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4 AGENTS OF GERMANY ACTIVITY IN AMERICA MONEY TO CAUSE STRIKES EFFORT TO SUBSIDIZE PRESS Sensational Charges by New York World Involving High German Officials—No Action by United States Gov- ernment Charges made by the New York World against agents alleged to be acting in be half of the German government to con trol public opinion in the United States, to cause strikes in factories manufactur ing munitions of war for the allies, to pre vent the exportation of chlorine gas to the allies, to procure control of the Wright aeroplane plant at Dayton, 0., and in various other ways to interfere with war orders in America, have attracted wide at tention. Secretary Lansing Monday at Wash ington authorized the announcement that the state department had made no investi gation of charges published in the World that German agents in the United States had been fomenting labor troubles in plants making supplies for the allies and seeking to influence American opinion ■with the approval of high officials of the German government. Attorney-General Gregory refused to comment on the atti tude of the department of justice. Letters and reports of German agents and officials in this country and Ger many which have come into possession of the World are being published to show that the German propaganda here rests on a gold basis, that cash to turn public opinion in Germany's favor has been supplied fieely, though secretly, by the German government, and that its ex penditure has been directly supervised by Herr von Bethmann-Hollweg, the German chancellor; Count Johanu vou Bernstorff, the German embassador at Washington, and other German officials m high places. On the evidence of these documents, several of which are reproduced in fac simile, the World asserts; — That the Fatherland, the pro-German weekly published by George Sylvester tiereck, receives large subsidies from the German government, through Dr Heinrich I'. Albert, chief financial agent of the German government in this country. That M. B. Claussen, a German agent, formerly with the Hamburg-American line, wrote to Dr Albert that he had ob option for the purchase for sdoO,oou of control of the American Press Association (a concern which supplies electrotyped printed matter to the small er newspapers) and recommended that th“ association be purchased and used, under the appearance of an impartial American news agency, to circulate news approved by the German government. That another German agent sent in July to Dr Albert, embassador Bernstorff, and the German foreign office an elaborate report on the feasibility of establishing a news agency which would appear to be under American control but would be used to circulate pro-German news. That this agent advised the establish ment of a lecture and moving picture bureau, by means of which such men as Congressmen Gardner and Hobson S S. McClure. Senator Beveridge Henry Reu terdahl and Burr Mclntosh might be used, without their seeing through the scheme, in the interest of Germany by being in duced to lecture on Americanism and on dangers to the apprehended by this coun trv from Japan and England. That the German chancellor himself caused to be sent to Embassador Bern storff. on May 10. a letter recommending that the German information service pay the expenses of sending back to Germany, Edward Lyell Fox. a correspondent, "who was of great benefit to us by reason of his good dispatches,” That the German government, through men who represented Embassador Bern storff. negotiated to purchase the New York Mail before it was bought by ita present owners. That an official in the office of the mil itary attache to the German embassy sup plied money to labor leaders to cause strikes in factories making munitions for the allies. That, while protesting against the ship ment of munitions to the allies, the Ger man government is now engaged in build ing a large munitions plant in this coun try, which will begin turning out projec tiles for Germany by September 1, and has made arrangements to deliver them through a neutral country bordering on Germany. That Capt von Papen. German military attache, in letters to the German chan cellor and the German embassador, re ported a plan to tie up two American plants producing chlorine, so that the allies could not purchase here materials for making poison gases, recently em ployed bj - Germany in Flanders - and Russia. That Dr Hng»> Sweitzer, a German chemist and head of a plan to establish in this city a pro-German paper in En glish. has obtained for the German gov ernment a transfer to himself of a con tract between the American oil and supply company of Newark and Thomas A. Edison for the manufacture and delivery by Mr Edison of 1,212,000 pounds of phenol (car bolic acid) at an aggregate cost of $1,400.- 000 to be delivered in daily shipments until March 1. 1916. The correspondence is said to reveal a plan for the delivery to Germany of the phenol in spite of the En glish blockade. Viereck: SISOO a Month A letter to show that George 8. Viereck obtained financial aid for the Fatherland front Dr Albert, representing the German government, is reproduced in facsimile as follows Office of George Sylvester Viereck. 1123 Broadway. New York. June 20, 1015. Dear Dr Albert:— In thinking the matter over. I do not think that Mrs R. would be the proper Intermedi ary. Inasmuch as she does not attend to her financial affairs herself. If it must be a woman. Mrs G., the mother of our friend. Mrs L . would be far better. However, personally. I see no reason why th.a payment could not be paid every month through Mr Meyer, just like the other pav ments If there Is any objection to that. 1 would suggest that the payments be made to my personal friend and lawyer. Ely Simp son. whose standing as my legal adviser would exempt him from any possible In quiry As I have already received $250 thia month. I Inclose a statement for SISOO for June. Will you please O. K this and I shall then send my secretary for the cash? I am sending this letter by hoy. as for obvious reasons I do not wish it to go through the mails. With best regards, sincerely yours, G. S. Viereck Th* autograph signature of Viereck is appended to the letter. The statement inclosed wag:— June 28. 1815. For June $1,750 Of which I received 250 Leaves a balance of ..$1,500 German Control Stipulated The reply of Dr Albert, typewritten in । German on paper with no printed or u n- J graved letterhead and unsigned, is as fol lows, translated:—. New York, July 1, 1915. Eear Mr Viereck: Your account regarding the slsoO—bonus, after deducting the $250 received—for the month of June 15. has been received. I hope, in the course of the next week, to be able to make payment. In the meantime I request the proposal of a suitable person who can ascertain accurately and prove the financial condition of your paper. From the moment when we guarantee a regular ad vance. I must 1. Have a new statement of the condition of your paper. 2. Practice a control over the financial । management. . In addition to this, we must have an under- I standing regarding the course in politics । which you will pursue, which we have not ! asked heretofore Perhaps you will be so kind as to talk the matter over, on the basis of this letter, with Mr Fuehr. Your devoted, [Not Signed.] Mr Sylvester Viereck, 1128 Broadway. New York city Free Film for Lecture* Other memoranda are said to show that the Austrian government placed in this country several thousand feet of film to ! be displayed for the benefit of the Ger man and Austrian governments in moving picture houses in this country. Mexico and Canada, together with lectures by Edward i Lyell Fox. Albert K. Dawson and others. । The agreement made through Dr Bran deis of the Austrian consulate, represent , ing Embassador Dumbs, provided that th? Austrian government turn over to the American correspondent film company, in | enrporated. of which M. B. Claussen was president, 8000 feet ot negative and 11,- 000 feet of positive film, made by the Ajistrian government, which, was to receive 25 per cent of the net proceeds of the films. The only limitation set by the Aus trian go'eminent upon the use of the films was that “Mr Archibald is to receive a number of feet sufficient for use in his lectures. We have made an agreement with Mr Archibald to furnish him with tliis as soon as the film is released. Film furnished to him is for his exclusive use, and is to be returned to us at the end of his lectures.” Mr Archibald is said to be J. F. J. Archibald, the magazine writer, who nos lectures on his war experiences in Ger many and Austria. Correspondent's Expenses Paid । The communication from Berlin con taining the recommendation of the chan cellor that the German information serv ice pay the expenses of Mr Fox’s second trip to Berlin was received by Embas sador Bernstorff. according to the World, and by him turned over to Capt F. von Papen, the military attache. It is as fol lows •— _ . Berlin, May 10. 1915. Foreign office:— From a third party I understand that the American Journalist. Edward Lyell Fox. ren resentative of the It heeler newspaper svndl date, the American Mazazine. and the illus trated Sunday Magazines, would like to again come to Germany as press representative From the information I have received, these papers of his are In agreement as to this desire, but are not willing to pav the ex penses of Mr Fox. Inasmuch as this gentle man, at the time nf his'last sojourn In Ger many. was of great benefit to us by reason of his good dispatches, ft'might be possible that the "German Information service” would this time, as last time, be willing to pay the expenses of s five or six months’ stay, which would amount to between 5000 and 6000 marks, I would respectfully request vour excel lency to sound Mr Fox on his intentions and to make Inquiries as to whether the costs of bis stay can be raised there in anv way. I shall be glad to have a rerilr as soon as possible. If possible, br telegram. By order of the chancellor. (Signed) Stumm. To the imperial embassador. Count von Bernstorff, Washington. “News” in German Interest In a letter said to have been written by M. B. Claussen to Dr Albert. Claus sen wrote that he had obtaineda 30-day option without cost for a controling inter the American Press association, a $1,600,000 corporation with a main office in this city and 17 branch offices and plants throughout the country. Th» price, according to Claussen, would be $900,000. which was SIOO,OOO less than the cost of establishing a new service by means of tickers, patents of which are controled by the American Press association. Mr Claussen's memorandum is said to have contained this. Courtland Smith, presi dent of the association, emphaticallv de nies that Claussen ever obtained such an option or had been approached in regard to one. A long and detailed report made in July for Berlin, the German embassador and Dr Albert gives a careful study of the plan for establishing a news bureau and a lecture bureau in this country, with es timates as to its cost and a favorable rec emmendation for the plan. It says:— Although many great mistakes have been made and much valuable time wasted I am convinced that the desired results can'vet be obtained for the principal reason that the "pro-German agitation" has during the last few months accomplished much which has been in the German interest. For Instance. It. has succeeded to convince the Driggs Sea bury ordnance corporation in Pennsylvania that it is unjust to deliver ammunition to a belligerent power if one Is an opponent of war as such. Thia factory has repeatedly de clined to deliver arms to France and England In spite of the tremendous loss of money caused thereby. In order to obtain our alm it 1? necessary to begin and carry through a press agitation which is adapted tn the character, the wishes and the way of thinking of the American public. Everything must be communicated to them in the form nf “news,” as they have been accustomed to this and nnlv understand this kind of propaganda. The value of such a press campaign in America, if carried out by Americans for Americans, can he seen from the following concrete examples:— Fnr the distribution of the news which we have tn view it will be absolutely necessary to found a new American news syndicate with German money. This has to be accomplished by a United States corporation without let ting it become known that German money Is behind It. It has to be the aim of the syn dicate to give to the American newspapers and magazines news and pictures with such a value as “news” that the American news papers will feel compelled to buy them. Those news and pictures hare to hp sold be cause, first, the American editor despises news which is delivered for nothing, as he Imagines that anybody who delivers nows for nothing has a selfish purpose, and. sec ond. because the bureau (respectively syndi cate). should In course of time not only covor Its expenses, but also pay a dividend. This dividend would be used for the purpose of extending th? activities of the bureau and thereby Increase Its value to German diplo macy. The news sent out must not make the Jm pres Mon of being put out for propaganda purpose*. Although Its principal value is based on Its being pro-German. Its success depends largely upon th? subtlety of pres entation. The burean should be opened under the supposition that It 1s to be a permanent one. How to Pass the Censor The writer of the memorandum goes on to recommend the reaching of rural com munities by furnishing news and pictures to agencies which send electrotyped plates of “boilerplate” to small papers. He ad vises stationing popular American cor irspondents on the eastern and western fronts and establishing bureaus at various cities in Germany and her ally countries. He continues:— Besides, the foreign office would have to permit the bureau to telegraph dally by wire less 3000 or 4000 words. I desire to state In this connection that a single wireless tele gram sent by Mr Cory In the German cause has been more useful than all the official re ports sent by the government by wireless since the beginning of the war. Furthermore, a telegraphic code would have tn be worked out. which, got up In a com merclal manner, would make It possible to trnnamlt such telegrams through a Dutch nr Swiss bonk friendly to Germany. If this is carried out In the right manner au enor n.ouo quantity of material could be cabled over without the enemy knowing how it got there. Favored a Chlneae Service The writer urges that a Chinese service should he established nt once as a '.'coun terweight againgt Japanese propaganda in the American press. He offera a s'^te- THE SPRINGFIELD WEEKLY REPUBLICAN: THURSDAY, AUGUST 19, 1915 ment of the cost of the news and lecture bureau to show that it could be run for two years at an expense of about 1,080,- UOO marks, or $250,000. After citing the men named heretofore as possible lecturers on the tours of the German lecture bureau, the writer ad vises that, whether his proposal be ac cepted or not. agitation on the part of Germans should cease on the subject of ' the violation of Belgian neutrality and । Belgian atrocities; on the theme that En- I gland is to blame for the war: on the superiority of German culture over the ■ culture of American and other nations. । He advises that no more dry, scientific I pamphlets should be put out in the Ger ■ man cause, and that Germans and espe cially Germans in authority should cease to discuss publicly the delivers- of Ameri can arms and ammunition to the allies. Plan to Buy the Mall The plan to purchase the Mail for the German government, before it was bought by its present owners, is revealed in a letter by Paul T. Davis, to Dr Albert, which states that the father of the writer had put in much time and labor trying to arrange for the purchase of the Mail ny the German government or German in terests. and that he should be paid there, for- The letter says that Mr Davis, Sr through George von Skal, a prominent pro- German agitator, got in touch with the German embassador on the proposal, but that the embassador finally notified him the matter was to be dropped. Mr Davis, Sr., according to the letter, had worked on the proposal with Dr Ludwig Nissen and Percival Kuhne, the letter reads Father then found among his friends a prospectus submitted by Mr McClure and Dr Homely, and he then became certain that he was to be pushed aside. When the paper changed hands he asked George von Skal to try to arrange between the people interested in the paper and himself some mode of rec ompensing him for the time and labor and expenses he had while attempting to pro mote the acquisition of the paper by Inter ests friendly to Germany, but a few days ago Mr George von Ska! reported that be tried to speak to Dr Dernburg before his sail ing .and failed therein, and then spoke to :others: but being in the employ of the Ger man government he says he could not push the matter properly. Mr McClure’s Statement The World prints the following: “S. S- McClure, editor and part owner of the Evening Mail, denied Monday that German money had been invested in the paper when it was purchased by the pres ent company. While I was negotiating for the Evening Mail, he said. H. L. Stoddard occasionally spoke of other of fers for the same paper. I knew nothing of any others who may have tried to get the Mail. I heard no names and knew of no people. "When asked who were the present owners of the paper, he said a company of which Mr Stoddard was president and large stockholder and of which he Was a member had complete control. He added that there were no German interests con nected with the Mail. ‘‘According to the article. German agents were after the paper at the same time we were,” he continued. "They were forced to give up the idea because Count von Bernstorff ordered that negotiations be discontinued. "Since then, to my knowledge, negotia tions have never been resumed. I heard several times that others besides ourselves ■were looking toward the ownership of the paper, hut they have never made offers, to my knowledge, since, and they were in no way connected with the present com pany. “As far as remaining quiet about the Bel tian atrocities is concerned. I think mv position ought to he very clear. I have written several editorials both on that sub. ject and on the sinking of the Lusitania, and it is out of the question that I should be asked to defend the German cause in that respect. The suggestion that I was to lecture, as stated in the World, is entirely new to me. “I. believe the facts of the exposure are true Or the World never would have printed them, but I have never had any communication with any of the people mentioned and have never been requested to take the lecture platform or enter the Chautauqua circuit for Germany.” Another disclosure said to be made by the correspondence obtained by The World is the report of an agent to Dr Albert, that control Of the Wright airship company at Dayton. 0.. could be accomplished through an “intimate, confidential man." of Mr Wright's, to prevent to some degree the exportation of flying machines to the allies. The agent adds that under German con trol the Wright plant could be made a “lucrative venture.” $50,000 to Promote Strikes The documents are said to reveal that $50,000 was estimated by German of ficials to be needed to provoke wide spread strikes in munitions factories. Men said to be named in the correspondence are Marlow. C. W. Mcljine. and a labor leader, who is referred to as “K.” One letter is said to show that Arthur von Brieseu, the well-known German, who recently was described by Theodore Roose velt as one of the most useful two private citizens he had ever known, had asked William Travers Jerome to engage in some legal undertaking connected with German propaganda, and that. Mr Jerome had re quested a retaining fee of SIO,OOO. The World asserts there is evidence that the total activities of the German govern ment, in this country are carried on at a cost of about $2,000,000 a week. In. a second instalment of these docu ments, published Monday, evidence is of fered that German agents fomented the strikes in the munitions factories of New England: that German agents attempted to corner all the liquid chlorine manufac tured in this country, to prevent the allies obtaining a supply of the poison gas. al ready used by the German armies: that a plan was made to obtain control of toe Wright aeroplane factories and that Ger man agents were behind all the efforts to bring pressure to bear on Congress to en act an arms embargo, including a cam paign in Texas to demand such an em bargo Unless the British government per mitted the shipment of cotton to Ger many. DEFENDS THE FATHERLAND Viereck Claims that Germany la Only Looking for Fair Play, With Means of Publicity Cut Off by Allies George Sylvester Viereck. editor of the Fatherland, telegraphed to The Republican Monday night the • following reply to the charges made by the New York World:— "The story in the New York World about the Fatherland refutes itself. The context of the letters of July 1 con clusively proves that no German official had any control over the policy of my paper. "These publications are only another effort on the part of the friends and propagandists of Great Britain to thwart the presentation of the truth concerning Germany and her cause in the United States, and to intimidate those who are sincerely trying to combat British mis representations. There is nothing in the copyrighted’ documents (the copyright ing of stolon documents is a new industry, by the way) to warrant the deductions sought, to be drawn from them. "With every means of cable communica tion the world over under the control of the allies, with the American press liter ally fed day by day upon false and garbled reports of the progress of the war. and manufactured tales of atrocities and faked peace offerings by Germany, all intended to impair her credit and prestige and alienate sympathy, it was not only proper but it was her highest duty that she should seek the means of neutralis ing these influences so that the American people—-always jnst. when they know the facts—might be able to judge between the contending interests. "There is nothing startling and cer tainly nothing improper in such an effort It is quite as unfortunate for America as for Germany that the latter has not had the means of getting ita ease before the people to the end that a better under standing could be reached. I find nothing in all these sensationally paraded diselos-' ures through the medium of stolen docu ments to justify their publication, or the unwarranted inferences that are craftily sought to be drawn from them. "Each side in this terrible world conflict is seeking the moral support of this great nation. The most powerful machinery the world has ever known for reaching and influencing public opinion is in the hands of one of the contestants, and every effort of the other to get a hearing is decried and held up to our reprehension. AU that these documents show is that Germany and the German-Americans who want fair play are trying to get a hearing against the subterranean influences behind the con trol of most sources of news. "I have carefully looked over the ‘reve lations' in the World, and I have ran sacked mv own memory; I can find in nei ther anything incompatible with my integ rity as a publicist or my loyalty as an American citizen. The business and the editorial policy of the Fatherland rest en tirely in my hands; there is no arrange ment with anyone else yielding even au iota of its independence. "The Fatherland was not founded by the German .government, or directly or in directly with its aid to the extent of a single dollar, or a single subscription. It was founded by me with the aid of two or three other American friends, without as sistance or suggestion from any foreign or official source. The Fatherland had been in existence and was flourishing when Mr Albert and Dr Dernberg arrived in this country and before I had met either of them. "The verv growth of the Fatherland has caused the enmity of powerful inter ests. The British government, both in the House of Commons and through the Brit ish embassy in Washington, has officially announced its attention to bring about its suppression, as has already been done in Canada and Great Britain. “In the purloined letter of July 1. 1915, Mr Albert makes clear that neither he nor anyone-even remotely connected with the German government—had any interest in or exercised any influence whatsoever ever the policies of the Fatherland. As a condition of financial aid he says: 'We must have an understanding regarding the policy which you will pursue, which we have not asked heretofore.’ I absolutely rejected the conditions suggested by Mr Albert. "Mr Albert's desire to influence our policy was Hot prompted by and must not be ascribed to any improper motive. He was of the opinion that our attitude was too vigorous. He insisted as a condition of any support that I refrain from attack ing the administration, and repeatedly ob jected to my attitude in that respect. "I fold Mr Albert that, much as I val ued his advice and suggestions. I must be guided by my conscience and Judgment in this matter, nnd declined to accede to his requests in that particular. The result was that the arrangement outlined in the letter of July 1 fell through. That was the only demand made as a condition of further support, and that I declined. The only support my paper has ever received has been in the form of subscriptions to a very limited extent. The $250. the re ceipt of which is acknowledged in my let ter. falls under this head and is so entered on the books of the Fatherland. In view of a total circulation of 75,000. this can hardly be regarded as very startling. "We have no intention to curry favor with the administration in Washington or with Mr Albert's government in Berlin. Our sole desire is to properly represent and protect the interests of the United States as a neutral nation and to be the mouthpiece in the English language of American citizens of German descent. Our first number contained a declaration of principles. From these principles we have not deviated one hair's breadth at any time from the first number to the last and have no intention of doing so. George Sylvester Viereck. THE DACIA CONDEMNED By French Prlre Court—Transfer of Registry Made to Avoid Risk of Capture The decision of the prize court in the case of the former Hamburg-American line freight steamer Dacia, which was granted American registry in January, but was seized by a French cruiser in Feb ruary while bound with a cotton cargo for Bremen, was made public at Paris Mon day. The decision covers 20 pages. It says that the prize court finds no proof that the transfer of registry was not made to save the ship from risk of capture in ac cordance with the laws nf war, but that, on the contrary, the ship, under her new flag, was making a voyage for which she had been loaded while still under an ene my flag. Therefore the court finds the transfer “tainted with frauds and against the rights of belligerents,” and orders the steamer seized as a prize. The American owned cotton cargo of the Dacia has been partly paid for by the French government through the French embassador at Wash ington. GERMANY’S PEACE TERMS Must Have Free Expansion, Says Group of Professors The Tagwacht of Berne. Switz., prints the text of a manifesto issued by a group of German professors and intellectuals set ting forth their ideas of the only accepta ble peace terms. These, according to the •manifesto, must insure the free expansion of German culture, industry and com merce. Belgium, for military and commer cial purposes, must he subject to Ger many. France must cede to Germany all territorj- north of a line from Belfort to the mouth of the river Somme and pay a large indemnity. Russia must cede Poland and the greater pnrt of the Baltic province and other territory in lieu of indemnity which she could not pay. The manifesto is signed by Profs Meincke. Seeberg and Schaefen of Berlin university. Oncken of Heidelberg. Schu macher of Reichenau. Director Kirdolin of the Gelsenkirchen mines and Imperial Minister von Schwerin, mayor of Frank fort-on-the-Oder. PULITZER’S DARING TRIP New York Newspaper Man Sees Bat tie From Aeroplane Ralph Pulitzer of,New York on Thurs day flew from a suburb of Paris to the fighting front in a new type of double motor biplane which was operated by a military aviator, says a dispatch from the French capital. Mr Pulitzer and the pilot covered more than 150 kilometers (about 03 miles), gettmg within sight of the Ger man lines and *0 close to earth that they conld see the German trenches and dis tinguish the bursting of shells. After a trip along the firing line the bi plane was flown back to the capital, where it landed safely. Mr Pulitzer was the first newspaper man to make such a trip. THF. BALANCE OF EUROPE [From the New York Evening Post] Peace cannot be imposed by complete military triumphs on either side. The war can go on to the point of general exhaus tion, but even then there would have to be mediation, or an approach to each other of the warring nations, in order to end it. As opposed to this view, what is proposed? Simply that the countries involved should go on bleeding themselves white. Ger many, it i» said, must lose 4,000,000 men more; the allies as many. Then we may hope that the fighting will stop and the mop of Europe made over. This con <<mtion recall* Swift’s mordant couplet on ' The Balance of Europe' : Europe I, now balanced, neither side prevails, For nothing's left la either of the scales. UNITED STATES REPLY “NO” ON AN ARMS EMBARGO SUGGESTED BY AUSTRIA Trade is Not Unneutral—Case of Boer War is Cited The state department Sunday night made public at Washington the reply of the United States rejecting views set forth by the Austro-Hungarian government in a recent note contending that exporta tion of war- munitions from America to Austria's enemies was conducted on such a scale as to be “not in consonance with the definition of neutrality.” Though friendly in language and tone, the note flatly denies the Austro-Hungarian con tentions and recalls that that . country and Germany furnished munitions of war to' Great Britain during the Boer war when England's enemies could not import such supplies. It insists that the Ameri can government is pursuing a strictly neu tral course and adhering to a principle upon which it would depend for munitions in the markets of the world in case it should be attacked by a foreign power. The note points out particularly that dating the Boer war between. Great Brit ain and South African republics, the lat ter, w ere in a situation almost identical with that occupied by Germany and Aus tria at the present time, and that “in spite of the commercial isolation of one belligerent, Germany sold to Great Brit ain, the .other _ belligerent, hundreds of thousands of kilos of explosives, gun powder. cartridges, shot and weapons; and Austria-Hungary also sold similar muni tions.to the same buyer, though in smaller quantities. In this connection a table ot sales by Germany and Austria to Great. Britain during the Boer war is appended to the uute, and it is suggested that had Austria and Germany refused to sell arms to Great Britain at that time "on the -ground that to do so would violate the spirit or strict neutrality.” the im perial and royal government’might, with greater consistency and greater force urge its present contention. The note was cabled to Embassador Penfield at Vienna Thursday. TEXT OF THE NOTE Following is the full text of the Ameri can reply to the Austro-Hungarian note regarding exportation of arms and ammuni tion from the United States, to the allies - The secretary of state to Embassador Pen field. Department of State, Washington, Au gust 12, 191,5 Please present a note to the royal for eign office in reply to its note of June 29 in the following sense. The government of the United States has given carefyl. consideration to the state ment of the imperial and royal government in regard to the exportation of arms and ammunition from the United States to the countries at war with Austria-Hungary and Germany. Th^ government of the United States notes with satisfaction the recog nition by the imperial and royal government of the undoubted fact that its attitude with regard to the exportation of arms and am munition from the United States is prompt .ed.by its intention to '.‘maintain the strict, est neutrality and - conform to the letter the provisions of international treaties.” but is surprised to find the imperial and royal gov ernment implying that the observance of the strict principles of the law under the con ditions which have developed in the present war is insufficient and asserting that this government should go beyond the long recognized rules governing such traffic by neutrals and adopt measures to "maintain an attitude of strict parity with respect to both belligerent parties.” To this assertion of an obligation to change or modify the rules of international usage on account of special conditions the government of the United States cannot ac cede. The recognition of an obligation of this sort, unknown to the international practice of the past, would impose upon every neutral nation a duty to sit in judgment on the progress of a war and to restrict its commercial intercourse with a belligerent whose naval successes prevented the neutral from trade with the enemy. The contention of the imperial and roya. government appears to be that the advan tages gained to a belligerent by its superi ority on the sea should be equalized by the neutral powers by the establishment of a system of nonintercourse with the victor. The imperial and royal government confines its comments to arms and ammunition, but if the principle for which it contends is sound it should apply with equal force to all articles of contraband. A belliger ent controling the high seas might pos sess an ample supply of arms and ammu nition. but be in want of food and cloth ing. On the novel principle that equaliza tion is a neutral duty, neutral nations would be obligated to place an embargo on such articles because one of the bel ligerents could not obtain them througn commercial intercourse. But, if this principle, so strongly urged by the imperial and royal government, should be admitted to obtain by reason of tbe superiority of a belligerent at sea, ought it not to operate equally as to a belligerent superior on land? Applying this theory of equalization, a belligerent wl o lacks the necessary munitions to contend successfully on land ought to be permitted to purchase them from neu trals. while a belligerent with an abund ance of war stores or with the power to produce them should be debarred from such traffic. Manifestly the idea of strict neutrality now advanced by the imperial and royal government would involve a neutral na tion in a mass of perplexities which would obscure the whole field of international obligation, produce economic confusion and deprive all commerce and industry of legitimate fields of enterprise, already heavily burdened by the unavoidable re strictions of war. In this connection it is pertinent, to direct the attention of the imperial and royal government to the fact that Austria-Hungary and Germany, particularly the latter, have during the years preceding the present European war. produced a great surplus of arms and ammunition, which they sold throughout tbe world and especially to belligerents. Never during that period did either of them suggest or apply the principle now advocated by the imperial and royal gov ernment. During the Boer war between . Great Britain and the South African republics the patrol of the coast of neighboring neutral colonies by British naval vessels prevented arms and ammunition reaching tbe Transvaal or the Orange Free State. Tbe allied republics were in a situation almost identical in that respect with that in which Austria-Hungary and Germany find themselves at the present time. Yet in । spite of the commercial isolation of one belligerent Germany sold to Great Britain and the other belligerent hundreds of thousands of kilos of explosives, gun powdsr, cartridges, shot and weapons and it is known that Austria-Hungary also sold similar munitions to the same pur chaser. ‘hongh in small quantities. While, as Compared with the present war. the quantities sold were small <o foblo of t hi* sales is appended) the principle o ity involved was the same. If u. —ul time Austna-Hungary and her present ally had refused to sell arms and ammunition to Great Britain on the ground that to do so would violate the spirit of strict neutrality, ; the imperial and royal government might with greater- consistency and greater force urge its present contention. It might be further pointed out that J during the Crimean' war . large'quantities i arms and military stores were furnished j to Russia by Prussian manufacturers; that during the recent war between Ttirkev and Italy, as this poverntnent is advised arms and ammunition were furnished to the Ottoman government, by , Germanyand that during the Balkan wars the belliger ents were supplied with munitions by both Austria-Hungary and Germany. While these latter cases are not analogous, as in the case of the South African war to the situation of Austria-Hungary and Ger many in the present war, thev nevertheless clearly indicate the long-established prac tice of the two empires in the matter of trade in war supplies. In view of the foregoing statements, this government is reluctant to believe that the imperial and royal government will ascribe to the United States a lack of impartial neutrality in continuing its legitimate trade in all kinds of supplies used to render the armed forces of a belligerent efficient, eyeq though the cir cumstances of the present war prevent Austria-Hungary from obtaining such sup plies from the markets of the United States, which have been and remain, so far as the action and policy of this gov ernment are concerned, open to all bellig erents alike. But in addition to the question of prin ciple, there is a practical and substantial reason why the government of the United States, has from the foundation of the re public to the present time advocated and practiced unrestricted trade in arms'and military supplies. It has never been the policy of this country to maintain in time of peace a large military establishment or stores of arms and ammunition sufficient to repel invasion by a well-equipped and powerful enemy. It has desired to re main at peace with all nations and to avoid any appearance of menacing such peace by the threat of its armies and navies. In consequence of this standing policy the United States would, in the event of attack by a foreign pqwer. be at. the outset of the war seriously, 'if not fatally, embarrassed hy the lack of arms and ammunition and by the meats to pro duce them in sufficient quantities to- sup ply the requirements of national defense. The United States' has always depended upon the right and power to purchase arms and ammunition from neutral na tions in case of foreign attack. This right, which it claims for itself, it cannot deny to others. A nation whose principle and policy it is to rely upon international obli gations and international justice to pre serve its political and territorial integrity might become the prey of an aggressive nation'whose policy nnd practice it is to increase its military strength during times of peace with the design of conquest un less the nation attacked can after war has been declared go into the markets of the world and purchase the means to defend itself against the aggressor. The general adoption by the nations of the world of the theory that neutral powers ought to prohibit the sale of arms and ammunition to belligerents would com pel every nation to have in readiness at all times sufficient munitions of war to meet any emergency which might arise and to erect and maintain establishments for the manufacture of arms and ammuni tion sufficient to supply thousands o£ its military and naval forces throughout the progress of a war. Manifestly the ap plication of this theory would result in every nation becoming an armed camp, ready to resist aggression and tempted to employ force in asserting its rights rather than appeal to reason and justice for the settlement of international disputes Per ceiving. as it does, that the adoption of the principle that it is the duty of a neutral to prohibit the sale of arms and ammunition to a belligerent during the progress of a war would inevitably give : the advantage to the belligerent Which had encouraged the manufacture of muni-- tions in tfme of peace and which’hitd'laid in the vast stores of arms and ammuni tion in anticipation of war, the govern ■ment of the United States is convinced' that, the adoption of that theory would force militarism on and work against that I universal peace which is the desire and | purpose of all nations which exalt jus i tice and righteousness in their relations with one another. The government of the United States in the foregoing discussion of the. practi cal reason why it has advocated and prac ticed trade in munitions of war.- wishes to be understood as speaking with no thought of expressing or implying . any judgment with regard to the circumstances of the present war. but as merely putting very frankly the argument in this matter which has been conclusive in determining the Pmmr of the United States. ” hile the practice of nations so svell illustrated by the practice of Anstria- Hungary and Germany during the South African war. and the manifest ettl which, would result from a change of that prac tice render compliance with the sug gestions of the imperial and royal gov ernment out of the question, certain as sertions appearing in the Austro-Hungar ian statement as grounds for its conten tions cannot - be passed over with out comment. The assertions are substantially as .follows: ID That the exportation of arms and am munition from the United States to bel ligerents contravenes the preamble of the Hague convention No 13 of 1907:,(2) that it is inconsistent with the refusal of this government to allow delivery of supplies to vessels of war on the high seas: (3) that “according to nil authorities on inter national law who concern themselves more properly with the question” exportation should he prevented “when . this traffic assumes such dimensions that the neu trality of a nation becomes involved there by. As to the assertion that the ex portation. of arms and ammunition con travenes the preamble of the Hague con vention No 13 of 1907, this government presumes that reference 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 principle, 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 protec tion of the rights of that power. Manifestly the only ground to change the rules laid down by the convention,, one of which, it should be noted, explicit ly declares that a neutral is not bound to prohibit the exportation of 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 determine when this. necessity exists rests with the neutral, not. with a belligerent. It is discretionary, not mandatory. 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 in the position of declaring to the neutral power what is necessary to protect that powers own rights. The im perial and royal government cannot but perceive that a complaint of this nature would invite just rebuke. With reference to the asserted incon sistency of the course adopted by this gov ernment in relation to the exportation of arms and ammunition and that followed in not allowing 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 ships of war rests upon the principle that, a noutral power must not permit its territory to become a naval base for either belligerent. A warship may. under certain restrictions obtain fuel and supplies in a neutral port once in three months. To permit merchant vessels acting os fenders to carry supplies more often (han three months and iti unlimited amount would defeat the pur pose of the rule and might constitute the neutral territory a naval base. Further, more, this government is unaware that any Austro-Hungarian shin of war has sought, to obtain supplies from a port in the T’nited States, either directly, or in directly. " This subject, however, already has been discussed with the imperial Ger man government, to which the position of tirts gotiTriment was fully set’fortlrDecem ber 24, -1914. a~ < - In view of the positive assertion in the statement of-the . imperial, and xoyal gov ernment as to the unanimity, of the opin ions of text writers, as to;the exportation of contraband, being unnentxal this govern, ment has caused a careful examination of the principal authorities, .on international laws to .be made. As-.-a fe^ilf of this ex amination, it has .come Jo'the conclusion that the imperial and royal government has been misled and' has inadvertently made an erroneous assertion, J^ss than one fifth of the authorities consulted advocate unreservedly the prohibition of the export of contraband? ■ Several pf those Who con stitute this minority iadmit that the prac tice of nations lias been otherwise. It may not be inopportune to direct particular at tention to the declaration of the German authority, Paul Eimrke, who states that, at the beginning of a war. belligerents hare never remonstrated against the enactment of prohibitions <m trade" in contraband, but adds: "That such prohibitions may be con sidered as violations of neutrality or at least as unfriendly acts,.if they are enacted Aiming a- war. with ..the purpose to elose unexpectedly the sources of. supply to a party which heretofore had relied on them.” - - ■ The government-of the -United States deems it unnecessary to extend further at the present time a consideration of the statement of the Austro-Hungarian gov ernment. The principles of international law. the practice of nations, the national safety of. the Jlnifecf States and (fther nations without great military and naval establishments, the prevention’of increas-d armies and navies, the adoption of peace ful methods for the adjustment of inter national differences and finisih- neutrality itself are opposed to the prohibition by a neutral nation of the evportation of arms ammunition or other munitions of war to belligerent, powers during the nrogress of the war.' Lansing, German exports of arms and. ammunltlan to Great Britain. Quantity 100 Kilos. 1899. 1900. 1901 ioo n Explosives 4.432 6.014 5.147 3 (Ms Gunpowder 28 658. 243 'so Gun barrels 12 '366 "i ,0, Shot. of malleable iron ■ not polished,. etc, 30 43 38 Shot (further manu factured) polished, etc., not leadcoated. .. 4 Shot, nickeled'or lead coated, with- copper rings, etc, ....... .. 3.018 176 Weapons, for war pur poses 13 2 Cartridges with cop- per shells and'caps. 904 1.595 566 ago Austrian-Hungarian Exports of Arms and Ammunition to Great Britain Quantity. 100 Kilos. 1899. 1900. 1901 1902 Arms exclusive of small nrms 190 374 12 Separate parts'of arms 11 Small nrms 2 3 SO S Ammunition and explo- sives under tariff No 346 1 7 15 51 Other ammunition and explosives .. 4 BERLIN PAPERS RAP WILSON Criticize the Lnmltnnia Note—Hint* at Bad Faith in President** Com. mnnication—British Merchantmen Francs-Tireurs All of the Berlin newspapers Tuesday last week printed, an . identical article which, while affording no clew to its real origin, gains significance from the argument mnde that British, merchantmen are really francs-tireurs at sea. and particularly from the insinuation, in the Inst paragraph that President Wilson did not act in good faith in framing the latest Amercan note to, Ger many on the.sinking of the Lusitania; The article, ns cabled to the New York Times, reads 1 “The main argument in the United States notes is the maintenance of the alleged .fundamental and unchangeable rights of neutrals.. The government of the. United States ‘Cannot admit that the fundamental rights of its citizens can be surrendered merely because of a change in conditions.' the government, thereby declaring that it is its intention to stand on the ground of reality; but the government of the United States—either from' obstinate contrariness or obvious partisanship—is going on the theory that it. has not as yet been able to take into consideration the new form which naval warfare has taken and .which, there fore,, is to be considered as not applying. ■ "Germany acknowledges in greatest meas ure tn its naval war the same fundamental principles of justice and humanity as the United States, but the latter wrongly ap plies these fundamental principles to. total ly new conditions and seeks to make the German government commit itself to abid ■ by- the same conclusions resulting f - .1 those principles for the new forms o' .rade wAr as the United States has drawn. In particular the remarks about trade war and the use of the words .‘merchant ship’ in the note must cause strong resentment. “The United States itself, at the begvc ning of the war, had a feeling that te line between the merchant ship and ths warship was not to be sharply drawn in view of England’s favorite mode of war fare,. This realization found clear expres sion in the state department's order of Sep tember 20, laying down the rule that mer chantmen of belligerent, countries could leave American ports if armed with guns and supplied with ammunition exclusively for self-defense. (Th? conditions for proof that the armament was not to serve for of fense, hut purely for defense, were, to be sure, very vaguely set forth in the order. I “In the same sense wgs the declaration of Lord- Cecil in the House of -Commons, that the same principle-, the armament of merchantmen-for self-defense, was univer sally accepted. While, therefore, the no tion of armed merchantmen was thoroughly familiar to the United States, which itself in a certain way helped to bring it about through provoking the disappearance of the difference between merchantmen and war ships, the new. note speaks only of mer chantmen. as if in the submarine warfare, after the English, modes of procedure, there Were any longer any difference, to be drawn between merchantmen and warships. “In hostile England itself—if not by the . neutral government of the United States- - recognition -of the resultant confusion of merchantmen and warships seems already to have penetrated, as is shown by the fol lowing statement by the naval critic of the. Daily - Chronicle of July 6:-*- “ ‘lt is the unpalatable truth that the difference between merchantmen and war ships is passing. When Mr Churchill set up cannon on the sterns of 1 certain ships he took one step in that direction, but the German submarines that torpedoed ships like the Lusitania and the Armenian bring it to a conclusion. Possibly the fact will have to be -recognized that freight or pas sengen ships arc to be regarded as war ships and are to be sunk accordingly, for submarihcH cannot capture them,’ "These lints hit the nail on the head in criticizing the thought-provoking English measures, atid in this connection special in terest attaches, to the admission, that En gland began with, a confusion of. warship and merchantman by discovering ‘armed’ merchantmen and the recognition of this as a hitter-truth. There only remained to ■ add that the instructions given to English steamers to use their bows as rams and weapons of attack against submarines took from them the last vestige of right to be treated as merchantmen in the sense,of in ternational law, even if they are not armed. “England herself metamorphosed her mer chant. marine, not into warships, as ths Dailv Chronicle teaches, but into francs tireuts at sea. One will not be far wrong in assuming that these well-known facts .were absolutely ignored in the last Ameri can note, not from ignorance, but with de liberate intent, and that the note only speaks of merchantmen, because otherwise it would hd^e been Compelled to admit, that for the idea of armed'merchantmen there are as-yet no recognized principles in in tel national law.”