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New-York tribune. [volume] (New York [N.Y.]) 1866-1924, May 29, 1918, Image 1

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ALL MERCHANDISE ADVER.
TISED IN THE TRIBUNE
IS GUARANTEED
^etmrn^*^ IT-'_a a.- r
Vol. LXXVm No, 26J.27
Th? Tribute Ai?*n]
[Copyright 1918?
First to Last?the Truth: News ? Editorials -Advertisements
ffirtbtttic
WTBATITB?
Fair to-day and to*ueyrrem. Somewhat
cooler te4M>rn>w. Moderate
north wind?.
Ten Rtpert on Fa?-* 7
WEDNESDAY. MAY 29. 1918
? * ?
mmeewmeemlmm Greater ?w York ?ad 1
iwo ^w ?**????*?? wltlite coMmatin* ?totean? 1
YHKEK CKVTS
Eto-ew-her?
Germans Plunge 7 Miles Beyond the Aisne;
Cut Road to Rheims; Americans Win Town
?Express Lines
United Under
i
U. S. Auspices
George C. Taylor to Head
New $30,000,000 Cor?
poration July 1
Many Employes to
Get Increased Pay
McAdoo Approves Plan ;
Government to Receive
Part of Net Revenue
WASHINGTON, May 28.?One union
express company for the United States
wa? created to-day by agreement be?
tween Director General McAdoo and
the Adams, American, Wells-Fargo and
Southern companies. Their transpor?
tation business will be merged under
a new private corporation with capital
of more than $30,000,000, to be known
probably as the Federal Express Com?
pany. I
George C. Taylor, now president of
the American, will be head of the mw
concern.
After July 1, when the combination
becomes effective, shippers will direct
shipments "by express" without regard
to company, and soon thereafter the
individual names of the separate com?
panies will begin to disappear from
wagons, stations and cars.
The company will be the express car?
rying agency of the railroads, operat?
ing pri.va_l?,_but under contract to
tarn over 50^4 per cent of its gross
revenues?more than $200,000,000 last
year?-to the roads for transportation
privileges.
Employes to Get More Pay
Three smaller railroad-owned com?
panies, the Western. Great Northern
and Northern, may join the combina-!
tion later.
A pending application for 10 per cent
increase in rates, filed before govern- |
ment operation of railroads or the ex- ?
press combination was contemplated, j
will be passed upon soon by the Inter- j
state Commerce Commission.
More than 100,000 employes of the |
four companies are to be retained un-j
der the new corporation, and their,
wages will be raised in many cases, ac-I
cording to Mr. Taylor. The amount ?
will be determined after the scale of ;
wage sdvances ordered for railroad em
ployes is examined carefully.
.Through economies by the common j
?se of wagons, trucks, distributing sta?
tions, city offices, warehouses, rail- ?
road cars and other equipment and the I
simplification of accounting the merged !
companies hope to save many millions i
ef dollars and to render better service, j
Merger To Be Permanent
Though the merger is arranged un?
trer war exigencies, it is planned as
permanent and accomplishes the ob- !
jeet which for years has been discussed ;
I is vain.
Last year the four leading companies ;
barely made expenses, and the Adams j
recorded a deficit. Early months this ?
year showed even a worse record, ow- ?
mg to the genera] demoralized condi- '
t'ons of railroad transportation, the
rising cost of materials and shortage
of labor.
Some officials of the companies
sought to have the railroad administra?
tion take over the companies, along
with the railroads and guarantee the
"?verane pre-war earnings, which would j
have been about $3,700,000 a year, but |
Director General McAdoo declined to I
.extend his field of operations to this 1
extent. j
The new concern's name will be the .
federal Express Company, unless ex- !
?sting small companies with that name.
in two states object. It will have stock
of $30.000,000, representing the actual i
value of properties -moled, and, in ad?
dition, enough stock to provide ample
working cash. j
Distribution of the Stoc.k
The ?tock win be ^?tribute?! among!
me lour companies according to the i
comparative value of the properties
I they contribute, to be determined after
wurther valuation proceed)nuts. Each of
'the companies will continue its finan?
cial business, auch as dealing in money
orders, foreign exchange and limited'
eanking, individually, and with the I
union company as their agent. The
?rporate identities of the companies'
Will be retained.
Out of the 49*4 per cent of gross
earnings retained the union corpora?
tion will pay operating expenses, taxes
snd dividends of 5 per cent on its cap
it?! stock. Out of the next 2 per cent
?vailable for distribution the company
will receive 1 per cent and th? govern?
ment 1 per cent. Out ?f the next 3
Per eent the company will get 1 per
?sent and the government 2 per cent.
One-fourth of amounts above this will
be distributed to th? company and
thr?ij?-foarths to the government.
"The express company is given s
continuing inducement to accomplish
?he greatest efficiency snd economy,"
a?id the railroad administration, "and
yet the government will enjoy an in?
creasingly great proportion of the
benefits of all such efficiency and
* ?fonemy."
Taylor's Rise 8p?ectacular
The express company will be per?
mitted to use station agents and other
railroad employes Jointly, with the
?roads, bet their compensation will be
pstd entirely by the railroads which
will be reimbursed by the company?
The fou?* companies now have an ag?
gregate capital of $57,000,000 ? $24,
Cofitinued on Page 6, Column 2
! Berlin Boasts About
Two Lone Americans
<?y The Associated Pre??)
WITH THE AMERICAN
ARMY ?N FRANCE, May 28.?
I Two lone Americans gave the
[ Germans an opportunity to men?
tion the capture of "prisoners
from American regiments" in the
German official communication
\ to-day.
One of the Americans is miss
| ing in Picardy and one in the
Luneville sector. These are the
only men reported missing.
Plans to Pass
RevemieBill
In August
i
Kitchin Charges Publish?
ers* Plot to Modify
Postal Rates
WASHINGTON. May 28,-Congress
to-Tiight apparently had found a way
to provide the new war revenue legis
1 lation insisted upon by President Wil
I son without abandoning entirely its
long cherished plan to get out of Wash?
ington for a summer vacation.
Leaders of both parties joined in
; conference over a programme proposed
by Representative Garner, of Texas, a
Democrat, of the House Ways and
Means Committee, and it was given
general approval. The plan contem?
plates prompt action on pending appro?
priation bills, to be followed about ;
June 15 or 20 by a recess of both
houses until August 1, while Jihe WayB
and Means Committee frames the reve?
nue bill. After passage of the measure
by the House, probably about August
10, the House would recess for thirty
days to await action in the Senate.
Believe Wilson Willing
This programme has not been dis?
cussed with the President or Secretary
McAdoo, but leaders at the Capitol are
taking it for granted the Administra?
tion has no legislation of imperative
importance to bring forward, and that
their plans will not be interfered with
so long as work on the revenue bill
goes ahead.
Mr. Garner's proposal developed dur?
ing a day of private discussion on both
sides of the Capitol, reflecting the
general reluctance on the part of
everybody to settle down to an all
summer session. Mr. Garner said it
had been agreed to by Republican
Leader Gillett, Representative Moree,
of Pennsylvania, and other Republican
members of the Ways and Means Com?
mittee, Representative Sherley, of Ken?
tucky, chairman of the Appropriations
Committee; Chairman Simmons of the
Senate Finance Committee, Republican
Leader Gallinger, Senator Lodge and
other Republicans of the Senate.
Submit Plan To-day
The plan will be submitted to the
Ways and Means Committee to-mor-1
row, when the committee meets to pre?
pare for hearings soon to begin on
the new bill, which probably will levy
about four billion dollars in additional
taxes, largely upon incomes, excess
profits and luxuries. The Democrats
of the committee probably will frame
a tentative draft, upon which the en?
tire membership will build the bill
after hearings lastin-fe a fortnight or
more.
Representative Kitchin, of North
Carolina, chairman of the Ways and
Means Committee, made a speech in
the House to-day explaining his atti?
tude toward immediate revenue legis?
lation and charging that a powerful
lobby, working for revision of the new
zone postal rates on newspapers and
periodicals, was responsible for the de?
mand for keeping Congress in session.
He declared the lobby hoped to have
the Senate put en amendment repeal?
ing or modifying the zone system law
in the revenue bill, and to keep it
there by getting the President or the
Secretary of the Treasury to insist
upon the House conferrees yielding
I when election or adjournment time ap
j proached.
Explains Urging Delay
j Mr. Kitchin explained his position as
! to revenue legislation. say<ng he
wanted to show he acted in good faith
i recently in trying to induce members
of both political parties to postpone
? action. His efforts to have Congress
? &$io* r,n ^nd take UP the legislation in
j the fall, he said, were due to the atti?
tude of the Administration and the
Treasury, which as late as March 16
I notified, him the legislation was not
: desired now.
"I do not think that the Secretary of
the Treasury thought it was necessary
to have this revenue measure at this
session until his return from the Lib?
erty Loan campaign," said Mr. Kitchin.
"In fact, I know he did not think it
was necessary when he began that
campaign.
"But r think, after goinsr out in the
campaign, seeing the situation from
another viewpoint, and after getting
to Washington with a closer eye upon
Treasury conditions and learning the
demands of the different departments
for enormously increased apnropria
tions, he became unduly alarmed and
cave undue weight to the opinion of
Treasury officials, and was convinced
Continued on Page 6, Column 3
i
U.S. Troops
On Offensive
In Picardy
They Capture Cantigny
Village and Take 200
Prisoners
I Counter Attacks
Are Beaten Off
j Pershing - Men Drive For?
ward on Front of Mile
and a Quarter
(By The. Associa ted Presa)
WITH THE BRITISH ARMY IN
| FRANCE, May 28.?The American
troops on the French front near
Montdidier delivered an attack
i against the German positions,
fought their way through all objec
| tives, including the village of Can
j tigny, and captured 140 prisoners.
The American attack was along
a two-kilometre front, and it seems
to have taken the hard hitting
Americans just about three-quarters
of an hour to complete their con?
quest, .-which included that amount
of territory as well as the village
of Cantigny?an exceptionally short
time for such an operation.
This remarkably fine showing
comes as a fitting companion piece,
to,.,the_bri]llija-it work done by the
United States soldiers in repulsing
an enemy assault made against them
in the same region yesterday. One
American division was attacked at
that time, and the graycoats met
with a complete reversal at all
points.
This enemy attack was not a
heavy one, however, and was easily
dealt with by the Americans, who
had the situation well in hand at all
times.
Word of these two victories has
added much to the very favorable
impression which the American ?
troops already have created along
the British front. It was a fore?
gone conclusion that the Germans
would make the newest of the Allies
along this front the object of an
attack, in an attempt to push them
back and thereby create a feeling
that they had formed a weak link
in the defending chain.
The general opinion of the way
in which these American troops
have handled themselves in the last
two days seems to be summed up in
a comment made to the corre?
spondent this afternoon by a French
liaison officer.
"Magnificent!" he exclaimed with
j delight. "That is the sort of stuff
ve will give the Boche."
"Americans Are
Wonderful!" Cry
French Soldiers
(By The Associated Press)
WITH THE FRENCH ARMY IN
FRANCE, May 28.?In the'brtfliant !
action noted in the French official j
communication, an American regi?
ment captured the village of Can?
tigny, and also a salient 2,000 yards
wide and 600 yards deep, in addi?
tion to 170 prisoners.
The Americans left their trenches
at 6:43 after a heavy artillery
preparation and covered the 600
yards in 10 minutes. They carried
machine gun positions with hand
grenades. French tanks cooperated. I
The houses and cellars in the vil j
l?ge were captured":
The Americans reached the Ger?
man second position and consoli- j
dated themselves within three-qcar-J
ters of an hour. French troops |
witnessing the operations exclaim-j
ed : "The Americans are wonder-1
ful." ?
LONDON, May 28.?"Great satis?
faction is expressed among the
British troops at the news of the
successful attack by the Americans
near Montdidier," says Reuter'a
correspondent at headquarters.
Severe Losses
Inflicted on Foe,
Pershing Reports
WASHINGTON, May 28.?Amer?
ican troops in Picardy attacked this
morning on a front of one and a
Continued on PagfS, Column 2
?4
Pershing Said
ToHLeKep.
Wood at Home
War Department Silent on
Shelving of Senior
Major General
Awkward Position
For Administration
Washington Generally Be
lieves Big Job Will Be
Found for Officer
By C. W. Gilbert
WASHINGTON, May 28.?General
Wood saw the President shortly after 6
o'clock to-day. Afterward the general
said he was a soldier and would obey
orders.. The White House said nothing.
The War Department would explain
nothing.
The* nearest to an official* explanation
of the sudden change of orders to the
senior major general of the army came
from a member of the Cabinet, who
said that "there were good military
reasons for it which the public would
approve if they could be given," a state?
ment which fits in with every possible
theory#of what has happened, and there
are many.
Secretary Baker, who appeared less
Jaunty than usual, strove, nevertheless,
to pass off the change of orders to
Wood aa an ordinary incident which
ran on all fours with a similar change
regarding General Franklin Bell. No
one who heard him was convinced.
General Wood has asked not to be
sent to San Francisco, but to be re?
tained in command of troops preparing
for France. Probably his request will
be granted.
Perahing Said to Have Objected ,
The order relieving Wood of his com- j
mand was sent to Camp Funston. It
failed to reach him there, but overtook
him on his way to the Coast. That is
how the extraordinary circumstances of
his removal just as he was about to
embark arose.
As for conjecture, the best guess, the
one moBt consistent with all the facts,
is that General Pershing objected to
the sending of General Wood to France,
and this forced the Administration to
change its plan.? after it had ordered
him abroad.
There is reason to believe that mem?
bers of the administration put out this
explanation, but there is no positive
evidence that they did. Against it lies
chiefly the belief of General Wood
himself that Pershing did nothing of
the sort. ?*\nd General Wood only re?
cently has returned from France, where
he was in contact with General Persh?
ing.
The theory that General Pershing
prevented General Wood's going to
France rests on the difficulty of be
Continued on Page 4, Column 3
1
FocKRushing
Reserves to
Danger Point
Allies Outnumbered Ten to
One When Al-sne Drive
Opened
300,000 Germans
Engaged in Attack
British and French, Re?
treating, Leave No
Booty for Foe
{By The Associated Press)
WITH THE FRENCH ARMY IN
FRANCE, May 28.?At least twen?
ty-five German divisions to-day
joined in the attack and forced fur?
ther back the few French and Brit?
ish divisions holding the line.
Tanks, machine guns and poison
gas shells were the principal factors
in the advance, aside from the nu?
merically superior forces of the
Germans.
Notwithstanding the smallness of
the Allied armies, they did their ut- ?
most to stay the immense push of '.
the enemy troops, ten times their
number. The German advance,
wnTcK 'was"<one of the most rapid
since the beginning of the war,
could not be held, however, as wave
after wave in dense lines came for?
ward.
Reserves Rushing Up
The Western Allied flank has
maintained its positions well, and re?
serves are hurrying toward the dan?
ger point of the greatest advance.
The retreat of the French and
British was made in orderly fashion,
the troops destroying their mate?
rial as they left or taking it along
with them. The army staff still re?
tains the fullest confidence in the
outcome of the battle.
The Germans,' executing a repeti?
tion of their tactics of March 21,
threw overwhelming ' forces which
they had brought forward during
the night on to the lightly held posi?
tion extending from the westward
and of the Chemin-des-Dames to
Courcy, near Brimont.
Open With Gas Attack
Among the twenty-five selected
German divisions which partici?
pated in the onslaught were two
Guard divisions. The attack was
preceded by the most intense bom
Continued on next page. Column 6
Germans Try to Wreck American
Hospitals Behind Picardy Lines
(By the Associated Press.)
WITH THE AMERICAN ARMY IN FRANCE, May 28.?Shortly
before the American attack to-day the Germans again attempted to
shell American hospitals behind the American lines. Two high ex?
plosive shells fell one hundred yards from one hospital. All patients
able to walk or to be moved sought safety in shelter trenches.
The first attempt to wreck American hospitals in the rear of the
American lines in Picardy occurred Sunday afternoon, when the Ger?
mans hurled high explosives and gas shells within a few hundred
yards of two hospitals. Fortunately, no damage was done.
By a coincidence the bombardment was going on while American
funerals were being held. Several shells fell a 3hort distance from
one funeral party, but the ceremony was not disturbed.
German attempts to carry the warfare to American sick and
wounded began about ten days ago when, with the advent of a new
moon, enemy airplanes circled over the little villages where it has
long been known hospitals were located and dropped bombs. Several
civilians were injured in a recent air raid while not far from the
American hospitals. They were asleep when the attack began, feeling
secure in their proximity to the hospitals.
Much indignation has been caused among the soldiers and civi?
lians over the air raids and Sunday's bombardment. It was not the
fault of the Germans that those in the hospitals were not killed and
wounded as .were those in the British hospitals in Flanders recently.
The only comment of the sick and wounded American soldiers is
that they want to get out as soon as the doctors will permit so as to
strike back at the Huns.
Hospital Raiders Cause 300 Deaths
LONDON, May 28.?Andrew Bonar Law, the government
leader in the House,of Commons, said that 300 casualties to hospital
cases had been caused by the bombing of British hospitals in France
by German aviators.
15,000 Prisoners Claimed
By Berlin; Foe Crosses Vesle
THE BLOW ALONG THE AISNE
In their continued advance yesterday the Germans crossed the Veale
River between Fismes and Bazoches. Their gains in the second day's fight?
ing are indicated by horizontal lines. Monday's gains are shown by diago?
nal lines.
The Official Statements
BERLIN, via London, May 28.?The text of the official communica?
tion from General Headquarters to-day follows;..^_nr
NIGHT.?We are now fighting for the Vesle sector between Soissons
and west of .Rheims, and have captured the southern bank on both sides
of Fismc-s.
Our attack acrobs the Aisne is being continued, and yesterday's suc?
cesses have teen further extended.
DAY.-?On the Kemmel and Lys battlefields and on both sides of the
Somme and the Avre the artillery duels increased in intensity yesterday
morning. Between Voormezeele and Locre we penetrated the French lines
and brought back more than 300 prisoners.
The attack of the German Crown Prince to the south of Laon led to
complete success. We completely defeated the French and English divi?
sions stationed there.
The army of General von Boehm took the Chemin-des-Dames by storm.
The long ridge, against which the great attempt of the French to break
through collapsed in the spring of 1917, and which we evacuated in the
autumn of last year for strategic purposes, is again in our hands.
Afler tiemendous artillery preparation our infantry at daybreak found
their way across the Ailette River, between Vauxaillon and Craonne, and
penetrated the English lines further east between Corbeny and the Aisne.
Completely taken by surprise, the occupants of the first enemy lines gen?
erally offered only, riight resistance.
In the early hours of the piorning, Pinon, Chavignon, Fort Malmaison,
Courteton, Cerny, the Winterberg and Craonne, the Villerberg and forti?
fied works i-ear and to the north of Berry-au-Bac were taken by storm.
roward afternoon we reached the Aisne between Vailly and Berry
au-Ba:. Vrilly wa3 taken. The crater field of last year's spring and
autumn fighting was thus captured in uninterrupted attacking pressure.
In the afternoon the attack continued. Between Vauxaillon and Vailly
we are on the heights near Neuville and Laffaux and north of Conde.
Beiweeji Berry-au-Bac and Brimont we crossed the Aisne and carried
the battle into an srea which had remained untouched by the war since
1914. The enemy was again driven from the fortified wooded heights on
the southern bank of the river. Between Vailly and Beaurieux we reached
the heights due north of the Vesle River.
Th?> army of General von Below threw the enemy out of strong posi?
tions h* tween Sapigneul and Brimont back across the Aisne-Marne Canal
and the Western bank of the canal, and took by storm Cormicy, Cauroy
and Loivre.
Up to the present 15,000 prisoners are reported.
Between the Meuse and the Moselle, on the Lorraine front, the fight?
ing activity revived, Advances into the enemy lines resulted in the bring?
ing in of more than 150 prisoners belonging to French and American
regime r.ts.
Allies Reestablish Line Northwest of Kemmel, Haig Reports
LONDON, May 28.?Field Marshal Haig's reports from British
Headquarters in France to-day said:
NIGHT.?Counter attacks carried out early this morning by French
and British troops successfully reestablish our lines east of Dickebusch
Lake. Several prisoners were captured in the enemy's attacks yesterday
morning in this sector and to the south as far as Locre four German divi?
sions are known to have been engaged.
In the course of the fighting heavy losses were inflicted on these divi?
sions. The Allied line has been maintained at all points.
On the remainder of the British front there is nothing to report be?
yond artillery activity on both sides in the different sectors.
DAY.?Continuous pressure was maintained by the enemy all day yes?
terday against the British troops engaged on the Aisne front, and severe
fighting is still taking place on the whole front, of the British sector.
On our right the 21st Division, in touch with our Allies, held the bat?
tle positions throughout the day and successfully withstood the enemy's
attempts to advance. In the centre and on the left of the British sector
troops of the 8th, 50th and 25th divisions by determined resistance main?
tained the second line positions against the enemy's assaults until a late
hour. 0
Toward the end of the day the weight of the enemy's attacks carried
his troops across the River Aisne to the west of the British sector and
compelled the left of our line to fall back. The enemy is developing his
attacks in great strength along the whole of the Aisne battlefront.
On the Lys frpnt local fighting was recommenced this morning in the
east of Dickebusch Lake.
On the remainder of the British front a number of prisoners have been
taken by our troops in successful raids carried out at different points dur?
ing the night, and the artillery has been active on both sides.
Fierce Fighting Between Vesle and Aisne, Says Paris.
PARIS, May 23.?The War Office to-day issued the following:
NIGHT.?Last night and to-day the enemy, taking advantage of his
numerical superiority, renewed his thrust more strongly southeast"'of
Soissons. On our left we counter attacked vigorously, stopped the Ger?
man advance and broke up attacks on the heights of Neuville-sur-Margival
and Vregny, northeast of Soissons, and on the heights in the region of Ciry
Salsogne and Vasseny, dominating the Vesle Valley.
The principal effort was directed toward rolling back the centre on the
.4 Continued on next page, Column 4
Outnumbered Allies,
Fighting Stubbornly,
Fall Back Across
Plateau
Attack Continues
On 20-Mile Line
French and British Re?
gain Lost Ground in
Region of Mount
Kemmel
PARIS, May 28.?The situa
il tion to-night is more reassuring.
| The latest advices from the front
show that while the violence of
? the enemy's effort as yet is un?
abated, he is only making head?
way on the centre, and that even
there the German momentum is
giving signs of slackening.
The Allies are beginning to re?
act with effect on the wings.
! The French left is holding well
and blocking the ?German attempts
to widen the salient toward Sois
sons. The French retain a wide
bridgehead north of the Aisne
j above that city?a circumstance
j highly menacing for the enemyV
? flank. On the right the British
j still cling successfully to the
group of hills north of the Veslo
; River.
By Arthur S. Draper
(Special Cable to The Tribune)
LONDON.. May 28.?The Berlin
communiqu? to-night is a pecan of.
victory and is couched in language
to inspire the Germans with en
thusiasm for the Hohenzollern
dynasty. This is the Crown Prince's
battle and he is getting the credit
from the very outset.
General Ludendorff states the at?
tack proved a complete surprise and
that the Allies offered little resist?
ance, the first line on the Aisn?
River being reached early in the af?
ternoon of yesterday.
There is no doubt that General vor
Boehm's army struck with a tre?
mendous force and advanced with
an amazing rapidity, reaching the
country between the Aisne and the
Vesle before nightfall, while Franz
von Below's army, striking west?
ward to the north of Rheims, capt?
ured Cormicy, Cauroy and Loivre.
The Germans claim to have taken
15,000 prisoners the first day, but
make no mention of the number of
guns captured.
The German armies today drove
the British and French back along
the twenty-mile front between Vailly
and Berry-au-Bac. Greatly outnum?
bered, the Allied forces wer? forced
to fall back rapidly.
Putting their greatest forces
?gainst the centre of the Anglo
French line, the Germans pushed
their way across the plateau that
rises between the Aisne and Vesle
rivers. Late to-day they had suc?
ceeded in crossing the Vesle River
at several points near Fismes, the
French War Office stated to-night.
Fismes Vital Point
The loss of Fismes, an important
railroad centre on the north side of
the Vesle River, would be ?serious.
By its capture the Germans could
cut off Rheims from the west and
seriously cripple the Allied commu?
nications in this sector.
Measured between Poht-d'Arcy,
the point' where the German armies
crossed the Aisne yesterday, and
the vicinity of Fismes, where they
crossed the Vesle late to-day, their
gains have a maximum dep-.h "of
seven miles. Berlin reported to?
night the capture of 15,000 pris?
oners.
Already the force of the French
and British reserves, which have
been drawn up south of Fism<?, Is
coming into play. Following up his
policy of exacting a maximum toll
from the advancing German? and
withholding his own reserves, Gen?
eral Foch has given ground rapidly
to-day, but n?t without results.
Powerful forces are being rushed

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