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New-York tribune. [volume] (New York [N.Y.]) 1866-1924, July 28, 1917, Image 1

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Generally fair to-day and to-mor?
row; somewhat cooler to-mor?
row; moderate northwest
to north winds
Full Ha-l-art on Faae 10
V^^^ F* ?f + f. T ,
First to Last?the Truth: News ? Editorials ? Advertisements
Vol. LXXY?I No. 25,822
(Cop?il?ht UP?
The Tribun? Ass'n]
SATURDAY, -JULY 28, 1917
? * *
Over 100,000 Daily
Net Paid, Non-Returnable
Gaps in Ranks
To Be Filled
By the Draft
^1 Men Listed Must Be
Ready to Serve,
Baker Decides
Senators Favor
Calling Aliens
No Exemptions Will Be
Made by Classes, Crowder
Tells Coal Men
Washington, ---S 27.-?Every man
?'.lgfble *?*** -F drafted will be called if
m is needed, according to Secretary
3al.tr. IIu declared to-day that every
tomber drawn, unless exempted, must
*M ir. readiness to nil gape through
euualtiea in the American forces.
Aliens, too. may be called. The Sen
tie ?il?tary Affairs Committee haa de?
eded to report favorably the resolution
yr-OTidin? for the drafting of nationals
,f other countries, except Oriental?.
?.'wmptlor. c'aims based on alien rights
?ill be aniwered by deportation.
Meanwhile General Crowder, Provost
Xirihal. has ruled that no general c'.as?
?f workmen shall be exempted from
iiabiiity of service, and turned down
tsiployer?' pleas on behalf of expert
forkmen whose numbers were drawn.
All May Be Called
Being far down on the exemption list
?ay mean that a man will not be called
for examination for the first increment
ifllT.^OO men. and if he is down near
Hi* end he may not be called for the
?Kond increment of tbbJSb? men, but
if the war keeps up long enough he
aiy count on being called.
Secretary Baker said that as he un
fcrstood the draft law. it not only per
aitted the raising of two increments
?' 5M,0CK> each and the raising of suffi
?i?t men to maintain the regular
tray and Netionai Guard at war
itrtnfth, but alao the raising of men
tt 111 the gaps caused by casualties
tad sickness.
This means that after the 1.000,000
tst of the National Army are in
frn.ee, he said, further drawing
? the list of lo.000.000 registered men
?... be **-*-at>rv*a to to keep that Na?
tional Army at 1,000,00" and to keep
the ?ranks of the regular army and Na?
tional Guard at war strength.
Exemptions to Run High
'As has already been pointed out in
The Tribune, a much larger number of
nen will have to be examined to pro
tide the first and second increments j
than has generally been stated. Army
?leers eitimate that not less than one
half will be exempted because of de
?eadents. and not less than 40 per cent
*t those without dependents because of
physical disabilities. This would make
the exemption!? run M per cent before
'.he occupations of the men examined
?tt considered and with no deductions
'?r sliens.
There is no doubt that the pereent
*rt of exemptions for occupations will
(every high, as no industries essential
w the conduct of the war must be in
'srittti with.
It is probable that an amendment will
** crged, however, exempting men who
?*?1! pass the age of thirty-one before
"sty are called and providing for the
'Trtratior. of those who shall attain |
?** age of twenty-one before the time
'at their call comes.
Will Draft Aliens
-7 a unanimous vote the Senate
'??mittee on Military Affaira to-day
alerted favorably the resolution of
taster Chamberlain which provides
** the drafting of aliens in this coun
*f- Aliens who ar* nationals of coun
?nte with which the United States has
'tsaties which would prevent such
*afting may be exemptfd, hut if they
'hia exemption on this ground they
"f**ild b* j-port<td at the end of ninety
ist re?-,ijtion was amended by the
?"?aitte* so as not to apply to Chinese
*** Japanese. It is now worded so as
Jjjaply or.lv to aliens who could lagal
Thaeorr.* - tir.ens of the United States.
A ?eilig? of personal inquiries con
Waas future steps in the army draft
***- si pleas from industrial concern*
***t?mpvF)n of their expert workers
****** fror, the provost marshal's office
*-~*.J a statement that questions must
? adir?,Sed to local boarda. and that
'-?"??for industrial exemption must go
****r to the district boards.
Ka ( lass Exempt
*? ger.eral class of workmen will be
?**P**.d, Provost Marshal General
***der te'd ?he Coal Production Com
which sought information
?J?'*''' wmera ?cjld be left at their
J* App?-sU to the provost marshal's
??wfrom emplovars <,n behalf of their
***kin?n r.t. accomplish nothing, it
*** eipia ied, as regulations promul
***~*i by President Wilson govern all
?J?*** luestioa tit whether a hi?*, is
**** la?**'**' to his ountry in a pee.ee
*? *F*orsu;*. than 'n military service ia
IS***1 **b* uk*n ***> w'th tha d"1''
* b'.*"li" gaid ?n announcement,
m\ i ** board to determino m
j"* hgK'. ?,/ tr.e eircumstancea Bur?
glar ?ach individual ?
'J'eeedurs In ess? of Hairn? for
*****'t** on the ground ?<f industry
*t'r.'? r? ia explicitly outlinej In
?frWgalai.ofia. Only the upper or
<t i.oard has Jurladict-on over an
J****1*' or agricultural claim 'or
J***'?* Heforat a man has a stand
J*"**iora the district board he muat
,? ** *-?rti*ied to it by the local or
*7** board as physically qualified for
'?'* e*d muat have had any lie.
I**** ?lain made, bf-for? the lower
~?4 ***<?.d-d adversely to him.
???? ?a? f.v?) ?jay? after he is <--*?
?*? ??*??? upper board In whieh to
fboim tr>r d.arharge. and fivo day,
*g**f which to file proof. All
?jami for exemption, or discharge, et>
^?Ulr?*? fa?- d.acharge on IndueMal
?|JJ?l*'Uuit.r4! gro ,n?Ta, are -Je-.ld-?t*
lljjp'iy by ?h,. !,,ral or lower
***amityr Ltitu Dio-brihuiod to
-****? erstarb 0f t^ttf?tm peifjo S.
Army Gives
Germans Proof !
It's at Front!
Officers Convince Prisoners
Americans Are in
France in Force
Accredited to the Pershinn army
in France for The S'ew York Trib?
une and Syndicate.
lOpTriib* KMT, by Tin? Tribune aV?f?*i?tlnn)
27.?American officers are being taken
systematically to German prison camps
near here in order to convince the
Germans of the presence of American
troops. It is hoped that a frequent
mention in letters of the presence of
American? may hav?* its effect in Ger?
A numDer cf American soldiers
heard the rattle of machine guns for ,
??he first time to-day, but it w*as a
pleasant sound of departing shots.
The men filed from trenches at a ;
row of targets placed at the foot of a j
hill some t4\o hundred yards away.
There was also practice with the ,
French type of automatic rifle. The j
t'rst -oldier to handle this weapon was !
green. The French instructors had .
painstakingly explained the mechan?
ism with irii.ry a "Regardez!"' and morn
telling explanation by signs ?nd *n
Trooper Successfully
Riddles Sky Line
Under their direction he had taken ,
the gun apart and put it together i
without having a single piece left over.
Rut th? weapon was not yet his pal.
He pulled the trigger and "the bucking
thing sprayed the top of the hill with
The French instructor made a laugh- I
ing comment and a man in tho com?
pany who spoke French explained:
"He say? you ought to be in the anti?
aircraft nenien." Presently, after
much careful hand?ng and i-ncourag
ing words, which arara -.oothing in tone,
though not understood, h?> began to hit
the tftrget now and again.
The next man was a non-commis
aioned officer Ions? in the army, and he
patted the tpm and wooed it a little
before he shot. True, it was a French
gun, but the language o? firearms is
"Behnve busy," he said, and she did.
He sprayed shots along the bottom of
the hill as the gun clattered with all
the clamor of a riveting machine at *
a m. When they looked at the targets
they found he had scored thirty hit?
out of thirty-four and some were bull's
eyer The Fremh instructor was so
pleased he nlmost hugged the ancient
sergeant, but th? \??teran's look of hor?
ror served as a warning.
The American officers feel that sat?
isfactory progress is being made. The
?iifferenco in languag**- accounts for
?ome delays; but, on the other hand, the
Krfnch are temperamentally excellent
teachers, and illustration serves better
than word? when it comes to guns.
Moat "f the officers feel that faster
progress might he made in a Britiah
treining camp, but they are not as sure
the men would get along as well as they
do with the French.
Americana Will
Inatruct N?r*wcomer?
Other American troopa will have
Amaricen instructora drawn from the
nreaent force. On? of the chief objecta
of th? preeent work la to train Inatruct
ora These men will copy some of the
methods uaedl et the lntenaive training
Russians Steady Lines;
Germans Capture Kolomea
Thousands of KornilolTs Men Die in Vain At?
tempt to Halt Teuton Advance?Czernowitz Re?
ported Evacuated?Austnans Routed in Rumania
London, July 27.- F'aint signa o
what may be a returning morale in *h
Russian armies are discernible in th
official statements both from Petrogra
and Berlin, though at no point has th
Slavic retreat eastward been mor
than temporarily checked.
The most serious news comes fron
Berlin. It announces that all t h.
crossings of the Gnizna and Se'e'.l
rivers between larnopol and Trem
bowla have been captured. It is or
this line that the Russians might b
expected to stand and? though press"
back, they fought courageously en?
thousands of them fell in fruitles
counter attacks under the eyes of Em
peror William, who watched the battl
from the heights.
Farther south on both sides ?-?*" ?h?
Dnitfttr and well into the woode
Carpathians the Russians are it il
withdraw.ng, though apparently if
good order and with the ability t<
strike back here and there. Kolomea
an important junction on the road tr
Ocrnowitz, capital of Bukowina. ha<
fallen into enemy hands, as expected
Though Czemowitz is forty-five mile;
to the east, reports from Vienna say
that the evening newspapers in th?
Austrian capital assert that the Rus
sians are evacuating the city. Komi
loff's nrmies are retiring on Czemo?
witz from two directions and south of
Kolomea have nearly reached the bank?
of the upper Pmth.
The news from the Rumanian front
is cheering, but the situation there
cannot affect tne larger Issues in the
north. Th?? Russo-Rumanian armies
have ??ready penetrated the enemy's
positions to a depth of seven and a
half miles and have occupied ten vil
?ages, while Berlin admits that the ein
tiri" Suchitza Valley has baen relin
guished as far r.s the upper reaches
of the Putna River. The Austrians are
SHul to be in disorderly flight, and have
loti 4M m?,?-" prisoners, together with
six field pieces and several machine guns
and mine throwers.
F'rom the Russian capital the stern?
est tt ta tart I me being promulgated
to save the revolution and stabilize the
nation. Premier Kerensky has taken
teeptioaal decision of convoking
at Moscow on July 31 an "extraordi?
nary natirrnal council," without waiting
until the Constituent Assembly con
rentt. Tht Prttlltr declared to-day
thHt all nttempts to move the re\olu
ti??n backward would fail and that plots
i raatort tht aioaarchjr will he "sup
pretatd In 'he mool determined and
merciless way."
The decision to hold the council at
, Moscow-, the ancient capital, is prob?
ably the result of new and violent
street fighting which has occurred in
Petrograd during the last two days, tc
corrling to the Copenhagen "Berlingake
j Tidendc." Thia time, however, the
rioters were met firmly by government
I troops, who smotherc? with fusillades
I tht "great revolt" organized by th*o ex
I tremist elements.
Aa an indication of the new policy
I and firm measures to be taken, Kron
I stadt has received an ultimatum to
I hand over three of the chief Bolsheviki
agitators, including the notonoi
Roschal. In cas?- of a refusal the i?lar
will be declared hlorkaiied.
It is stated from Petrograd that Ger
eral Korniloff's orders to shoot dow
traitors and coward? ar?- bring came
out to the letter at the fror.t. Th
commander of a grenadier diviaion ha
been removed for refusing to fire o
daaertera, hut there is no further mer
tion in to-day's official bulletin <?f lac
of discipline among the rank and fill
Indeed, both from the Russian an
German accounts of the sanguinar
fighting along the Sereth it would ar
pear that "battalions of death" fror
other sectors of the front have bee
flung into the battle to Staat]*- th
disaffected divisions.
Petrogrnd reports that northwest n
Monasterzka the Russian eavalr
fought a series of successful action
with the advancing enemy, throwin?
him back to the north? ast. Southoa?
of Tarnopol German at ?..''<-!-.s WOTt i ??
pulsed, as well as north of CaoatOV, sin
althoaah the Russians had to retire :
short distance southeast of Tremhowla
the deepest point of the hostile pene
trntion, they took up new positions 01
the heights, and held them against al
Russia's Women
Fighters Took 102
Captives at Dvinsk
London, July 27. Russia's women"?
"Legion of Death" took 102 prisoners
two of them officers, in their first bat
' tie on the Dvinsk front, according to
i advices from Petrograd. The women
charged' fearlessly over a shell-torn
field after thrir men comrades had d?
serted and ?n shame.? the disorganized
force? that the tide of battle was
! turned in favor of the Ru*?iBns. A
dozen of :hr> battalion were wound?d
'ti the action, including th?* eota?
mander, nnd have bren sent to Minas*
to recover.
A dispatch to the Exchange Tele?
graph from Petrograd, datai Thu i - -
?lay. says:
"Ensign Mile. Vera Rufrhkareff, com?
mander of the Russian women's bat?
tnlion, and Lieutenant Skrydlova, aaf?
*enng from shock as n result af burst?
ing shells, and about a dOMB other
member? of the battalion who trata
wounded in th?* recent lighting, have
been sent to Minsk. When they
leached Poltava lh"y were welcomed
by 100,000 eitiaaaa and soldiers, with
a brass band and banners.
"It is said the women attacked the
Germans after thr Russians hail de?
serted, rushing forward impetuously
and tiring their rifle? with deadly ef?
fect. Their prisoners were greatly
chagrined when thev learned the . .
af their captors."
Disaster tttrrngthrninff Rust?an
noverntvevt, Amhajtartdor Frttvri*
reports ? Ifftaro Don Let itte't
atuilijtn*. on Pant 5.
rampt of tht British, which put on the
finishing touches in from eight to
eleven day?.
French officer? here agree unani
mouily that the Rooaevelt army would
have been a miitake. "It would have
bean magnifleant." aaid on*, but it
would hava been what you call a
?plath. Thare could hava been no
more Roosevelt armies. Th?* thing
which counts is to get a system which
keep? the men coming and coming."
American officers, In commenting on
tha fact that Admiral Sims is repre?
senting America at the Balkan confer?
ence, explain that ha has been choten
because nit branch is in active service,
while Pershing's men are ?till training.
Allies Decide
Base in Greece
Conference in Paris Agrees
to End Occupation of
Three Provinces
Will Fight On
To End Aggression
U. ?S. Criticised for Failure
To Send Delegates;
Sims Is Consulted
IB? Cable to The Trtbun?]
London, July 27.?The Allied powers
have decided to end their military oc?
cupation of ancient Greece, Thessaly
?nd Epiru?. This was determined upon
before the conclusion of the great war
:onference in Paris yesterday. At the
Bame time it waa unanimously agreed
that the Entente powers should not lay
down their arms until they had at?
tained their aims in the war-"to ren?
ier impossible a return of the criminal
aggression such a? that whereof the
Central Powers bear the responsi?
The withdrawal of the Allied force?
from the three territories name?!,
which will be undertaken by the con?
ference immediately on their return
home, will have no effect on military
operations in the Macedonian front,
which extends through Greek Mace?
donia and Southern Serbia, gome dis?
tance to the north.
For the time being, also, Allied
troops will continue their occupation
of the triangle formed by the Santi
yuaranta road and the Epirus frontier,
tad the military and naval base on the :
Island of Corfu will be maintained,
under the sovereignty of Greece.
The declaration follows:
The Allied powers, more closely
BBltad than ever for the defence of
the people's rights, particularly in
the Balkan peninsula, are resolved
not to lay down arms until they have
attained the end which in their eye?
dominates all others -to render im?
possible a return of the criminal ag
greaaifa such as that whereof the
< entrai Empires bet? the respon
The ?nnoancrw. ? ? ?-'??. he de?
cision concerning Greek territory read:
F'rance, Great Britain and Italy,
simultaneously and as loon as pos?
ible, will end the occupations they
have been obliged to make in ancient
Greece, Thessaly und Epirus. Tho
military occupation of the triangle
formed by the Santi Quaranta road
er.d the Epirus frontier will be main?
tained provisionally as a measure of
seruri'y, Italy and Greece to agree as
regards re-establishmcnt of the civil
administration under a commissioner
appointed by Greece. F'rance, Great
Britain and Italy will preserve dur?
ing the war a naval and military
bast on the island of Corfu, the isl?
and remaining under tht sovereignty
of Greece.
Sim? Attend? Conference
The I'nited States was unofficially
represented at the conference In Paris
by Vice-Admiral Sims, who was called
into consultation on the shipping and
gineral naval situition, and by General
Poshing, who took part in the military
discussion?. Sir William Robertson and
(?lierai Forh also were consulted.
Regret has been continuously ex?
pressed here that the I'nited States
chose to send no official delegates to
the conference. In the opinion of
many authorities heve it was obvious
that the discussions 01" such an tt*
?, ? bly could hardly be confined to the
Balkan problem alone, and it was felt
that it was America's duty, as well n*
her privilege, to share in the discus?
sion of all other matters relating to the
war and to war policies) In general.
In some quarter?, indeed, there has
been a tendency to criticise President
Wil.-on'.s action in refusing to partici?
pate in *h?> congress. "The Globe"
say ?ilitorially to-night: "We ?juite
understand the conditions which led
Presiden* Wilson to take the course he
did. He must pardon u? if we say.
however, that his attitude is one im?
possible to maintain. Italy made the
same attempt and failed.
I rge Closer Alliance.
"America will have the same expe?
rience. Her troops in France will find
themselves fighting against the Aus?
trian?, with whom they are nominally
at peace. Her transports will have to
run the gantlet we hope successfully
of Austrian as well as German sub- !
marinea. If either Turkey or Bui
?aria is able to spare any men to help
Germany, they certainly ?vill be com?
pelled i<? do' to by the peremptory
orders of Berlin. We do not think
either the Turk or the Bulgarian under
, , rcumstances will make any nice ,
distinction! betwaaa the different na
titr?t allied against the Kaiser.
"It is not possible to carry on a
world war in a watertight compart-'
ment. \\ o? are convince?! that logi-7, I
sooner or later, .?ill compel the Tres
| t.) recognize this fac'. Amen
cans certainly bavt no desire whatever
thtttaolvat playing a subordi- i
nato role in the present struggle, but ,
it i- a little difficult to aee how this
can be a.'otded if they do not take any
share in ?he conferences of the Allies.
The naval and military situation must
be envisaged M ? whole. It is ob?
viously desirable that wa have authnr
iutne American opinion upon it."
Jewish Regiment Formed
King David's Shield Badge of
Special British Unit
London, July Z~. The War ?frica
has announced the formation of a
?pecial Jewish regiment of infantry
with experienced officers in the higher
Jewish soldier? with knowledge of
the Yiddish or Rust?an language al?
ready serving with British regiments
will be transferred to this unit.
The regimental badt*-? will be a copy I
of King Dsvld't ihleld.
War Risks Go
Higher; U-Boat
Peril Grows
Insurance on Ships Crossing
War Zone Is Raised
\Vl Per Cent
3 to 4 New German
Submarines a Week
Allies Destroy but One?
Definite Offensive
Washington, July 27.? An announce?
ment to-day by the War Risk Insurance
Bureau that, dating from August 15,
government insurance rates for vessels
and cargoes sailing from American
ports for Europe and the Mediterranean
coast of Africa would be increased from
6 per cent to 64 per cent, was accepted
here as official testimony to the effec?
tiveness of German submarines.
It is estimated in official circles that
Germany now has 200 submersibles in
active service, and is turning them out
at the rate of three or four a week,
while the Allies are snaring or destroy?
ing an average of only one a week. The
losses in ships and cargoes is said to
bo costing the Entente nations billions
every month, making necessary the in?
crease in insurance rates.
Applies to United States Ships
The new rate of 6S per cent will
apply also to American-bound vessels
from the foreign ports mentioned. It
Is the first increase since the United
States entered the war and was made
necessary, said the bureau's announce?
ment because "the 5 per cent rate is
not adequate for the risks undertaken
through the so-called war rone, as the
bureau has sustained several heavy
Unofficial estimates of the submar?
ine strength of Germany have far ex?
ceeded the conservative official figures.
A scientific authority estimates that
at the end of July Germany possessed
seven hundred submarines. This au?
thority asserted that Germany could
build 1,000 submarines a year. At such
a rate of construction the Allies would
have to destroy three l'-boat.? a day to
keep pace wth German manufacture.
Tremendous Economic Loss
The further statement was maje
Siemi-officially to-day that the eco?
nomic damage inflicted upen the En?
tente countries and the l. ni ted ?States
by the submarines amounts to billions
each month. The estimate was arrived
at through a valuation of the tonnsge
destroyed and cargo**"*? lost. There
have been admissions that the loss ?if
morchant ship-i amounts to 800,000
tons a month.
The value of a ship is said to run
from $1,im)ii to lU.oOO a ton Taking
the largi'r figure, the financial loss in
ships alone would be $l,i'>oo,iini',0i'0 a
month. The cargoes of the ships de?
stroyed in many instances are worth
more than the ships themselves. Some
officials estimated the damage inflicted
upon Allied, American and neutral
tennage available for Allied uses to
run from $3,000,000,000 to $5,000,00*.,
000 a month.
To prevent the increase of submarine
activities and to discount the addition
of the new submarines, the Allied and
American navies must destroy from
three to four submarines a week. None
of the Allied governments professes to
be accomplishing this result at the
present time, and none claims that
methods now in use for combating the
submarines will ever reach ihat total.
Several Types of l'-Roat
Germany is known to be turning out
simultaneously several classes of sub?
marines, running from the small type
for use in the English Channel and on
the trade route? between England and
Holland and England and Denmark
operating from the base at Zeebrugge
on the Belgian coast, to the super-sub?
marine of 1,200 tons and carrying two
five-inch guns. The intermediate
types, those inflicting the largest
amount of damage to enemy shipping,
are of the U-SS class and the mine
laying submarines. The r-5."i type is
large, speedy, with extraordinary sea
keeping powers, and is employed in the
limes between the I'nited States and
Europe, between Russia and England
and in the Mediterranean. They, to?
gether with the mine-laying I'-boats,
operate from the largest submarine
bases, such as Kiel. ?
There is noticeable in naval circles
here a distinct disappointment of hopes
respecting the invention of instrumen
talitie? and methods for successfully
combating the submarine.
The problem is narrowing down to
the necessity of initiating a naval
offensive, and it was learned on the
highest authority that "unofficial press?
ure from official sources in the L'nited
States" had been brought to bear upon
the British government to induce it to
institute, or rather to plan for, a naval
2,000,000 Tons Lost
By Britain in War
London, July 27. Lord Robert Cecil,
?he Minister of Blockade, said to The
Associated Press to-day:
"Ocean-going vessels of British reg?
istry bet?re the war were between
17,000,000 and 18,000,000 tons," he said
by way of introduction. "At present
the total, inclusive of prizes and new
ships, is slightly over 15,000,000 tons.
"The country generally has had to
suffer great and increasing sacrifices
through the shortage of tonnage
caused by war requirements and sub?
marin? lo.??es. I wish particularly to
point out how we have sacrificed ruth?
lessly the need? of industry and com?
merce t?> war requirements.
Three hundred British merchant ves?
sels alrettily have been armed and a
large numoer are being armed each
week, said I J, MacNamara. Einaneial
Secretary to the Admiralty, in reply to
a question in the House of Commons |
War to Cost U. S.
$29,000,000 aDay,
Congress Is Told
Daily Cost of War
United States.$41.09?,164.4-.f.
For ?ahtino .. ? ? S9.?13.169.86
Loans to allies.. 11,682,991,.?9
'Great Britain. 33,975,000.00
France . 18,000,000.00
Russia . 16,000,000.00
Italy . 7,000,000.00
Rumania . 2,000.000.00
Belgium . 1,000,000.00
Serbia . 1,000,000.00
TOTAL .1120,071,184.65
Germany .$21,000,000.00
Austria . 11.000,000.00
Turkey . 1.500,000.00
Bulgaria . 1,500,000.00
TOTAL .$35,000,000.00
U.S. Destroyer Puts
Submarine to Flight,
Saves 150 Persons
Survivors of Liner Express
Gratitude to the Ameri?
can People
Base of the American Flotilla in
British Watert, July 27 i by Tht As?
sociated Press I. Th? captain of a liner
recently torpedoed, from which sixty
passengers and ninety member? of the
crew were rescued by an American de?
stroyer, to-day aa*ed The Associated
Press to convey to the American people
I a letter of thank? and heartfelt ap
! preciation on behalf of himself, tht
| passengers and the crew for the gal
I lant rescue by the Americans.
The captain's letter follows:
"To the American public: I wish to
| express through The Associated Press
on behalf of myself, the passengers and
crew our heartfelt thanks and deepest
gratitude for the gallant resc*4t of all
of us by Americans, who are fighting
for humanity and civilization.
Forced Retreat of l'-Boat
"But for the prompt appearance of
the Americans I would now be a pris?
oner on board a German submarine, the
crew of which already had thrown a
line to my boat preparatory to making
me prisoner. Your destroyer, racing to
the rescue, caused the Germans to
change their mind and to make a hasty
retreat under water.
"We all feel that we owe to the crew
of the American destroyer an everlast?
ing debt of gratitude for our safety,
and we wish to thank the irreat Ameri?
can nation for the action which made it
possible namely, the sending of their
gallant men into this great struggle to
make the world a fit place for a decent
man to live in."
I'nited States Sailor? Refused Purse
The commander and men of the
American destroyer, who after the res?
cue hod refuse?! a substantial purse
from the grateful passengers with the
statement that they were merely doing
their duty, to-day nlso received a letter
of thanks from the captain.
Upon their arrival here the pas?
senger and crew, still clinging to their
life belts, gathered on the pier and gave
repeated cheers for the Americans The
fact that the American? were able to
pick up all the persons from the ibip
without mishap establishes a record for
ihe largest number rescued from any
one ship by an American ?iestroyer
since the arrival here of the flotilla
American Flag Flies
On Liner Vaterland
Fifteen Other German Ships
To Be United States
'Kr-"? Th? Tnbu'i?? Bureau)
Washington, July 27.?The following
i statement was issued to-night by the
| Committee on Public. Information:
"Secretary Daniels announced that
' the American flag was hoisted on the
great German liner Vaterland to-day.
He al?o stated that fifteen other Ger
; .nan ships had been taken over by the
' government and the work of fitting
them out for transport sen-ice would
. be rapidly pushed to completion.
"The work on all these ship? was he
! gun some time ago by contract under
the Shipping Board. T^e Navy De?
partment has now taken over this work
; under it? own direction."
How Long?
i iKrom Th? New York American, 'uiy Z'.i
But it It not through invasion that I think
the I'nited St?te? will auffer the m<-??t if this
w*r is indefinitely protracted. It U through
?ending n million men a year, a million nf
our aplendid young Americans every year
| of a war whi?-h may I?it from /even to ten
' year?, to be offered up in bloody aarrinVe to
the ambition of contending nation? on for
i eign l?attlefield?.
I* it not better to make pe?r? now than
to look forward to year after year of ?u?-h
national an?) individual ?orrow and Mtrttoo,
I to ?u?-h wantage and woe. to auch deatru?*
| tioti of the hot aperimena of the hurr.an
I rare, to ?uch irretrievable demolition of the
I ?uatainlng atru-ture of our Oreidental rivil
I ization ?
How Ion?*, too. ??ill our people tolerate
?ueh ?laughter and auch ?aeriftce? How
lent before government i will be change?!
her? and partie? expelled a? they have been
abroad? How lona* befor? ?ncialum will
talc? the plac? of denjoeraey in political pow?
er and vioUnt -atr?-ml?U take th? plat?? of
th? modcratM who now temperately rounael
caution and constitutional cons?rvatl?m*
Loans to Allies May Bring
Year's Total to
15 Billions
7 Billions Needed
To Meet the Bill
McAdoo Plans to Raise
$5,000,000,000 With Bonds,
Rest With Taxes
Washington, July 27.-Estimating the
cost of the war for the coming year at
$10,735.S07.000, exclusive of loans to the
Allies, the Administration informed
Congress to-day that new revenues
totalling $7,000,000,000 must be raised
from taxation or issuance of securities.
If advancement of credit to the Allies
is continued at the present rate the
year's total of war expenditures will
pass $16,000,000,000, and the amount of
additional revenue required will in?
crease accordingly.
The average daily cost of the first
year of the war to the United States
will thus be $29,413,169 for military
needs and $ll,?"S2,994 for loans to the
Allies. This exceeds by $7,000,000 the
present daily cos., of the war to Prit
ain, and also exceeds the present ex
pendlture of all the Central Powers.
The difference is explained largely by
the fact that the United Sutes is con
fronted with the task of creating a
huge military establishment, doing
work it could have done In past years.
American rates of army pay, too, are
many times tnose of the Teutona and
the French.
How Congress will meet the enor?
mous new revenue requirementa re?
mains to be determined, but there Is a
diatinct sentiment in favor of offsettine*
most of tho expenditures by bond is?
sues. Many leaders on both sides of
the Capitol predicted to-night that not
more than $2,000,000,000 of the $7,000.
000,000 asked would be raised by taxa?
tion, and that the remainder might be
met partially by bond sales and partial?
ly by Issuance of Treasury certificates
of indebtedness.
Army To Gel Lion's Share
Equipment and stores for the Na?
tional Army, particularly artillery, will
require the lion's share of appropria
tions under j,he Administration's esti?
mates. Of tho year"* total of $10,736,
807,000, the War Department alone ex?
pects, to upend $7,f>'i4,-''i,o>iO, or $5,
319,000,000 more than has been appro?
priated thus far for its expenses dur?
ing the year.
The navy expects to spend $l,2oO,
000,000, of which $JH8,000,000 remains
to be appropriated. The Shipping
Board, whose shipbuilding projects
place it third on the list, expecta to
hpend l7St.000.00t. of which $350,000,.
tOt remains to be appropriated.
These ligures cover the cost of the
war from July 1 last to June 30 next
They do not include the money spent
prior to the first of this month.
Tax Hill To Be Revised
Estimated receipts for the year were
placed by Secretary McAdoo. in trans
nutting the estimates to the House
Ways and Means and Senate Finance
committee?, at $l,.'i33,6oo.ooo. This
estimate of receipts did not include
revenues to he raised under the pend
mg war tax bill, eat i mated bv Admm
istratian leaders la Congre?? at $l/*o.
870,. Reviaiaa of the bill will begi'i
immediately, to embody whatever addi
tiona! taxation it may be deemed be.*t
'a impose aa a reault of the new es'1
I r.-niendoiis a? are the estimated e,
penses of lhe government for the year.
the appropriations actually sought by
the various department? are placed
above these totals in order to provide
a margin of safety.
Thus th? War Department, expecting
to spend i~*''-1,210,000, a?K* for appro?
priations 'otalling $8,?*-7:!,3*-..*',o00. and
the Nav, Department, estimating it*
expenditure? at $1,200.000.000, asks for
..ppropriations of $1,324.1 7?,000. Total
appropriatiena sough* by all depart?
ment aggregated $11,610,193.093. or
nearly $1.000,000.000 more than eati
mated expenditures.
1* Billiona May Be needed
Should this sum be authorized by
Congress, with ar. additional $4.500.
000,000 for the Allies, which would be
necessary to keep up the present rate
of loans "totalling ISOO.OOO.Ovt a month,
the total to be raised by bond issues
and additional taxation for the current
fiaeal foot weald be more than
$16,000,(100 oon
It hail been indicated that additional
authorization for loan** will not be re?
quested of Cong'ress until the new ses?
sion begins in December. With esti?
mated expenditures of $10,73&,H
as the basis fer computation, the fol?
lowing deduction* from the total of
estimated expenditures wir* made m
reaching the 17.000.000,000 total of now
revenues needed :
Income for the year under existing
law?. 11,333,600,000* bonds authorize i
under the war finance bill of April '.'?.
bu* not issued, $2,ono,oo?v,o0; other
bond issues previously authorized to
reimburse the Treasury for various
items of expense, about $400,000,100;
total, $.1,73?.,.'?00,000.
Eat i mate of Receipts
The estimate of receipts during the
next twelve months waa computed aa
From customs duties.$225,000,000
From ordinary internal
revenue ??oureea. 650.000.non
Erom the income tax. 3M.0OO.OOO
From miscellaneou ? taxes
and other item*. 70,000,000
Panama Canal tolls. 7,000.000
Deposits to retire national
bank notes ?an item
which is represented by
the same figure on the
credit side of the ledger) 30,000,000
No suggestions or recommendatlona
aa to methods for raiaing the money
were made by Mr. McAdoo. He proba?
bly will advise later, however, with the
Finance Committee, which wrestled all

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