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UERMANS ATLANTIC; Is SUBMARINE DEUTSCHLAND BRINGS BIG CARGO OF BYE Nickel and Rubber. Badly Need ed by German Army, to Be Taken From America on Re turn Trip Captain Brings Message From Kaiser. 10 RESTRICTIONS IF COMMERCIAL VESSEL oming of Deutschland Raises Ques. tion of Neutraliity.-Washington's First Concern is to Determine Whether it is Merchant or War Craft.-Ownership May Have Much to Do With Status. Baltimore.-The world's fi'rst sub arne merchantnian, the German, aderwater liner Doetschland, anchor I below Balthmru after voyaging .fely across the Atlantic, pasing the 1lied blockading squadrons..and elud g enemy ,cruisers watching for her f the American coast. She edrried ail and a cargo of 750 tons ot costly mnicals and dycstuffs, and is to trry back home a similar amount of ickol and crude rubber sorely need d by the German army. Sixteen days out from lBremerhaven a Baltimore, the submarine reached afely between the Virginia capes at :45 o'clock Sunday morning, passing i on the surface covered by a heavy all of darkness which settled over to entrance of the hay with the set ng of a tell-tale half moon. Once sido, the visitor threw caution aside ad began shrieking his siren, signall '11g a pilot and at the same time at acting the attention of the tug Thomas -1F. '1 nilns which had been ' aiting in th I lur hay for nearly vo weeks to greet the Deutchhland ad convey her into port. Three hours later, at 4:45 o'clock le big submarine started up the bay ith the German morchant flag flying lnder her own power, piloted by Cap. dn Frederick 1). Cocke, of the Virgin . Pilots' Association, and convoyed by te Timmins. She was making more ian 12 knots an hour and could' have acked in Baltimore by night, but ar ngements had been inade for receiv. ig her with formal ceremonie Mon ay and her captain wvas onlnerod ,' alt in the lower harbor. lip and/' L row of 29 men remnahun- aborar/?.'thb. raft until it reached Baltie:.jbr(. Reflgardi;4 11zzi \ves. am.-'a nwehatnt * ;ai st.6Ject to no unusual rest ri 'lions .ne skipper, whose name is said tc o Captain Kairig, wvent up the Chee peake, without waiting to notify 10. a! customs andl quarantine authori * ies of his presence. He wasm flyv ours away before Norman Hamilton, ollector of Norfolk-Newport News, * aerd the news, and started on his rail, phad to coast guard .cutter )inondarge, and it is unde.rstood that he mereliy was ordleredl out to keep he irtranige Craft und1(er surveillance .5 a neutirlhty precaution. Quiaran ine and port regulations were con tied with Lb hlin t he vessel moved up ~o her diock. Little wvas known here about what happened dutrinig the epoch-making cruise acros~s the oce'an which in a rsmall measure at least breaks the blockade trade with the rest of the * world, Such information as was available, came Indirectly fram the pilot amd from ('aptain Hans F. Hlinsch, of the North German llyod Liner Necker, laid up here stince the beginning of the wvar. ('aptain Hinsch boarded the Deutchiland from thte Timmins and made the trip up the bay with her. According to the accounts reachling here, the underwater liner's super. structure was standing 15 feet abov( the water when she came lh. Until daylight she showed no flag, but th '. German merchant ensign was raiset at sun-up. Fourteen Raiders Killed. El Paso, Texas-Two Americanm and an American-born Mexican shto and killed fourteen Mexican banditr in a running 'fight three miles fron .' A*napra, Ni. M., only seven miles yes of Ell Paso, and across the New Mexic< State line. 'The posse of Americani '. as led by Tom Perrine, a formel Texas Ranger, desert scout, and ens tomns line rider.- His two- ompanioni were Jess Adams, another 'exan, ani ~i 4ex Alevra,,a Mqoxican lior who wat 7~n 'on the' Ameriqan side. SU%9iFisher Breaks RI? ar*~ag . t.-"Bud" FIRir the pindbet hi't h"If.'avartn o te IRINE CROSSES VOR D'S FIRS MERCHANTMAN SEALED MESSAGE FOR WILSON FROM KAISER Vessel Makes 4,000-Mile Sea Voyage Being the Longest Ever Unde0 taken by Any Underwater Craft. Norfolk.--Bearing a sealed message from Emperor \Villiam of Germany, to IWresident Woodrow. Wilson, run. -ning the gauntlet of innumerable da-ll gors fron mines, sea-sweepers and enemy warships, and bringing a cargo of dyestuffs, chemicals and mail esti mated at 750 tons, the German under sea inerchantman, the Deutschland, quietly slipped into Chesapeake Bay Sunday morning at 1:46. It was the completion of a 4,000-mile sea voyage for the craft, the longest and most hazardous ever attempted by any sub marine. Three hours later, led, by the tug Thomas F. Timmins, the little vessel -with a record of 13 days of mysterious vigil.off the Virginia capes, the great submarine began the last leg of her voyage, up the Chesapeake Bay. On the heels of the Deutschland and following in her wake with all the speed to be coaxed from her pow erful boilers, the coast guard Onon daga dashed up the bay. On board the Onondaga is Collector Norman Hamilton of Norfolk and a number of newspaper men. Whether or not Mr. Hamilton has orders is not known. Some believe that the Onondaga undertook the chose of the Deutschland at the request of Mr. Hamilton and that he and not Cap tain Chiswell is under orders. No Torpedo Tubes. The Deutschland carries, mounted in her conning tower, two small guns, of about three-inch caliber. There were no evidences of torped tubes. She is also equipped wWh a bridge and powered by two Deiael engines, of the latest type. The boat is capable ot sulbme rging lin lesas than two minutes. On the surface- of the water the sub mersible has a speed of from two to three l ontr an hour more than the averag ierchant steamer. Acorling tO Pilot Fred Cocke, of tihe Virginia l'ilots' Association.. the first An i, rn to. board the Deutsch land at r !ie arrived on this side of the Atia : .tho crew wore regula tion unitrimns of German merchanit mer sva.mnen. No flag was displayed wh',en the Deutschland first appeared o ff tie capes. Later, when inside the boy, the German merchantman's en igi was raised. Captain Cocke said the commander of thle Deutschlandl made no effort to conceal anything andl was extremely frank in stating his mission to the United States, that of instituting an urndlersea mcerchant marine export and import business between thle United States and Germany. WASVINOION WAJOVES NEOJOALUTY PIASE IFirst Concern is to Consider Whether Submersible is Properly a Mer chantman. Wansington-The first concern of tile United States in the arrival of tile Gelrman subminarine Deutschlandl is to dleternel whether- the subm)lersible is properly a merehant vessel or wvhether undl~er any inter-pretation of the pr-in ciples of international lawv she could he classed lna a warship. Nothing but an examination of the sublmarilne it self wvith a survey of her armament if any, andl thle composition and charac ter of heri crew can settle the point. Tis will be madle by the State De lpartmernt and the customs authorities as soon as the ship puts into Balti more. Whichever way the issue is decided n('w questions of international law are ahnost sure to be added to the many whlichl theC war has produced for the United States. As a warship 'the Deutchland would be r-equlired to leave an American [Port withlin 24 hours of her arrival un less add~itdonal time was required to make hecr seawvorthy. As purl- a commercial ship she would lie as free to enter and leave American ports as any other and this gover-nment would have no concern in the novel manner of her cnming or the fact that the ingenuity an'd daring of the German Admiralty had been able to get a ship through the Allied blockade. If -she should venture to return to Germany the submarine wiourld enjoy protection of the United States within the three-mile limit, If sihe should fall a prey to hostile war ships) on the high seas the 'concern'of this government, in IA stand 'for th~e safety of. peaceful e minerbigt gi~ Wouldt be gogrerned entire1~ niduct and &har Fpd o9j above thq~* LANSING STRESSES IMMEDIATE ACTION ARREDONDO TRANSMITS TO HIS GOVERNMENT LANSING'S BRIEF NOTE. SPEEDILY SOLVE TROUBLES Officials Believe More Can Be Accom. plished Through Informal Confer. ences Than Formal Exchanging of Views. Washing'on.-Ince ptI on of the diplo matic conversations which it is hoped will result in a settlement of differ ences between Eliseo Arredodo, Mexican Ambassador designate, and Frank L. Polk, Acting Secretary of State, than by a formal interchange of views. They are willing to accede, however to some other plan should the de facto government propose it. Mr. Arredondo transmitted to his government a brief and friendly note handed to him by SecretAiry Lansing, expressing gratification over the turn affairs between the two governeents has taken and accepting proposals for diplomatic settlement of points in dis pute. The coinmunication was ap proved by the cabinet. The text follows: "Secretary: L have the honor to acknowledge the receipt of your con munication of July 4, 1916, In which you transcribe a note addressed to me by the Secretary of Foreign Relations of your government and to request that you will transmit to him thQ.tol lowing reply: "Mr. Secretary: "I have the honor to acknowledge the receipt of your courteous note transmitted to me. by Senor Arredondo on the fourth instant, in which you refer'to my notes of June 20 and June 25, and ,to assure you of the sincere gratificttion of my government at the frark statement of the difficulties whizh have unfortunately arisen in our relations along the internatiQnal boundary and the unreserved expres sion of the desire of your government to reach an adjustment of the diffi culties on a broad 'and amicable basis. The same spirit of friendship and of solicitude for the continuance of soli citude for the continuance of cordial relations between our two countries inspires my government which equally desires an immediate solution of the i.naters of difference which have lon vexed both governments. It is expe (-ally pleasing to my governmenti that the d facto governeent of Mex lo is disposed to give quick as well as practical consideration in a spiril of concord to the remedies which may be applied to the existing condition Reciprocating the same desire, the government of the United States is prepared immediately to exchangf views as to a practical plan to remove finally and prevent a recurrence of the difficulties which have been thc source of the controversy. "Accept, Mr. Secretary, the renew ed assurances of my highest consid oratlon. "I am, sir, "Yours very sincerely, '"ROBERT LANSING." SOLDIERS ORDERED OUT TO PREVENT STRIKE TROUBLE, Governor Craig brders Four Compa nies N. C. Coast, Artillery to Wil mIngton to Keep Down Riots. Asheville, N. C.-G..overnor Locke Craig, who is at his home here, an nouncedl that four companies of coast artillery had been sent to Wilmeington as a precautionary move, in connec tion with the street car strike at that place. The troop~s sent in response to orders from Governor Craig are the coast artillery of Charlotte, Greens boro, Salisbury and Goldsboro. Major Kuykendlall of Greensb'oro is placed in comlmand. Governor Craig's orders were issued1 as th'q result of a request made by Judge Stacy of Wilming'ton and the sherifY of New Hanover county. Oov er-nor Craig ordered the adjutant gen eral's office to supply whatever troops were c-onsidered necessary and the orders to the coast artillery were the result. MORE DENTS IN. LINES OF GERMANS ON TWO FRONTS London.-General Haig's army pain ed several important succes'ses. It captured further positions in the im mensely strong position known as the Leipzig redoubt, while east of La Boisselle they captured , German -trenches on a front of nearly 2,000 yards to a depth' of 500 yards. They also forded their way Into the village of Orvilleres after capturing 500 yarda of the German front, while north of Fricourt they dIrove the enemy back, INFATILE PARALYSIS EPIDEMI0 IN NORTH Washington.--The Federal Public Health Service took a hand in the flght to end an opidemic of infantile paraly als in Newv York City and to prevent its spread elsewhey Six governngent exports. re o-drd to ?gew York to 0040 with ste ~nd N '.gu~thorl' j"SON, I'M PR( ~t R PYTS .SDMND.AE 0. ~ -A, (Copyright) MEXICAN CRISIS [NDS REPLY TO U. S. DEMANDS PAVES THE WAY FOR PEACEABLE SETTLEMENT. All Hostile Attitude Relinquished. Trouble Ended Provided De Facto Government Does It, Part Toward Stopping RaIdsj W.shington.-Early resumption of fiendly diplomatic conversations with the do facto government of Mexico to the end that peace and order may be restored in Northern Mexico and along the border is expected here to be the next step of the United States in its relation with its Southern neighbor. The crisis precipitated by Villa's raid on Columbus, N. M., and culmi nating in the fight at Carrizal, Mex ico, between American and Mexican troops, appeared to have been dissi pated by an amicable note from Gen eral Carranza presented by his ambes sador designaite here. This note proposes that the differ ence between the governments be settled by mediation or by direot nego tiations. It is remarkable for its brev ity, its restrained and friendly tone and for the absolute lack of any of the strong even insolent language which characterized the last two communica tions from the de facto government. It treats as a closed incident the ex changes of unfriendly communications which brought war almost within sight. No formal comment on the note was obtainable from state department officials. A copy was forwarded to the White House immediately upon its receipt and President W'ilson will de termine the course -to be pursued. As a matter of general principle, the Washington gover-nment always has favor-ed mediation of any dispute suitalie for such procedure. Trhere is every indication, however, that L 4he lpresent instance it will be deems . de sir-able to conduct forthcoming'negoti ations directly with the Carranza gov ernment. Members of the L~atin-Amer ican dliplomatic corps here are expect ed to make inquniry soon as to the at titude of the Washington government in viewv of the statement of the Mexi (aln foreign office that it awaits only a deecision here as to whether- media tioqs or direct negotiations would be Ipreferable. Indlcations were that the inquiries would he met wvith assurances that the twvo gover-nments had reaehed the stage where they would not find it necessary to call upon the friendly ser vices of their neighbor states. FRENCH TAKE SiX- MILES OF GERMAN SECOND LINE! Allies elim 16,000 Prisoners and 60,000 Casualites,~--Russians Make Advance. London.-The entire second position of the Germans south of the Somme, over an extent of ap~proximnately' six miles, has fallen into tihe hands of the French, who also Lave ';aptun'ed the village of Htem, near the Northerrn extremity of their line, and have com pleted their conquest of Estrees, Tile British line apparently has fail td to advance, except "slightly in cc tamn sector-s,"~ as the Blritish war office puts it. None of thle groulnd gained b~y the British hias been lost, how ever, and the further statement of the Germans that the fighting all along the front was mostly in the nature of local struggles for the possession of stronk points would seem to indicate thlat each side Is devoting particular attention to the organization of its positions and strengthenhiig of its hand 'for lurther attack on defense. CARRANZA GENERAL IS KILLED IN BATTLE Chihuahua, Mexico.-Gen. Ignaclo RamIOs wase killed in a fierce and bloody battle that raged between a small force of do facto troops and a large band of Villa followers at Corral z'anch, 15 miles southiwest of Jiminez, liith sides Buffered h'eavy losses. Is. ~hgr' jhan retire to Jllrdtteg ittouf, MAyjpg .out. his orders hikaWQ CONTENTSYOFUH EWNT Washington - Geea Carranza's. . :7. I4, CARRANZA'S R[PLY MILD CONTENTS OF THE NEW NOTE FURTHER LESSENS DIPLO MATIC TENSION. If Carranza Really Wishes Peace He Will Be Met More Than Half Way By the Washington Government. Washington. - General Carranza's reply to the two sharp notes from the Washington Government made public with the approval of Eliseo Arredon do, Ambassador designate, indicated that it was of an unexpected concilia tory character. The formal communication arrived by telegraph early Tuesday and only the fact that Fourth of July was cel ebmted by all government depart ments, prevented its immediate deliv ery. Mr. Arredondo spent the day in the country and on his return declined to discuss his government's attitude as now officially stated. Since the release of the American troops taken at Carrizal the question at issue between the Washington gov ernment and General Carranza has been narrowed to Mr. Wilson's desire for a formal declaration of intention toward the American expeditionary forces in Mexico. A specific statement in the new note is still lacking. Only a close study of the reply will disclose wheth er it will be necessary to press Gen eral Carranza again to affirm or deny the hostile donstruction placed upon his orders that American troops be at tacked if they moved in any direction except toward the border. Without doubt the note has further lesscned the diplomatic tension be tween the two governments already strippedl of its immediately danger eus character by the release of the Carrizal prisoners. It is entirely pos sible, however, that American officials will not fully share the optimistic view of the Mexican ermbassay when the Carranza note has been studied. One fact stood out clearly in the mindls of officials familiar with Presi dent Wilson's desires and purposes. If General Carrianza sincerely desires to find a wvay for peaceful settlement of the differences between the twvo governments he will be met more than half way. No proposal for i moediate withdrawal of General Persh ing's troops, hov2 ever,. would be en tertained as a pr-eliminary to a fur ther exchange of views on the joint operations against bandits. GERMANS RalNFORCE LINE TO CONTEST BIG DRIVE. London.-Through the British of ficial dispatches record little change In the situation on the British front, they show that the Germans have brought up strong reinforcements from other parts of their line andl are stubbornly contesting every yard of the British advance. Torrential rains hamper-ed the offen sive operations and the British action was confined mostly to consolidating the ground already won, The French have captured two more villager and are on good roads to Peronne. But there is yet no decrease in the violence of the Germans in the Verdun~ region. Dispatches from German war cor respondlents indicate the realization that the Central Powers are losing the initIative which their favorable po.sit ion on the interior fines enabled them to hold throughout the war. Moreover-, in commenting on the enor-' mouis resources in munitions and trar mnatorial, they equally recoknize thai a profound change has occurred iM the relations of the belligerents. MANY SOUTHERN CITIES. OBSERVE INDEPENDENCE DAY. Atlanta.-Preparedness and ArVd i canization parades in many southm~n cities and the -review of natiha.; gardasmen in several niobiliiai .N camps madle up the m'ost conipletL' & ebration of -Indep'endeffee flaY-1pi southern snies ditrig recent ~r Thousas daufiM ht e nens. GERMANS ATTACK BIG ALLIED LINE VIOLENT COUNTER-OFFENSIVE RESULT Off STRENGTHENED FORCES. CHANGES IN THE S uT Both Ends of French Line Onder Heavy Attacks.-Situation at Ver. dun Remains Quiet-Teuton Loss to Russians Total 500,000 Men. London.-Violen.t counter-attacks by the Germans on almost the entire line of the French advance in the Somme region show a change in the situation from the earliest days of the Anglo French offensive. In the beginning the Germans con centrated their forces against the British, apparently considering the operations of the French to the South as of omall significance. But the rapid progress of the French troops has had the effect of causing the German commanders to strengthen their de fenses and forces along the line guard ing Peronne and other important strategic pointe. Both ends of the Irrench line have been under heavy attacks, but the -- French, according to the official ac-,, counts, have been able to pu? taeni down without the Germaps making: any gains whatever. Meardhile both French and British are 'consolida'ting: their positions and afe undoubtedly rJaking preparations , r a repetitio. of the great bombardment which pre ceded the first impetuous rush. While the situation in the Verdun, region remans comparatively quiet, there are heavy,- bombardmente pM both sides of the. Meuse. No advices are recorded by either French or Ger mans. The British official statement gives few details, merely remarking that "as a result of violent bomb. fighting we made further progress at certadn points in the nain battle area." The3 immensity of the Russian drive agal!st the Austrians and Germans during the last month is indicated by unofficial reports from Petrograd, which say that the Austro-Gorman losses in the endeavor to stay the, advance of the General Brusioff's armies total nearly 500,000 men, about half of whom are prisoners. Not less than 250 guns of various sizes and more than 700 machine guns and an immense quantity of other booty have been taken. The Austrians admit a serious de. feat west of Kolomea, where they were driven back nearly five miles. U. S. ACCEPTS PROPOSALS OF DE FACTO nO'T ner, - Secretary Lansing G . X .. redondo After Co - , President vi, Washington.-Tqhe de facto govern ment of Mexico was formally notified th-rough Elseo Arredondo. ambassador designate, that the United States wel comed General Carranza'e proposa) to adjust all pending differences between the two governments by direct diplo matic negotiations. Mr. Arredondo was informed of the American government's attitude in a conversation with Secretary Lane ig after the latter had conferred with President Wilson. rmmediattely after the cabinet meet. ing Secretary' Lansing left for a. month's vacation. Conelor Polk will act in his absence and mc-et Mr. Arre dondo in the informal discussions att wvhich a solution of the Mexican prob lems will be sough't. It was evident at the state dlepart ment that officials believe a means of giving the do facto government mate ial id in restoring order throughout Mexico may be found son. It is, known that the pacific nature of the lateost Mexican no-te is construed here as indicating that General Carr-anas besides 'being impressed by American military preparations has been deeply influenced by the pressure and argu ment brought to bear on him by friends in the United States, ' E~'uro. pean diplomats in Mexico City and particularly by represen-tatives of bany of the Latin-Amnerican powers. FIRE DESTROYS $125,000 PROPERTY OF SEABOARD Norfolk.-The Seaboard Air Line Railway coach shop and shed, as well as the 16 coaches destroyed in the fire will be rebuilt or replaced et once, of. ficlals annotinced. The lose, covered b~y insurance, totalled fully $125,000. -Must Dissolve Trust. Chicago.---Judge Landis entered the. formasl decree dissolving the Associat ed Bill Posters and Distributors of1 the United States end Canada. VIRGINIA 'T ROOPS A RRIVE AT BROWNSVILLE, TEXAS Brownsville. Texaa.-The lTrat Reg " ;L:,u~d Au iUord Gun. rv via Sout1en Rtatt wO -1t solnn: