roDAr 4,600 SUBSCRIBERS ($,030 EEABEBS) DAILY Only Circulation la Salem Guir anteed by the A adit Bums f Circulations FULL LEASED WLRE dispatches special Willamette val ley NEWS SERVICE writ nun? .thToid Oregon: Tonight and Wednesday fair. FORTY-FIRST YEAR NO. 154 SALEM, OREGON, TUESDAY, JULY 2, 1918 mi I'VVt tlENTS ON TRAINS AND NEWS ' STANDS nYE CENTS .vk I trv -arsueiM' i k ii m f ,-- i n . j? i;j it ti i n n n si n n n fTHe 'VVji&tt; . -OS-MI jCWv .VVV' RMAN SUPPLY C USELESS i F COMMUNICATION Americans and French Now Dominate Important Railway ATTACK WAS PLANNED , TO SMALLEST DETAIL Obtained Their Objective and Captured Vaux 23 Minutes After Start By Lowell Mellett (Muted Press staff correspondent) With the Americans on the Marne, July 2 (10:53 a. m.)- American troops tadvamced on a two mil front west of Chateau-Thierry last night to the depth of half a- mile, taking 450 prisoners and. jnflictiag the heaviest losses on the enemy. The American losses were extremely light. Our "men took the. vil lage of Vaux, Hill 192, La Roche wood and penetrated Clerebaut wood. - Combined French and American at tacks on Hill 204, conducted simultan eously with the American attack on Vaux, are reported to have been successful-after a bitter battle. The hills are very important, domi aiating Chateau-Thierry, as well a the country to the left. Perfect cooperation between the ar tillery and infantry made the Ameri can advance possible, as some portions f the German lino were unusually well - adapted to defensive purposes. Twelve Hours of Shelling Tho shelling lasted from six o'clock yesterday morning until six o'clock lust niht. Then tho infantry swept forward and attained all its objectives in forty minutes. The advance was made on a front f about three kilometers (l.8da milefs) and reached a maximum depth of a kil ometer (.021 mile.) One of the most remarkable artillery 'Nuccpflses yet staged by Americans pre setted the attack. Thebaek areas were thoroughly swept first. Complete neu tralization of the German artillery was 'evidenced by the feebleness of its re ply. The concentration of fire later on Vaux resulted in the gunners hitting absolutely every building in the town. Exceptional intelligence- work result ed in every man entering the place with an exact description together with photographs and maips indicating build 'inns each was expected to occupy. When they reached the town they found the maps more valuable than He .photographs, a the artillery had wiped out any resemblance to a house. The advance, which carried the Am ericans down two depressions and up (Continued on page two) 4c4e4c4c4e4c4c4e4!4c4' Abe Martin 44c44 " We doa't go by Democratic time at our honse. We go t' bed an' eit iid when we please," said Hilford Moots t'day.' viive nil it quits Biirtin'. ROAD FROfliRNETOINEIS CUT no CRIPPLES I! ENTER RENDERED I Wifl Celebrate Fourth by Many Launchings r- Washington, July 2 The Bethlehem Union plant at San Francisco will launch eight of the fourteen new destroyers to take to the water July 4., tU? 4c navy department announced to- day. The Newport News Ship- 4c building and Drydoek company 4c will contribute three; William 4c Cramp and Cons tompany, Phil- 4e 4c ndelphia, two, and tho Fore 4e 4c Rivur Shipbuilding eonipany, 4c 4c one 4c 4c i 4c Chicago, July 2. Part of Am- 4c 4c erica's big-ship launching splash 4e of July Fourth will be contrib- 4c 4e uted by the Great Lakes dig- 4c 4c trict, shipbuilders announced to- 4c 4c day. At various lake ports a to- 4c 4c tal of 14 steel -hips will slide 4c 4c down the ways. Three moro. aw 4e 4e nearly complete. Tonnage in all 4e 4c cases is under five thousauu 4c tons. - 4c 4c 44: SIBERIANS UNITE M L Germans Have Possession of Remnant of Black Sea Fleet By Joseph Shaplen (United Press Staff Correspondent) Stockholm, JulyZ. The drendnaughts Volia and Demokratia and six destroy ers of the Russian Black sea fleet haws arrived in Sebastopol, according to semi official dispatches from Eussian sour ces today. Their crews were disarmed by Ih.e. Germans and forced to leave the city immediately. In the revolt at Novo-Rossusk (200 miles east of Sebastopol), the Russians blew up the dreadnatight Svobodnnya Bossia and ten destroyers. Persons close to the leaders of the Siberian government inform me that Alexander Kerensky led the Siberian government in favor of re-establishment ot the constituent- assembly from out side the country. I am not allowed to di vulge the details, but Kerensky w.ent into Russia from Christiania with a del i;gation, all of whom were traveling in disguise, rney visited Moscow and other centers where they conferred . with aides. Afterward they all returned to a Scandinavian city. The two Siberian governments have been United. The eastern government the capital of which was at Harbin, has joiivd with the western government and the latter 's capital, Omsk, has been chosen as the center of government. Members of the constituent assembly, G.meral Chorvat, hetman of the Gaikal Cossacks, and other leaders have form ed a small cabinet. Colonel Ivanoff was uamed commander in chief of the Czecho slovak front. The Czecho-Slovaks from the nucleus of the Siberian army. With them are brigaded several crops of volunteers and detachments of Cossacks. - Careless Campers Start Many Bad Fires Afedford, Or., July 2. Southern Ore gon faces one of the most disastrous forest fire seasons in its history. With t1ie prospect for rains after July 4 very slight, the number of fires has increased to serious proportions. That some, if not many of them, ane of "pro German" origin, is suspected by the fire fighters. Already one devastating fire has swept 20,000 acres and is still raging in the Crater Lake region. Campers are responsible for most of these fires. A stern warning was sent out today that those who cause forest fires through carelessness are criminal ly responsible this year. The new law will be enforced to the limit, said offi cials. COTTON YIELD BIO. Washington, July 2. An increase of about 4,000.000 bales of cotton this year was forecast by the department of ag riculture today. Conditions of the crop June 25 was 83.8 per cent, indicating a yield per acre or 200 pounds and a total production of 13,323,000 bales. :I1 ADVANCE Pershing Reports 8 Killed In Action Casualty List 81 Of These 48 Are Wounded Slightly Total Death 0sH9 Washington, July 2. General Per shing today reported eighty one cas ualties, divided as follows: Killed in action, 8; died of wounds, 10; died of disease, one; severely wounded, 48; wounded slightly, 2; wounded, degree undetermined, 2; miss ing in aetiou, 10. The list follows: Killed in action: ' Lieutenants J. J. Brewer, Bristol, Tcuu. G. Brcdwood, Baltimore, Md. Wagoner F. J. Hutcher, Milvale, Pa. Privates C. W. Earls, Corbin, Ky. " J. A. Jordon, Ebv, Ky. F. C. McDermott, Portals, N.-M. R. C. Naglo, Philadelphia. G. D. O'Ncil, Jr., Reno, tier.. Died of wounds: Lieutenants G. P. Gustafson, Syca more, 111. " G. D. Jackson, Kingwood, W. Va. Sergeant S. C. Ostrowski, South Chi cago, III. Privates K. Adach, Schnectady, N. Y. E. E. Baird, North Aopeka, Kan, J. D. Clarke, Bookland, .Xexas. R. B. Hai'elson, McRae, Ga. ' " A. K. Waller, South Norwalk, Conji. -C. Wheatloy, Bunker Hill, Kan. i -W. Yan-, Thi'ee Rivers, Miss. f " j Died of disease: Private L. T. Shurtridce, Kenmare, N. D. The wounded severely included: Serjeants N. F. Berg, hicago. ' B. U. Lewis, C'entralia, 111. Corporal B. C. Robinson, Rawlins, Wyo.. Privates K. B. Copenhaver, Lyttle, Mont. E. 1). Drngoo, Basin, Wyo. H. S. Funk, Liberal Kan. . P. Hanka, Chicago. SE. Horton, Cincinnati, Ohio. (Continued on page three) Races at Fairgrounds On Thursday Afternoon With the State Fair track now de clared to be the fastest on the Pacific coast and in the best condition that it has been for 20 years, a number of special races are billed for the afternoon of the Fourth of July, with some of the best horses that are to compete in the Pacific Northwest circuit this y.ear entered. The races will be under the auspices of the Oregon Driving Asso ciation, which is not connected in any way with the State Fair Board. A free-for-all trot, free-for-all pace, 2:18 trot and 2:18 pace will make up the card. Events already are well filled, Secretary Lea states. Lady Hal, Captain Mack, Francis J., Salem Boy, Mountain Boy, Guy Light Ora Bond, Bouerey, McAlpin and liuth are among the horses entered. The main event of the day will be 8 great patriotic parade, in which more than 10,000 Americans and foreign-bom Americans are expected to participate. Attorney R. L. Smith Is Seriously Injured Lebanon, Or., July 2. Attorney Ray L. Smith of Portland was seriously in jured Sunday in an automobile acci dent near Lacomb, when a roadster turned over on A. M. Reeves, a mer chant of Lebanon, and Smith, his son-in-law. Reeves was badly bruised, but crawled from under the car and lifted it it off Smith, who otherwise would prob ably have died in a short time. Four upper ribs near the heart were brok en. The extent of his injuries is un known and his condition is critical. The Reeves family was entertaining Dr. and Mrs. J. L. Walton and Mr. and Mrs. Bay L. Smith of Portland and Mr. and Mrs. C. W. Smith and daugh ter, Grace of SaV'm at a picnic near Clark's Mill. Returning home Mr. Reeves turned out to pass a team. The ear struck loose gravel and skidded until the front wh&el broke off and the car turned over. REVENUES $4,000,000,000 Washington, July 2. The United , oiatra revenue returns ror me nscai year just closed are expected to reach the nnprecedntd total of 4,000.000,000 CT. - . , m .... VON HHBIG IS G1YEN HARD BLOW IN LOSS 0FP0SIII0NS i ' -Main Highway for Supplies Is Now Dominated by Americans By J. W. T. Mason (United Press war expert) New York, July 2. The brilliant American advance west of Chateau Thierry last night has destroyed Chateau-Thierry's usefulness to the Ger mans as a supply center for Von Hin denburg's army of the Marne. The capture of Vaux puts American artillery within a range of two miles of the Chateau-Thierry railway sta tion. This is the most important ter minus tho Germans hitherto have pos sessed for their line of communica tions running from the Marne to the Aisne. It will be Impossible for Hin denburg hereafter to use this station. Tho Americans now dominate it com pletely. Chateau-Thierry's own safety is ser iously, menaced by tho American ad vance. The German positions et Vaux were exceptionally strong, because Vaux guards the main highway run ning into Chateau-Thierry from ' the west. The Americans now control this road. Tho capture of Hill 204 which ap parently has been made by united Franco-American , forces, doubly as sures the safety of the Americans on the Vaux road. Hill 204 is midway be tween Vaux and Chateau-Thierry, dom inating the Vaux road from the south ern flank. There are .no remaining strongholds protecting Chateau-Thierry from the west, lot aeiense or unaieau-mierry henceforth must occur within the im mediate environs of the town itself. The town may fall to . the Americans at the next assault. The now American exploit inspires the effectiveness of the American sys tem of training. The method of us- (Continued on page three) THREE MILLION ONE SALEM 0n3 Industry Alone Pays Out PO Daily foxHelpand There Are Many Others Three million cans of fruits will bo put up this season by the Oregon Pack ing company and this but one of the many institutions in Salem that Is pay ing out money for fruit. These cans vary in size from the two quart te the one gallon size. While Salem has no shipyards, it has the greatest fruit industry in. the northwest that for three or four months in the year puts as much money in circulation as several ship yards. And this year the prico of everything is higher and more money is being put into circulation now than any time in the history of the city. Labor of all kind, even the young girls who are working in the canneries are being paid $1.00 a day more than one year ago and for tho Oregon Pack ing Company alone, this amounts to $250 a day more than was paid out for tho same number of workers last year. The pay roll of this comppany now averages $1,500 a week, and this is but one of Salem's industries in this line, It is estimated- that for tho cherry GERMANS PREPARE COASTUNE AT KEH 40,000 Assembling at Vir borg Submarines In White Sea Wtfhington, July 2. Botwim 33. 000 and 40,000 German and FinuhU mercenary troops are concentrating around Virborg preparatory to what is believed by military officials here to be a dive on the Murman coast and Kola (a few sCore American railors are re ported to be with the British and French at Kola.) Official French cables today brought information that while the concentra tion van nrncrrARMint. ft ruilrnnrl itpn- lair... kn. ka.. -..i-i.ii-l f vnn vA anI r. m. connects with the Murman line at Kern, on the southwest coast of the gulf. German submarines are already re ported to be in the White sea and Ahe seizure of Kola and Archangel as northern submarine bases in Germany's (Continued on page six) INS DELIBERATELY TORPEDO HOSPITAL SHIP 234 HISSING Evidently U-Boat Had Mes sage. Telling of Ships Movements London, July 2. Two hundred and thirty four members of the crew and medical complement of the Canadian hospital ship L'andovery Castle, tor pedoed and sunk Thursday, were still missing early today. Patrol boats and destroyers are scouring the adjacent water in search of possible survivors. Stories of the 24 survivors indicate that German spies, working in the United States and Canada, have tele graphic or wireless communication with Berlin. The commander of the German submarine accused Captain Sylvester, master of Llandovery Cas tle, with carrying ei?ht American avi ators. In reality, eight medical offi cers were booked to anil, but one can celled his passage at the last moment. The survivors believe the U-boat tor pedoed the hospital ship deliberately on information from America transmit ted since the ship sailed. While the survivors were clinging to rafts, the submarine plowed through the wreckage tapping over the rafts and Jiifeboats, throwirfsj tho victims into tie water. The U-boat commander afterward explained' he was searching "for the American .flight office"" which he believed, or simulated to be lieve, were on . board. One of .those subsequently Tescued, a Canadian sergeant .major, was in a boat containing twelve women nurses which capsized. It is believed all were lost, as none reappeared. When the sergeant major was res cuod he was dazed as the result of his treatment. Seeing the submarine come alongside, he thought It was a Brit ish raft and climbed aboard. A Ger man sailor picked him up and threw him bodily into a htoDoat. CAN Sf ROM PRUIT CANNERY crop alone thiB year, there will be paid out in Salem closo to $100,000, as the crop is much larger than anticipated. The war difference is about $20,000 as the same amount of cherries now sold are bringing that much moro than if sold one year ago. The Oregon Packing company, with its 250 employes is paying out about $700 a day for labor and has work enough ahead to continue or even in crease its working force for several weeks. Loganberries will bo coin ing in next week and this may increase the force. Of the 200 workers, about 200 are girls. - From 50,000 to 60,000 cans of goods are being packed each day by the Ore gon Packing Company, and for each can there is paid 25 per cent mere to' the fruit then one year ago and full that per cent or more for labor com pared to one year ago and this dif ference may be said to bo the war dif ference, bringing that much aiMUiujal money into the community. For the cherry crop this year, fully $40,000 will be paid into the industries in the city more than one year ago aud this amount may be said to bo the war difference, or advance in price of fruit and amount paid labor on account of (Continued on page three) Consider Employing Chinese In America The Salem Commercial club has un der consideration the .matter of taking action fuvoring a proposition whereby 100,000 Chines shall be permitted to come to this country under three to five year contracts. It has been pointed out that fully 2000 men have loft Marion county and probably as many more will find work in the ship yards and in other occu pations in the large cities with the re sult that the labor channels have een exhausted. In favoring tho admission into this country of so many Chinese, it is thought their services could be profit ably used as laborers on the farms and in the development of now lands and in road building and in much of the labor that the average American will not do. The French have found tho Chinese, of uso in road building and by some it i thought they could be of service here. A meeting of the members of the club will be railed at an early dute to diMuss the proposition and to gath er information on the tibjet and to also get expressions of opinion. Should the club officially favor the admission of Chinese into this country, it would draw up resolutions asking the sena tors and representatives from Oregon to submit i bill to congress. Kay Asks Questions On Wood Contract Withycombe Dodges Says He Has Pardoned So Many Convicts There Are Nat Enough Left to Cut the Wood He Has Contracted Stump age ForCosts More to Cut Wood With Prison Than with Free Labor Asylum Fuel Supply Is Endangered At a meeting of the state board of control yesterday afternoon, State Treasurer -Kay wanted to know why it will cost much to get out cordwood for the state institutions with convict labor as it does with free labor. He re ceived no satisfactory answer cither from Governor Withycombe or Warden Murphy of the ipenitentiary. A special meeting of the board was held to consider the muddle in which the penitentiary officials have gotten themselves in connection with wood contracts. Because of the inability of the pen itentiary, apparently due to lack of ef ficient management, to livo up to agree mehts made by Warden Murphy, Su perintendent Steiner. of the Oregon state hospital has been in hot water for fear he would not have enough fuel on hand to run his institution through the winter. As -nOans of, furnishing employ ment to convicts, the governor and Warden Murphy sought contracts to cut wood for the asylum, which uses 7000 or 8000 cords a yeaf. The state entered into two .contracts for stump age, one providing for stumpage on the Snfith place, on the Prntum road, and the other for stumpage on the Porter p'acc, near Aumsviile. Last fall a convict wood camp was established on the Smith place. The con viets worked all winter, and began de livering some wood at the asylum this summer. Bint soon Dr. Steiner saw that unless something more was done he would never reeeive enough 'wood, to run him through the winter. He bought a truck and a trailer and got behind the. job himself in order to get the wood out of the timber. At tho -meeting of the board yester day ho told tho members he had no idea what the wood, was going to cost. "You thought you could delivor this wood at $3 b, torn," he said addressing Warden Murphy. "Now you have no idea what you can do. At least I Seven Are Arrested On Mexican Border Nogalea,' Ariz., July 2. Charged with conspiring to foment a revolution in Mexico, seven men arrested on the bor der by army officers will bo taken to Tuc,3on today for arraignment. Others under arrest are held at Nogales. Son- ora aud further arrests are expected to day. A confession said to have beon made recently by a Mexican prisoner in So nora cauw.'d the investigation. Captain A. Lipscomb, I!. S. A., and department of justice officials, cooperatiug with Mexican oficiuls, took up the case and thus far there have beer, over twenty arrests on both BidB of tho line. It is also reported that over 25,000 rounds of ammunition and a number of rifles have been seized by cavalrymen and deputy marshals. Tuday's arrests were made at Susabc, M. A. Collins and Thomas Hnnlon, No gales business men arrested Sunday in connection with the investigation, are at liberty today under $1,000 bonds pending a preliminary li.'aring Saturday. UiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiHiiiiiiiiiiii j War Summary of United Press j 1 iiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiuitiniiiiHiiiiniiiiiiiiiiiiiiiiiiiiiiHiiitiiiiiimiii - 1429th Day of the War; 102nd Day of the Big Offensive HllllllIlllllUllll!IIIII!IIIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllillllllllllllllllia Marne front The Americans last night won what may prove to be their most notable victory to date, advanc ing more than half a milo on a two mile f ront, west of C hateau Thierry add capturing Hill 204, which domi nates the Marne city. Tho Gormans are almost certain to evacuate Chateau Thierry, cither as a result of American artillery bombardment or our next in fantry assault. In addition to capturing Hill 204, the Americans took Hill 102, the vll liago of Vaux, Laroche wood and part of Cleramlbout wood. They took 450 prisoners, inflicting heavy losses on the Germans aud suffered only slight casualties, theinselves. French troops ps took prisoners in a raid east of Bboims. Oise front German prisoners were taken in French raids betweeu Mont didicr and Noyon. Picardy front A Gorman attempt to recapture ground lost to tre British northwest of Albert last Friday was repulsed. haven't as I can get no idea from you." It had been the intention to have the onviets cut wood on the Porter plaice next winter but the governor said there would be no convicts that could be taken into the wooda The Porter contract runs for tw years. It is estimated there will' ba 12,000 to 13,000 cords to cut. So wit the ipenitentiary falling down on." its agreement to cut the wood, bids wer received for having the work done by free labor. A bid for $3.25 a cord was submitted. 8 ,ate Treasurer Kay objected to pay ing that price, and Governor Withy combe and Warden Murphy said it was as cheap as the wood eoukl be gotten out by convict labor. :' .; "I-can't figure out how it should cost so much with convict labor," said Kay. " You have prison labor, you have your own trucks, and yon have ma chines for sawing. It might cost lit- (Continued on page twoi WANT GOVERNMENT. 0 CONTROLTELtGRAPH Burleson Strongly Urges Gov ernment Ownership Along With Telephones Washington, July 2. Three .cabinet members Secretary of War Baker, Secretary of the Navy Daniels and Post master General Burleson today strong ly advocated permanent government ownership of telegraph and telephone lines. They appeared before the house in terstate commerce committee and urg ed immediate passage, of the A&well resolution calling fpr government con trol. Each of the threo put the argument ou the ground that tho proposed step was a military necessity and that any interruption of service would seriously hamper war preparations, even though It lasted but a few hours. Both Baker and Daniels admitted there had been leakage in important cable and wireless messages, but de clared it had not been serious and would be redutv.'d under government control. Postmaster General Burleson who clearly indicated that ho expects the lines to be placed under control of his department if they are taken over, ad ded the argument that the government could run the linos cheaper and .more ef ficiently than privute lines. Burleson said ho was against domestic censor ship of messages, just as he has oppos ed mail censorship, and declared he never would oppose government em ployes unioniing as long as they kcpt free of othfir orgnniations. Flanders frout British repulsed Ger man raids on the southern portion of the front. Lorraiue front A German biplane was shot down yesterday near Begne ville, on the Tool sector. Alsace front German raids repulsed by the French. France The Germans made their sixth air raid on Paris within six days lust night No casualties or damage was reported. Russia The bolsheviki, through mil itary control of the election machinery, wnn the rlprtion in Petroarad. The (workers voted solidly against them. AH antl-bolshcviki ructions in oi beria have united and are forming a huge army to oppose the soviet forc es. - England The influenza riiidemia continues to epread. Schools have been closed and mines are threatened wia shut down.