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tlon In the enet wns Issued here to-day!
In the Kastern Theatre The vil lage of Kopaczyska, which we recap tured the day before yesterday, wns evacuated again yesterday. (Kopa czyska In n town on the Omulew lllver, clxtien inlleii northwest of Ostrolenka, Poland.) Southeast of Hchocrczele, In the neighborhood of the village of Stegna, our troops penetrated, nfter MUbborn lighting at clone quarters, Into a part of the enemy's line and established themselves there. In the .Southeastern Theatre Troops under den. von Woyrech crossed through territory south of the lira during their pursuit. The nltunlloti In the army under Field Matnluil von Mackcnscn gen erally Is unchanged, Northwest of Halloa part of the rmy under Oen. von Llnslngen had to be wlthdiiwn before superior enemy counter attacks at Mnrtlnow toward the southern -bank of the Dniester. Further up the stream wo arv making progress In our attack, the left wing of the army standing at Chodorow, TEUTONS TAKE TOWN. Vienna Sn South llnnk of nn Clear nf Fne. Special Cable Dettmieh to Tns St'X. Viiinna, via Amsterdam, June 25. The follow Int.' nllltinl statement regard Ing the operations In the eastern theatre of the war wns Issued here to-day: Between llallcz and Kurawno the fighting is proceeding. Russlnn coun ter atrieks on the north bank of the Dniester have bcn repulsed and our attack Is progressing. We captured Ghodorow yesterday. The situation on the Dniester below llallcz and near Itawa Kuska Is unchanged. The south bank of the San Is cleat ed Of the enemy. Allied troops are pursu ing the ltusslan forces retreating to ward 'awlchost, Ozarow and Slenno, Foland. TURKS HOLD OFF RUSSIANS. Conatnnt Inople Iteports (tepulse of Attnck In t'nurnsus. Special Cable Detpntch to The Scn. Lonpon, June 25. The following Turkish official statement was received here to-day from Constantinople bv way of Herlln and Amsterdam: On the Caucasus front, near Kole boghaz, one of our divisions repulsed on Wednesday evening an enemv at tack which endangered our rear guurd. and the enemv was compelled to re tire on Koleboghaz. On the Dardanelles front there have been Intermittent weak aitlllerv duels at AvI rtiirmi and Sedd.el-Bahr. The situation on other fronts Is tinaltered. GERMAN TROOPS WORN OUT. &00,0(in Soldiers Sent Home tor Two Months (teat. Special Cable Despatch to Tms Sui lxNPON, June 25. According to Swiss despatches, 200,000 Prussian, Bavarian and Austrian troops In Gallcla have been sent back to their homes, terribly exhausted by their long fighting In the burning sun. Fresh troops have gone to replace them. Army doctors aay two months rest Is Imperative. Germany will be able to place "50.000 new men In the Held by the end of July, These consist of Landsturm and Inland reserves, but It Is figured that they wilt not exceed In number those who must be sent home from the east ern front to recover from the hardships of the Gallclan campaign. THREE BRITISH VESSELS SUNK. Fourth Victim of flnbmnrlne Dnr InK Week Itrarhrs Port. Special Cable Detpatch to Tnr. Sen. Lonpon, June 25. The official state ment of tho Admiralty Issued to-day says that during the week ended June 23 three British merchantmen of an ag gregate tonnage of 5,261 were sunk by German submarines and that one tor pedoed merchant ship reached port. Two fishing boats were nlso sunk. The total arrivals at all ports of the United Kingdom reached 1,469. BRITISH OFFICERS DECORATED, Bnbninrlne Commander (Jrts V. C. and Three Llrnlrnsnli D. 9. O. Special Cable Deipntch to The Scn'. Ionpon, Juno 25. It Is offlclallv an ttounced that Commander Nasmlth of the submarine K-14 hns received tho Vic. torla Cross and Lleuts. Dowly, Hughes and Robert Brown of the same vessel tho Distinguished Service Order for de atroylng a Turkish gunboat and two transports and four other vesBids In the 6ea of Marmora. $1,120,000,000 WAR BUDGET IS VOTED French Chamber, 102 to 1, Grants Money for Xext Three Months. Paris, June 25. The bill appropriating 5,1100,000,000 francs (Jl, 120.000,000) to cover the expenses of the French campalgn for three months beginning will not In the future follow the Pope's ject tu change, I am authoritatively In Jul) 1 was pasred in the Chambtr of ' Initiatives for the exchange of war prls- formed, contains the fnllow'ng rcprcsen nenutlrs to-day bv a vote of 492 to i I nmr or other proposals connected with I ttlons : - ' - T-e tlml parsage of the hill was mad notable by a speech by Minister of Fi - nance Rlbot. who bald he could affirm Iincc more that the people of France will go to the end In the war, no matter how long 1' may last, and that In the mli't of her stress ana strain France had taken a vow which she will keep The country would i eject Indignantly any one showing weakness. Speaking of the bill. M Rlbot de dared that the French people are loyal to their Governmtnt, the public sub scription to the rentes In April amounting to J l!i') ooo.ooo nnd In May to I201,00, Ooo all nation il defence bonds. M Rlbot said he recognizee the ne cessity of France buvlng as little abroad as possible III the Interest of economy. This would also lend to facilitate ex chanye I'p to the present time there had not been the least monetary de preciation French eiedlt Is Infict and' the republi feels no embarrassment, notwithstanding the demands. In contrasl to tho scenes of disorder of yesterday the governmental address to-day was listened to In silence. Kveii the Morlallats letnulnul quiet and with one exception supported the bill. Iieputy Ilrdnupe, speaking for the Socialists, do. elaied they would vote money until the last Invader had been driven from French territory. Germany Presses Clnlin nn Milan llnly. Ilnninur Lonhon, June 25 A wirebus des patch fiom Berlin gives the following simeincm wsu'M by the Overseas News Agi ncy "Germanv has i...a,i.i u,.u. .. . n J " nailiili liovein- a, ZZ 1,V G.'.rm3,d,,H1nL! Hit Milan loll a tho tin o Uly vvis enuring the war." y tt SAYS RUSSIAN REVERSE MEANS PERIL TO ALLIES New German Drives at Paris and Calais Certain, Writes Sir William Robertson Nicoll Munitions Problem Grave for Britain. Special Corretponience to Tn Sis. Ixnpon, June 15. One of the most re- murkable articles on the war appear , ,. In the ltritlth Weekly, from the pen of Sir William Robertson Nicoll. I Brief I extracts from this article have, already been cabled to This Hun. Sir William, a leader of the Nonconformists, one of the ablest, coolest and shrewdest of writers, hns exceptional means of know ing what he Is writing of. He deals with the probable effect of the ltusslan reverses, the danger of the British shortage of munitions and the position of Mr. Lloyd Ueorgc. He hints that the new Minister of Munitions will J Insist on a perfectly free bnnd or will iree iiauu ur i e states that It Is that it is otherwise resign. II not only possible but also probable that the coalition Government will seek a national mandate In a general election. Kxtracts from Sir William's article fol low : L'rltlenl Period Near. "It Is not the duty ct our people to b dispirited and anxious, but It Is their duty to be prepared. To Hatter the vanity of the nation Is mischievous, but It Is necessary to keep up their heart. We have such faith In the Hrltlsh people dm to be confident that they love to face the facts, and that they will meet them In the old spirit of courage nnd hope. "We may say with certainty that th-J next three months of the war will ba extremely critical for the Allies. Jour nalists arc now free to Indicate the possi bilities of the situation. Mr. Lloyd Otorgc has enabled them to write about munitions without being Intimidated by press censors. It Is not permissible to stat halt of what Is known, but It Is permissible to state what Is necessary. George Lambert, late Civil Lord of the Admiralty, said In the House of Com mons: "'Apparently the Ordnance Depart ment of the War Ofllce have failed In their duty, and I am sorry for It." " "We find ourselves In this position: The superior strength of Germany In munitions of war has given her a sec ond great opoprtunlty of which she will take full advantage. Our nation passed through the tlrst crisis of tho war with out half comprehending the danger. It will not be possible for her to pass through the second crisis without being aware. Germans Prep to (Jo West. The reverses of the Russians seem likely to set a million of the very best i.erman troops free to net on the often slvo In the west. This Is the Cardinal rh... e. m v . , . Tvr.nl Z t?;ned nBHlI" 1 the French and against tho congested area now ocrunleil hv Ilrltlh ir,,.. i They win be powerfully supported bv munitions ot Svery ' k nd '"To"' moral ' barrier will prevent the most cruel and , reckless employment of every weapon. ...J ""W m,il rurtti lime IU I m.ef tilmo.. riilti- -il.l. II , liquids will be freely useJ. The Ger- J mans put much faith In gas. and they will apply It on the great scale. They are almost certain to attempt an Inva sion. In short, whatever may be Im agined about the ferocity of their at tack will In all probability come true. "All these things will happen while we are yet lamentably short of muni tions. It does not seem conceivable that we can take the offensive uwon land. The peril thus Involved Is man! fest. We may be sure that Germany still hopes to reach Warsaw. Paris and Calais, and the most determined efforts will be made to attain these ends. But the Germans have already .deceived themselves, and they may deceive them selves again. Their early plans L-irgely n.lscarrled and we hope and believe they will miscarry a second time. "Again, when we come to our mag nificent ally France our confidence re. vlves. The unanimous report of those who know Is that the French army Is splendidly led and splendid In Its sol diers. What Is about to take place, or rather let us say, whatever may take place, has hecn foreseen and provided for. The French are confident of their power to resist any attnck, however formidable. No nation has more swiftly Increased In eltlclency, In discipline. In power and skill during tho war than the French nation. "Our own men In the field are all we could desire, all we could hope for. They have Miffered very heavily, but have maintained throughout the attitude of confidence and Joy which befits brave I men fighting In a rlghteotw cause. Their ALLIES ASK POPE TO ; RETRACT INTERVIEW; Jlritish Envoy Says His Coun try Will Otherwise Abandon Vatican Initiative. Rome, June 25. According to reports In diplomatic circles Sir Henry Howard, the British envoy to the Vatican, has notified the Holv See that Great Britain , ,Ha t n ... filial IB rnrmn v nuaiiru, j wr unless she Is formally assured ' that the Pope's attitude Is not Influenced B' ,, , . ... . . , .ST the l'ngllsh Benedictines, has been re ceived In audience by Pope Benedict The Cardinal ptotested against the Inter vctw with the Pope published In La Liberie and urges a retraction. The en voys of the Allies also urge the Pope to retract the Interview. CLEMENCEAU IRONICAL. Snys rope's l.ument for -Noble tinnrd In .Not fhrlstllUe. Special Cable Hetpalch to Tnr. Svi Paris, June 2.1. M. Clemencenu In hla newspaper, ,7omim J.'ni'iniiir, makes i this comment on the Interview with Popo Benedict published 111 Lit .Ihrtfr "The Pope tranquilly replies that Bel glan neutrality was violated under hlH predecessor's pontificate In the, same tone as a new tenant says that the cost of the lepalrs of this chimney should fall on a pievious tenant. According to tho Pope the Vatican Is to become a tribunal again nTter the war." ' M flenieiieeau refers sarcastically to ' the Pope's lament that his Noble Guard has been taken, adding : "Dost heal, thou of Golgotha, whoso only knowledge of soMleis was the thrust of their Inner 7" Germans Get New Word of llnte. Special Cable Dchpalch to Tin: Si v. iNmhtkiiham, .limn 25 According to the iicrnn novvspiipn;, "Gott siuife . o. ..i ...i. ..." . . V' . " . .7 .. "'.". ' 1 If 111 fill II. IN LMllMt WAV In .1 lint.. , n, ,, tu,.,,,- i4 ii mi; 1.111111-11 wild! "lllilek," vvlilcli Is composed of the llll l.'iVnin 'is.,',!!'' 7,'" ,W,"'",-f "?.""" K, In t " 111, ,, .' ''''',' ' ': il,'1. t "A ?" Principal thlnt U that England (eta a betln." i weakness Is still In ammunition. But It may be remembered that ammunition. jn?Cf, '"''P.fjl1''le,'"r ,,,Ien1''e nufl)08'!"' i m.iy be effective for defensive purposes, I, ...a .... ,,. ,,,.. ,. . ,. provided. If they are decently provided we ate persuaded that they will give the i best possible account of themselves against any adversaries. . lelr Already Cosily. 'Hut the ultimate Issue of the war still depends on ourselves. It depends . Z" ""'I1':1 -...Mi ..,.. -ill.. .. .. ' . 1 " tlons. Mr. Llovd Gcome's sneerh.-M nt uui en, iii me iiiun hi muni- Manchester and Liverpool have done omethllng. and perhaps much, tonrouse ,,,,," "V,.. . u1 V.'1 ?.c "." y. ih,t,.,.0 ....... n. i.. u . , .. . . . h . hrS V- -ifi. ?UU lte. ,oM i hi tifarprt frankly that we had not ' exerted and were not exerting one-half oi out run power, though on the exer tion of our full power dependa the fu ture of the war and the fate of the na tion. He himself accepted the new post, of Minister of Munitions, nnd he Iib been called to It by a nation unlversallv of opinion that If he cannot accomplish the titanic task no one else can do It. "We do not need to enltrite on his proposals. The Industrleb must become practically .State Industries, and as Mr. Lloyd George said, 'the .State control of labor shall Insure for the benefit of me fltate anil not of the employer.' Much i fuwi has been made about the word 'coin- pulsion.' We have compulsion nlready under the defence of the realm net. Km ployers can be and are called upon to surrender their works and to chnnse the form of their manufactures. This Compulsory power must be exlenrte,! 1,1 the whole of Industry to employer nnd normnan anae. We must all take our part In home defence In any form of service which can be rendered by men above or below the military age, or by women. If wo had done this eight months ago the war would practically have been ended. Our terrible short coming Is no doubt due to an almost fanatical hatred of new Ideas on th part of those who have acted for us, and who can act for us no more. We refer to those Individuals known as cxpertw.' "Somothlns must be said on the dis cussion In Parliament on Monday. Kor ourselves we are convinced that It will not be neeessnry to use the latent und last power of the State. When tho work men thoroughly realize that they are not laboring for the enrlcnment of employ ers but for the salvation of the people they will do their duty. What Is wanted Is that they should enlist freely In the service of tho .State. When they enlist fhV wilt ha lr.nl.,1 am t,AlV Unit.... on the Held are treated. They will prac tlcauy be subjected to military dlscl- J111"- Th- ' remember that what- crI mune u is noi com- parablp w,,h ,he a"'n " by tho-o JTZ"". -T i , ,Ur i",0" "m L Tr, T I eV- . I, rJ" 'he wlU be "Wtthcly secure. ' mm- . Time to Lose." "What convinces us that the workers will play their part Is that so many of them have sacrificed all to go out. Will their brothers at home break their faith with th dead and with tlnve wha are In Jeopardy every hour? We aro persuaded better things of them. "But there Is no time to lose. Un less the rally Is speedy It may be use less, and the empire may be destroyed. It follows that Mr. Lloyd George must have Ills chance. He knows better than any one how instantly and closely the problem presses. He cannot nfford de lay. He must have his opportunity. To carp him In the midst of his mighty task should be regarded as a work of an , enemy. We will go further. If Mr. Lloyd George finds that he Is hopelessly hampered by conditions Imposed upon J him by the Government, or more likely by the House of Commons, he will and he should refuse to go on. "We speak without special 1 lowledge. but we lielleve that three months will be required before the troops of the Allies have a fair chance In the matter of mu nitions. That period Is quite long enough. It will be hard to live through. It will have Its own story of bale. But to lengthen It would be so perilous that the thought of It makes one shudder. Conscription, which means the forced undertaking of foreign service, must not be pressed Just now. "We will in the fewest possible words Indicate another necessity. Our men must lie properly led. Inefficient olli- cern must be turned out as worthless. i as they have been In the French and I German and Russian armies." KAISER TO ADMIT LUSITANIA ERROR Preliminary Draft of Reply to Set'ond American Xote Xow in Shape. (Copyright, 1915, by the United Rerun, via The Hague, June 25, The preliminary draft of the German runH. n iim Apnn,l lm..p.it, nnln ui,l. 1 l . . nrsi inai uermany is ugniing lor the freedom of the seas, but does not de- ( sire In any way to Jeopardize the In-, terests of neutrals. Second An expression of appreciation I of the friendship of America. Third Acceptance- of President Wll. sons suggestion oi a willingness to me- " "" " 1 ihi,.hu uram iu-unj i,n. iliate between Germany anil Great hlblts the exp irtatlon ot all articles to Britain to obtain a modification of thu, the Netherlands except those consigned British blockade In return for a modllb , to the Netherlands oversea Trust, cation of Germany's methods of siibnin- The ' desUned to prevent expor rlne warfare. I tatlons fiom Knglatid from falling Into Fourth An Indication that Germanv 1 the hands of the empire's enemies The probably was misinformed In her con- Fifth An Indication that Geriivinv is vvilllnn to nesotlate with America along the lines hid down by President Wilson in his "humanity" plea, without entirelv givlvg up submarine ivar on enemy mer chantmen, which many regard as Gci ninny's most effective sea weapon. Sixth An Indication tint any com piomlse to which Germanv may agree! ligardliiK belllmient ships must secure iu uermany ine k.wety or ner suimiaiines umii men- iiiiui-ivs. in iins connection the death of t.'ommnnder Otto Wcdde gln and the crew of the IJ-21 Tho German reply, In all probability, will be completed by thu end of next ! week, TO CONSULT DERNBURG. (eriiinii A ll I burl I leu llxpei't (''fir mer Minister In Berlin Tn-iliiy, Bkiimn, June 25. Di'. ll. rnhard Pern- liurg has sent n wirclc!.s mis;.:igii raying 41 i. - i. i. .... ""'' I'M"'.-., m reati. i.ei mi Miiunlay even ng, It has beep learned that Dr r-ernhurg w l''",rdlately ' '"Hed Into consult,,- """ w,"",r" Vi," r'"h'"''K T - man answer to. the second American not on the Lusltanla Incident. THE SUN, SATURDAY, JUNE 26, 1915. FRENCH FIGHT AGAIN TO HOLD LABYRINTH flrenndes the Weapons Used in Stiff Hand to Hand En gagement. GERMAN ATTACK FAILS Special Cablt Detpateh to The Sun Pahis, June 26. A band to Land fight with grenades In the eastern part of the .Labyrinth and a violent cannonade north of Souchez are the only features of the lighting north of Arras mentioned ln ,.!hVr.?"JCV:i.fi"n,:"t;rL:Ut:.r.. ,",'' . ' , Md Souchez 1 "o,dKng,o Vhraft'ern'oon communM'. nnd a German attack In tho Labyrinth ;' .. ,iwi On tho irreater Dart of the front ar tlllery duels and tho explosion of mines have occupied the last twenty-four hours. At tho Calonne trencn. on me ( nuurn. ,i mu .iiuiiui- i.v... i !'' ' Meu"c' ,h Germans mad, ,,c(,l)crilt0 effort last night to legalu' their second line, of trenches, now In French hands, but were repulsed twice. The communique issued to-night Is as follows : llnud to Ilnnd Flitht. In the region to the north of Arraa ohly n violent cannonade north of Souchcz has been reported, together with it hand to hand fight with grenades In the eastern part of tho Labyrinth. At La Bolssellc, east of Albert, the enemy caused the explosion of two mines, but gained no advantage thereby. Botwcen the Olse and the Alsnc ar tillery fighting Is still going on, par tlcularly In the district ot Quenne vleres. West of the Argonne we made some progress following a tight with gren ades. In the Vosges a German attack at Ililgensflrst was repulsed. In the course of tho counter at tack delivered by us on June 23 In the region of Ban de Kapt we captured four mlttralllcuscs nnd a great quan tity of war material, Including rifles, cartridges and grenades. Frrnch Mnkr Further Gains. The afternoon communlqut follows: In tho region to the north of Arras French troops last night delivered an attuck between Augres and Sou thez and made further progress. In the "labyrinth" a Gorman counter attnck has been repulsed. This en gagement was followed by a violent bombardment of our trenches, to which our batteries made reply. In the Champagne district, near Rhclms. as well as In the region of Perthes the enemy yesterday and during last night exploded two groups of mines, but did not deliver any Infantry nttack. They were not even able to occupy the excavations made by thes mine explosions. in the Argonne and nt Vauquola the fighting with mines continues, nnd there incurred several looil en gagements In which the throwing of bombs mid of hand grenades was a feature. On the heights of the Meuse, at the Calonne trench, the Germans last evening delivered a very violent attack along our entire front, ac companied by the hurling of asphyx iating bombs and flaming liquids. After having succeeded in penetrat ing that portion of their former sec-' ond line of defences which we occu pied they were thrown out of these positions by an energetic counter at tack on our part. At midnight the enemy attempted a further offenslvo return. The assailants found them selves under a fire from our barriers and they were dispersed with heavy losses. In Lorraine tho enemy yesterday on two different occasions endeav ored to retake the positions he had lost near Uintrcy. He was com pletely repulsed. In the Vosges two German In fantry attacks were checked by our artillery and Infantry fire. They were delivered against our trenches nt Reich Ackerkopf after a violent artillery bombardment. A German aviator yesterday threw !le bombs on the sanlturlum at StU) denote, but without doing any damage. 'LABYRINTH" ATTACKED. Germnn onieliil Statement Sns French Were Kepnlaed. Berlin, June 25, via London. The German army headquarters staff to-day gave out the following orlliial state ment on the situation In the west; Wo captured several machine guns after hand to hand lighting south of Sciuchez, Repeated enemy advances aRiilnst the Labyrinth positions were repulsed. On the western border of the Ar glumes an attack of a French bat talion aglnsl our new positions, which we had pushed forward, broke down under heavy losses. During the lln.it , thrust we took another trench and two blockhouses. Three additional machine guns and three mine throw ers were captured. In tlio Mcuse hills attacks com menced by the French to the west of Detranches fulled completely . Fast of Dotrancht we recaptured a stub bornly defended communication trench from the enemy. At Lelntrey, east of Lunevllle, minor enemy enterprises were repulsed. BRITISH EXPORTS LIMITED. Those fnr llnllnnit Must Go to Netherlands Trust, Special Cable Detpateh to Tim Si v ' Lonhon, June 25. In pursuance of the act tinned this week In Parliament Netherlands i iversea Trust lsanorg.ini ' the British Government that nothing received by them will be shipped out of , the country. Importations to other cnuutiie.s will be made soon tu similar oigauizatioiis omy. CASTELLANE LOSES AGAIN. I Vntlcnn Trlbiiiuil Kefuses tn An , llM Mnrrlnue tn Amin Gould Advices were received In this city yesterday that the Rota Irlliunal of the Vatican had decided adversely In the proceedings Instituted by t mint Bonl ,1 Caslolline for the annulment of his marriage to Anna Gould now the wife, of Duke du Talleyrand-Perlgord, Prince do Sagan. This Is the third decision In the case. Tho church tribunal originally handed down In 1911 a decree In favor of annul ment. Ill ISMS a sc und decision op posed It. Tha present decision against t he Count w.is bused, It hi suld, on the re- lection of an nllidiiv It tiled on his behalf by Prince lie) Iirngo. It set forth that 1ut prior to her nmnlngo to the Co . Miss Gould said that If her husband over became unfaithful she would dl- vorce him. pS QgmteinthWtm IflSjA Smoked by Royalty and jrVu Siftk the Elite of Society eMadtttMtt8Xh VAFlADISIiCa. CAIRO. EOVPT FRENCH LOAN FAILS TO BUOY EXCHANGE. Paris Hntos Prop to Now Low , Ileeord Despite (Jrent Credit, Here. STEKLIXO TS STHOXOEll Further new low records In the price of exchnngc on Paris and Genoa were registered yesterday wnen irnncs Drone to 5.51 for checks and 5.50 fj for cables. and lire declined to 5.99 W. On Thurs- . .. . .... i,i B tnT checks day francs closed fit 5.49 , for cliccKs nnd 5,49 for cables, while lire were quoted at 5.97 Vj. Sterling exchange, however, wns notnbly strong, advancing , to 4.77$, for demand and 4.7S 3-10 for cables, as compared with a previous closo of 4.76 15-16 for demand nnd 4.77 9-16 for cables. Tho decline In francs Is especially puzzling In financial circles, owing to tho arrangements recently concluded between h syndicate of bnnkern headed by J. P. Morgan & Co. and the Roths childs of Paris for a French loan In this country of between J50.O00.000 and $75,000,000. About the only explana tion which seems to fit tho decline In francs Is that France Ih making ex ceptionally heavy purchases of food stuffs, war material, hort.es and other supplies In this country and that ns n result the balance of trade ngatns France Is being Increased nt an extraor dinary rate. The reasons nscrlbed to the strength of sterling are the new British war loan, the fact that many corporations are buying exchange to remit their July iterest obligations In Kngland nnd 1 tut the fact that th British liquidation of American securities Is making Itself felt In tho exchange market. There wero rumors yesterday that tne negotiations were well under way for the placing of a British credit here based on Ameri can (-eourltles sold In Kngland as col lateral or on the British war loan. At the offices of J. P. Morgan & Co. this was denied by n member of the firm, who said that 'f such plans were being considered he knew nothing of them. Bankers say that it would be to the lntertst of this country If there were somo liquidation of British held Ameri can securities, as this market Is In a position to stand It. They think that n readjustment of the exchange situa tion between tho two countries would be beneficial. The gold Import movement was fur ther augmented esterday hy an addl- tlonal shipment of J2.500.O00 in bars to J. 1'. Morgan &. Co. This gold was deposited in tne Astay unue. tester- .!,. Imtuirlullmi lirlnir the Inlnl trntil lirnttirlit In from .ill HOiirreH since .Innu. nry 1 to J 122,320,000. Of this amount Sli for checkH and 81 13-16 fori cables. Thin compares with si 13-16 for checks and SI7 for cables on Thursday. Austrian kronen were un changed at 15.20. The National Bank of Cuba haH withdrawn from tho Sub-Treasury Jl.0no.000 gold coin In J5 gold pieces und $.'"0,000 In other gold and stiver coin for shipment to Cuba to-day. "FRENCH I0AN" A MISNOMER. Government Sn Flnanelnl nnern tlnn In Trlvnte Affair. Special Cable Detpateh to The Sl'v. Paris, June 25. An olllclal announce ment says that the arrangement be tween J P. Morgan & Co. nnd the Rothschilds does not Justify the use of the term "French loan" because It Is a simple bank operation taken on tho State's account through the Interme diary of the Rothschilds to facilitate exchanges. Tho arrangement involved between J30.U00.000 and JtO.000.000, this bel.ig part of the operation performed by the banks In purchasing American railroad bonds for deposit In the United States ns guarantees for advances to French bankers. BRITISH WAR LOAN A PROBLEM Inirstnr Hold Off. Dlsriilnu Where dvnntnne Lies, Special Cable Detpateh to Tnr. Srs London, June 25. The lists of the i . , v,-,. i,-n ,. tnr ihr. days, but the city Ib still mainly oc cupied In discussing the pros and rons of tho conversion scheme and figuring Us profits from It The Government's object In allowing ftl,l.,r ulnLru tn Iim ennvert pit . nnmotv. In Induce the holders of the older slocks) lost sight of In tho endeavor tn eecure advantage with reference lo the de predated holdings. On the other hand, subscribers to the new loan who do not hold the old feel that they are miss ing this advantage. IHscussloti Is ram pant as tu how far thiw two sets of persons cm ho brought together. There Is an unconfirmed rumor that the Government has a scheme lo allow the holder of consols to convert them Without Subscribing to the nw limn nnnnrrniiv bv imvim. n, h-m i Vl,r, from subscriber? who have nothing l0 convert, Considerable business Is i.elng ll(,m. )n ,. oM Wiir ,m (. . hoIs nre somewhat more marketable, Tni, oMlclal llr,,ss mtenl, ,,n.,i In-day that the Hank of Kngland Is pre pared to receive war loan applications from abroad piovldrd telegraphic ad. vice Is tecelved by the bank and 5 per cent, deposit Is paid before July 10, The Government Is aliout tn Initiate a great campaign on behalf or the war loan and to emphasize tho need for per Imler Asqulth will open tho campaign sonal economy among all classes. Pre Willi a speech nt the Guildhall on June 21), Americans were easier on New York advices. Canadian Pacifies ytrj weak. Argentine rails continued flat. hub Kium mini v .iimim, .,. attacks by the Austrlans ano uic us-o u; , ,, ,,i t mr ui ir.iur, in a pcecn .Marcn i. nils committee .-epre-ei'-P. Morgan & Co. brought In I52.SOO.000 f h flaK Jn ornr toat Hartlepool, which he represents In porters who are Interested In app- of the total sent from the Hank of ,'"p ene n ' . foltowa . j Parliament, warned possible exploiter matcly J50.000.00fi worth of artu . - Ungland depositary In Ottawa. deceive the Italians. The report rollows . Qf t.omnlo,ml(ls ,ha, th Government will tied up In Germanv because of - Marks were fractionally lower at Ofllclal reconnoitrings have ascer- not allow them to take ndvantago of the ' fnsal nf th. tirnih'r:r., ,.,,, CRASH HELD SUBMARINE 4 HOURS UNDER SURFACE Russian Ministry of Marine Tells of Attack by Sub mersible on Battleship of German Squadron and Difficult Task in Making Escape. Special Cable Detpateh to Tn Six. PirriiouiiAii, June 25, The Russian Admiralty to-night gave out officially the details of the recent nerve wracking experiences of the crew of a Russian submarine. Attacking a Germnn squad ron, tho submarine came Into collision with a warship and for four hours tried desperately to escape the torpedo boate and destroyers which swarmed nfter her like hornets. She succeeded at last I after night had fallen. U The submarine, which Is not named, ed up the smoke of th enemy's ves sels on the horizon nt o'clock In the morning and when ehe had approached n suitable distance tho submersible I dived. By mentis of her periscope it I ..... 1......1..I .V.... .tin ar.ltl.l,.... rvml. prised ten battleships and an auxiliary I,;1bJ,my from ,letcctlllf? the periscope." the statement continues, "the submarine commander decided to steer to tho port side of the squadron be tween the enemy and the sun, knowing that the German torpedo boats trail after them a special explosive con- Nivance for the destruction of sub- The submarine commander decided to make a frontal uttack. He ap proached the leading torpedo boat about 10 o'clock und passed within forty-five t to sixty yards to port, keeping hla n.pi..0. nKout six inches above the water. Wishing to operate outside the line of torpedo boats the submarine d"' ,0 tno W nnl under the bow of ioTQ t(J ft dopth of nf(y feet At th,B d(,pth ,no crew could distinctly hear the noise of tho screws oi tne warsnip. At the depth of thirty-five feet tho 30,000 GERMANS ARE! FIGHTING ITALIANS Meeklenhurjr Troops Sent From Arras Beprion to the Tyrolean Front. PROGRESS OX THE ISOXZO CnrWif Cnhlt n?mntch to TltK Sl'N. IONr,ON Jun0 2f).Thc DnlU, .VnWs ' corresiondcnt at Chlasso telegraphs: "The Italians met German troops for the first time on June 22 near Fcltre, In Cadore, In a fierce encounter among the high peaks. The enemy withdrew, leaving forty-one de.id and four pris oners. All were In German uniforms. "The prisoners said that about 30.000 Mecklenburg troops had been drawn from the region of Arras and arc oper ating on the Italian front." MISUSE WHITE FLAG. Italy Snya Anatrlnn t'ae It to Cover Attnek. Special Cable Detpateh to Tnr Scm Rome, June 25. Reenforcements are being received by the Austrlans In trenched near the Italian border, accord . ,. ,,, 10 ",r " IKial report from Gen. . nirh! hv the War si to-night b tne tatement speaki of vain ' Cadorna Issued Office. The s tallied the presence of new troops everywhere. The enemy is sirengtnen Ing his positions and mounting now batteries. Hurlng the night of June 23-24 the enemv vainly attacked Valgrande nnd Pal i'lrcolo (In the Monte Croce re gion). Our operations along the Isonzo River are proceeding methodically notwithstanding the natural and arti ficial obstacles. We Identified a bat tery of 12 Inch guns which had molested nnd damaged the villages. Directly after opening fire the enemy hoisted a white Hag, hoping to deceive us. An earlier report Issued by tho War Ofllce was as follows : In the Tyrnl-Trentlno region nnd ill ('adore there have been methodical artillery nctlons. At the same time we have been maintaining our ac tivity along tho front by means of reconnaissances by small detach ments, and thus we have had success ful encounters at Carcano and Val flsmon and toward the plateau of Veziens. In Carnln we continued an Intense artillery fire, particularly against Malbnrgeth. Our projectiles to-day penetrated the cupola of Fort Helsel, Tho night of the 22d-23d the usual vain attacks of tho enemy were re peated against our positions at Val Grande nnd Val Piccolo. In the re gion of Monto Nero we extended our occupation toward the north us far as tho slopes Jnvezcoky and mado fifty-seven prisoners. In this region we began firing against tho Bay of Plezzo. Along the Isonzo wo are advancing gradually, reenforclng ourselves In positions on the right bank of tho river. We thus have decupled Globna, north of Iiava, and on the lower Isonzo we have captured tho edge of the plateau between Sagrada and Monfalconu, BIG GUNS ACTIVE. Hevernl Artillery Dnrla nn Ttto I'rnnls Are llepnrlt'd. Special Cable Deipatch to Tnr Sus Viknna, via Anisterdnm. Juno 25, The following pllliial statement legard Ing the lighting on the Italian front wnsi0"' Dardanelles, of which the less said Issued here to-day i Several artillery duels took place to day on the Tyrolean nnd Carlnthkin fronts. Near Ronchl (northwest of Man falcone) the enemy attacks early this morning were repulstd A htavy artillery tire is being di rected against tho brldgchend at Go. rltz nnd tho heights bordering the plateau of CormonH. LUXEMBURG TO GET FLOUR. , France nnd Gi-rmuiiy Will Permit Step tn Avottl Famine, Special Cable Detpateh tn tnr. tirs Buiin, via London, June ?5. - With or the Turkish defensive In the mr- tho consent of France Switzerland will daniiles, while Russln's campaign Is not send n fortnightly supply of flour to going well, Therefore, such h measure Luxemburg until harvest. The people ns a national registration Is merely an of Luxemburg nre threatened with a act of common prudenni called for by bread famine. I the extreme und Increasing severity of Germany will allow the distribution. tho contest before u." submarine raised her periscope and at this moment she sighted to starboard the ram of the leading wnrshlp. which was cutting across tho course of the submarine nt a distance of not more thnn sixty yards. The commander nt once ordered the submarine to dive. A torpedo was fired Immediately and .... . nllrt.....l U. .. n,.mutn. Tt.n Mill,. marine listed about twenty-live degrees to starboard, the sailors being unnble to keep on their feet. They clung t?any thlng they could find. "All ordets were carried out, however, with speed and accuracy, the ciaft keep ing full speed. Owing to the fact that It was the hull of the vessel which struck the submarine while she was directly be neath the battleship, she w.is able to re gain her balance. "When the submarine was seventy-five feet bolow tha surface a loud explosion occurred, the noise being so great that the commander collapsed "Owing to the pressure of the water the submarine was raised sixty feet, but the sound of a largo essel Just overhead compelled the commander to dive again to a deptn of eight feet. Repeated at tempts thereafter to rise proved vain, for each time the submarine nruse the crew would hear the screws of the battleships and torpedo boats of the squadron which had btoken line and were cruising back ward and fnrwaid over the submarine. "Water coming from the stuff box of the periscope, which had bten damaged by the collision, caused the submarine to lose buoyancy. The commander or dered that the supplementary tank be blown out. Toward midnight, taking ad vantage of the darkness, the submarine rose carefully to the surface and made for the shore, having been under water from 7 S29 o'clock In tho evening until 11 :30. Tile damage to tho periscope pre vented the submarine commnndcr from ascertaining tho success of his attack." MUNITIONS WORKERS HEAR BRITAIN'S CALL Rccruitinp; Progresses Satis factorily 1,000 Enroll at Birniiiipriinni. MEAT SHORTAGE FEARED Special Cable Deepatcb to Tnr. Sc. I-ONPOK. Juno 25. The recruiting of munition makers Is declared to be pro gressing satisfactorily. Many applicants In london arc unskilled and have been i eligible reluctantly leruseu. several workers wish to stipulate that they be not sent away from the districts where they ltve on the ground that thev are married and have families, but mobility la one of the main features of the scheme. Among the cities where the best re- sponse has been given Is Birmingham, where the enrolment Is brisk. Numerous applications have had to be refused because the applicants, although metal workers, were lackjng In experience In machine tools and the manufacturers naturally are unwilling to allow their machinery to be used for the teaching or novices, About a thousand men en. rolled at Birmingham to-day out ot a much larger number of applicants. Glasgow, Manchester and Liverpool are among ine omcr nusier centres enlistment, which Is expected to boom; which steps will be taken to p n., ,lt ,n, wrPk af,,r t,le men havejGroit Britain to allow the Hi'imi" f had Umt lo ,,BP(,t ,10 appeal. cargoes trom Germany wlnrh w... The Right Hon. Walter Runclman. Pres. tracted for hut not paid fi-r ) i s Ituatlon to prey on the public. u is impo.'sinic 10 allow coal, meat 1 States, and flour to be sold at abnormal prices. ' j a is undirstood that one of the p he sa d. If It Is prov.d to be !m. I which will I,., ills.-unsed Is f .r t possible otherwise to keep thee prlc. porters to send their bills of lad within reasonable limits the Government ' ,;riMt rU.n ,, f,.w ',,,.,. r tu er l m . "jr""""" ?'M.ch "in i "lp.s carrying their goods sail I be disagreeable to those against whom terdam. In this way It Is .hoped they are taken." ,,. hhm.i, :. 55r supply of Argentine meat. Nevertheless unless economy is oliserved It will not be enough. As regards the war Mr. Runclman de clared that the British forces ure ade quate to any task the Germans might set "The statement was made In April." he said, "that the British bad enough explosives for their own use and some to spare for their allies, That Is truer still to-day Nevertheltss we have not enough munitions of war, although nt the pace nt which wo ate overtaking the deficiency there soon will be enough for ourselves and the Russians, and nHo possibly for the French If the latter have need of them." 'TIMES" IS GLOOMY. Telia Brltone They Mmt Face Dls aureeable Trntb. London, June 25. The Timm con tinues Its campnlgn for more complete publicity regarding the war this morn ing with an editorial In which It de mands that tho nation get the truth. There Is no Immediate prospect, the Times says, of the Allies being able drive the Germans within their own Britain that we will no: frontiers, a task which will require hr neutral privileges will, months of preparation In order to pro-j our neutral rights" vide tho British forces with the big ' guns, high explosives and machine guns cpre PT.APP TW f;n?TvTA VTFU' necessary. The editorial continues: fbALL IN tihKWA VlfcW "The country has got to set Its teeth, j disregard confusing bulletins and face , Independent Tliuimlii lironloi the probability of a prolonged and un- , . .. ... progressive campaign In the west, while """ l.niiilnn l.illlor. Gun. von Maekensen's successful inarch Ixinpon, June 25 - II M probably has postponed a resumption of ham, idltor of the .Vnfi'm. n"" the Russian offensive for several months, i follows 111 this week's --ue-until they also nre provided with guns "This week I have e.eivi I i . and shells, many Indications from fi '. "To put It briefly the Allies on both trals of the feeling of Gtrtri'n fronts are held, with nn prospect of an all agree In disc: iblng a gen, r.r early change. Moreover the outlook the better, long ago reused to offer pros. peels of a swift nnd easy diversion In slnn, even nf indemnities, i , the middle east." jtravagint than they were e The Times military correspondent, i months of tint vv,n llev.md welcoming the Government's decision toils the distinct emergi'tue of ask the power to make a national regis.' feient points of view, nnl.eatr tratlon, points out that Great Britain's war of the Tn( v:i i(iiih; n't I military establishment Is now In the eellor and the Chancellor's neighborhood of 3,000,0u0. and as the i of the 7 ni;r:i Hum; total male population In the I'lnteJ King-1 "Thus, 'the ilnai.iii r nn 1 dom between the ages of IS and 10 Is men wh support the new -c about S.000.OO0, thero are still some 1 cal'eil the Neiies Vctcvla r I 5,000,000 unaccounted for, of whom better u'ulei st mi t u wit !' there are certainly between 2,000,000 a no a.iHio.mni avaiinnic for military ser- i vice. i "it may be." says the writer, "that we shall need every man that can reciullfd. We have been linible break the German defensive In the west COTTON MEN URGE A REPLY TO BRITAIN Holdup of Cargoes Doclnrcil (() He Seriously Affect ing South. NEXT STEP rXDEriDBl) WasIIINOTON, June 25. Advices r. celved In Washington are to the effe, t that the Southern business men an, bankers arc much wrought up over supcnslon in tne cotton export trail. h;'t has been biought about by (.r,, "" "'" ' cumum, e It Is undeistood here that a nrolint in behalf of .Southern cotton men will ,nn be lodged with the Administration, sup. plemeiitlng the one made some month ago by .Senator Hoko .Smith of Gei.gj" Senator Smith urged the Adininistri. tlon to send u note to Great Britain nut gestlng that this Government imiiuI ii0 longer tolerate Interference wMh neutral trade. It has been represented to the A (min istration that feeling Is running h r'i P, the South ngaliit iie.it Btltain bee,. , of the embirniksnients that have b.n visited on tho cotton oxpoit trade ,( result of the British blockade. The fee ing on the subject Is s.ild to be p.irtl, u larly bitter in view of the certainty t:M a continuance of the blockade threatens more lean times In the South. There are approximately t hit ty cirsoid of cotton now tied up Incident to pm . ceedlngs In British prize couii Tlios consignments arc understood to bt woiih approximately J li.ouo.uuo. The Sou'h em shipper has found that KiikVuhI in very deliberate In adjusting in h i,ihP and piyments nrc slow. It was said here to-day that In suns cases the settlements made hj Great Britain did not cover the damages .if. crulng to the shippers by irasnn of th non-delivery to destinations named in contracts made for particular sh pmetit. As a result of the blockade shippers nrc doterred from sending cotton alnodd fearing the hazards that now attend m, h buslnesfl. Consequently prices hae been depressed and this situation Is keenjy felt on account of the cloce prox.muy of the harvest for this jear Tho statement Is made that there It a prospect that conditions In tho cotton belt aro getting to be Just about as bad us they were last winter when rail, at Democrats attempted to Jam a ;aw through Congress authorizing a spi ,d Issue of currency for the icllef of tin South. That this demand will be re newed when Congress reassembles is re garded ns certain. Tho protest against tho British bio k ade Is not confined to thu South 1' ,i voiced In other sections of the count , uccordlng to Information received life Secretary Lansing said to. night that he had not had an opportunity to s'u.iy the British mcnior.uidiim, Whetiur A reply will bo made to tho memota: , a Is an open question, according to Mr Lansing. It Is known that great piesure s being brought on tho Ailinlnjstr.it o send a note to Great Britain ,1.. with the blockade. This been particularly felt since tho H tlon of Mr. Bryan, who tii'.i I ' ,llH pronouncements after his ri ' e- ! m.cnt rro.m. Cabinet that he I , i ' "'"oca'f'i immediate negotiations "i ' ,r,',a, "rltaln concerning tin bb . He mentioned this as one of the p , 'he'ween himself and the Pie-ide i , 'd to his resignation. At the i.ii . ' Mr- Bryan's public discussion of i question It was explained )n t,Pi,,, ! ,1,? Administration that tiis r,k, mcnt would take up the nuestloti Great Britain ns soon as the nei: tlons with Germany relative to vi rlnes had progressed further. Great Britain contended that ih iiijb in me seiiieiuent of tno n I cases were due to the American . n-,. , themselves. Secretin y Lansing will hold i . - Terence with a committee of r j, , 9 ofni ms outre to-morrow n.ort , them to come through to tile ! the TOMr,S-' ......... .iuh i nun in win t ft teiition will be only two or thu FAVORS A BOYCOTT. Seniltnr llnke Smltn ('rites Hi ni Action Attains! Ilrllnln, Atlanta, Juno 2.'. r.ren i latest no'u to the fnlt. St i'e garil to s.a tr nil i- h.iti i by t'nited States Senatcu l.,u, . a statement which he Isi- e i ., . Senator Smith favois a lim , ' IMtain If she does not us; ,ie r dom of the seas. The fate of Southern eottor stnlte, re contends, for unless t. ke'.s are opened soon the -m suffer In price, and furthermo.e Britain U allowed to continue ade .1,000,00(1 bales of cototi , off from the foreign markets .- Smith continues: "If Congress were In 'f- ' could force Great Britain hv birgo placed upon munition t- -recognize our rights and to her blockade of neutri' n,irt "Our people should prent v mlmsti.itlon th" fn't tint n to In our power it oi.ee to ,' In , f tone, i'he'e is no otgnt. i ' piopaganda and ii" chance I', But the lie i of conque again' the Jui.kirs. who disapprove It "In a vvoid l of lndepeii i,i llviiuh' m lie be i the lone of the ll o " i't 1 to ' would le'id on" 'o su se " PARKER'.') . HAIR BALSAM WomoUi lnvurint C ItsTer to lleitorr rv lUlr to Its Youthful to.vt. 6Qr. nm 11 Oil t I lT, Mil