deaths and intense Buffering, owing to eoal shortage, the told wave was broken here today. The temperatrre rose several degrees above the zero mark. With orders from Director General of Railroads McAdoo to route freight: cars bearing eoal through the Pennsyl-j vania railroad passenger tunnels, it was believed the coal situation would be gpeedilv "relieved. j New York will see its first lightless night tonight, As a eoal conservation measure, all lights except those neces sity for safety will be extinguished.1 The lightless order is effective six nights a week. . i Advertising signs, hotel and theatre! signs, as well as unnecessary street' lights will be permitted to be illuminat ed only on Saturday night. California Heat Intense. Psssdena. CaL, Jan. 2. While the east shivered in zero weather on New Years Day, three persons were over-j eome by the heat during the football j game between the Marines and Camp; l.ewis here. One of the three suffered ' r in troke. i (Continued on (age twof Here is the mission's statement of the results accomplished: . "Diplomatic; "(1) Full and frank discussion be tween Colonel House, as the special representative of the government of the United States and the heads of the British, French and Italian govern ments with regard to the w.-w. pHiey of the United' States and her associ ates in the war. "(2) Participation by the mem bers of -the mission in a meeting of tho British war cabinet, at which con-; f erence a general and useful discus sion was had concerning the needs of tho allies and the. extent of the assist ance to be expected from the United States. " - "(3) Participation by the United States in an inter-allied wa; confer ence held in Paris on November 29. At this conference all preliminary speeches were dispensed with and within hs'f anhour after the confer ence had been called to order by Clemenceau it had split into commit tees for work. "(4)" Participation by the Unit ed States in a meeting of the suprem,e council held at Versailles, December 1. Representatives of England, France Italy and the United States there met as a first step toward securing unity of control of the armies on the west ern front. This meeting, the first of its kind, assures for the future uni ty of suppcTt on the part of the Unit ed States and the allies. "(o) First steps taken in the es tablishment of a more perfect liaison between the commanding generals of tho United States and the allies. ' Naval : "(1) The formation of an inter allied naval council to co-ordinate the deration of the naval forces ct the United States and her associates in the war so that these forces may in the future be operated as one in the prosecution of the war on sea and land in conjunction with the land forces. "(2) An agreement between the L'riiish admiralty and thf navy de partment putting into effect certain plans relating to prosecution of thi naval war against submarines. "(3) Tho formation of a definite plan for the more active utilization of American naval forces in conjunc tios with those of nations ensaged in the war against the Central Powers. "(4) Agreement with tho British admiralty making it possible for Am erican naval officers to keep fully in formed 01 the opeiations of the Brit ih admiralty so that perfect coopera tion between the navy department and that body is assured. "(;) Re organization of American navsl forces at French ports. (d) The securing of a full and de tailed picture of the naval problems in European waters. "Military: "(1) After conferences extending over approximately thirty days with the commander in ehief of s'.aff, (Continued on page three) . 3fc 525,000,000 STEEL PLANT (a) Seattle, Wash., Jan. 2, -With- in 90 days work will be start- ed on a $25,000,000 steel plant to be constructed on tho Sound between Seattle and Taconia, is the announcement of F. li sle Struve, president of the Soat-. tie National bank, who return ale ed yesterday from a .six weeks trip in the east where he has assisted in projecting the en- terprise. The plant will be in opera- tion within a. year, Struve de sk clared. From 1200 to 1500 acres cf land will be required ' for the plant. Associated with Struve are ' William H. Crocker, president of the Crocker National bank se of San - Francisco; Herbert Fleischackcr, president of the Anglo-London and Paris bank of San Francisco; S- B. F. Morse, San Francisco capital- ist and manufacturer, and Bart sjt . L. Thane, general manager of the Gastineau Mining company of Alaska. SUBMARINE EFFORT GREATEST OF WAR Germany Has Organized Ua dersea Offensive for Su- . prenie Attempt to Win London, Jan. 2. Germany is making her greatest effort of the submarine war now, in the hope of turthering her peace projects. Tho United Press is permitted to make this statement today, in advance of the usual weekly of fifcial an nouncement as to British ships Sunk during the week past- " It is possible, according to . the United Press' information, that Ger many has organized her submarine war fare on an offensive scale hitherto un known.. , ; -: Tho results of her concentrated drive are' not yet available, but they may show indications of a temporary success. British authorities," however, aro cer tain nothing more can be achieved than this temporary success. BRITISH IN ITALY. Home, Jan. 2. British troops joined in the allied offensive against the 'Teu- toiiic line in Italy today, English pat rols attacking advanced posts, inflicting losies and taking prisoners, the war office announced today. TURKS AND GER BADLY DEFEATED PALESTIN Washington, Jan. 2. One thousand Turks and Teutons killed, six hundred prisouers taken and twenty machine guus captured in the latest engagement in Palestine, was reported by General AUeuby today. Pour points of "great tatical im portance" north of Jerusalem have been captured in the latest British drive and the defense of the holy city materially strengthened, Alleuby 's re port continued. At least tour teuton divisions arc operating with the Turks in the holy land, the official report stated, declar ing that a number of the prisoners taken have been identified as belong ing to four different divisions known to have been in training at Neuuam iner, in Silesia, last summer. Further proof' of the perfidy of Vienna in announcing recently that no attempt would be made to retake Je rusalem was given in Allenby's an nouncement that "the enemy attack on December 27 was specifically intend ed to retake Jerusalem." "Xot only was the attack complete ly repulsed, but our counter offensive succeeded in driving the enemy back seven miles," the report continued. MILITARY OBSERVER'S VIEW By J. W. T. Mason (Written for the United Press) New York, Jan. 2. German reports ofa large reorganized army under com mand of General Von Falkcnhayn pre paring to block the British advance in Palestine are discredited by the con tinuance of General Allenby's forward movement north of Jerusalem. It is be coming apparent that the kaisox is be ing driven to making extravagant pro mises to the Turks which he eanrfot carry out. General Allenby's procedure since the capture of Jerusalem has shown a large degree of caution, but at the same time the uninterrupted ac tivity of the British army demonstrates that there is no intention of the allies' Palestine offensive being halted. Nec essity for making some display of mil itary vigor in Palestine, however, is be coming increasingly insistent for the kaiser if the pau-Germans are to retain SALEM, OREGON, WEDNESDAY, JANUARY 2, 1918 HERBERT HOOVER TELLS PROBERS wresoi While food . Commissioner Talks Senator Reed Chews Gma and Looks Bored PRODUCERS FEWER CONSUMERS MULTIPLY Hoover Explains Why He Sought to Foster Alarm Over Shortage of Sugar Washington, Jan. 2. Herbert Hoover today answered criticisms of his food administration when he testified before the senate sugar probe committee. High food prices he attributed partly to greatly increased per capita gold cir culation and sudden conversion of thou sands of men from producers to con sumers only. Senator Beed, chairman of the com mittee and violent critic of Hoover, turned over cross-examination to Sen ator Lodge when the hearing began. Reed devoted his time to chewing gum and looking bored.. A crowd packed into the committee room, among those present being Mrs. Hoover. Lodge opened up on high prices at the outset. " Tremendous increase in the por capita circulation of money was one cause, in niy opinion," said Hoover. "This circulation advanced $9 per cap ita in the United States in one year, due to the gold inflow. "Another was the' sudden withdraw al of millions of .men from productive work to fight. They immediately be came consumers entirely." The-first clash of tfce hearing -camt when Lodge sought to go into Hoover 's testimony last' May before the senate agricultural committee. . Hoover didn't want to discuss this testimony. "It was given in executive session" he said. 4 ' You stated at that time that there would be a uugar shortage in Octo ber!" asked Lodge. "I said the available sugar in the United States would be exhausted by October, but I said it in executive ses sion'," said Hoover. "Had I under stood my testimony would be made pub- ARE THEIR PAIGN any post-war influences at Constantin ople.Nevertheless, the need for stren gthening the German lines in France and Belgium is even more imperative in view cf America's rapidly looming power along the western line. The kaiser has had to make his choice between using troops released from Rus sia cither for helping Turkey or bol stering his western front. He has chos en the latter alternative. General Von Falkenjiayn 's gigantic force to reconquer the holy land and restore Turkey's prestige is mythical. (Continued on page two) I Abe Martin Knittin' all afternoon an' makin' fudge in th' evenin' won't win th' war, girls. Some folks weigh ther worls but most of us jest guess 'em of AMERICAN PRISONERS MA Y HA VE BEEN KILLED BY GERMAN CAPTORS By J. W. Pegler (United Press Staff Correspondent) With The American Army in France, Jan. 2. What is the fate of seven miss ing American soldiers of the twelver ta km prisoner by the Germans in their trench rail of November 3t Thousands of Sammies over the Am erican zone were left to draw their own conclusions today on whethor the boches had murdersd seven helpless cap fiver. The matter was called to every sclditr's attention in an official divis ion bulletin circulated today. The ar ticle sets forth these facts: Jr. the November raid the boches took twelve prisoners. Later an illustrated German paper printed jhotographs of the first Amer ican prisoners, surrounded by a taunt ing crowd in Berlin and tho photo graph showed only five prisoners. GERMAN RAID WAS T1IE0J0 A ROUT Austrians Lose Last Foothold Gained Across River Piave In My, London, Jan. 2. British troops in the neighborhood of Maricourt yester day evening turned an attempted triple raid by the Germans into a rout, Field Marshal Haig reported today. Under cover of heavy bombardment, the enemy tried the raid in three sec tions. Their artillery, however, was dis organized and the raiding parties failed to reach objectives. While the Germans were still -in No Man 'a Land the Brit ish attacked, inflicting many casual- 'tics and taking some prisoners. . . .. ... South of Lens, in the neighborhood of thfc Menin oad and north of Pass chcudaele other attempts were repuls ed. Austrians Admit Retreat. Vienna, Via London, Jan. 2. "Early Christmas Day we withdrew from Zon son, the enemy not discovering our withdrawal until Monday," today's war office statement asserted. Zenson is on the lower bank of the Piave river, opposite Romanseloi and about fivo miles north of San Dona Di Piave. It was one of the places where the Austrians succeeded some time ago in effecting a erasing of the rivor. Yestordav s Italian official state ment reported the Italians victorious in driving back the enemy at this bridge lead. Hi I should not have been able to speak so frankly. I had no desire to. spread such an alarming statement." Hoover said that when he found there had been a "leak" from the senate committee he wrote Senator Gorc,chair man of tho committee, protesting against the making public of portions of the Hoover statement. The giving out of the statement means an immediate increase of a cent a pound in Bugar prices," Hoover wrote Gore. "Just why didn't you want this state meat given out when you later gave interviews stating it was desirable to create an imaginative alarm to aid sav ing?" asked Lodge. "I didn't want to create this imag inative alarm with regard to a hypo thetical condition which might occur with regard to sugar," replied Hoovor. "I did want to create it with regard to the wholo food situation, so the peo ple would conserve all foods." Lodge quoted from interviews with Hoover and a speech he delivered at Brown University, to prove that Hoov er fostered the country's alarm over the sugar situation by 'repeating that a world shortage was imminent. "It was proper to tell the people of the country that a world shortage was looming up and that the allies would have to go sugarless unless we saved" said Hoover warmly. "It was improper to give out reports of executive hear ings, in which I said the Cuban crop might be reduced by a million tous. That created alarm and raised prices. The people ought to be told the truth about their whole food supply. They have been saving food since we told them if thev tiidu t all the world would suffer." "Didn't your statements concerning the coming sugar shortage affect the market and shoot the prices upf" ask ed Lodge. "I don't think so," replied Hoovor, quoting a trado journal as saying the sugar market was dull at about the same time as Hoover's shortage pre dictions were made. Senator Beed demanded Hoover show him the journal. Reed then read several paragraphs from it, which, he said, proved that instead of being dull, the market was strong. ' ' It does say the market was dull for six weeks," insisted Hoover. "But it also says prices were going up and the market was strong," said Reed. "It -was dull for the period we're talking, about," snapped Hooven PRICE TWO CENTS Tho I ulletin makes no suggestion as to the fate of the missing seven, but few ofUials ara hopeful that they are yet al'vo. y A crrtain major general commenting to the. United Press today on the Ger nian atrocities, declared: f "Ihe Huns' mistreatment of pris oners is one of the most frightful chap ters of the war. The Sammies must be wurned and must be prjpared to sell their lives at tho highest price; to fight to death, even, in the face of over whelming numbers."' The tiaditional good humor of ths American soldiers wiis transformed into bitter rage when" the Sammies today read bulletins announcing the Gorman plans to treat future American pris oner's as "persons f no intelligence" and to place thein under- unusual hard ships. NORFOLK FIRE HAY HAVE BEEN CAUSED BY GERHAN AGENTS Loss cf Hotel and Other Buildings of City Will Ex ceed 2 Million Dollars Norfolk, Va., Jan. 2. While shiver ing native patrols guard the fire swept business section's here today, govern ment and city officials sought to learn if German plotting was the root of tires and explosions whieu yesteruay did about $2,000,0(10 dainago to the Monticello hotel and other buildings. A spy hflnt while the flames still blazed netted Hugo Schmidt and H. Leasing and a number of other sus pects. Winter winds stirred the flames through the night in the ruins- of the hotel, Granby theater and other struc tures, but the fire chief believed that any serious 'spread was doubtful. Meantime the Hampton Koads dis trict was the scene of two. ether fires. Several structures were destroyed by fire in the vicinity of Nelson and Cuestnut streets, Portsmouth, while several negro shacks near Camp Stuart were ruined. The camp was alnrmeil by the proximity of tho blaze and while it continued a false alarm from (Continued on pag two) State Highway Department Running on Entirely New Basis During the venr 1917 tno state high way department was reorgauized and a comprehensive plan of road improver incut was entered upon. Owing to the lateness of tho season when work was begun and the abnormal labor and ma terial conditions much of this con struction is in an incomplete stage. It will not bo finished before the coming summer. Besides undertaking work the esti mated cost of which approximates $2, 000,000, tho highway commission enter ed into a three year plnn for tho im provement of forest roads, in co-operation with tho federal government, at an estimated cost of $1,000,000. Source of Income Tho total fund the commission had to draw upon was approximately fl, 500,000. This amount came from the following sources: Unexpended bal ance of 191B' state tax received from did commission, S0,(i.87; 1917 one quarter of mill tax 219.fi90.98; motor vehicle license fees. $130,000 (estimat ed); bond issues, $947,500.06. Under the authorization of the $8, 000,000 bond law the commission made two issues of $f00,000 each but owing to tho condition cf the money market tho bonds were sold at less than par and only netted $947,590.06. In addition to the sum of $1,407,- 94S, the commission also had at its i disposal $388,040, the net proceeds of a $41)0,1)00 Dona issue unuer ine icrmi if the Bcan-Bsirrett law, to cooperate with the federal government in the construction of post and forest roads. No Use Made of Money xo use has been made of the money yet for the reason that cooperative plans were not agreed upon in urne w do. any work this year. The bonds, like the other issues, were sold at a discount amounting to i,500. To this is to be added an attorney fee of $400 making the net proceeds, $38,040. Whilo lying in the treasury an interest charge of 4 per cent is being paid upon the money. In the way of construction the com mission has entered into contracts in volving an estimated expenditure, of $2,100,000, which are to bo paid out of the 1917 and 1918 funds, fcix of these contracts are for paving, approximat ing $1,000,000- The mileage to be pav ed under these contracts approximates 53 miles. Lleven contracts for grading involve 42 miles, at a cost of approxi mately $500,000. For - macadamizing, ON TWAINS AND NTW STANDS FIVE CENTS GERMAN DEMAND FOR VICTORIOUS PFACF ASSFRTFI) 77 MDort From Petrograd Indi cates That Russians Be gin to Comprehend PEACE CONFERENCE PROMISES TO END IN ROW Rumanians Are Opposing Bolsheviki with Armed Force at Many Points VICTORIOUS PEACE. . Zurich, Jan. '2. A "vietor- ious peace" with "territorial annexations -and indemnities corresponding to our great mil- itary successes" is demanded by the Austro - German patriotic commission, according to a dis- patch received here today. A recent manifesto issued by the organization bitterly pro- testing against Count Czerma's terms, declaring: "We reject a shameful, miser- able peace of renunciation, of no annexations and of no indomni- ties." London, Jan. 2. The Russian Bol sheviki are making preparations for de fense against Germany and bavo broken off tho peaco negotiations because of the Germans' refusal to withdraw their troops from Poland and other occupied sections of Russia, according to a sen sational dispatch printed in the Daily News today from its Petrograd cor respondent, Arthur Rausome. - - 'T hfivp re liable information regard ing the breaking off of peace negotia tions, which estauasnes trie nouesiy ui the Bolsheviki purpose," his dispatch asserted. "Tho Central Powers made a more j.,;i.,.i otntnmmit of their terms than that which has been published, includ ing therein a demand that German gar bo retained at Riaa, Libau and other strategic points? (Continued on page six) contracts have been let lor fivo pro jects at an estimated cost or $250,000. These macadamizing contracts were let on a cost plnn. Tho purchase of a plant was order ed by a divided vote of tho commis sion. Commissioner Adams voted against the measure on the ground that it would be more expensive for the state to do paving work on its own account than through tho contract sys tem. Contracts Are Let The following contracts have been let by the highway commissicn, togethv er with the estimated contract price and contractor: Clackamas county, Pacific highway, grading near New Kra, 2'. miles, $'i0, 87:.20 (force account) Warren Con struction company; grading between Oregon City and C'anemah, 4.5 miles, $30,000, Clackamas county; paving, Oregon City to Marion ecunty line, 1J miles, $170,000, Oregon Hassam Pav ing company. Clatsop county, Columbia river high wav, macadamizing Svenscn to Colum bia" county boundary, approximately V miles, $111,295 (force account) Warren Construction company; paving Astoria, to Mvensen, approximately nine miles, bitnlithie, $199,235.33, War ren Construction company. Work tn Columbia Columbia county, Columbia river highway, 10 bridges, $36,959, L. C Herrold; grading Ooble section, l.H miles, $42,300, Warren Construction company; grading Haulier hill section, 2 2 miles, A. L. Clark; macadamizing Delcna to Geble, 5.7 miles, $35,318.60,. Clark & Flippin; macadamizing Dele na to Clatskanie, 12.05 miles. $74,573. 4 (force account) L. O. Herrold; pur ing Scappooae plus 10 per cent basi. The mileage for macadam was approx imately 43 miles. Siskiyou Grade Macadmamized With its own force the department macadamized seven miles of the Sis kiyou grade and paved two miles near Sheridan, at an estimated cost of $75, 000. In addition the following amounts were- appropriated for improvement in cooperation with counties: Clackamas couutv, $15,000; Deschutes, $17,00": Ccos,' $13,000; Jackson, $10,000; Lax (Coutiaued on page two) .