The watchman and southron. (Sumter, S.C.) 1881-1930, June 11, 1919, Image 1
WBR SCMTER WATCH?AX, Estab
^,. _ ? <
Consolidated Aug. 2,1
REPLY WILL BE
AN ULTIMATUM
?fiies Expect to Have Answer
to Hons Counter Proposals
Ready Thursday or Friday
TO BE SOME MODIFI
CATION IN TERMS
The Concessions on Question of
Reparations Will Be Made in
Form of Supplementary
Agreement.
Paris, June 6.?(By the'Associated
Press) .?There are still many loose
?ehds to the determinations which
?must be made before the reply of the
allies to the German counter propos
als can be submitted to Count von
BrOdkdorff-Rantzau, head of the.Ger
man, plenipotentiaries, and even the
question of principle regarding
changes in the treaty has not been
definitely settled. Nevertheless the
members of the commission of experts
profess confidence that thej* will be
able to complete their reports to. the
council of four by Monday or Tuesday
and the members of the council them
selves seem sure that they will be
able to present the allied reply on
Thursday or Friday.
The reply will be submitted as an
ultimatum with a short time limit,
.probably about four days, in which
Germany vwill either have to take or
leave the conditions as offered them.
The most important modification
tmder consideration, namely, the ques
tion of reparations, probably will not
involve any material changes in the
treaty as originally presented. The
concessions will, instead, be presented
in the form of a supplemental agree
ment, defining the procedure for the
reparations commission and prescrib
ing certain instructions for that body,
which, according to the original 'draft
of. the treaty, was given a most com- i
Pf^hensive power of action, subject
qnljr'to the instruction of the powers
represented on the commission.
. J^b new solution, which is expected
to-merge from the deliberations of .the
exnerj^w?l dodge fixation of a defi
ttfte monetary fotai for" reparations
to".-Which the French object on the
ground that announcement of any j
sum which it is considered "possible to j
exact in payment would so disappoint
the expectations of the French public '
as to cause a political upheaval. j
The supplementary agreement also;
would meet the objections of the Gei*-'
mans, who declared they were to be
' asked to pay off a debt the extent of
Which was unknown, and with The
population in virtual economic slav
ery to the reparations committee un
der that clause of the treaty requir
ing Germany to "devote her economic
resources directly to the physical re
storation of the invaded areas of the
allied and associated powers to the
extent that these powers may deter
mine.
The instructions to the reparations
commission in the proposed supple
mentary agreement would enable the
Germans to know at once the amount
of reparations due under certain "cat
egories" of reparations, such as pen
sions, separation, allowances, mainte
nance of war prisoners and the de
struction of ships at ? fixed figure
per ton. It was found impossible, how
ever, to fix any total sum for all cat
egories, since the cost of reconstruc
tion and restoration in the devastated
regions cannot be established unti?
after an extensive survey, and the
only general e. imate on which the
?French are wiling to act would bring
the total to 250,000,000.000 francs,
which the experts quite generally
agreed was beyond Germany's power
to pay.
In addition to learning at once the
definite instructions on which the per
manent commission will act. the Cer
mans will also be assured that a cer
tain amount of working capital will
be left them .including probably ton
nage for overseas trade, without
which, they profess inability to make
the required reparations.
It is understood that the question
Of a plebiscite in upper Silesia vprac
tically has been decided affirmatively.
No change with regard to responsi
bilities, punishment of the former em
peror or disposition of the German
colonies is regarded as probable. The
changes in reparations probably will
delay presentation of the reparation
clauses in the Austrian treaty, which
Will be made to conform to the Ger
2nan provisos under the principle of
joint and several responsibility and
administration by the same permanent
commission.
Berlin More Hopeful.
Berlin, Thursday, June 5 (By the
Associated Press.)?While the German
correspondents at Versailles con tin
ue to take a gloomy view of the
forthcoming answer to the * German
counter proposals, official circles in
Berlin judged wholly by surface in
dications, appear more hopeful re
garding the future irend of events.
The slight tone of optimism which
has projected itself into the Berlin
estimates of the situation are born of
th? conviction that a basis for verbal
negotiations is gradually being created
a position for which Count von Prock
dorff-Rantzau and his colleagues in
the peace commission have been man
euvering diligently since the first
notes were exchanged. Suspicion pre
vails In some quarters in the Wilhelm
gtrasse that the entente probably will
feted April, I860.
"Be Jut I
88L
DR, DERNBERG
STILL INSISTS
I Says Impossibel For Germany
i to Meet Financial Demands
Of Peace Treaty
OR FOR ALLIES TO
i
MAKE HER PAY
i
I Reiterates Statement that Ger
r
i many Will Not Sign Terms'.
i
London, June 7.?Germany's in
lability to meet the financial oema:
! of the peace treaty and inability of
' the allies to make her pay are insisted
I upon by Dr. Dernberg, German miu
I ister of finance in an interview with
'the Daily Mail's Berlin correspond
ent. Dr. ?Deimberg: reiterates'his re
'cent declaration that Germany, will
I not sign the terms as presented.
Senate Starts
I Treaty Hunt
Resolution Adopted Calling on
State Department for Text
Washington, June 6.?Resolutions
asking the state department for the
test of the treaty with Germany and
directing the foreign relations com
mittee to investigate how copies of
the unpublished document have
I reached private hands in New York
were adopted by the senate today
without a roll call.
Action on the two proposals came
unexpectedly during a lull in the
stormy debate they had aroused, and
scarcely a score of senators were in
the chamber when in quick succession
the resolutions were put to a vote. It
generally had been conceded that each
would have a majority.
The request for the treaty will be
referred by state department officials
to President Wilson and Secretary
Lansing at Paris and pending a reply
no official op?nfqa*is available here as
to whether the text will be forthcom
ing.
Under the investigation resolution,
introduced at the request of the
White House by Senator Hitchcock of
Nebraska, senior Democrat of the re
lations committee, it is expected that
a far reaching inquiry will begin
within a few days. The committee
will meet Monday to formulate plans
which may include the summoning of
members of the'American peace dele
gation.
Adoption of the Hitchock resolu
tion came first, just after the debate
had reached a dramatic climax in a
! clash between Mr. Hitchock and
I Chairman Lodge of the foreign rela
! tiens committee. After this clash a re
i quest by Mr. lx>dge that the senate
[substitute an investigation resolution
j drawn by Senator Kellogg (Republi
can) r- Minnesota was withdrawn
I and t luestion was put on adop
j tion.
i The resolution asking for the treaty
.text (introduced by Senator Johnson
; (Republican) of California then came
i up automatically under the senate
j rules and it was disposed of within
! less than a minute with only a few
j scattered "noes."
j It had been opposed stubbornly
; during two weeks of debate by the
j president's supporters and the genera'
1 expectation had been made that the
j vote on it would be close.
;R. R. Administration
j Has Received No Offi
cial Word of Strike
! Washington, June 7.?Railroad ad
; ministration officials had no official
word of the Norfolk-West em strike,
j but started an inquiry after reading
the press; dispatches.
j Paris. June 7.?President Wilson
j visited the tomb of LaFayette today
iarid placed thereon a bronze wreath,
;a duplicate of that he placed when ;ie
: first arrived.
: avail itself of neutral intervention by
f way of breaking the ice.
Political observers here believe that
Count von Brookdorff-Rantzau at
present holds a tslight strategic ad
vantage for reasons outside those
that might be contained in his coun
ter proposals.
Tho trace of optimism which has
been asserting itself m the past forty
eight hours is explained by events
which it is believed here will ulti
mately work out to Count von Brook -
dorff-Rantzau's advantage. These fac
tors are to be found in the Paris
strike, fresh Polish aggrandisement.
French machinations in Rhenish
Prussia and the reported American
and British opposition to the entente
terms all of which, it is believed in
Berlin, are conspiring to bring the
entente's alleged adamantine front
into immediate jeopardy.
German optimism is by no means
over reaching itself. It is based
rather on the expectation that in view
of the liberality and boldness of th"
German counter draft the entente
leaders will not dare to assume the
moral responsibility of slamming th^
door in the face of Count von Brock
dorff-Rantzau and his fellow envoys.
ind Fe?r not?Let an the ends Thon AI
SUMTER, S. C, WEDN
PEACE TERMS
PLEASE WILSON
^Treaty Violates None of Prin
ciples Advocated by,
President
I CONFORMS TO ALL
OF FOURTEEN POINTS
I
i
If He Did Not So Believe He
j Would Make Known His Ob
j jections, Says Wilson.
Paris, June 6.?"I am convinced
our treaty project violates none of
my principles," President Wilson is
quoted by the Maiin as having1 said
when he was acquainted with the
German proposals to the peacetreaty.
"If I held &? contrary opinion I would
j not hesitate to confess it and would
I endeavor to correct the error. The
) treaty' as drawn. howe\ er, conforms
j with my 14 points."
(Red Leader is Executed
Lenine Nissen Convicted by the
Bavarian Capital
Munich, Thursday, June 5 (Ey the
Associated Press)?Levihe Nissen,
the Eolsheviki agitator who was one
J of the leaders of the Munich Com
| munist Soviet regime, was executed
j at* noon today at Stadelheim outside
) the capital. He was convicted yestert
I day and the Bavarian cabinet refused
jto commute his sentence, maintaining
I that he was the cause of the civil
j war in Bavaria and deserved no
i mercy.
-
j It seems probable that Levine
Nissen, named at Bolsheviki, is identi
i cal with the Bolshevik leader
who has figured so prominently in
the press dispatches in connection
with the Munich Soviet regime. The
arrest of the Communist leader,
J "Levine," who had previously been
j refered to as editor of the Red Flag,
of- Mowiiflb? was announced in a
nich message of May 15 and a dis
patch earlier this week reported his
sentence to death after a two day's
trial.
I'nrest in Germany.
London.. June 6.?The execution in
Munich of Levine Nissen Ms resulting
in unrest throughout Germany, an
Exchange Telegraph dispatch from
Copenhagen says. The majority S?
j cialists are joining a strike movement
! begun by the soldiers and workers
j council and executive committees of
'the Greater Berlin factories which
'protested against the sentence of the
j Bavarian Communist.
I Strikes have cccured in Nurem
j burg and Munich. A strike at Leipsig
j has resulted in street lighting. The
; German government, it is added, is
j making military preparations in Ber
; lin and elsewhere.
jAustrians Return
to Paris
j Peace Delegates Have Been
j Home to Confer With For
eign Minister
-
j St. Germain, June 6.?Dr. Carl Ren
I ner, chancellor of German Austria, and
j at the head of that country's peace
j delegation, who with five colleagues
has been at Felkirch for a conferee
! with Dr. Otto Bauer, the German
] Austrian foreign minister, is expected
i to arrive here tomorrow.
j _
j
I Rhine Republic
Asks Protection
j They Fear The Revenge of Prus
j sian Militarists
I _
Cologne, June 7.?President Dorlen
i of the Rhenish republic has telegraph
; ed the commander of the British
iarmy of occupation announcing the
I formation of the republic and repudi
ating any desire to evade their just
; share in reparation of war damages,
j Ke appeals to the entente powers to
! protect the new state against the in- !
I evitable revenge from Prussian rnili ?
j tarism. i
j_1
Strike on Pacific Coast
j Telegraphers Will Be Called Out j
Next Week j
San Francisco. June 7?A strike!
'of union telegraphers throughout the;
! Pacific States will be called June;
t ilth unless their demands are com-1
plied with, according to local union
officials.
Pall Mall. Tenn.. June 7.?Today is
lAlvin C. York Day in Fentress coun
ty in honor of the world war hero, j
Near The York homeste ad the eouniy :;
people gathered at a big picnic din-,
ner and^later witnessed York's maiv'j
f-rin**"** to f'7'ncio WiPfoms which wrr?)
performed by Gov. Roberts. Prom'-j
i-T.t citizens of Nashviie. Knosvilb*.*
Chattanooga and other cities came for|
i the celebration. ?
mst at be thy Country'*, Thy God's I
ESDAY, JUNE 11, 1919
BEAR GAMBLERS
DEPRESS MARKET
j
i ? ?r
i Mr; J. S. Wannamaker Issues
Statement on Cotton
i Situation ,
iSAYS FARMERS SHOULD
I HOLD SPOT COTTON
i
_
j
I Crop Conditions Worse Than
j When Manipulators Broke the
I Market.
1 _
] Columbia, June 8 ?Skottowe Wan
namaker, president of the American
Cotton Association, issued the follow
ing statement this afternoon:
The same bear speculators who
manipulated, the cotton market in
j 1918 so flagrantly that, as result of the
depression in price of raw material
as compared with the manufactured
product, cotton mills showed earn
ings unheard of in many cases, the
earnings far exceeding the capital in
vested by the mills, are today again
j depressing the exchange market, and
j of course, in like manner, depressing
! the price of spot cotton. They are
disregarding the law of inflation which
is. unalterable. The basis of the in
flation of 191.4 when the gold reserve
was $600,000!o00 as compared with
today when it is $1,800,000,000 shows
a ratio of three to one, which would
make cotton w< *th 39 cents per pound
as compared with 13 cents per pound
in 1914.
i In addition to this the United States
! census ["reports that American mills
held on April 30, 1.3.78,000 bales
against 1,808,000 for the same time
last year, a deficiency of 430,000 bales
j To make up this deficiency and supply
the wants, leading mill men state.
! will require the 1st of April and the
31st of July, 1,506,000 bales. At the
outbreak of the European war foreigr
mills held of American cotton 2,700.
000; today they only hold 1,200,000.
making a deficiency of 1,500,000
Therefore, the American ~mills anr
Europe will require 3,400,000 from
the present supply within this period
JJn addition to this in order to fill thf
(extra demand on them, they will b<
! forced to run extra time, which wir
j require a large amount of additiona
! cotton.
I The spinners who are today hedg
j ing spot cotton in New York bought
! in the S?rth will face an unpleasant
'position with the bear speculator when
I they attempt to close these shor!
\ sales. The demand for the actual cot
J ton will far exceed general expecta
tions and will force the buyers to de
I niand spot cotton. In the government
? report California, a very small cotton
[producing State, is included at 19 per
i cent. This, of course, has a bearing
j on the general average and should be
j taken into consideration.
Crop conditions are much poorer to
j day than before the manipulators
! broke the market. Excessive rains
'abandonment of acreage on account o*
? grass, boll weevil damage and acute
j labor conditions all make an extreme
I ly small crop inevitable. God seem?
I to be assisting the farmer in his effort
! to reduce the size of the 1919 crop
j The amount of cotton sold to be de
i livered in July and October is record
i breaking. Gotten is being shipped tc
I Europe today on consignment. Eu
i ropean demands will ?)e limited only
J to the carrying power and will ex
i ceed anything: ever recorded. Wher
[ the shorts attempt to cover in July
land October a surprising condition
I will be brought about and much high
! er prices are inevitable. The law of
j supply and demand, inflation in thf
j currency and crop conditions canno'
! be permanently ignored.
Spot cotton will sell at the highest
! price since the War Between the
i States before this time next year. Thf
; man who holds his cotton will reap a
i bountiful reward. Do not sacrifice
; spot cotton to the bears and the man
j initiators but hold it and receive th'
j benefit of higher prices. We are de
(lighted to see the spinners make enor
? mous profits and do not blame then
I for the action of the bear manipula
I tors who brought about this condition
;. but at the same time we do most
! strenuously object to the producer be
1 ing forced to always play the part of
j the goat, and we feel that he should
I share in a part of the prosperity.
-"
Laborers to Be
Released Soon
I Negro Agricultural and Indus
trial Workers Will Be Dis
charged from Army
Washington. June 7.?Negro agri
cultural and industrial workers, serv
ing iit present in labor battalions in
Southern camps, and much needed j
just now in their home rommvnities
will be released from the array as
rapidly as they can be replacd with j
hired civilians, according to assur- j
ances given Senator Dial by the war!
department.
-
Berlin, June 9.?The constitutional !
convention has completed considera
tion of a bill creating a state court j
which will try those accused of start- j
ing. lengthening and losing the war.
It will be presented to the national
assembly soon. Deliberations of the
court would be secret and there would i
be no appeal from its verdict. 1
iai Trat--?
THE TB?I
?
Q??----K___iii i ifii ii iMi__ag-_b?t_ n aw.i f-wnaia i?
WALL STREET
i SEEKS CONTROL
Plans Being W*ie To Dominate
Cotton and Similar
Corporations
j FINANCIERS TALK OF
CENTRAL CORPORATION
I Co-operation of Government
and of Commodity Export
Corporations Expected.
i _ '
Washington, June 7.?With a view
to quieting the unrest in Europe by
hastening a return to normal econom
ic conditions, financial interests in
New York, with the assistance of the
federal reserve board, are giving con
sideration to the formation of a group
of export corporations for wool, cop
per, steel, tobacco and other Ameri
can products similar to that organized
to handle foreign sales of cotton.
It is planned to give the group cor
porations the backing of a central se
curities corporation which would
draw its funds from the investing
public, furnishing, perhaps, hundreds
of millions of dollars to finance the
shipment of raw materials to the
countries lately at war so that they
may return to work and pay off their
debts to this country.
Government officials believe that no
important; project now is under con
sideration as a reconstruction meas
ure and point to the disturbed condi
tions of the foreign exchange market
as necessity for some action to end
present abnormal conditions.
Operations of the International Cot
ton Corporations will be watched
closely by bankers and the result util
ized in the organization of other
group borporations as may be needed,
a great advantage in having a concern
to handle each material being funds
to start work can be raised in the sec
tion of the country most \'itally In
terested in that particular industry.
As the initial funds of each corpora
tion are exhausted by financing ship
ments abroad, they would obtain ad
ditional money ' from the central se
curities corporation which would
take as colateral the European se
curities pledged to the group corpora
tion and the obligation of that cor
poration. With such ample security
and the possibility of offering an at
tractive return, perhaps, 6 per cent., it
is believed debentures offered by the
central corporation to the public
would find ready sale. It is planned
that the central corporation would be
flexible in organization, starting with
i small capital and enlarging as the
export financing developed.
Present world conditions are point
ed to by government officials as evi
dence of the need for some such ma
chinery as it contemplated in the ex
port and central corporations. Long
term credits are needed by Europe
and raw materials rather than finish
ed products except where the latter
ire to be used in reviving producing
powers. Belgian interests, which re
cently obtained a short term credit
of $50.000.000 jn New York, have
oeen unable to utilize any of the mon
?y because the exchange rate is so ad
verse that the money would cost, per
haps, 30 per cent. An even worse sit
uation exists in France and in Italy,
"n the opinion of financial experts, and
will continue for several years until
?hose countries rehabilitate their in
dustries and reduce their indebtednes3.
Government credits to the allies
now total approximately $9,3i0,000,
000, leaving only $690,000,000 of the
amount authorized. That, is too small,
"t is believed, to finance the exports
I needed which is said to be another
reason for the need of private initia
j tive in solving the question of credits.
The war finance corporation is said to
be ready to take the obligation of
the exports corporation if the pub'ic
docs not. although the latter oon-j
tingency is not expected. |
?? 1 ? ? ? ?**
Shooting in
- Aiken County I
Aiken, June 8.?Sibley B. Smith, a i
white farmer, who resides near the |
Beech Island section, fatally shot j
John Luchie, a negro farm hand,
tear his place Friday afternoon, j
From the evidence submitted at the j
coroner's inquest it appears that the |
negro refused to go out to work be- j
cause it was too wet. His employer. \\
Smith, then told him he believed that'
Luchie was making moonshine liq- \
uor for the rest of the hands and th??t
he would report him to the authori
ties. Luchie. it is alleged, walked back ;
into his cabin as if to secure a wea- I
pon. remarking at the same time that |
he Would "turn., someone else up." j
Sibley Smith then left for his home j
and had hardly reached the place!
when, lookincr from the window, he j
saw the negro coming toward his j
house. As Mrs. Smith was ill and if :
was feared the negro would annoy:,
her. Mr. Smith went out to meet the !
darky. At the inquest Mr. Smith testi- :<
fied that the farm hand drew a pistol .
and fired point bla.nk at him. where- ??
upon Mr. Smith shot him down with ;
a shotgun. 1
The negro bore a bad reputation ? l
and has given the authorities trouble.
Sibley P.. Smith is well liked and re- ]
spected in this and his own com- <
munity. He was permitted to givv <
bail this afternoon before Judge II. F. i 1
Rice. ,
- . a
S SOUTHRON, Ertaubtet Jus. ***
Vol. XLVIII. No- 34.
CONGRESS HAS
I PEACE TREATY
Chicago Tribune Copy Presents
ed in Senate To-day by \
Senator Borah
ORDERED PRINTED IN ;
CONGRESSIONAL RECORD
It Was Received by a Partisan
Vote of Forty-Seven to
Twenty-Four,
Washington, June 9.?A copy of the
German peace treaty said to hare
j been brought to this country by a i
Chicago Tribune correspondent was $
presented in the senate today by Sen
jator Borah and by vote of forty-seven
I to twenty-four was ordered put in the
congresional record and printed as a
public document.
Washington, June 9.?President
Wilson, in a cablegram jreceived today,
by Senator Hitchcock, said he hoped
the investigation by the senate foreign
relations committee of how copies of
the peace treaty reached private in
terests in New York would "be most
thoroughly prosecuted."
President Wilson said he felt it was
highly undesirable officially to com
municate the text of a document
which is still in discussion and sub
ject to change and that anyone.who
had in his possession the official Eng
lish text ' has what he is not entitled
to have or to communicate." This
statement said the president, strength
ened his official decision that he would
not comply with the request of senate
that the treaty text be furnished at
this time.
The full text of the "peace treaty
with the central powers, which has
been discussed in the senate for a
week or more, has been brought to
this country by Frazier Hunf, k the
Chicago Tribune correspondent and is
being syndicated to newspapers fn^thjts.
country in copyrighted sections.' ^e:'
first section appears today. Hunt
says the copy of the treaty he hrojight
here is one of the original ^draft and ?
was obtained in Paris.
Railroads Must
Pay Big Debt
Director General Says Funds
Should Be Returned "As
Rapidly as Practicable"
Washington, June 8.?Railroads
under federal control should be re
quired to return to the government
"as rapidly as practicable" ?775,000,
000 advanced for improvements and
j equipment, Director General Hines
told the house appropriation commit
: tee at his appearance last week, ac
cording to the printed record of the
hearings which became public today. '
"These improvements have been
made for the benefit of the railroad
companies." the director general said.
"They have received a very important
benefit from government' control,.
guarantee of a rental which repre
sentedMhe average of probably the
best three years they ever had, in
stead of having to face, as public,
utilities throughout the country did,
the danger of imminent bankruptcy.
on account of the great increases in
costs.
"When the railroad administration:'
has put in funds with which to pay
she railroad companies what it owes
them, my judgment is that they ought
to be required just as rapidly as pos
sible, to reimburse the government for
these large amounts that have been
spent and as far as possible to reim
burse the government for the amounts
which will be spent during the rest
of this calendar year.
"Our settled policy is that for the
future wo will make no improvements
on railroad properties unless the rail
roads undertake to finance them, ex
cept in extreme cases where an im
provement is absolutely necessary and
where the companies are wholly un
able to finance it."
Officer's Home Fired On
Coblenz. Friday, June 6 (By the
Associated Press).?Investigation by
the military authorities today failed to
reveal the identity of the person who
fired three shots Thursday night at the.
house in Coblenz occupied by
Gen. Malin Craig, chief of staff of the
third army. It is said that the name
of Gen. Craig is the third on the Ger
man secret list of marked Americans.
Paris. June 9.?Premier Clemen
ceau. Col. House and Lord Robert Ce
cil have reexaimned the terms und<H"
which nations othe** than the founder
members may be admitted to the
league of nations. Their report will
be submitted to the council of four to
day, it is understood, and conditions
recommended for Germany's admis
sion are a reestablishment of a stable
government, signing of peace treaty
md local execution of the peace treaty
Berne. June 7.?The German rat
ional assembly will meet today with
members (of the government and
members of the German peace mis
sion for a joint conference over the
status of the Versailles peace nego
liations, the Berlin Gazette announc
ed. -*