Historical Newspapers of South Carolina

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EIN5 OUT FAITS" NEW YORK WORLD PUBLISHES SOME GERMN DOCU1MENTS STARTLINi 1SCLOSURES How Germans are Preventing the Al lies From Getting War Materials Huge Propaganda to Alter Ameri can Public Opinion-Enormous Factory Built by Germans. In the publication of a series of startling disclosures, fully pro tected by the copyright laws of this country, The New York World is gradually unfolding one of the most startling chapters in the his tory of the war now raging. The World has by some means un known come Into possession of the letters and reports of many Ger man confdential agents and offi cials in this country, which tend to show that there is in operation an enormous propaganda in this country in the interests of Ger many, that cash to turn public favor to the side of Germany has been freely supplieu, and that some of the facts have been at least with the knowledge of the accredited representatives of the German governemnt, although they. have not yet been: directly implicated In the performance of a ny of the acts themselves. On Sunday The World began its articles, and in that issue showed that George Sylvester Viereck, editor and publisher of The Fatherland, an ardent pro-German paper in New York,,received and acknowledged the payment of $250, and was expecting to secure $1,500 more f- r the month of June. It seems from the letter published that the -editor fully realized the na ture of his transact-on would not bear the light of day f-r he "suggests that the payments be made to my personal friend, and lawyer, Ely Simpson, whose standing as my legal adviser would exempt him from any possible .inquiry." Elsewhere in the same letter he says: "I am sending this letter by boy, as for obvious rea sons I do not wish it to go through the malls." The letter from Viereck was ad dressed to Dr. Albert, who The World claims is a representative of the Ger man government His answer which was unsigned expressed the hope of paying the amount requested in the next week. 'It also talked of a finan cial control. of the paper and an "un derstanding regarding the course in politics which you will pursue." Other memoranda are said to show that the Austrian government placed several thousand-feet of moving pic -tures to be displayed in the moving pieture houses of this country. The Times, and Democrat several months ago received an offer of a picture en titled "The - Galician Drive," and which was made by the American Correspondent Film Company, of which M. B. C'aussen is president. The World also charges that M. B. Claussen wrote to Dr. Albert that he had a- thirty-day option for a con trolling interest in the American Press Associlation, a $1,600,000 cor Sporation located in New Rork and with branch offices in seventeen cities. The cost was expected tobe $900,000, and the Idea was to estab lish a news service by means of tick ers, whose patents are controlled by the Press Association. In a long and detailed report made for Berlin the German ambassador and Dr. Albert give a careful study of the plan to estab'sh a news bu reau and a lectu-o bureau In this cuntry, with an estimatq. as to its probable cost, and a favorable rec ommendation of the scheme. In the report orcurs the following para graph: "The news sent out must not make the impression of being put out for propaganda purposes. Al though its principal value is baset on its being pro-German, its suc -cesa depends upon the sublety of presentation." It Is also stated that the Foreign office would hsve to let the bureau have a permit to telegraph daily by wireless about 3,000 to 4,000 words The. writer of the report goes on. tc recommend the reaching of the rural communities by furnishing news and pictures to agencies~which send elec trotyped plates of "boilerplate" to -small papers.. It -s charged, and al tter support ing the contention, is published -- showing that .the German chancellor ~himself caused. to be sent to Ambas sador Bernstorff a letter recommend ing that .the expenses of Edward Lyell Fox, a war correspondent, be paid by the German Information Ser vice, because of the fact that he had -.- been "of great benefit to us by rea son of his good dispatches." It is also charged that the German governmnet or German inerests had an agent at work trying to buy The New York Mail, and that another agent advised, the establishment of a moving picture and lecture bureau, by means of which such men as Con gressmen Gardner and Hobson, Sen ator Beveridge, Henry Reuterdahl -and Burr Mcintosh might <be used Swithout their knowledge in creating Interest in Americanism through the exploitation of the dangers which this country might face from Eng land and Japan. According to The World. the -agents of Germany made many ef forts to foment strikes in domestic establishments manufacturing muni tions of war, with the connivance of disloyal labor leaders and agitators. It is saed that recent strikes at the works of the Standard Oil Company at Bayonne, N. -3., at the Remington Arms-Union Metallic Cartridge Com pany, in Connecticut, at the Bliss Torpedo .Company in Brooklyn, and in motor car concerns in Cleveland and other places were caused by the work of foreign agents, who were interested in hindering the fulfill ment of contracts held by enemies of their enemies. -A letter is published which is said *to be one sent to the Military At tache of the Imperial Germ-n Em bassy. with an inclosure. The letter from C. Dencker estiates that $50. -000 would be sufficient to call a strike among the ironi-workers in the -munitions plants at Detroit, Cleve land and Cincinnati. The enclosure from C. W. McLane breaches the sub ject of possible negotiations between the embassy and himself for the pur poses of, reaching an agreement to - call a general strike of all auto mobile workers, who " are very much dissatisfied with the part they are playing in the European war, and that with the proper handling they would present a mighty protest." - Some of the disclosures centre - about the military attache of the German embassy at Washington, Cap * tain von Papen, who took steps to * secure a virtual monopoly upon the available supply of liquid chlorine, which is used largely in the new method of killing the enemy by as phyxiation. This captain makes a most memorandum of his acitivities, ive of the Goldschmidt Detinning 1ompany, which is one of the three :ompanies in the United States which nanufactures the liquid chlorine in arge quantities. Capt. von Papen says the Allies' aave been carrying on negotiations M or three and five-year contracts for ll the available supply, especially since the battle of Ypres. They were )perating through Dalbrun (Italian) but according to von Papen the Gold chmidt company would not sell jj them any because of its German ori gin in ownership. Of the other two, which were American concerns, the Castner Chemical Company of Buf falo, had closed contracts with France, and is delivering fifty to sev enty-five tons monthly. The Electro Bleaching Gas Com pany of the same place, had not up to the time of Capt. von Papen's re port sold any chlorine to the Allies but the alluring prospects of the great profits were becoming so great that it would not long restrain itself. at The captain suggests a plan for pre- lei venting this, but nothing of the na- P1 ture of the suggestion is outlined in fr< the letter. m1 The New York paper claims to th have in its possession correspondence ni which shows that the German chan- id cellor and Ambassador von Bernstorff av received regular reports of the cru- ti( sade against the shipments of arms and g.mmunition. This movement has da had various forms but so far has had oa no result. In almost every element M of society these agents have appear- m ed, says the paper, in the form of dr labor agitators, peace propagandists, by lecturers, and in certain instances, Tj officials of the government have aid- w: ed the movement. In the South every hi effort was made to stir up a feeling P] against Great Britain on account of her actions against cotton. Senator cl< Hitchcock and Congressman Buchan- le an were supposed to be favorable to hi the German idea. A report which w, goes very fully into these details oi contained this significant sentence: cli "I must refrain from communicating h the above facts in my report to the ai amb)assador, as the matter could be of too easily compromised thereby. Per- al haps you will find an opportunity to inform Count von Bernstorif ver- at bally." se The report, which is signed byiP. g Reiswitz, tells of an intention to se- tl cure an option on the Wright aerb- n4 plane plant, and thus by the pur- Id chase of their patent rights prevent di the manufacture' of aeroplazes for w the Allies. In the opinion of the a writer $50,000 would acquire such g4 control for a period of one year. Financial agent Albert also receiv- IE ed reports bearing upon the British ii embargo and one of them suggested hi the promotion of the movement re- h cently started in Texas in Tavor of t influencing the administration at M Washington to cut off the.export of w ammunition or of cotton. Recent ad- ir vices from Texas seem to indicate al that the suggestion had been worked bi upon, is the opinion of The World. ib After showing its its issue of Mon- Ix day.and Sunday the above outline of the German activities in efforts to t create sentiment and prevent the de- p< livery of munitions to the Allies The ci World on Tuesday made public for . the first ,time that Germany itself v has been secretly planning to secure w munitions, although protesting v, against the shipment of such to the 1 enemy counties." t Evidence included in the corre- h spondence which The World shows tl that the 'German government is fin- b ancing a plan to insure for itself the output of at least one concern in this tl country which manufactures shrap- nx nel casings, although the method of v delivery and shipment are not dis- a: closed. The memorandum of the o: contract between the Bridgeport Pro .jectile Company, of Bridgeport, si Conn,, iwhich is owned by persons g unknown, and Hugo Schmidt, a rep- C resentative of the German govern- t< ment. It was referred to and ap- t1 proved 'by Dr. ~Albert, Capt..* von tl Papen and N. R. Lindjeim, by Carl o: Heynan, who is said to be an agent B of the German government. - a: The Projectile Company was ne gotiating a contract for all the out- ci put of the Aetna smokeless powder ix from December 23 and in May secur- tV ed offers of antimony. At no place tl in -the contract are the parties re- a: terred to by their real names, the fictitious use of the letter- A and B b serving as symbols for the principals. n1 One of the most significant para- b graphs in the entire contract is the r< statement that by the purchase of tV all the powder available in the Unit- IE ed States up to January 1, 1916, all the prospective .contractors for com- tl plete shrapnel rounds who applied g to the Aetna for powder and were F advised by them that the Bridgeport T Projectile company was the only con- h cern that had powder to furnish-- b (the only other manufacturers-the s in Pont company-having all their output contracted for into 1916) tl have applied to the Bridgeport Pro- te jectile company for bids on complete tV shrapnel rounds, and such requests tV have come from representatives of all nx the allied nations." This seems to show that the Rus- P' sian and English governments un- t aware of the ownership of the a1 Bridgeport concern or of the control TI over its output had made offers to F secure it and were- planning to make tl bona fide proposals. Mr. Heynon be said that when proposals were re- c; ceived from the governments a coun- 14 cil of war would have to be held to discuss whether the company would a1 accept orders without an indemnity la clause for non-fuifillment, the evi- P dent inference being that the pur- t chasers were to be left in the lurch. P' Mr. Heynan also gives assurances U that the presses necessary in the ' manufacture of such stuff had beenU securely tied up and that as a result q the Allies had to contract for shrap- - nel casings to be manufactured from fC bar steel by boring instead of forg- p. ing, which is said to be an unsatisfac- " tory method. The factory buildings of the Bridgeport Projectile com- n pany are nearly completed and oper- ga ations will begin about September 15. ix The nominal officers of the concern $ are Walter H. Knight, formerly of fi New York, president; Carl Heynan, bi formerly of New York, treasurer, and le Carl Foster, counsel. Its incorporat- es ed capital was $2,000,000, paid in last March. ci Another interesting deal is reveal- cl: ed by the memorandum of the plans at of Dr. Hugo Schweitzer of New York, ce who is frankly recognized as the pl agent of the German government ti and shows a plan to secure control of of $1.400.000 worth of phenol (carbolic It acid) from the factory of Thomas A. ta Edison. of There is an agreement between Dr. Schweitzer and the American Oil and p1 Supply company and under the terms we of the contract the American comn- Ai pany turn~ed over to thi, doctor its ii contracts with Thomas A. Edison. ag under which it was entitled to have e manufactured and delivered to it of ar 912,000 pounds of phenol in daily to shipments of 6.000 pounds each working day from July 1, 1 91 5. to December 1, 1915, and 200,000 pounds to be delivered between Jan uary 1, 1916, and March 31, 1916. is or 4,000 pounds each working day. fr< One hundred thousand dollars was no deposited in a New York bank to pro- s tect the American Oil and Supply th company, which further agreed to ly transfer to Dr. S&'weitzer under the su same t--rs any additional quantities of pheral which they might obtain from any source. The date of the greement is June 22, 1915. liv The Dr. Schweitzer mentioned in da :he president of an association which ed fNCII LEO FRANK I fee )B TAKES CONVICT FROM a' iEORGIA PENAL FARM of 'mi [Ni UP AT MARIETTA l sh cu Ily re Autos Carry Frank One Hun-t Po dred Miles In Dead of - Night- ed Prison Guards are Handcuffed er th While Victim is Secured-B-ody thl se Not Mutilated and no Shots Fired. er w] Leo M. Frank, serving a life term it, the Georgia state farm at Mil Igeville for the murder of Mary ra agan, and who was only saved st )m the gallows by Gov. Slaton-com- se iting his sentence, was taken from se e farm at 1-1.45 o'clock Monday th ght by a party of twenty-five un- ri entified men, who hurried him wi ,ray in an automobile in the direc- eg )n of Eatonton. so Shortly before seven o'clock Tues- ra .y morning he was hanged to an .k tree in a woods two miles east of ca arietta, Ga., after having been re- Li ved from the prison farm one hun- it ed miles away late Monday night p, a band of about twenty-five men. in ius ended the career of the man io for two years had maintained a s innocence of the murder of Mary s: iagan. Frank, on his ride to death, was L Dthed in a silk night shirt, with the n tters "L. M. F." embroidered over t, s heart. When found Tuesday a w bite handkerchief had been proced ea rer his face and a piece of brown e3 oth bound around his limbs. His tnds were bracketed before him i d his feet were bound with a piece B rope. The hangman's knot lay b< ainst his right jaw. 01 Discovery of the body was made d eight-thirty Tuesday morning by tl arching parties, which had been or- ti mized after Frank's removal from 0e prison farm became known. The S, uws spread with lightning-like rap- d ity and within half an hour hun -eds of people, including scores of omen and children, from Marietta t4 id the surrounding countryside be- li mn to arrive to view it. The scene of the hanging was with- Ii two hundred feet of the roadway d a few hundred yards of two farm L uses. Occupants of both said they d noticed nothing unusual during t, te early morning hours. However, Q lliam J. Frey, a former sheriff, in I hose woods Frank was hanged, liv- il tg a half mile further east, said four si itomobiles passed his house shortly s, sfore seven o'clock Tuesday morn- a ig, each containing six or seven q ten. tl "I paid no particular attention to a .em,". Mr. Fr.ey added, "and the d ssibility of a lynching did not oc ir to me." t] The mob apparently planned their ork well, for they carried it through ithout a hitch. Between Milledge le and the state farm*and between [illedgeville and Macon they cut the 0 lephone wires and it was fully an our or more after they had secured 1eir man and hastened on their way C efore the news came out. As far as could be learned none of g e1 members of the mob were recog- t ized. All of them are said to have d orn masks -and all were heavily C rmed. Not a shot was fired and no ~ n was injured, as far as kno.wn. t When the mob first reached the ate farm they separated into three ti roups. One went to the home of t; aptain Burke, the farm superin- d mdent, and after calling him from it bue house they covered him with c eir guns and slipped the handcuffs e n him. This group took Captain n urke to the prison farm dormitory n nd for~ced him to open the door. Another group secured and hand affed Warden Smith in the same anner as the other had done Cap tin Burke. Two guards sleeping on ue front porch were overpowered ad handcuffed also. Warden Smith and Captain Burke oth declared they failed to recog ize any of the members of the mob, ut one of the convicts overheard a umark dropped by one of the mob uat they intended to take Frank to [arietta. Practically every other member of s ie mob then rushed to the stockade r ate nearest the dormitory where E rank was being housed. Only S uesday did the physicians discharge t im from the hospital where he had d een since being murderously as- S tulted in the dormitory. t Only one member of that part of 1e mob that went to the dormitory ti tlked. He gave the commands to il e guards which were backed up by n ue arms of the other members of the I< ob. The body of Frank, under a heavy s olice guard, was placed aboard a t) 'ain, which departed from Atlanta a t12.01 o'clock Wednesday morning. he funeral party including Mrs. s rank and several Atlanta friends of e family, who will accompany the 5, ody to Brooklyn, also was guarded n trefully by the police until the train b ft the terminal station. tl Gov. Nat E. Harris of Georgia has c nouced that he will return to At .nta for the purpose of aiding the rison commission in an investiga- ~ on of the lynching of Frank. "The ople are entitled to all the facts In V t case," said the governor, "and I r ropose to see that they shall have ~ te." He said that a thorough in- I Ary will be made.t >r the purpose of establishing a per in New York which would be onestly neutral."r The documents also show that Ger- r an agents were employed to insti-d te troubles for the purpose of hold- ti ig up allied war shipments, that. 50,000 was suggested as a suitableh nd to cause a tie-up in the automo le business, and that several labor aders were selling out their inter ts who offered them money. Efforts to buy up all the available lorine, gunpowder and certain ma- O tinery necessary for making shells *e shown to have met with good suc ss, and it is asserted that so comt etely were the allied representa tes in ignorance of the ow'.ershipA a huge projectil~e company that the-t ussian and British agnts actually s Iked business with representatives the German capitalized pl~ant.1 Over a million dollars worth of ~enol, which tihe Edison company m is under contract to deliver to the ~ uerican Oil and Supply company, ust now be delivered to a German A .eat who has bought out the inter- D t of the oil company in the contract IF d stands suhrogated to their right deand delivery. IG Mlay Act Against Turkey L A strong squadron of fast cruisersS being held in readiness to steami , :m Taranto. Italy, at a moment's '~ tice. It is expected that the war- T ips will be sent against Turkey if at country declines to satisfy Ita- 0 s demand for the release of Italian bjects held in the Ottoman empire. Al Twenty Lives are Lost Twenty to thirty persons lost their es when the tropical storm of Mlon-|n1 y night almost completely destroy- nl Anahuac and Wallisv'Illt small be TORPEDOES LINER (Continued from first page.) ,t from her stern. The vessel had t Liverpool Wednesday afternoon d was on-a southerly course, well the Irish coast. When the vessel was some 50 les west of where the Lusitania LS sunk in May, the German under ter boat rose to the surface and inched a torpedo. The marksman ip of the Germans was deadly ac rate and the big liner settled quick and disappeared from view. Some survivors, according to re rts, say that they had just witness the torpedoing of a British steam presumably the Dunsley, and that is h:d caused great alarm on board e Arabic. In their fright the pas agers had rushed for life preserv s and barely had adjusted them :en the German submarine turned torpedo against the Arbaic's side. Ten lifeboats and a. number of life fts were got over the side of the eamer and into these m.ny pas ngers and members of the crew rambled. Many passengers fell into e water, but they got hold of the fts and later were rescued. One Dman who fell into the sea scream [ pitifully for help. Two sailors ram to her and lifted her on to a .ft. News of the sinking of the Arabic used a tremendous sensation in ndon. The first reports stated that was feared a large number of the tssengers hai been lost. Reassur g news came shortly. however. It was that some 15 or 16 boats id life rafts had left the steamer Sfely and had been picked up and ere being towed into Queenstown. atest private telegrams brought the ws from most of the passengers at they were safe, although some ere injured. The Arabic fs the larg t vessel yet sunk by the Germans ept the Lusitania: Washington: News of the torpedo Lg of the White Star liner Arabic, a ritish ship, with Americans on yard came as a shock to American Ticials, who had hoped since the ispatch of the last note to Germany iere would. be no further aggrava on of an already tense situation. What the course of the United tates would be no official would pr let. It must be established authoi tiely whether any warning w. : iven and whether the steamer at nmpted to escape. If no American ves were lost, it was thought in iost quarters that drastic steps were nprobable, but if Americans were rowned a rupture in diplomatic re stions was discussed as likely. - The attack on the Arabic came in 1e face of reiterations in Germar uarters that in the future passengel essels would be given warning. The icident, therefore, caused wide pread surprise, especially since the ip was bound for the United States nd had no contraband. In somf uarters there was a disposition to iink the German submarine com ander might have exceeded his or ers or made a mistake. President Wilson was startled by ie news. He spent the entire after oon and evening trying to get de iled information. Though obvious r worried, he took the position tha udgment should be withheld unti fricial details were received. The president had just finished a onference with Attorney Genera rregory and was preparing to- gC olfing when word of the sinking o e steamer reached him. He imme lately abandoned his pl--ns cand gav< rders that all information be for rarded to him as quickly as posi The decision of the United State: refuse all claims for life or proper y lost aboaird ships torpedoed witi ue warning was made clear whei became known that a claim in th< ase of John Wall, a muleteer killei ren the Armenian was sunk, woulh ot be taken up by the state depart RISII TRANSPORT SUNK; THOUSAND LIVES ARE LOS1 erman Submarine Torpedoes Troop ship in the Aegean Sea-First Time During the War. The sinking in -the Aegean sea ays London, by a German subma ie of the Br'tish transport Roya dward with heavy loss of life hal battered the British navy's prou< oast that it had transported hun reds of thousands of men across th< ea without the destruction of ont roop laden ship. Two other transports have been at cked. The Wayfarer was torpedoet i thse Irish sea, but the vessel wa; ot sunk and only five lives wert >st. The Manitou was attacked b: Turkish torpedo boat in the Aegeal ea. The ship was rnot damaged, al dough fifty-four lives were lost whei boat spilled its load into the sea. The loss of the Royal Edward is erious one at this moment. Th4 ien it carried were reinforcementi r the Gallipoll peninsula. The ews shocked the British public, wh< elieved the submarine menace ii ae Aegean had been dealt with suc essfully. The text of the admiralty an ouncement follows: "The British transport Royal Ed 'ard was sunk by an enemy subma ine in the Aegean last Saturda: torning. According to the infor iation at present available, th< ansport had on board thirty-tW( uilitary officers and 1,350 troops it ddition to the ship's crew of 220 of eers and men. "The troops consisted mainly o: inforcements for the Twenty-ninti ivision and details of the Roya rmy medical corps. Full informa on has not yet be.n received, bul is l'nown .that about six hundrec ave been saved." OUR FARMINGi POPULATION er Telve Million Persons Engage in Agriculture in America. Of the total population in conti antal United States (excluding laska and other non-contiguous rritory) the last federal census rows that of those engaged in gain 1 occupations, 12.3567,925 persons )years of age and over, are engagp I in agriculture. This is approxi ately one-third of the tot al number igaged in agricultural 1-ursuits is assified as follows: rcultural ILborers -... . . 6,088,41 4 airymen and dairywome:: 35,014 armers, planters, and ov erseers....... . .. - 5 91,522 ideners, foresters, nur serymen, etc. .. .. . ..143,462 mbermen and raftsmen. 127,154 ock raisers, herders, and drovers (approximate) .122,1S9 od choppers. .. .. ....2,567 irpentine farmers and la borers . ... .....-.-.28,967 her agricultural pursuits (approximate ). .. . . ..1..636 piarists.. .. .. . .... .. 2.14> Two Negroes Lynched. Kil Jackson and Henry Rus-,ell, groes. were lynched at Hope Hull. r Montgomery. Ala., Wednesday cause they poisoned some mules .er months agto. REFUSES PROTEST (Continuad from first Age.) munition in anticipation of war, the government of the. United States is convinced that the adoption of the theory would force militarism on the world and work against that univer sal peace which is the-desire and pur pose of all nations which exalt jus tice and righteousness in their rela tions with one another. "The government of the United States in the foregoing discussion of the practical reason why it has ad vocated and practiced trade in muni tions of war, wishes to be under stood as speaking with no thought of expressing or implying any judgment with regard to the circumstances of the present war, but as merely put ting very frankly the argument in this matter which has been conclu sive in determining the policy of the United States. The Austrian Assertions "While the practice of nations, so well illustrated by the practice of Austria-Hungary and Germany dur ing the South African War, and the manifest evil which would result from a change of that practice ren der compliance with the suggestions of the imperial and royal government out of the question,' ertain assertions appearing in the Austro-Hungarian statement as grounds for its conten tions can not be passed over without comment. "These assertions are substantially as follows: "(1) That the exportation of arms and ammuntion from the United States to belligerents contra.venes the preamble of The Hague conven tion No. 13 of 1907; (2) that it is inconsistent with the refusal of this government .to allow delivery of sup plies to vessels of war on the high seas; (3) that according to all au thorIties on international law who concern themselves more properly with the question, exportation should be prevented when this traffic as sumes such a form or such dimen sions that the neutrality of a nation becomes Involved thereby. "As to the assertion that the ex portation of arms and ammunitions contravenes the preamble of The Hague convention No. 13 of 1907, this government presumes that .ref erence Is made to the last paragraph of the preamble, which is as follows: "Seeing that, in this category of ideas, these rules should not, in prin ciple, be altered, in the course of the war, by A neutral power, except in a case where experience has shown the necessity for such change for the pro tection of the rights of that power.' "Manifestly, the only ground to change the ;ules laid down by .the convention, one of which, it should be noted, explicit'y declares that a neutral is not bound to prohibit the exportation 6f contraband of war, is the necessity of a neutral power to do so in order to protect its own rights. The right and duty to deter mine when this necessity exists rests with the neutral, not with a belliger ent. It Is discretionary, not manda tory. -If a neutral power does not avail itself of the right, a belligerent is not privileged to complain,-for in doing so it would be js the position of declaring to the neutral power what is necessary to protect that power's own rights. -- The imperial and royal government can not but perceive that a complaint bf this-na ture would invite just rebuke. Consistency of Washington "With reference to the asserted inconsistency of the course- adopted by this government In relation - to the exportation of arms and ammu nition and that followed in not allow ing supplies to be taken from its ports to ships of war on the~ high seas, It Is only necessary to point out that the prohibition of supplies to Iships of war rests upon the principle Ithat a neutral power must rot per mit its' territory to become a naval base for either belligerent. A war ship may, under certain restrictions, obtain fuel and supplies in a neutral port once In three mouths. To per mit merchant vessels acting as ten ders to carry supplies more often than three months and In unlimited amount would defeat the .purpose of the rule and might constitute the neutral territory a naval base. Fur thermore, this government is un aware that any Austria-Hungarian ship -of war has sought to obtain sup plies from a port In the United States, either directly or indirectly. This subject has, however, already been discussed with the Imperial gov ernment, to which the position of this government was fully set forth De cember 24, 1914. What the Authorities Say "In view of the positive assertion in the statement of the imperial and royal government as to the unanimi ty of the opinions of text writers as to the exportation of contraband be ing unneutral, this government has caused a careful examination of the -principal authorities on international law to be made. As a result of this examination it has come to the con clusion that the imperial and royal government has been misled and has inadvertently made an erroneous as sertion. "Less than one-fifth of the authori tics consulted advocate unreservedly the prohibition of the export of con traband. Several of those who con titute this minority admit that the practice of nations has been other "It may not be inopportune to di rect particular attention ot the decla ration of the German authority, Paul Einicke, who states that at the be ginning of a war belligerents have never remonstrated against the enact ment of prohibitions on trade in con traband. but adds that such prohibi tions may be considered as violations of neutrality, or at least as unfriend ly acts. if they are- enacted during a war with the p trpose to close unex pectedly the sources of supply to a party which heretofore had relied on "The government of the United States deems it unnecessary to ex tnd further at the present time a consideration of the statement of the Austrougrianl government. The principles of international law, the practice of nations, the national safe ty of the.United States and other na tions without great military and nav al establishments, the adoption of paceful methods for the adjustment of international differences, and, fin ally, neutrality itself are opposed to the exportation of arms, ammunitions To the note of the United State: jecting the plea that an embargo sho the Allies, was added as an "appendi; Hungarian exports of arms and amm years in which war was being wage German Exports of Arms and Explosives. .. .. .. .. ..--.-.-. Gunpowder............... - Shot of malleable iron, not polished. P oished, etc., not lead coated.... Shot. nickled, or lead-coated with rings, etc .... ........-. W eapons for war purposes .. . .. Cartridges with copper shells and pe caps ............--.-. Austro-Hugarianl Exports of Arms Arms, exclusive of small arms .... Separate parts of arms .. .. . .. .. Small arms... .. .. .. .. .. .. .. . Amm~nunitionl and explosives under tar 346 .................. J. S. DOLLAR RULES WAR CAUSES NEW S1HIFT IN IN= TERNATIONAL CREDIT ENLISH POUND SRINKS Enormous War Orders Cause Rapid Decrease in Balance in This Coun. try for Belligerent Countries Loss Involved in Transferring Cur. rency is Very Great. The American dollar ruled the fin ancial world Monday with an iror grip. Foreign exchango have gone down to new depths in a torrent oi bills that poured in the exchang( markets seeking pay for big war con tracts. Coincidently with the startling de cline in exchange rates came the as sertion from an unimpeachabl( source that every contract for sup plies sent abroad called for paymeni in American dollars and not pound, sterling, which heretofore have beer the standard of finance the worlk over. The immense losse, therefore due to the decline in foreign ex change rates, will be borne, to thi last penny, by foreign buyers-a sit udtion exactly the opposite of wha had heretofore been the popular be lief. The maximum depreciation Mon day in pounds sterling was 4 3-4 pe: cent. below normal; in franc 19 pe: enet. below normal; in Italian lire; 25 per cent. In the money market Monday 'the pound sold for onl: $4.64; 6.02 franc equalled a dollar and a- dollar purchased 6.48 lires These were the quotations whili rates were at the lowest. In the last hour of business thi presence in Wall street of J. P. Mor gan for the first time since the at I tack on his life six weeks ago and ai informal conference of .bankers t confer on the exchange situation sen rates upward. Sterling closed at 4.64%/2, one-hal point higher than it opened and ; point and a half under Saturday close, which had established a nel low record. Francs gained thre points over the lower record, sellin at 5.99 at the close, and lires rc bounded a point, closing at 6.47. Bankers with international conne< tions considered a remedy at an ir formal conference late Monday. I was decided to do nothing, chiefl ,because the remedy lay with the fet eign -buyers. They were the suffei ers and theirs, it was the consensu of opinion, should -be the task of sei ting the money markets to rights. How this would be done was tb object of keen consideration an some speculation. . It generally wa believed that the present ainormE situation would not be permitted t continue long. The obvious remed seemed to be to sell American s( curities held abroad and when thi contingency was studied the situ tion seemed to be pregnant wit unique possibilities. - A great many millions of Amer can secrrities, payable in dollars, ar held abroad, chiefly high class rat road bonds and preferred stock of selected list of American industrial Should these securities be sold, the. present exchange rates in foreig markets, they would fetch far mor than the purchasers paid for then due entirely to the depression of e3 change. 'rhus a $1,000 American bond so] in Paris at par would, on accountc prevailitig exchange rate, bring aj proximately 6,000 francs. Whe purchased at par a year ago it co: the purchaser approximately 5,05 francs. The net profit would I about 950 francs, or about 19 pe cent., the percentage of depressio In francs in American exchange mal kets. In London the profit would b approximately 4% per cent., and i Rome the profit would approximal 25 per cet. Establishment herec a big foreign credit, estimated cox servatively at $500,00,0.'wa thought to be absolutely necessaryi exchange rates were to be restored t anything like normal. The assertion that dollars and nc pounds sterling had been the fina! cial standard on which all contraci for war supplies liad been accepte in this country came as a distin< surprise. Aside from marking th temporary passing of London's cor trol of the world's treasure chests, relieved anxiety on the part of i vestors in so-called war specialtie In the stock market who were cor fronted with the prospect of a larg shrinkage in prospective profits du to prevailing low rates of exchang' Measured in dollars and cents, was learned that the amount of thes war contracts, on which full oz' neal ly full payments would be due on c before October 1, next, approximate $400,000,000 to $500,000,000. Thi is in addition to the huge totalc more than $1,000,000,000 owed b Europe to the United States at th~ close of the fiscal year June 30. was also learned from an authorite tive source that the prospective proj its on some of these contracts ha been greatly exaggerated; that on] normal profits would accrue in mos cases, and that in some instance these might be no profit at all. Woodward Warns Slaton. Maycr Woodward, cpeaking in Sa Francisco Tuesday night, said tha Frank paid the penalty for a. jus crime and warned Slaton, who par doned him, not to como -back to At lanta, for at least a year, if he cam at all. .- * More Marines Landed. Another detachment of America: marines have been landed rt Hait as the islanders threate--. to fight ani refuse to disarm. I e-| Transport Washed Ashore. The army transport McClellan wa washed ashore by the storm on th Gulf coast Tuesday. The number o soldiers killed is unknown. or other munitions of war to beilig Ierent powers during the progress c Ithe war.'' sgovernment to Austria-Hungary. re ld be put on exports of munitions to t a table of the German and Austro mition to Great Britain during the I with the Boers. The dta are as Immunition to Great Britain --Quantity in 100 Kilos. 1899. 1909. . 1901. 1902. .. . 4,342 6,014 5,147 3,643 .. . 2S 658 243 69 tc. . .. 30 43 3S .... copper ... ... .. 3,018 176 ... ... .. .. . .. 18 2 'cusson ... 904 1.59.> S66 9S2 and Ammiunitnon to Great Britain. -Quantity in 1 00 Kilos. 1899. 1900. 1901. 1902. .. 190 374 12 . .. . 1 1 . .. . . . . - 2 8 iff No. .. . I 7 16 51 STORM SWEPT TEXAS; MANY LIVES ARE LOSTi United States Soldiers Lose TheirIBI Lives in Flurry of Wind and Waves. Scores of persons perished in the I West Indian hurricane that swept Texas coast towns according to roundabout reports received at Dal las, Texas, Wednesday from the stricken district. Se Eighteen soldiers, it is said, were killed at Texas City, the regular army camp near Galveston and thirty or foity civilians also are reported dead. Six deaths are reported from La Porte, Texas, eight miles from Mor gan's point and three from Sylvan Beach. Between fifty and sixty soldiers are in' said to have been injured at Texas ib) City. pa With a re-establishment of wire an communication promised for the so storm swept coast country of Texas, na it was expected that definite news ye would be brought Wednecday of the M: situation in-Galveston, Houston and la: Beaumont, which for more than two gr days have been isolated. Hope that no lives were lost was tr, given up by many Tuesday night with 17 the rec.Pipt at Dallas of reports indi- pT cating that there had been deaths at pr both Galveston and Houston. to Disappointingly brief -wireless re- fe ports receivea from the army trans- a - port Buford by the -station in Fort a' Sam Houston at San Antonio. gave 01 - only the most meagre reports of con- b ditions at Galveston. Reports from Houston, brought by 5 trainmen told of two or three per- w 3 sons killed. Other reports declared si r there was no loss of life. Conflict- h4 ing reports also were received. One s' said there was only minor damage p a and another that the damage was e timated c.t five million dollars. m TO SETTLE FRYE CASE AS ERM SUGGESTS t f United States Accepts Offqr to Arbi s trate the "Question of Legal e Justification" of Act. c -U The American note to Germany in e regard to the destruction of the sail- d ing ship William P. Frye, by a Ger- a man auxiliary cruiser may have im t portant results in its bearing upon S y the treatment of neutral commerce cl by belligerents, officials at Washing- 1 ton believe. s The United States acquiesces in .the German proposal that a joint board of experts fix the value of the e Frye, which will be paid for prompt d ly by the German government. This s was the original American proposi J tion. 0 The note's acceptance of the Ger y man offer to arbitrate "the question s of legal justification;" for the sink- s ing of the Frye, insofar as' that in- - I volves the interpretation of the exist- b ing treaties with Germany is consid- v ered fig-reaching in its effect. If the b German government agrees to arbi- t e tration, in the form suggested, it is j - believed that the American govern- f a ment will be in a position to address 14 -' itself to Great Britain with greatex , tforce than heretofore in advocacy of1 Sthe general freedom of legitimate e neutral commerce on the high seas. In the state department's view this. will be particularly true if Germany ~ dagrees to suspend, during the arbi- r dtartion at least, its policy of destroy- g ing American ships carrying contra band. d SMEXICAN SITUATION BAD; FIRE OVER RIO GRANDE e i U. S. Cavalry Fired Upon-Corporal e ,f Killed-Lieutenant and Pri- 11 vate Have Been Wounded. fThe border situation along the s lower Rio Grande assumed an ugly a aspect Tuesday. Gathering of Mexi t cans in force M~onday night at Pro tgresso and their daring attack across a s the river on a troop of the Twelfth a d United States cavalry was not the "i: t only aggravating feature of the sit- s e uation. d t Authorities received reports that d .t twenty-five horses, including some r trecognized as animals stolen by ban 5 dits in recent raids on the Texas side, Swere delivered this week in Mata e moros, the Mexican town held by e Carranza troops. 3. Delivery of these horses and the .t fact that the Mexicans at Progressc e had been gathering openly and in - large numbers for two days renewed r suspicions among the -smericans that s Carranza officials were either lax in s discipline or without sufficient de f pendable troops to cope with the y bandit element on the Mexican side.~ e The death of Corporal Wilman, inc t the fight at Progresso crossing andC -the wounding of Lieut. Roy 0. Hlenry -and Private Jackson has intensified s d feeling. For nearly twenty miles b y about Progresso crossing alarms were a t sounded by rifle shots and by bells' a s Monday night. Armed men patrolled it roads; women and children were t gathered where they could be guard- ' ed. Early, Tuesday more troops e: reached Mercedes and the Progresso C section. h tJ t ii - Back to the Land f The Chicago City Gardens Associa- F e tion has found a practical help for ce the '-back-to-the-land" - movement tU through the cultivation of vacant spaces within the city limits by the a poor and unemployed. Each year g, -the association apportions 400 m eighth-acre farms to as many families a: who stand in need of moral or finan- a: cial assistance. A large number. of these amateur farmers become at tracted to the work, learn the finan-: cial return to be obtained from righi 3 methods, get somo idea of scientific f agriculture, and each year a large number of "graduates" leave the 1 - "baby farms'' to engage in the regu - lar work of truck farming or farm-] ing on a larger scale.. The work in Chicago is under the direction of Laura Dainty Polham. president of the association, who has prevailed upon the owners of large tracts of land to donate them for gar- 01 dening purposes to the association. gl She is working upon the principle is that the raw Italian or Slav immi- ai grant will not go to the country di rect fronm Castle Garden, but that ct with a little training and encourane- ed met. he will see the greater profits ft) possible for him through farming U) and eventually will leave the city and thi go back to the land.-N. N. B. m Statue of 1'on Hindenburg. se A colossal wooden statute of Field Marshal von Hindenburg thirty-nine th feet high is to be unveiled August 2S fe on the Siegesalle in Berlin, which is th lined with statues of Kaiser WVil- Na helm's ancestors. Any German wish- ti< ing to drive a nail into the statue Tt may do so on payment of 1 mark ly (24 cents). It is estimated that 1,- fo 600,000 nails will be needed to cover oi: the figure. The proceeds will go to m< the relief of sufferers from the war. fic UPS NEED SPEEDR TTLE CRUISERS NEEDED BY AMERICAN NAVY [IST HAVE SUBMARINES :retary Daniels Ottlines Adminis tration's Naval Program-Aero nautit Forces to be Increased General Board Stays in Washing. ton to Study Problems. Increased speed in battleships, an rease in the number of submers e craft as larfe as the building ca city of the country will allow, and increase in the material and per-. inel of the aeronautic force of the vy are the three points of next _ ar's naval program upon which Daniels, secretary of the navy, d greatest stress in an interview anted to -the New York Herald. Mr. Daniels says that the advinis ttion wants to do more than mere recommend an adequate naval ogram; that it wants to get such a ogram authorized by congress, that this end, President Wilson will con r with the chairmen of the House d Senate naval affairs committies d that the navy department will co erate closely with the legislative anch of the government. .Pending the. completioir of the de-.77 erations -of the General Board ich is now holding, summer ses 0 ns through Washington's intense at, in order to meet President Wil n's demand for a statement on pre redness by September 1, Mr. Pan Is declined to divulge his recom-, endations regarding the number ttleships, for which he wIl ask ngress at the coming session. "I can say, however," -added Mr, [)aiels, "that as a result of the, essons of the preseht great war speed will not be sacrificed~ to hither armor or gun power in the attleships to be designed for 'tbe :oming program." This is a radical change in Ameri La naval policy. Heretofore nited States has remained' unaffect I by the great increases in speed;-" .4 veloped in foreign navies In capi , ships. Now it appears that the United! tates also is going in for fast uisers and high speed in itsfirst. e battleships. - A statement of equal mportance nade by Mr. Daniels was that he will recommend probably s mady submarines as the ship construcg tion plants of the country.can take'. care of. "For the first time in years the. neral board is remaining In ses on in. Washington throughout the:' immer," said Secretary Daniels,. instead of going to Newport as has' een the custom. The 'board, hich Admiral George Dewey is the ead, through its executive commit e, of which Rear Admiral Charles Badger is chairmanls giving care i consideration to all that has been arned from the great war which ill affect the 'naval program of the aming year. "This board is in possession of al formation petrinent to the subject 'ich has been received by the do artment and I~ cannot, for obvious easons, while their conclusions -are ill unmatured, make any statement s to what either the board or the epartment is likely to recommend to' ngress in the .fall. "There are, I may say, three hases of naval equipment which are eing especially considered by the eneral Board. First, the element f speed. During the last iew years ther nations have constructed pow rful vessels, possessing-high rates of peed as well as smaller vessels de :ned to epecially for speed. "In order to provide for the -In- ' reased speed it was necessaw to acrifice either gunpower or armor nd in most instances iboth. "Our navy has adhered to the rinciple that ships should be heavily. rmored and possessing the maxi um of gunpowder. But in making pregnable vessels of this type peed had to be sacrificed. In the esign of vessels which are now un er consideration, speed 'will be sac ficed to no other element. "The second phase regards aero nautics. The European war has conclusively demonstrated the Im portance of aerial service In all military establishments. Their ability to divert surprise attacks can hardly be over-estimated. "Unfortunately we are not so :rong in this respect as o-:e might esire. We are, however, progress ig and within the last few years ur equipment has been enlarged and 1e number of pilots gradually In reased. "The last congress approved of my lection, which was recommended y a broad of naval officers of the bandoned .Pensacola navy yard as a aviation station, and during the Lst winter in the vicinity of this sta on we had important exercises in hich the submarines and mine lay o have worked with the air craft. ur principle trouble in aeronautics as been to obtain a suitable motor. ust before the outbreak of the war iEurope we had placed an order r two foreign aircraft, one in rance and one in Germany, but, of urse, we have been unable to ob in delivery. "Submarines-the last congress thorized the construction of sea ing submarines of the Schley type, hich to the best of our information re the biggest submarine craft ~loat. "I have no doubt but that the ext congress will be willing to muthorize a much greater number >f submersibles than the last con t-ess authorized, a number per iaps as large as the capacity of government and private yards will >ermit. Opinion within the ser rice c oncurs with that of the gen ral public as to the importance >f submarines. "The responsibility of making rec ninendations for a vice naval pro -am to meet present day conditions fully realized by the naval experts d by the secretary. "Personally I am far more con red in an adopted and accomplish program than in the most care 11ly planned department estimates. 1ess there is co-operation between e executive and legislative depart ents of government, the needed en rgement of the navy can not be "Itd is a matter for7ifct at the president has invited a con rence with the chairman of both e Senate and House Committee on tval Affairs before the administra >n program is fully agreed upon. has been my policy to consult free with both committees and I have und them more than ready to co erate in all wise and progressive asures to secure the increased ef iency and strength of the navy."