TGDAFS 4,400 SUBSCRIBERS (22,000 READERS) DAILY Only Circulation In Salem Oow . an teed by the Audit Bureau of Circulations. FULL LEASED WIRE DISPATCHES SPECIAL WILLAMETTE VAL LEY NEWS EES VICE the rov 1 V m Al I - fa Oregon: - Tonight and Sunday fair; moderate souther ly winds. 3? Jul. FORTY-FIRST YEAR NO. 5 SALEM, OREGON, SATURDAY, JANUARY 5, 1918 PRICE TWO CENTS ON TRAIN'S AND NEWS STANDS FIVE CENTS . 1. In Address to British Laborite "Man Power" Conference Today Principles Involved In Struggle Are Stated In No Uncertain Words Sanctity of the TreatyTerritorial Settlements Based On Consent of Governed Interna tional Organization to Limit Burden of War Armaments : These Are the Three Cardinal Principles By Ed. L. Keen, (United Press Staff Correspondent.) London, Jan. 5. Britain's answer to Count Czernm's terms of peace for the Central Powers was emphatically announced to the world today by Kremier Lloyd-George 3n a speech at the British Laborite 'man power con ference. The British premier laid down three cardinal principles on which Britain and the allies would be willing to talk of peace. "Before permanent peace can come " the prime min ister declared impressively, "three conditions - must be fulfilled. "First: The sancity cf the treaty must be re-established. "Second: There must be territorial settlements based on the consent of those governed. "Third, and last: There must be created some interna ticnal organization to limit the burden of armaments and diminish the probability of war." The British premier went into do- "Complete restoration of Belgium tail to outline forcefully; pointed antf : and reparation, as. far as possible of. all clearly, every one of the aspirations i devastated towns and lands." of the forces of democracy. "Unless genuine self-government is RUSSIA'S ACTION PLACES GERMANY AO POSITION 6 Central Powers Are Said To Be Between Devil and Deep Blue Sea NEXT STEP TO BE TAKEN ONE OF UNCERTAINTY German Peace Delegates Sur prised To Ffsd Russians Are Absent Ho held Britain and her allies are fighting: ' Not for the destruction or disrup tion of Germany. Not to destroy Austria-Hungary or Turkey. Not merely to alter or destroy the imperial constitution of Germany. Not to take Turkey's lands that are predominantly Turkish from them, But for these principles: First Complete restoration of Bel gium. Two Reparation a3 far as possible for devastated towns and cities. Three Neutralization and national ization of the Dardanelles. TYimv " Rnnniisiilnr-itinii " (if flip "great wrong" done to France in ' George on the fact that there was no 1871 referring to Alsace-Lorraine. j intention to deprive Turkey ofher cap Five Establishment of an independ-jlt;?.1C.onf!tantmoP,e ewn spite the cut Poland "comprising all genuinely granted the Austro-Hungarian national ities so long desiring it, it is impossible to hope for removal of the causes of unrest in that part of Europe, ' which have so long threatened the general peace," Lloyd-George continued. "On the same ground we regard with vital satisfaction tho legitimate claims of the Italians for union with those of their owu race and tongue; also the legitimate aspirations or those of Ru manian blood and speech." The prime minister declared that there must be reparation of lands oc cupied in France, Italy, Serbia, Monte negro and Svria and Rumania. Special emphasis was laid by Lloyd- By Webb Miller, (United Press Saff Correspondent.) London, Jan. 5. Tho Russian Bolshe vikl have put tho imperial German government between the "devil and the deep sea," in tho universal view here today. Germany's next effort to avoid one or (ho other contingency will be some "additional concessions" in her peace terms in a desperate eirort to prevent fina and complete breaking off in tho negotiations. Arnica oie relations witn Kussia aro vitally necessary for the kaiser 's em pire after the war. Opportunities for economic penetration to 'restore the Teutonic commercial position is im perative and particularly with Russia In the view of observers here, it is al most more important than any eastern conquests. The German leaders, facing this necessity, are nevertheless apprehen sive lest the Bolsheviki government may not "stand up." On the other hand, they are afraid to loose tho bird in hand conquests their armies have already grabbed, while there is a chance of catching, also,' the whole flock.' v " ,.- Evidences multiplied today also that the internal situation in Germany is worrying the imperial government leaders. The. pan-Germans are insist ently demanding that all conquests bo retained. , . The liberals and socialists are just as determined that all bo given up. The situation in the reichstag is such that it offers the first chance for a trial of strength between the annexa tionists and the democrats. The reichstag is at present in recess. but dispatches received by way of Amsterdam report a strong demand in Germany for immediate summoning of iwpniii.w." mm GIANTS SPARRING FOR OPENING TO LAND A KNOCKOUT World War Leaders Are Lik ened to Contenders For Prize Ring Honors THE GOD OF THE HOHENZOLr!ERNS "An Unconditional and Avowed Ally." IN FORTY-SECOND ROUND OPPONENTS ARE CLINCHED Germans Give Notice Daily That Great Drive On West Front Is Coming ISDN (jqSra o3ud no panniiuoj) J olish elements becttuse this is neces sary to the stability of western Europe." Six Arabia, Armenia, Mesopotamia, Syria, Palestine all entitled to separ ate national conditions. Seven Of Russia, the British states men left the future to the decision of the Russians themselves. illied insistence on neutralization and nationalization of the Dardanelles and the Bosphorus. The Welsh statesman bitterly as sailed the German terms, as announced through Count Czernin at Brest-Lito-vsk. He was particularly vehement in his denunciation of the false pro nunciamento of "self-determination." j of all peoples as proclaimed therein. i TT- i - .1 i i Til- Eight-Inhabitants of African col-L ai "eig.um s iu- onies to b "nl.iced under an admin-! tu refreedom was dependent upon the istration acceptable to themselves for the purpose of preventing exploitation j , x 4.U i. at. j? t' ! " Jul lilt; lit'lit.llt til .U1UHU11 rai'iiuiisiB allied nations permitting Turkey- to and of European governments "We' will stand by the French democracy to the death," Lloyd-George declared. "We demand reconsideration of the great wrong of 1871. "It is difficult to speak of Russia without suspension of judgment. Rus sia can only be saved by her own people. "An independent Poland, comprising all the genuinely Polish elements, is absolutely necessary to the stability of western Europe. "The Dardanelles should be neutral ized and internationalized. "Arabia, Armenia, Mesopotamia. Syria and Palestine are entitled to recognition jnd separate national con ditions. Wfiat from each shall take it is not neeessarv to discuss here. "The governing conditions in Afri- .1. ?ii-i . .. i.i, i. ca iM uie muauuams s..a,. answer to the German peace proffers. 1 T ii. r i hnt because of today's rmenians and the Svrlans and like wise upon restoration to Germany of her African colonies. Under such conditions, Lloyd-George maintained "all principles of self determination here, vanish in thin air." The allied spokesman declared the forces of democracy fdught "for more than merely to alter or to destroy the imperial constitution of Germany." He pointed out in terse phrases the yawning omissions from Czernin 's statement of war aims as illustrative of Germany's duplicity in her terms. The prime minister's speech was to an audience representative of Britain's foremost liberals trades unionists and members of the labor party. He was accorded a great reception. It was generally regarded that the speech was the most important perhaps, tnat the prime minister had yet de livered not alone in its complete HOie to ineinseive-5 lor me purpose ui ; -ir-nno preventing their exploitation for the, Kussia jg nQw on thc fencc be. benefit of European capitalists and of j tween com,,cte breakage with Ger Kuropean governments." manv; Germanre has been boasting of "It has been a year since President ' impending 'great offensive on the "Wilson asked the belligerents why' t front indica,ion9 have been re they were fighting," Lloyd-George ' pived of , trem(ndousir organized and continued. "The Central Powers have fjna, cffort (o make the German sub. not yet replied." - ,! marine warfare effective. . The premier pomted, out Germany's! Liord.George, it was heldbvof repudiannn of reparation, as contained ; fieiau could not have taken a 'more in the Czernin statement. He added. timelr moment in which thus terselv. that Belgium s autonomy was snb.iect : criti.-iilv- and completely to summarize to the nations leaving Turkey to de-;all the allied aims- cide the fate of the Arabs, Armenians? and Syrians, w hile the Central Powers j Washington's View. were "demanding the restoration of! "Washington, Jan. 5. Llovd-George's their African colonies. M.-claration todav on England's war ."All principles of self-dctenination 1 ajm, was held here to be a British re varish into thin air." he asserted statement to counter-act Germany's pre emphatic.iUy. '"The allies' r..;T. : i.ie;s are: I (Continued on page eight) NEW ENGLAND IS NOW umo pun re rnn ilUOIIULdrUt MILLIONSOFSOLDIERS Contracts For Over Twenty One Millions Pairs Are Let by Government Iinsto., Mass., Jan. 5. New England, the center of the nation's shoo indus try, was leading today in the tremendous task nt putting the army and navy " tiu-ir feet" making shoes for o lighting men. Covernment contracts for 21.000.00(1 pairs oi army ana navy shoes have been awarded iu New England alone and the greater part of these orders are held by Massachusetts firms. if thc shoes under contract were laid end l.i Mid, they would reach from San F.-aiuisco to Australia, a distance of t,ov miles. This price I'ncle Ram will pav for the shoes ia between $4.G0 and $4.90 a pr.ir. Oig plants l ave added to their equip ment and practically all are working 24 hourj a z? I ne shifts being broken up into eight hour periods. Close to 20, OoO shoe workers are engaged in the Brockton district alone. Although thousands of pairs of shoes arc leaving the factories daily, the out put will reach an unprecedented height in thc early mouths of the year, when many of the contracts call for delivery. The leather upou which the comfort and, to a great extent, the efficiency of the nation's fighting men depend, of a liii;h g-adc and the work of mak ing the shoes is carried out under strict supervision. Military men agree that r.cst to g-jrs ind food, well made and comfipiia! le shoes are of the greatest im.iorraiice to the army. Tin! Cheti-lii'l j.nd Alden company cf Broi.ton .oe eoiitraets for 178,000 pairi of marching shoes, while other firiiM liavn p-opon:onatel large orders. The M. A 1 ;ic.srd company have or- d'-'s for fi".C0'i pairs. Three fir'i.s in the Brockton district have contracts to irply a total of 150,-1 OO'l pairs f navy sl oes. SENATOR-JIM IITIIT- OieilLKOAPS Fight Is Begun to Prevent Railroads Returning to Private Control RUSSIAN LABORING MEN I SAVE CLEVERLY OUTWITTED THE GERMAN DIPLOMATS By It. C. Martin (United Press Staff Correspondent) Washington, Jan. 5. Government ownership advocates, headed by Senator Johnson of California, began their fight iu congress today to prevent the return of the railroads to private inter ests. Simultaneously Senator Smott of Ctah, completed for introduction a rad ical revenue bill, embodying all the principles of wealth conscription, fath ered by the Johnson-Borah progressives at the last session. Senator Johnson sounded the govern ment ownership keynote when ho said if the people are to foot the bills for railroad improvements, they should own the lines permanently. All through the coming battle over rail control legislation asked bv Presi dent Wilson, government ownership ad vocates will sound this slogan: "If the people's money goes into the railroads, the only way to get it back will be to tako the roads for the people." Cummins, Kenyou, Borah and Hollis in the senate, and Keating, Doremus and Fess in the house are among those who will be found in the front line in. the fight. Legislators were busy today analyz ing thc administration railroad bill which senate and house committees take up Monday. On every hand predictions were made of a warm fight over the appropriation of half a billion dollars for new equipment and purchase of railroad securities. Director General McAdoo will be call ed before the house interstate commerce committee next week to explain the workings of the administration's propos ed legislation. Members of the interstate commerce commission will be questioned concern ing the proposed compensation plan. Monday the senate interstate com merce committee will hear the railroad executives but this is expected to be largely a resume of the railroads' ef forts "to unify the systems. Hut administration leaders in riotli houses are determined the hearings shall not delay the legislation. Leaders in the house are refusing to state their position on government cwnrship, claimine that the problem now is to give sufficient legislation to make fed eral control a success. liairman Mms and Majority Leader Kitehin believe the government ownership question Note Willi am G. Shepherd, Press correspondent, recently return od from Russia and by reason of his service particularly qualified to anae vze the situation there, today wrote the following story for th United Pro3S. By William G. Shepherd (United Press staff correspondent) Asheville, N. C, Jan. 5. The labor ing man's government of Russia hn. out maneuvered the autocratic govern ment of Germany in tho Brest-Litovsk peace parleys. It has put the kaiser in the position of trying to carry water on both shoul ders. Unwittingly or not, Trotsky and Le nine nro just at this time working ex actly in lino with America in Presi dent Wilson's plans to encourage the German people to throw off the yoke oi their autocratic masters Russia's peace talk is poisoning Germany. It is a poison gas that tho Germans first used after the Russian revolution that is now being blown back on them. The Russians aro show ing to the German democracy that German autocracy is deceiving it, They have sliown that the kaiser is not on the square. Trotsky and Lenino had the ambi tious idea going beyond President United . Wilson's idea of the plain people of all nations get. together aua aemaua an end of war. The German armistice was part of this plan. Tho Russian council of workmen and soldiers, rep resenting as far as it was possible the plain pcoplo of Russia, thrust out its hands toward tho democracy cf Ger many. They saw a hand extended from Ger many in the vague mists of German diplomacy. It was not a clearly defin ed hand, but thc Russians grasped it in the hope it might be that of their democratic brothers in Germany. Only a few of negotiations showed instead of having grasped the homy Abe Martin By .William Philip Simms (United Press staff corrospoadent, With the British Armies in France, Jan-'5. Like heavyweights in the fin al rounds of a finish fight, tho British and German armies during thc first few days of this new year have re turned tot mutual sparring, watching for a lead. Counting "time "monthly, the giant scrappeys today fare J:n theirf rforty second round. Both are clinched. Thoy aro easiui; up after tho terrible blows in recent onslaughts. Tho war zone is still snowbound. Tho trenches are locked in ice, the gul lies as hard as granite. Fragments of frio7.cn earth sprayed; by exploding shells are as deadly as slivers of tho bursting shells themselves. Despite this sort of weathor, the enemy is unusually busy in Bmall en terprises. On our side, wo have launch ed moro than a dozen raids, big and little, since New Years day, all the way from Ypres to 8t. Quentin. Simultaneously, tho German airmen aro attempting a ceaseless watch over a sky the color of an iceberg. The pa trol means tho Prussian high command , is straining every facility to get post ed as to British movements. Meantime the British know surely that fresh divisions eoutinuo to arrive on tho west front to aid the enemy. They como principally from Russia. There aro more enemy troops on this front now than at any time since the war and tho German ranks are stead ily increasing. There- is reason to believe these Ger man troops are in better spirit than at any time since the Marne. The collapse of Russia and the Teutonic advance in Italy has visibly bucked up the wan ing courage or tho enemy. Stories that Germany is trumpeting for a great blow on tho west front continue to filter behind tho British lines through tho declarations of Gor man prisoners. They all speak of tho drive as u certainty. Meantime, hostile airmen are dropping billy leaflets over tho British lines, announcing tho com ing cf German "super Boldiers," in the naive belief, apparently, that they can scaro the Tommies. But tho Tom mies merely smilo derisively. They have gained the personal impression that, something is off color inside of kaiserdom, making pence in any way, by any fashion, during 1918 impera tive for the militarists. If the present peace plot fails, the British ifighters expect t Germany to turn looso her last mighty punch at hand of democracy, they had shaken r,;ai nilv,.,,iff,n o thn west hand bearing the gauntlet of null-,- . . f America's tarism- ino nanuciusp is cu t rJ !fihHn fnn-A. ... ,nin.t. a factor Russian dream of reaching i , , . t,rnh,., thB Hnd uwiv.w . ... j a loloin wlnnp m-ith nil rf ( Icrmnn V 'a hopes oi the present and iuture pinn ed on it. Forewarned and forearmed Tommies wear an air of grim certitudo these davs perfectly confident of their abil litv r.n block nnvthiuc Hindonburir can put across regurdless of the amount of steam behind it. A new bunch o' bananas wuz un veiled at th' Little Gem resturint t'day. should be settled after the government j One o' th' most uncertain things in this uncertain life seems t' be th cor (Continued on page eight) 'rect pronunciation o' cantonment. The through and beyond militarism kaiserism to the German common peo ple has been shattered. If there is" e German democracy, such as the Russians hoped to encoun ter, -it lies behind tho stone wall of the kaiser's militarism. Proof that it exists is in the fact that the auto crats aro Wilrefventiiui .Russians i'rfjui dropping! pamphlets behind the Ger- man lines ami inai. run-isu "i""'" Von Kuehlmann will not permit Ger man socialists to go to Stockholm to confer officially with Russian liber als. If Lenino and Trotsky cannot reacn thn German pcoide now, they must try to batter down the wall between them and their German fellows. In other words, they must a-'ain join the allies and help to fight the way through to a rescue of the German people. Austria-Hungary Stands Accused by Catoo'ic Ihurch Rome, Jan. 5. Austria-Hungary, greatest of all Catholic nations, stands accused bv the Catholic church today, charged with breach of faith. It was understood that these exact words of accusation were made in Pope Bene dict's recent note of protest to r,m peror Karl against the Teutonic air raid over Padua, which resulted in grave damage to some of Italy's choie est church buildings and in the killing of innocent women and non-combat ants. The pope's note of protest was ad dressed both to the Austro-Hungarian monarch nd Kaiser IWilheim. Firm ..ruin,!)., to n pTnressed of the promis- os oi both these monarchs at the time; from abroad. of the start of the Italian invasion that Teutonic troops would abstain from attacks on defenseless cities. The exact text of the pope's note will be withheld itil receipt qf a ply from the two monarchs. Only Small Raids London, Jan. 5. Raiding operations were all till' fighting activity reported today by Field Marshal Haig. "in tho neighborhood of Ilullebeke ho said, 'tho enemy attempted a raid at night and was repuised without losa to us. East of Zonuebeke one of our posts was rushed. A few of our men aro missing." Aviators Drop Bombs London, Jan. 5. Numerous bombs Iweijs propped by .Iritish, flyers on sheds and buildiiik's of enemy aero dromes at Ghistelles yesterday, an ad miralty statement announced today. Artillery is Active Rome, Jan. 5- Artillerying and air craft activity was all the Italian of ficial statement had to report today. NOBTHWEST SHEEP SHOET Portland, Or.. Jan- 5. A striking proof of the sheep shortage ia the Pa cific northwest was given today when six carloads of sheep arrived from Nebraska, consigned to Frye Com pany, Seattle commission men, for thousands of sheep from this section were sold in recent mouths to Nebras ka and other middle western ranchers who were cleaned out by demand Joseph E. Howard of vaudeville fame, has tho following questions to ask of grammarians: Whether a hen re-'sets or sits, and also, when she cacs les, has she laid or li d! .