Newspaper Page Text
ALL MERCHANDISE ADVER? TISED IN THE TRIBUNE IS GUARANTEED JXetoffl Vol. LXXVm No. 26,126 Thai Tribun? Am*n] I Copyright IMS? WEH First to Last?the Truth: News * Editorials - Advertisements aatbttit? Shower? to-day and to-morrow ; ?mtet to-morrow; moderst?, shift* Ins ?riada. TUESDAY. MAY 28, 1918 * ? * ? (mm?mmm$Ut Ortmimr New Tort* **n<* I TlTR-vK C Germans Drive Allies _Repulsed With Hi Back to the Aisne; ?aoy Loss in Flanders President Demands New War Tax Now Wilson Tells Congress Renewed German At? tack Strengthens His Purpose to Put Through Bill at This Session; Says "Politics Is Adjourned" Es?cutive Would Assess Profiteers, Swollen Incomes and Luxuries Attacks Lobbyists Who May Attempt to In? fluence Legislation; Says Fairness to Business of Nation Makes Action Necessary at This Time (Special Dispatch to Th* Tribune^ WASHINGTON, May 27.?The last lingering doubt as to whether there would be an additional tax law before the adjournment of Congress was removed to-day when President Wilson went before a joint session of the two houses and delivered a message to the American people, giving his reasons for its necessity. The business interests of the nation must be relieved of the uncer? tainty as to how much this year's income and profits would be taxed, the President said. The people, he insisted, are ready and willing to bear any burden and undergo am- sacrifice. The President recommended that Congress turn to war profits and incomes and luxuries for the additional taxes. Then he gave this sharp warning to Congress: "Politics is adjourned." At the close of his prepared speech the Preste, ?nt referred to the renewal of the German drive. He had received the r, ews as he left the White House for the Capitol, and there was a touch cf the dramatic in his statement to Congress that it strengthened the purpose he tried to express. It was announced that public hearings would be held early in June by the House Ways and Means Committee. Predictions were made that with the assistance of the Senate Finance Committee the bill would go before the House in July. I Aside from the discussion of the necessities for immediate action 1 y the President, there was a warning to the lobbyists, who always flock ! to Washington during the considertaion of any revenue bill. "If lobbyists hurry to Washington," President Wilson said, "to a,t- i tempt to turn what you do in the matter of taxation to their protection ! or advantage the light will beat also upon them." j Making he warning almost a threat, he continued: "There is abundant fuel for the light in the records of the Treasury with regard to profits of every sort." Full Text of Wilson's Address Urging Passage of Revenue Bill j The President's address was as follows: "Gentlemen of the Congress: "It is with unaffected reluctance that I come to ask you to pro- j long your session long enough to provide more adequate resources for the Treasury for the conduct of the war. I have reason to appreciate as fully as you do how arduous the session has been. "Your labors have been severe and protracted. You have passed a long scries of measures which required the debate of many doubtful quest.ons of judgment and many exceedingly difficult questions of principle as well as of practice. The summer is upon us, in which labor and counsel are twice arduous, and are constantly apt to be impaired by lassitude and fatigue. The elections are at hand, and we ought, as soon as possible, to go and render an intimate account of our trusteeship to the people who delegated us to act for them in the weighty and anxious matters that crowd upon us in these days of critical choice and action. But we dare not go to the elections until we have done our duty to the full. "These are days when duty stands stark and naked, and even with closed eyes we knew it is there. Excuses are unavailing. We have either done our duty or we have not. The fact will be as gross and plain as the duty itself. In such a case lassitude and fatigue seem negligible enough. The facts are tonic and suffice to freshen the labor. "And the facts are these: Additional revenues must manifestly be privided for. It would be a most unsound policy to raise too large a proportion of them by loan, and it is evident that the four billions now provided for by taxation will not of themselves sustain the greatly enlarged budget to which we must immediately look forward. We cannot in fairness wait until the end of the fiscal year is at hand to apprise our people of the taxes they must pay on their earnings of the present calendar year, whose accountings and expenditures will then be closed. We cannot get increased taxes unless the country knows what they are to be and practises the necessary economy to make them available. Treasury Must Have Time to Frame Rules "Definiteness, early definiteness, as to what its tasks ?re to be is absolutely necessary for the successful administration of the Treas? ury. It cannot frame fair and workable regulations in haste, and it must frame its regulations in haste if it is not to know its exact task until the very eve of its performance. The present tax laws are marred, moreover, by inequities which ought to be remedied. Indis? putable facts, every one; and we cannot alter or blink them. To state them is argument enough. ' "And yet, perhaps, you will permit me to dwell for a moment upon the situation they disclose. Enormous loans freely spent in the stim? ulation of industry of almost every sort produce inflations and extravagances which presently make the whole economic structure questionable and insecure, and the very basis of credit is cut away. I Only fair, equitably distributed taxation of the widest incidence and drawn chiefly from the sources which would be likely to de? moralize credit by their very abundance can prevent inflation and I keep ?,ur industrial system free of speculation and waste. We shall r* naturally turn, therefore, I suppose, to war profits and incomes and luxuries for the additional taxes. "But the war profits and incomes upon which the Increased taxes will be levied will be the profits and incomes of the calendar year 1918. It would be manifestly unfair to wait until the early months of 1919 to say what they are to be. It might be difficult, Continued on Page 8. Column 6 Il-11 From Summit's Mayor ? To the Editor of The Tribune and 100,000,000 Other People. Sir: The si?gnificant thing, psy? chologically, about this Hearst mat? ter is the spontaneous feeling that has burst out all over the country. It might be likened to a condition i when a smoky, smouldering fire sud? denly, in a new slant of the wind, flares up into a solid sheet of flame. For many years resentment against Hearstism, Hearst methods i and Hearst sensationalism has been smoking and smouldering in the i consciousness of Americans. Blamed for inciting a state of i mind that precipitated itself into the I cowardly assassination of McKinley; I blamed for inciting discontent with : honest toil and encouraging the idle ? and unworthy to hope for unearned reward; blamed for cloaking honest human trials with a false sentimen? tality of revolt rather than honest endeavor of amelioration ; blamed , for enhancing anything sensational I into a seeming allurement of de I sirability?the underlying fire of a ; national resentment has smoked anc smouldered for years. Then came insidious propagands against the war, against the gooc faith of our allies, against the sin cerity of our President, against the wholeheartedness of our nation thai has now brigaded our brave boy; with the Tommies of England anc the poilus of France, facing the mosi ruthless, bestial foes the world has ever known ; propaganda seeking t< divide, to distract, to divert oui national consciousness from a unite< front toward the enemy of all tha men have heretofore deemed decent honorable and humane in the world And the underlying fire grew. Then came suddenly the unspeak able blundering insult to the Presi dent and to the whole nation in th deliberate deletion from the Presi dent's Memorial Day proclamatio; of all words cf prayer for victory distorting it into a mere Hearst-lik prayer for prurient peace. The whole country flared int flame at once. A Grand Army post in Pougli keepsie burned every paper tha contained the malignant mutilation Mount Vernon passed an ordinance the little city where I live delete every Hearst paper out of its cor fines; communities everywhere ad ed, and are continuing to act. In order to intimidate others froi acting, rather prodigious legi actions have been begun. : The solemn farce of chancery pr< [ ceedings has been instituted agaim | nie, praying the court that I be ei i joined from "enticing the citizens < ! Summit, N. J., and vicinity" not 1 | buy "The American" or "The Jou j nal"! Bless his innocent soul, couldn't entice the citizens of Sur ; mit and vicinity to buy "The Ame ican" or "The Journal" with a clul l I didn't entice any one. Tfieyentici | themselves, and glory in the dee? ; And an action for damages, f i $100,000, has been begun against r ; for my malicious misconduct. 1 | assured, 1 am not losing any sie ! over the matter. There are approximately 10,0 i people in Summit. At $100,000, tl I means ten dollars' worth of intin | dation on my part for each ms ; v/oman arid child in the place. There are approximately one hu ! dred million people in the Unit i States of America. If I intimide | them at $10 per head, that will me ! ten times a hundred million, whi 1 is one billion dollars, the amount the next suit against me. i Come on, it will be interesting! ? I hereby intimidate the hundr ^million people of the United Stai ; of America to do exactly what t ' ten thousand of Summit did. Our President asked us to pr j for the victory of our boys. Hea ; deleted it. Pray, you Hundred Million; a | then, Delete Hearst! I intimidate you, on Memoi . Day, 1918, not to buy a Hearst nei paper! In one day the ten th , sand of Summit did the deed, ?one day do you do likewise! cost, no effort, no trouble; j do it! Come, you Hundred Million. j you've a boy in France, as I ha ! if you've father, mother, w ? brother, sister, sweetheart, i ; haven't forgotten the Lusitai \ Continued on last page, Column i_ Freight Rates Up 25%; Fares To 3c a Mile ? McAdoo Announces In | creases of More Than $800,000,000 a Year Commuters to Pay Ten Per Cent More Tariff, in Effect in June, Means Higher Prices for Commodities WASHINGTON. May 27.?Examina? tion to-day of Director General Mc Adoo's order raising freight rates on a basis of 25 per cent and passenger fares to 3 cents a mile and abolishing all lower intrastate freight and pas | senger rates, indicated that the aver : age increase will be higher than 25 j per cent. i Many changes and readjustments { will be made by the railroad adminis j tration, either on its own initiative I after receiving suggestions from ship j pers and state or local authorities, or | by order of the Interstate Commerce Commission which has power to re? view and modify the schedules. This will not prevent the new rates from going into effect, however, pas? senger fares on June 10 and freight tariffs on June 25, for the commission to-day gave its approval to the rate order without hearings. This action was perfunctory, and is not intended to cut off later complaints and hear? ings on them. State Boards May Suggest State railroad or rate commissions have no authority to change the rates, the railroad administration holds, even though many provisions of the new order more than double the charges for short hauls within states. The Di? rector General to-day explained in a telegram to chairmen of state commis? sions, however, that he will welcome suggestions for readjustment of rates on intrastate traffic, and these will be referred to the Interstate Commerce Commission for its consideration in passing on specific complaints. State commissions also may enter formal protests direct to the Interstate Com? merce Commission. These complaints are expected to re? sult in hundreds of modifications af? fecting specific commodities or classes and rates between eertain communi? ties, but probably will not reduce to any great extent the total revenue to be derived from the sweeping in? creases, which are. estimated at from $800,000,000 to $900,000,000. The additional charges must eventu? ally be absorbed in higher prices of commodities, it was noted to-day by I shippers' interests, and this effect may j be noticed particularly tor coal, hrick, j lumber, meats and grain, and for ma ' terials shipped to market only a short ! distance. Analysis of the new sched? ules showed that for hauls of from ? five to fifty miles, particularly in i states which have their own intra-state ? classifications, rates will be raised by varying amounts ranging from 25 to | 150" per cent. Will Make New Excursion Rates Some comfort for summer vacation ! ists was derived from assurances by ?the Railroad Administration that ex? cursion rates would be reestablished, ' though on a higher basis. The Director ! General's order provided for the dis? continuance of existing excursion fares, ! and many other lower rates and spe i cial passenger privileges. Local ex I cursion fares to summer resorts will I be raised generally about 20 per cent. 1 Lone distance excursion rates in tne I Fast will be 10 per cent less than the | regular 3 cent rate. In the West these Continued on Page 8, Column 1 Nation Gives $144,000,000 To Red Cross New York City Total, With Reports Incomplete, Is $33,434,730 Workers Celebrate End of Great Drive C. H. Dodge Pays $55,000 for Original of President's Proclamation ,. With a spirit of sacrifice declared j never before to have been recorded in j the history of the nation, the Second j Red Cross War Fund Drive in this j city came to a close last night with a ? meeting at the Waldorf-Astoria. The ! entire country, it was announced, had gone over the top with a total, tabu- j latfid up to midnight, approximating $144,000,000. New York City con? tributed the sum of $33,434,720. This does not include amounts col- ; lected on the streets and at rallies in j this city yesterday. The complete to? tals for the entire country and city will probably not, be known for several ' days. Gerhard M. Dahl, chairman of th?! Atlantic division, comprising New York, i excluding this city, New Jersey and' Connecticut, reported a total of $17,- ! 724,000. Of this sum the State of New York contributed $8,943,462. New Jer? sey turned in $5,520,000 and Connecti-! cut $3,524,000. 2,000,000 Subscribers Here 1 This city's contributions were turned i ! in by more than 2,000,000 subscribers. The contributions by boroughs were: ! Manhattan .$30.146,94:1 i Brooklyn . 2,364,200 ? j Queens . 373,360 ' i Bronx .125,000 , Richmond. 225,237 I The announcement of the success : of the drive by William C. Breed, the ; chairman of the local campaign, who i presided at the meeting, evoked the : | greatest enthusiasm from the assem j hlage, which was composed of the city's most prominent men and women. '] "On this occasion," said Mr. Breed. I "the patriotic spirit of the city seems to have risen to a height which makes j us all proud to call ourselves New ; Yorkers." Henry P. Davison, chairman of the Red Cross War Council, followed Mr. j Breed. He said: "The spirit of the American people ' I haa been demonstrated by these con ! tributions to the Red Cross in a way | j which will not only benefit the people ' ; themselves, but will thrill all of West- : i ein Europe. Though the Germans are j i carrying on their war with unparal- ? j leled decit and barbarity, we fight ? | with implements which provide for the I welfare and uplift of mankind, and so j ! long as there is a God in Heaven we ; ! will win that fight." Give Cup to Mr. Breed Before the reports of the captains ; 1 were received, a testimonial cup was ? ' presented to Mr. Breed by the team , captains in appreciation of his efforts, ?while Mrs. James A. Burden, who is a i vice-chairman of the campaign, also j was presented with a cup by Mrs. Au ! gust Belmont on behalf of the women ' workers. The announcements contained many I new gifts and surprises. The house-to-house canvass had pro I duced for the week a total of $1,015,906. The 1,000 booths in the city turned in a week's collection or $495,$56. i The profitssharing merchants have \ : turned in so far $162,500. The enter- ; i tainment committee said it had raised 1 a total of $121,988. | The corporation division contributed ? $12,232,625 for the week. The team captains turned in yester ; day $3,063,720, making the total for the ? week $13,317,576. Proclamation Brings $55,000 j The original Red Cross proclamation, ( , with the autograph signature of Presi- i ? dent Wilson, was auctioned off at the i Continued on Page 5, Column 1 400 Class 2 Draft Men Will Be Called This Week ? ? Months before it was expected the j first call to Class 2 men is to be made : this week, it was announced yesterday i at the office of the director of the j ? draft for New York. The call will be for a limited num j ber of men of special oualifications, the j supply of these specialists in Class 1 ; being almost exhausted. The total number to be called is 400, but Class 1 : will be drained of specialists before j Class 2 is touched. If Classes 1 and 2 do not supply the required number ' even Classes 3K and 3L may be drawn upon. , ! All 400 are to be in the army by i next Saturday. , Director of the Draft Conboy re I ceived a telegram instructing him to prepare immediately a statement I showing thv number of men of these I classes availeble in this district. The i statement muet be in the hands of the i adjutant general at Albany by mid I night to-night. ! Draft officials said that they believed lew, if any, married men or fathers of, motherless children would be called. Class 2 contains married men whose families are not dependent and skilled i industrial and farm laborers engaged | in necessary enterprises. The call, ! j therefore, will affect men who have ! I hitherto been exempt on industrial : j grounds and who will be more useful , ? as army workers than as industrial or I farm workers. The following specialists are re ? quired: Sixteen boiler inspectors, 62 ' \ airbrake inspectors, 50 barge men, 25 ! bricklayers, 100 gunsmiths, 100 hos i tiers, 30 locomotive inspectors and 17 I veterinarians. , j Examination of questionnaires will ! be relied upon to show which men are I fitted for these positions. Every regis- ' trant was required to state on his ? questionnaire what trades he was most j proficient in. All the local boards in this district I have been instructed by Director Con-1 boy to make lists of Class 1, Class 2. Class 3K and Class 3L men who are \ qualified to serve as specialists. These j i lists are to be sent.to Mr. Conboy at I once, in order that the men may bel ; notified in time to renort as soldier? ? by the end of this we?. Teutons Advance Five Miles; Claim the Chemin des Dames THE NEW GREAT GERMAN BLOW The second effort of the Kaiser to win the war in the West, by a tremendous offensive before America can arrive in force was started yesterday on the front of about thirty-five miles between Pir.on and Rheims (indicated by arrows). Berlin claims to have won the heights of the Chemin des Dames (Ladies' Road) and reached the vicinity of the Aisne River. The shaded area shows the ground the enemy asserts to have won. General Wood Barred From Duty at Front Relieved of Command of! i 89th Division and Shelved j in Pacific Post (Special Dispatch to The Tribune) WASHINGTON', May 27.??Shelved ! probably for the period of the war, i Major General Leonard Wood, ranking officer of the United States army in point of seniority, to-day was relieved ! of the command of the 89th National Army Division and assigned as com? mander of the Western Department at. i San Francisco by the War Department. ! So Lloyd George s question, "Where > is General Wood?" which he put to several Americans last winter, must ; remain'unanswered. Since he recently was passed by a i medical board as physically fit forj European service, it was thought there j was no question of his going to France I in command of a division. His assign- j ment to "home duties" to-day came as ? a bombshell to his friends, many of whom had shared with army officers the widespread feeling that he would b-j promoted soon to command an army corps and be given the higher iank of i lieutenant general. Secretary Baker Silent Officials at the War Department de- j clined to advance any explanation of j Wood's assignment. "I cannot discuss General Wood's future movements," was all Secretary I of War Baker would say. Adjutant General McCain, whose of- ? fice issued the order relieving Wood , of his command and assigning him to the Department of the West, said that I announcement should come from the Secretary's office. It was learned, however, that it was first planned to make the announce- I ment from the headquarters of the Western Department through Briga? dier General Charles G. Treat, whom Wood succeeds. General Treat re? cently was relieved of his command with troops and sent to the San Fran? cisco post. His new assignment has not been announced. Politics Seen in Action Friends of General Wood in Congress when told of the department's refusal to permit him to serve with American forces in France were indignant. The shelving of the distinguished army offi? cer generally was attributed to politics. It has been no secret that General Wood has been under the displeasure of the President and Secretary Baker since the beginning of the war. Wood was relieved of the post of Chief of Staff by President Wilson in 1914 and assigned to command the Eastern Department at New York. He was disciplined again by President Wil? son and Secretary Baker a year ago, when he was transferred from the im? portant Eastern Department to the Southeastern Department at Charles? ton. S. C. "I'm a soldier, and I go where I am j sent," General Wood said when he was sent to the Southeastern command. He was as much a soldier, refusing to Continued on Page 6, Column r, U. S. Soldiers Repulse Three German Raids Enemy Suffers Severe Losses in Hand-to-Hand Fighting in Picardy ? Ry The Associated Press) AMERICAN HEADQUARTERS ON ! THE FRENCH FRONT, May 27. -Three \ German raids were made against the j American positions in Picardy be- ; tween 6 and 9 o'clock this morning ? and were repulsed with heavy losses to the enemy. The Americans took a ' number of prisoners. The Germans advanced fifty ???.trong , in the centre, 160 on the right and 120 on the left. They were driven off speedily and left many dead in front j of the American trenches. The assaults were preceded by \<io- , lent bombardments of the entire ' American line during which it is <?sti- j mated ten thousand shells, many of ? them gas shells, were fired by the enemy. For a time there was fierce hand-to hand fighting. The Germans took one of the Americans prisoners, but the Americans pursued the enemy and re captured him. The bravery of the Americans may ] be illustrated by the case of a private whose arm was blown off. Dazed, he kept on fighting and did not know he had been injured until a comrade came to his aid. WASHINGTON, May 27. General i Pershings communiqu?, issued to- ? night by the War Department, makes no mention of a general renewal of the German drive, but says after vio- I lent artillery preparation enemy in- ! fantry to-day penetraied advanced I American positions in Picardy at two j points, only to be driven out by coun- ? ter attacks, in which Americans en- ; tered the enemy lines. The communiqu?, dated to-day at ; Expeditionary Headquarters, follows: > In Picardy, after violent artillery ! preparation, hostile infantry de- j tachments succeeded in penetrating ! our advanced positions at two points. Our troops counter-at? tacked, completely expelling the i enemy and entering his lines. In the Woevre a strong hostile raiding party was repulsed with losses in killed and wounded. In Lorraine hostile gas-shell bom- - bardments of some intensity oc? curred. The day was quiet in the ; other sectors occupied by our troops, j In the course of air combats this ' morning our aviators shot down a i hostile machine. Fires at "U-Boat" Off Virginia Capes NEWPORT NEWS, Va.. May 27. It was learned hc-Te to-night that the master of a British steamer which came into port last Wednesday report? ed that he had fired five shots at a '?? submarine 150 miles off the Virginia < Capes. -? German Divisions Mutiny (By The Associated Pr?ts) MOSCOW, May 26.?Two divisions of | German troops in the Dvinsk region re- ; fused to obey otders to proceed to the French front. Prince Leopold of Bavaria came to investigate, and many mutineers were j hanged and dozens condemned to hard ? labor for life. Terrifie Artillery, Gas and Tank Attack Pre? cedes Charge of Enemy Masses Battle Is Raging On 35-Mile Front Withdrawal Made in Perfect Order?Foe Met Stone Wall in North By Arthur S. Draper I Special Cable to The Tribut'') LO?NDON, May 27.-?Germany began her second great offensive to? day. It was a double blow. A tremendous thirty-five mile as? sault from Rheims to the neighbor? hood of Soissons, in the Champagne, resulted in gains on the western part o* the line involved, where the Ger? mans advanced to a maximum depth of five miles and reached the vicin? ity of the Aisne River. At the same time a new attack on the southern hill defences of Ypres proved a costly and disappointing failure. At daybreak, after a night of fierce bombardment, in which gas shells figured prominently, Luden dorff struck as he did the morning cf March 21. Infantry, supported by tanks, moved forward in masses. The main blow seems to have fallen on British divisions recently inserted by Koch between the French troops near Berry-au-Bac. Haig admitted to-night the Brit? ish on the left had been driven back to their prepared second line. Heavy fighting continues. The French night official state ment said the ?Allies had fallen back in good order, killing great numbers of the enemy, who had reached the neighborhood of Pont-Arcy, on the Aisne River, fifteen miles east of Soissons. The German War Office to-night officially announced that the whole of the ridge on which the Chemin des Dames lies had been captured ar.d the troops of the Crown Prince were fighting along the Aisne River, a maximum advance of about five miles. "Nach Paris'" is the cry of thf Gtrman hosts who are attacking o^er the country where Nivelle launched his powerful but indecisive blow in April r*. year ago. Flanders Blow Parried Simultaneously, Ludendorff struck again in Flanders, his onslaughts being made south of Ypre3. ?Accord? ing to Field Marshal Haig's report to-night, the Germans advanced against a front of about six miles, between Locre and Voormezeele, now held by French troops, and at first penetrated the Allied positions in some, spots. Counter attacks by the defenders later in the day almost completely restored the line to its former position. The enemy's objectives are clear? ly defined. In the north Ludendorff is trying to turn the Ypres posi? tions, capture Scherpenberg and de? bouch into the Ypres plains with the Channel ports as the ultimate goal. In the south Ludendorff figures on the element of surprise bringing him bounteous returns. He cal? culated that Foch is unprepared for a shift of the center.of gravity, that the bulk of the Allied armies ia in the north and that he can drive his wedge deep before the poorer com? munications cf Foch can bring relief. Ludendorff lias selected the short? est route to Paris and he hopes to unnerve the French by turning the "Big Bertha" upon the city again. On April 17 of last year Luden? dorff began his communique: "One cf the greatest battles of the mighty war, and therefore also in the history of the world, is in prog? ress on the Aisne." That is the way he reported Nivelle'* attack on a t\venty-iivc-:*iile front. Since then Haig has directed the battle for