4,600 SUBSCRIBERS (23,000 EEADEES) DAILY Only Circulation in 8aVm Guar aateed by the Audit Bursaa of Circulations FULL LEASED WIRE DISPATCHES SPECIAL WILLAMETTE VAL LEY KEW8 BEEVICE FORTY-FIRST YEAR NO. r4AJ0R DISASTER H AUSTMRifid Mackensen Is Sent To East Front To Take Charge Of Bad Situation FORCES IN ALBANIA IN CRITICAL POSITION a Encouraging News For Central Empires Comes From Any Front Borne, Oct. 8. Serbian troops are be fore Wish, according to reports' receiv ed here today. Nlsh, to which the capital of Serbia was removed during the Austrian inva flVflVFRWHF M 1 1 1 V ll.Illllll.ft . ion, is fifty miles directly north 0f'clu3ivfl cluf and appear . smart Vranje, which wag captured after Aus- tto-German forces had been severely defeated... Nish is 125 miles southeast 'of Belgrade. . Geneva, Oct.- 8 Field Marshal Mack eusen has arrived In Serbia to save the remnants of the Austro-German armies which th. allie. are utrrerdne" toward the Danube, according to a Vienna dis,;8!'" has at lst 8" opportunity to - patch received here today. The Aust rians are reported to be evacuating Bel grade.' The Serbian population, includ ing women, is helping to drive them out. in Albania faces a major disaster as a' sult of the allied successes in Serbia, i At the same time, the Austro-German armies in Serbia appear to be in a. ser ious position. This is indicated by their imccessitv defeats in central Serbia, re ported evacuation of Belgrade and an nouncement that Maekensen has hurried tj that froiit to save them. . The Serbians, in the vanguard of the ha .,.,. i,.,-:. r,.i,n,i s. ,.r orihiof s lira souriiern limits or Aiisiriu-nuu-j;arv, although some tlistance to the . . . , . a . . tt.... east. After taking vranje, 175 miles directily east of Ragusa, in Austria Hungary, they are pursuing the Aus- tro-Germans toward Nish and Lesko- TOtz. They have also captured Debra,: th ftrla-AU)mnn bolder. 55 miles! ' v . " ' . at and . north of Durazzo. French northwest of Uskub and only 35 miles m,v ....... ., - from the northern boundary or Alban ia. Along the Skumbi river the Italians re harrassing the retreat of the Aus- trians northward. Both the Austrians and tb allies have about 100 miles to ; tro to reach the mountainous regions of. Montenegro.- But meanwhile, the allies Jiave an opportunity to strike westward from Debra, taking the Austrians on the flank and throwing them into confusion. Occupation of Beirut, the jncipal seaport, of Syria, by a French, naval unit has aided the allied march on Al eppo. Beirut is less than fifty miles northwest of Damascus and is about 175 mileg southwest of Aleppo. It is con nected with Alenno bv a railway which .loins the Damascus-Aleppo line at Horns about 100 miki north of Damascus. Ttiu plinrflpfpr nfi Hib fio-hti7if flintier the west front indicates the Germans! are preparing for what may be a genor-1 al retreat from the North sea to the "Rhiems regiot, but that will make the Cbampagire-Agonne battle one of the decisive engagements of the war. This in particularly truo of the operations between the Argonne and the Meuse, where the vnemy has contested every foot of ground with unusual bitterness. The French and Americans made Wight gains along the Suippe, the for n!r captnring Berry-Au-Bac, near the junction -of the Suippe and the Aisne ne-Hur-8uipp?. Farther east the village nf St. Elipmin-A-Arnfta war rpiantured I lifter it had been lost to the Germans.! The day communique of the ttermani war office mentioned violent attacks byj the Americans between the Argonne I and the Meuse, a front of about 15 jniles. Unofficial reports state that this! fighting resulted in the capture of Chatel-Chehery and important heights west of the Aire. - I In the St. Quentin region the French lisve slightly improved their positional The British, in an attavk on a fonr mile front southwest of Douai yester-j iday, eaptuivd the villages of Oppy and .Biache-St.V aast. Pome progress was ali made by them south tof Cambrai. I 4 pnnn. liav. tnLrnn Tvn-aiitV 9.0 inJ1os. When tb-ev find it desirable 9 7 III If n - ri II II III l.- ' M II. ' ? T J 239. U! LA W GOLD IS USED TO INFLUENCE ?fUGlSI ALLIES Many teitjis Reside In That Country And All Are Ac tive Propagandists London, Sept. 14. (By Mail.) Ger man gold is being spent freely in Spain in an effort to prevent that country from jumping into the war on the side of the allies. According to reports Reived here from Madrid, there re 120,000 Ger mans in Spain Many of these came be- fore the war. itaiy, Portugal and those South American countries which have joined the allies contributed-most of the othwrs. A number of i"en fled into the Spanish territory fro"1 tno Camerons and these are interned. Blocked bv the vigorously guarded French and Portugese frontiers, neither interned nor Un-internvd could easily get away. But most of them are satis fied to stay. At Malaga, fwillc, Balboa and Bar celona, German nwn the finest. villas drive, the finest horses, naunt the cafef lid bull rings, belong to tk most e functions. thev rB the heaviest contri. but org to popmai. charities. They talkf of the hardships forccd upon neatraig OV the 'greed of .the entente" and speak eloquently or tho (jeriuuu "affection" for the Spaniard. They takt, sneeial delight in prodding the-Spaniards aoout the British posses- sion of Gibraltar, pointing 0llt thBt '.'recover lr ni-' and. that tho kniser desires nothing more ardently than to see her do so. , . Sometimes a situation arises which is embarrassing to the Suns. This is es pecially true vvhen reports of German atrocities are ivecived or when a care 088 braa,;lne sends Spanish shu down - PMr0wlCa 'or f'fne. the news- PaPer T ePsc ATT"8 .0I. w German embassy in Madrid to subsidizi' and stimulate the anarchist party in Barcelona. Then the Hun lies awn- Tl" suvgidiz id j net 'y to come t j the .-v:n. When the scandal blows over the Ger mans reappear and continue thoir work pushing th0 FatherVn s interests, rnvy k'c uoiiing ju--u tu tne vnu of the war, for spain is pectcd to be their best market and they are trying to make it over jto a German preserve. All Germans in Spa'n a,v plentifully suppliea m cash. who were poor nave wen proviae un lunds by their fellow countryman r by Ocrman consuls. These Germans have no scru l 'Ph. .nni T,..V... n..,.nl.. ... n - jiose u n.uuieH, u'"-us or owiss. Wcwspaperg Wit" Allies. Madrid, Oct. 8. The latest Gsrman rice proposal nll, ,tirrcd officials en! new'surpcrs of Rriain. The consensus of opin - oti is mat the time ior peace ti k will not be until the allies have ei.teri.I Gorman territory and vanquished the enemy. Hie ' "no Univcisal says: .t i' ''nv p., wiles cannot tvjal -i!h : lit "ernians until tney enu-r it an erntory, realizing that the kdisvr is v.'.-.ig to save the dynasty.-' 'ih( peace Oermanp has demanded T:ot peate' di dares tho Opoca." " Vanquished peace is not here be cause Germany has not assented to President "Hson's (modifications." conditions without Cnrtmicli TnfLin7!) PaHISfl inilUeflZa In German Army Geneva, ot. 8. One hund red and eighty thousand ntw cases of Spanish influenza are reported in the Ocrman armv, according to an -official ui"H. patch received from Berlin to day. A Vienna dispatch saya Hun garian newspapers reported 100,000 cases in Budapest . a,, STILL ANOTHER HERO. Washington, Oct. 8. Third class Yeoman Joh H- Jbnston, Providence, k, 1, gdvanevd into the hero class today Secretary Daniel9 has com mended young Johnston f0r le. roism displayed f Rehefort, France, July 14, when he saved an vlevcn "year oU toy from drowning e ffl. to ixrrim; a iwi SALEM, OREGON, TUESDAY, OCTOBER LENINE AND TROTSKY ARE SHORN OF POWER Only In Petrograd And Mos cow Have Boisheviki Sem blance Of Power. By Joseph Shapien Tnited Press staff correspondent) Washington, Oct. 8. The convales cence 0f Russia from the disease' of bolshevikism is proceeding at a re markably rapid pace. With the excep tion of cholera stricken and terrorized cities and districts of Petrograd and Moscow, there is virtually no place in Russia where the power of Lenine and Trotsky js exercised, cables to the Rus sian embassy indicated today. A't the nationalities inhabiting Rus sia have once more united for the es tablishment sf a free and prosperous land. Only the nationalities of the Cauca sus and the Ukraine have not yet had an Opportunity -to offer their allegi ance to the new all-Russian govern ment formed at Uffa. This is not due to their opposition to the new gov ernment. The Ukraine is helpless for tho time being due to the presence of a German army numbering nearly a half million men. The Caucasus is in a similar plight, due to Turko-German occupation. Even the people of the Baltie provinces are represented in the new Russian government, an Esth onian delegation having contrived to attend the great conference at Uffa, where the ew all-Russian government responsible to no one but the constit uent assembly and commanding the al- lfinMO... -' It.. . ti : n&'ut-e 0I lu.t- wiiu'c xmssia, wa tormed. , Ambassador Bakhmetteff H in con stant touch with the' new government, wnien is keeping him advised of ev ery move made in Russia for the re generation of the country, its re-en-tranee into the war, the abrogation of the Brest-Litovsk treaties and the restoration of the nation ' unity and independence. A'l principal differences between the respective factions and regions repre sented in the now government have been swept away and the overwhelm ing majority of the uussian people is once more united in tho cause of build ing the new fret Russia under the guidance of the constituent assembly, the parliament ef Russia, representing the will of all the people, as against the usurping and bloody oligarchy of Lenine and Trotsky, the cables to Am- ( bassador Bakhmetieff showed. The ambassador himself would make no statement. Ho permitted the publica tion of the latest cables received by him, stating that they speak for rhem- 9l.tvt.SI. I Accord to the cables the national contention at Uffa was-composed of all the members of the constituent as- sembly, representatives of the tempo- rary governments of Siberia, the Urals, men wno naTO esc.,. nave VBKUu Th(j pac.fic Uo ,ea(U in thp north Russia and Esthonia, represent- j to the mountains where they seize ood number of ships launched, but not com tiveg 0f the Cossacks of Orcnoiirg, con oys arriving for the Austrian army ,et(,d More thnn 5,50.000 deadweight Uralsk, Siberia, Irkutsk, Semirctics, and thus obtain supplies for themselves tons hftve ,bc(,n launched and are wait- Yeniiishei nn.l Astrakhan: renresenta- tives of the governments of the Bash-1 Prices of the few things which arc kirs and Kirghia of Turkestan and the 'still to oe had in Montenegro are fan-Turko-Tartars of the interior of Rus- tatic. A goat or sheep, which before sia and Siberia; representatives of the convention of municipalities and -em stvos of Siberia, the Urals ann the Vol ga of the social revolutionary, social', democratic, socialist labor and consti- tutional democratic parties, of the so-1 cial democratic group "yedinstvo' ABE MARTIN ; if Th' best thing we saw at th' state' ; fair wttz s tired, dusty woman in black! alpscca eatin' a fish sandwich with th': tail stic kin out. Ther's a nose diver in 'ever' neighborhood. and the association of the re-birth of j Russia. This government unites the over whelming majority of the workmen, peasants, democratic, bourgeoisie and the intellectual classes of Russia in tho common aim of saving the country and the revolution. The chief consideration of the new government is the fear of a possible premature peace by the allies and Ger many before the re-entrance of Russia into tho war. Ambassador Bakhmetieff is keeping the new government informed of every , October 1. will be 70 per cent of the diplomatic move made by the United entire world's greatest annual pre States in an effort to assure it that war output, according to figures made tho possibility of a premature and in- conclusive peace is so remote as to be Without the bounds of possibility. Cables received at the Russian em bassy today outline in detail the prin cipal position on which the new gov ernment is founded. 1 Until the moment of the convoca tion of the constituent assembly the Russian provisional government is the i sole possessor of supreme power over the whole territory of Russia. 2 )n oTder of the Russian provis ional government all functions of su preme power temporarily exercised by the regional governments arc trans mitted to the provisional government. 3 Definition. of the limits of pow er of the regional governments which aro to be. founded on broad, regional autonomy, is connnea to ine juagmeui of the Russian provisional government. MONTENEGRO PEOPLE THOUSANDS Austria So Far Has Not 'Al lowed Red Cross To Re lieve Starvation By Henry Wood. (United Press Staff Correspondent.) DYING BY Borne, Sept. 4. '(By Mail.) Out of a have forced the shipyards to discontinue total population that' numbered a half, work on merchant ships which are bot milliou before the war, an average of ; tied up, it is argued) In thi-a connection five thousand persons are dying of star- many officials hold the German ships . J!nr.n Unntannnf. .na.v urill llO.rn . r. ha tnitl nlntnl v rnKll'ilt Hl- vation and disease in Montenegro every month. Yet the allfes have not Tet guccceded in arriving at any agreement. witn AuBtria that will permit saving the remnants of these people Practically all of the farm lands of the little kingdom is absolutely uncul tivated this yvar, owing to the fact that nf in An fha Wftflr Knot-. j m latioa of' Monte. r' " j ' ,, . .... - "V. L An.W.V Th. held rnsoner by the Austrians. The and the female population, the war cost $4, now sells at from $80 to $100. Potatoeg that ordinarily cost a half a cent a pound, now cost tl.20 nound. For food the people strip the oark trom tcrees, boil it and mako it! int a gort of prl9try. Bonc-g of animals jare even dug up, ground into powder and added to this mixture of bark and water. Contagious diseases have added thoir toll to that of hunger. The situation is so bad that it is openly recognized in the Austrian and German press that un less BOnrjthing is done immediately the Montenegrin race must disappear utter ly. The newspaper of the central em pires demand that the allies be given a permit to provision the country. Tak ing advantage of this opportunity the Montenegrins, in agreement with Great Britain, France and ltaly, togcthcr with the American Bed Cross and various or ganizations are striving to reach agree ment with Austria that will save the remaining Montenegrin people. Competent authorities estimate that only 23,000 tong of foodstuffs would be sufficient. CONSCIENCE MONET. Washington, Oct. 8. "Cons cience money to help whip the kaiser," rend a note enclosing two fifty dollar bills that reach ed Postmaster General Burle son ' office today. The letter bore a Binghamp ton, N. Y. postmark. Thvre was no signature nor identification marks. The belated contributor apparently thought the money could be most profitably used in accleratiug Kaiser Bill's idide down the toboggan. ' 8, 1918. SHIP PRODUCTION BREAKS ALL RECORDS IN THIS COUNTRY Pacific Coast Yards Haye Now Turned Out Over Mil lion Tons New Ships. Washington. Oct. 8. American ship production has again broken all re cords. The output of American ship yards for the twelve months ending available to -the United Press today Compared with this, it has been re vealed that Germany and Austria lost 39 per cent of their tonnage since Am erica became a belligerent. Through seizures the Teutons lost 3,795,000 dead weight tons. The greatest annual pre war output of the world wa-.t' in 1913, when approximately ,7:iO,000 dead weight tons were built. America's out put in the last 12 'months aggregated close to 2.900,000 deadweight tons. Although Germany has surrounded her merchant fleet with tho utmost se crecy, compilations of 'available facts disclose the German and Austrian com bined merchant tonnage to bo approxi mately 10,000,000. This figure, of course includes all of their coastwise bottoms many of which are too small for trans- Atlantic trade. The net loss through seizure, therefore, is much more severe than the figures indicate. Since ruthless submarine warfare be gan, the total loss of ships flying the American flag is, 360.000 deadweight tons. This represents about .4 of on per cent of lots sustained by the cen tral powers through seizure alone. No figures ever have leaked out of Germany as to her. losses through sink ings. Losses reported from time to time at allied or American naval men were able to gain contact with German or Austrian . vesnols, would indicate less than half their former fleet remains. Officials here believe also that ships of .the central powers may be of little value because of the lack of repairs. Sho'taec of steel and other materials used in ship building mnst necessarily fore they can be engaged in ocean traffic after peace comes. Million Tdi On Coast Washington, Oct. 8. The west coast has built its first million tons of ship ping. Figures compiled by tho United States shipping board show that in the third week of September shipyards lo cated on the Pacific coast completed ou vessel to send their total 40,- yer m ing engines, boilers and deck equip ment, officials reported. The shipping board report show that to and inelud ing September 14, .the four greatest ship producing sections have completea the following tonnage: Pacific coast 137 vessels; l,U4U,uuu tons. Atlantic coast 87 vessels; tons. 864,000 Great Lakes' 131 vessels; 415,000 tons. Gulf coasts One vessel. 3,500 tons BRITISH STRIKE BLOW INEARWWING Tacks Preceed Infantry Of Generals Byng And Raw linson. London, Oct. 8. (6:56 p. m.) The British and Americans, in their attack between Cambrai and St. Quentin to day advanced an average depth of four miles, according to battle front dis patches receiV3d here this afternoon. They have captured Esslgny -La-Grand and other villages. It is also reported that Beloise and Leedain have been captured. By Lowell Mellett (United Press staff correspondent) With tho British Armies in France, Oct. 8. (1(1:15 a. m.) Tho blow gtriwk by Generals Byng and RnwliriB'm to day advanced the British line farther past the Hindcnbnrg line, whore Gen ie ral Von Iioehme'g forces have been fighting frenziedly to prevent a route 1 (Continued on page two) 4 PRICE TWO CENTS PRESIDENT TELLS BERLIfl ARMISTICE WILL BEREFUSED Until German Troops Leave Allied Soil There Can Be No Peace Discussion DEMAND EVIDENCES OF GOOD FAITH ALSO Only Details For Actual Car rying Of President s Terms Will Be AgreeiJ Washington, Oct. 8. President Wil son this afternoon addressed to Ger many an inquiry designed to test the sincerity uf Germany in her peace of fers. Tn this messugc he serves notice on Germany that uc armistice , is possible while the urmiej of the cenlir.i powers are upon allied soil. And, ho added, the good faith of anv discussion would depend upon the willingness of the Teutons to withdraw their forces at once from invaded ter ritory. - Tho message to Germany was official ly designed as an inquiry not. reply, to the German peace note. It asked the Gorman chancellor for the exact mean ing, and questioned whether he meant Germany was ready to accept tho four teen terms and discuss only practical details' of their application, The text of the president's mes sage, as incorporated in a messago Sec retary of IState Landing delivered to the Swiss chargo d' affaires, follows: Text Of The Message. "8ir: I have the honor to acknow ication from the German government note of October 0. inclosing a commun ledge on behalf of the president your to tho president, and. I am instructed by tho president to instruct you to make the following communication to the imporial German chancellor: . "Before making reply to the request of the imperial German ' government and in order that that reply shall be as candid an 1 straightforward as the mo montous intoreBts invoiv.id rr;uiro.. tte president of the Unitod Stater deem it necessary to nssuro liiit.ielt of the exact meaning o' the r.o'.e t.i the im perial chancellor. Does the imperial chancellor moan that the imperial Ger man government accepts the terms laid down by the president in his address to the congress of the United States on the 8th of January Inst and in subse quent addresses and that its object in entering into discussions would be only to agree upon tho practical detnils of their application! The president feels bound to say v. ith regard to tho suggestion of an arm istice that he would not feel at liberty to propose a cessation or arms to the governments with which the govern ment of the United H'ates is associat ed against tho central powers to long as the armies of those powers are upoi their soil. Tho good faith of any dis cussron would manifestly depend upon the consent of the central powers im mediately to withdraw their forces everywhere from invaded territory. "The president also feels that he is justified in asking whether the imper ial chriiicellor is speaking merely for the constituted authorities of the em pire who have so far conducted the war. lie deems tho answer to these qtiostious vital from every point 01 view. ine uorman now. 'lie translation ot tne iierman note as presented by Hwiss Charge d Af taires ueflornii, saia: , "The German government requests tne pre.-iueiit 01 tne unneu n.aies 01 America to take steps for the restor - ation of peace, to notify all belligerents of this request and .to invito them to delegate plenipoteitiaricg for the pur - pose of taking up negotiations. "The German government accepts asj a basis for peace negotiations tno pro- gram laid down by the president of the United Htates in his message to con gress of January 8, 1918. and in his sub sequent pronouncements. , "In order to avoid further bloodshed, the German government requests to bring about the immcdiute conclusion of a geneal armistice on land, on water and in the air.'' It's easy enough to tel when there 'simerance. . ' , a mail ship in from France. . (I'unel is three miles west of Bricul- IK gominerance is six miles west of The. allies have taken Roullcrs. Prob I . ably used the storm rollar on it. ' vCjntiiiucd on 'ti; U.w ' TEE WEATHER, - ' " ' OREGON TONIGHT ..... ,, "And Wednesday fair; light frost east ertioa tonight) gentle -east-. . erly winds. ' ...... ON TRAINS AND NEWS STANDS FIVE CENTS N SPITE OF RAINS ALLIED FORCES ARE IK HEADWAY St Quentin-Caisbrai Sector Scene Of Latest Abed ' Offensive. GERMANS RETIRING ON AMERICAN FRONT Vast Quantities Of Guns Ani Supplies Are Being Cap-; . hired By Yankees. London, Oct. 8. British and Ameri can troops attacked between St. Quen tin and Cambrai before dawn this morning, Field Marshal Haig announc ed. . - Despite a heavy rain, " satisfactory progress" was made. T "In successful operations yesterday in the neighborhood of Montbrehain and north of Bcaurevoir, American and English troops took 230 prisonors,' the statement said. ; " " ----- ; "Shortly before dawn we attacked between St. Quentin and Cambrai, lit spite of a heavy rain, which eommene ed last night and is still continuing, first reports indicate satisfactory pro gress was made. ' Tfie battle front between St. Que-, tin and Cambrai is about 25 miles long Recent dispatches showed the Ameri eans operating In the Beaurevoir-Mont-brehaiu region, at the farthest point of the allied advance. , GERMANS FALLInU- BACK !By Frank X Taylor - (United Press staff correspondent) With the American First Army, Oct. 8. The . Germans continue evacuation of tho Champagne territory opposite the Americans and northwest of Rheinis Tho lines are temporarily station ary, however, s the enemy is stoutly holding its front positions in an dent effort to delay the allies long enough to permit removal of guns und supplies from the lowlands dominated by American artillery.1 The Yankee guns broke up an at tempted counter attack yesterday. Tha doughboys then charged tho attacking forces, killin g and wounding a num ber and taking several prisoners. Reports) show the American haul re cently includes guns, supplies, cart and machine gunB in huge quantities. They also captured a giant tractor as bi'j as & railway engine. evon companies cf Americans, sur rounded in tho Argonne forest for more than three days, were rescued yes terday, after daring and continuous at tacks by their comrades. Tho Americans were cut off while pushing through the dense timber in single file. Airplanes had supplied them with food, munitions, medical supplies and orders. The full story of their resistance and rescue, probably will furnish one of the most dramatis episodes of tho war. . Heavy rains are making the going difficult, but have not forced a cessa tion of the fighting. , SQUEEZING ARGONNE POCKET By Fred S. Ferguson (United' Press staff correspondent) Wi(h thp Alm.ri,.an First. Army, Oct. gThg Ornians are squeezed tighter j the Argonne pocket as the result of the capture of (Tiatel I tiehery and tne heights west of the Aire in yesterday 'a furious all-day battle. 1 n;jg jh() and 244 were stormed, rob- biug the boche of dominating positions overlooking the Aire, and itiiiiultaneous- hy closing in tighter the east flank of 1 the Araonne salient. T,e eu'-my .artillery on the heights West of the Aire was captured in less than five and a half hours after tha American attack started. One division in the lust couple cf days captured eijtht 77 's ami seventy five machine guns, in addition to a Belgian iield piece which was being used by th oot'hcs. 1 A considerable movement northward of (lermnn artillery and supplies has been observed back of Cunel and Som-