The Birmingham age-herald. [volume], October 13, 1915, Image 1

About The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950

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THE
BIRMINGHAM
AGE-HERALD
VOLUME XXXXV
I- ■■ -■-~ -_
BIRMINGHAM, ALABAMA, WEDNESDAY. OCTOBER 13, 1015
12 PAGES
Nl'MBER 1H0
BULGARIAN OFFENSIVE
BEGINS AGAINST SERVIA;
TWO POSITIONS ATTACKED
....
j!
Bulgarians Direct Energy
Toward Capture of Rail
ways Leading From Nish
I to Saloniki
BALKAN SITUATION
MOST PERPLEXING TO
ENGLISH DIPLOMATS
taly Not to Participate in
Balkan Campaign—Rus
' sian and French Forces
i on the Aggressive
k
Paris, October 12.—The Bulgarians
re attacking the Servian positions in
wo localities, one at Yelikisvor, in
he region of Zasitchar, am) the other
t Kadibogaz, in the region of Kniash
Ivatz, says a dispatch to the Temps
rom Nish.
The Temps says the distance be
ween Zasitchar and the Roumanian
rontier upon the Danube is not more
han 30 miles and that the Bulgarian
ttack is directed against the railway
rom the Danube to Nish, Uskub and
| aloniki, connecting Roumania with
he Aegean sea.
London, October 12.—(6:47 p. m.)
Vhen the Servian minister at Athens
fficially advised Premier Zaimis of
he beginning of the Bulgarian of
ensive against Servia, Premier
.aimis, according to a dispatch to the
Itar from Athens, replied:
“Greece remains in the position of
rmed neutrality.”
London, October 12.—Servia is be
tg attacked from the north and the
ast. The Austro-Germans, after
heir capture of Belgrade and Semen
ria, are advancing southward, while
he Bulgarians are trying to inter
upt communications north and soutli
f Nish, Servia’s wartime capital, and
3 attack the Serbs on the flank if
hey are driven back by the iierman
ield marshal, Von Mackensen.
Servia to Remove Capital
The situation is admitted to be serious,
ot only for Servia, but for the Whole
Hied cause. It is asserted that the
ervians are inflicting heavy losses both
n the Austro-Germans and Bulgarin ns,
ut with their army of about a quarter
(f a million men they are believed to
ave little chance of making any pro
inged resistance against 300,000 or 400,000
>ustro-Oermans and probably 200,000 Bul
arlans. They are arranging for the
ransfer of the capital to Monastir, in the
xtreme southwestern corner of the king
dom.
Greece apparently lias decided to ig
nore the treaty under which site is sup
posed to go to the assistance of her
■ervian ally In case of an attack. Premier
taimls said when notified of the Bui
.arian attack that Greece "remains in a
position of armed* neutrality."
The quadruple entente has decided to
ake energetic action. As soon as news
■f the Bulgarian attack on Servia wai
eceived in London the Bulgarian millin
er was handed his passports, and M,
’lvtanl, the French prime minister, in
he Chamber of Deputies today declared
hat France, Great Britain and Russia
ad decided to take joint action and that
omorrow "Russian troops will be fighting
y the side of ours.”
Allied Forces Continue to Land
An Anglo-French force is known to be
Hiding in Saloniki, but there is consid
rable speculation as to wliere Russia will
liter the l)alka)i conflict. It is reported
hat Grand Duke Nicholas is to command
he Russian Balkan army, which, it is
■elieved In military circles here, would
lake the Bulgarian people less willing
o fight against Russia, there being a
eep veneration « among the Bulgar
in peasants for the Emperor of Russia
nd hts family.
It Is understood that Italy has decided
iOt to co-operate with the allies in the
lalkans, the Italian government believing
hat troop* cannot be spared for any
ampalgn other than that In Trentino and
"rlest.
Nuw that Austria and Germany have
ntered on their Balkan enterprise, which
j Interpreted as the first step toward an
ndeavor to get a German empire in the
ear east, there can be no drawing back,
ut the allies hope that with a vigorous
ffenBive both on the east and the west
hey at least can prevent the sending o(
ny large reinforcements to Von Mbcken
en.
French on Offensive
The French In both the Champagne and
pitols regions of France are continuing
heir offensives, but not on the scale ol
he recent attacks. The British aftet
heir success In repelling the big German
ttack are preparing for another move,
ut at what point only the commanding
enerals know. Now that they have
tarted. it is believed here that the Brit
ih and French on the western line will
ive the Germans no rest.
It I* much the same on the eastern
rent. The Austro-Germans having
nought their offensive to an end, except
n ithe region of Dvlnsk, the Russian!
ave recuperated wonderfully and arc
trlking back. The Germans clainf an
ther success west of Dvlnsk. but they
re still fighting west of Illoultst. They
iso announce that Russian counter at
sicks have been repulsed south qf th«
■rlpet river in Volhynla and in Galicia.
The Russians seemingly have entirely
egained the Initiative, especially In Gall
la. Here Petrograd reports the Russlunf
ave won a victory on the River Strlpa
'he territory on which this battle was
ought marks the extreme left of th<
tnsslan battle line. The Russian often
Ive oh this front started several weeki
go when successes were won at Tarnopo
nd Trembowla. Austro-German rein
orcements were rushed up and hard aiu
icessant fighting has taken place since
teneral Count Von Bothmer command!
he lUstro-Germans In this sector anif
he German official report of today sayi
hut the position of the "German troops'
rlth him is unchanged.
Heavy English Pension Roll
London, October It.—More than $5,
00.1(00 weekly Is being paid by the
Iritlsh government to the wives and
hlldien of soldiers serving with tba
olora. This ministerial statement wai
4>4e la the House or Commons to'
<
■
YUAN SHI KAI MAY
BECOME EMPEROR OF
NEW CHINESE EMPIRE
People From All Parts of Republic
Fend Messages Urging That the
President Accept Crown
Peking, October 12.—In a mandat©
dated October 10 and issued last night
President Yuan Shi Kai. acknowledges
the receipt from all the provinces of the
Chinese republic of petitions urging a
restoration of the monarchy. He states
emphatically that the will of the peo
ple must solve the question of a change
in tlie form of government and that
any change must'be in accordance w ith
the constitutional compact.
The people’s real wishes will be fol
lowed, President Yuan Shi Kai de
clares. He orders those in control of
the elections to carry out their duties
strictly in accordance with the law.
It is learned officially that the na
tional assembly will bo called early next
year and that whichever form of gov
ernment is decided upon in the impend
ing expression of the popular will the
government will be a constitutional one.
President Yuan Shi Kai's statement
indicates that he will accept the Em
perorship if tlie monarchical form of
government is declared for by the peo
ple.
DICKINSON PRAISES
GARRISON’S POLICY
Says Whole Country Is Becoming
Alert to Need of Adequate
Defense
Chicago. October 12.—Jacob M. Dick
inson, former secretary of war, told
the Chicago branch of the National
Security league tonight that the whole
country is becoming alert to the neces
sity for more adequate defense. He
praised Secretary Garrison, who lie
said was tlie iirst of those in admin
istration circles to take a decided stand
for preparedness.
Garrison clearly saw our help
lessness,” Mr. Dickinson asserted, “lie
understood that the future might well
ha ve possibilities seriously threatening
our national life, and boldly’ took a pub
lic stand for armament.
"The Pros'd ent is deliberate, pene
trating. studious and patriotic. lie says
little but does things with tremendous
power.”
Mr. Dickinson said that militarism
need be feared only if military govern
ment in this country should dominate
civil government.
CARRANZA NAVAL
FORCE DEMANDS VILLA
CITY’S SURRENDER
Guaymas. Mex., October 12. —(By radio
to San Diego.)—The Carranza gunboat
Guerrero with the transports Korrlgan
II, Jesus Carranza and two senooners ar
rived off herb last night loaded with
troops under General Dieguez, who has
demanded the surrender of the city from
Villa forces.
The commanding officer of the 1'uited
States cruiser ("hattanooga informed Gen
eral Dieguez that sufficient notice should
be given the towns of Guaymas and Em
palme before commencing bombardment
to permit noncombtants to reach a place
of safety.
Dieguez is said to have replied that lie
did not think it would he necessary to
bombard, but if surrender were refused
he would establish a neutral zone where
noncombatants w’ould be safe.
A special rain with 40 Americans left
here yesterday for Nogales, but the train
was held up at Carbo. because of burned
bridges. Railroad officials said the train
may return to Guaymas.
There are 110 Americans remaining in
Guaymas.
MONUMENT TO JOHN
TYLER UNVEILED
AT RICHMOND, VA.
Richmond, Vn.. October 12.—A monu
ment to President John Tyler, the first
erected by the federal government to any
public man who renounced allegiance to
the union in 1861. was unveiled today in
Hollywood cemetery here. Governor
Stuart presided and Mrs. Munford Ellis,
only surviving daughter of President Ty
ler, unveiled the monument.
The fund for the monument was appro
priated in 1919 by* Congress, w’hich was
represented at the unveiling by Sena
tors Martin, Swanson and Fletcher and
Representatives Baker of New Jersey’ and
Roberts of Massachusetts.
SPLINTER REMOVED
FROM SPINAL COLUMN
Paris. October 12.—»n operation, un
paralleled in surgical practice for the re
moval of the splinter of a shell embedded
the whole width of the vertebral canal
and the suturing of the complete sev
ered spinal cord has been performed by
Dr. Emil Girou.
In communicating. the details of his
achievement to the Academy’ of Medi
cine, Dr. Girou said he had undertaken
the operation when the man apparently
was dying and that it had resulted in a
manner exceeding his greatest hopes. The
patient. Dr. Girou said, was now’ able to
Hiove his legs: his sensory powers W’ere
gradually returning and the wound
which .ordinarily should have killed the
man was healing.
VICE PRESIDENT OF
FORD CO. RESIGNS
Detroit, October 12.—James Couzens an
nounced here today that he had resigned
as vice president, treasurer and general
manager of the Ford Automobile com
pany. *
"I could not agree with Mr. Ford's pul>
lie utterances with reference to war un
preparedness and other subjects of world
importance,” Mr. Couzens said.
Mr. Couzens has been associated with
Mr. Ford in the manufacture of automo
biles for 13 years. Ford directors will
meet tomorrow to act on the resigna
tion.
HOLLAND TESTIFIES
FOR VON BERNSTORFF
Chattanooga, October 12.—By direc
tion of Count Von Benstorff, the Ger
man ambassador, Adolph Muller, Ger
man consul at Atlanta, haB secured the
affidavit of Lawrence Holland, 18-year
old son of A. E. Holland, of this city In
connection with the summary execution
of the captain of the German submarine
U-27 by the members of the crew of
the British vessel upon which young
Holland *M at that time serving,
r
Opening of Greek Parliament—View of Royal Family
_ ..—
11 .n* a " .: arm 11 _____
/
A new photograph of
the King of Greece
with hit family. Photo
taken tincc hit recent
iUnett. Ijeft to righi—
Queen Sophie, Prr '*
Katherine, Pri nW C
Helene, Prineettj ► ,
d
«wks l—
Opening of the latent
* Greek. Parliament in
Athene, marking the re
turn to potcer of Pre
mier Fenezeloe. In the
centre - the Biehop of
Athene. Front rote the
Ghovmarie old Cabinet,
Armg andhavy office/ e
■ m the rear.
•ooooooooooooooooooood
URGE STUPENDOUS
NAVAL PROGRIME
Plan Contemplates Doubling
American Navy Within
Five Years—Tremend
ous Expense Involved
Washington, October 12.—Fifteen to
twenty fighting ships of the Urea (Inaught
and battle cruiser type with a proportion
ate number of seagoing submarines, coast
submarines, scout cruisers, destroyers and
auxiliw i ie»—enough to moke a » ew Ameri
can fleet—is contemplated by Secretary
Daniels for recommendation as a five
year building programme for the navy.
President Wilson and Secretary Daniels
have discussed informally the navy's
needs and are agreed that to be adequate
ly prepared for defense the fleet's strength
must he almost doubled in the next five
years. Another conference between the
President and the Secretary will he hold
Friday at which the total number of
ships to be asked for probably will be
fixed.
The five-year naval programme when
completed would add in addition to dread
naughts and battle .cruisers, nearly 100
submarines, about 70 destroyers and sev
eral scout cruisers and fuel and hospital
ships.
An Important part of the. programme,
too.. will be a proposal for a large in
crease in personnel. Appropriation for
at least 8000 additional men will be asked
for the first year to make up present
deficiencies, and an adequate number will
be sought to mail new ships built in the
five-year period.
(treat Expense to Nation
The total cost of the proposed pro
gramme for the first year is put at nearly
$248,000,000,000 or about $100,000,000 Increase
over last year. Just what construction
should be provided for the first year
has not been determined. As to
the approximate number of ships
the fleet should have at the end of five
years, officers of the general board and
Secretary Daniels are understood to he in
thorough accord. Admiral Benson, chief
of naval operations, is being consulted
daily b ythe secretary, and within a few
days the complete programme is expected
to be ready for examination by President
Wilson.
It is considered probable that the con
struction programme for the first year
will exceed that of succeeding years that
urgent deficiencies may be filled promptly.
The general board. has been consistently
recommending four battleships a year, but
last year Congress provided only two, al
though the building of a third was made
possible by the sale of the battleships
Mississippi and Idaho to Greece. The
previous year only one battleship was
granted. The general board’s original plan
of handling a fleet of 48 first-class battle
ships by 19120 consequently has sufficed
materially.
Will Be Discussed in Message
It is understood President Wilson in
tends to discuss the naval programme in
his annual message, and to make of it an
administration measure.
The building programme last year pro
vided for 16 submarines, so that the total
of the undersea craft) built and building,
now Is TO. Although effective means of
combatting undersea warfare apparently
have been found in Europe, It is the pur
pose of the navy department to recom
mend at least 30 submarines for next yea'r.
In the next four years, however, an av
erage of 10 submarines a year, a few of
which would be fleet submarines, would
bo maintained. That would bring the
total to about 170 in five years.
Tt is not known what the plans of the
navy are for the organization of the new
fleet, but the general belief In naval quar
ters Is that the plan of having a fleet in
the Pacific will figure materially In the
new programme.
Albert Thibedaux Dies
New Orleans, October ,4f.'—Albert Thlbe
daux, grandson of fonrter Governor Thlbe
doux of Louisiana, who was charged
with having shot and fatally wounded
Deputy Sheriff Edward Cauthreaux, at
Sherlever, La., Saturday night last, died
in a local hospital here today. Gauth
reaux, who died here Sunday night, drew
a revolver after he had been ahot and
fired at Thibedaux, the bullet striking
the latter in the aboutflen.
To Diacontinue Service*
London, October 12.—It was. announced
today that Sunday evening services in
St Paul's cathedral would be dlscomiri'
ucd to conform with regulations respect
ive tbs darkening of ftrsets.
1
••••••••••••••••••••••••••••••••••••••'••••a••••••••(•••••••••«••••••••••••••••••••••••••••••••••••••••••••
Japanese Premier Tells Peace
Congress World Peace Is Fantasy
Pan Francisco, October 12.- Count
Okuma. Japanese premier, and Dr. Ng
Poon phew, a Chinese editor of 8mn
Francisco, told delegates to the Inter
national Peace congress today that world
peace was yet a fantasy and would be
until the militaristic order of things
changed.
In a message to the congress. Count
Okuma said there was no hope for peace
"as long as there exists nations or in
dividuals who believe or exalt themselves
as absolutely superior to others and t.)
assert that superiority does not hesitate
to appeal to material forces.”
On the lioor of the congress tonight
Dr. Ng Poon Chow added to Count Oku*
mas statement: ’'There will bo wars-and
more wars just so tan# as there arc two
coder. lavs Jbrl tvro standards mol
ality, one governing nations, the other
individuals,” he said.
The doctor said that even China was
preparing. He blamed western militar
f ism, which, he said, had not only par
celed China, but had destroyed her ideals
of peace, and he ca 11 ed Japan the dis
turber of the peate of the Orient.
"If the United States were as unpre
pared it woubi fare no better than China
at the hands of the world powers," he
said. "China bus learned her bitter les
son, and now is proceeding to abandon
its concept that justice is the foundation
of the state and to take up the practice
of brute force.
"Japan is the disturber of the peace
in the Orient. She is essentially a mili
tary nation, and she has in herself the
perfect compilation ol the militarism of
Germany and the navy-ism of England
Her ambition is boundless.
"With such neighbors, what must China
do but prepare for defense? Before the
European war broke out we imported a
large number of men. followers of the
Prince of Peace, from Europe, the seal
of Christendom, over to 'heathen China,
if you are pleased to caM us so, to in
struct us to turn, our ploughshares int'
swords ami our pruning hooks lute
spears."
Selfishness, jingoism, yellow Journalism
and politicians are chiefly responsible fot
misunderstandings that nave existed be
tween the United States and Japan, said
Mr. Kiyo Hue hull, a lecturer of thi
Japan Society of America.
Twelve Officials of Railway
to Face Charges of
Conspiracy
New York. October 12.—Twelve direc
tors and former directors of tile Now
York. New Haven and Hartford railroad
will go on trial in federal court here
tomorrow charged under the so-rcalled
criminal clause of the Sherman law with
conspiring to monopolize the transpor
tation traffic of New England.
Prospects are that the case will not
go to the jury for a verdict much
before February 1. Upon this verdict
will depend the disposition of the cases
of six other defendants who gained a
separate trial.
Probably in no government prosecu
tion heretofore brought under the Sher
man law have government investigators
had to deal with so many intricate
financial transactions as have been dis
closed in New Haven operations dur
ing the 25 years in which it is alleged
to have brought under its control virtu
ally every railroad, steamship line and
trolley company in New England. This
is the reason a long trial is expected.
Charles S. Mellen, former president
of the New Haven, probably will be
one of the first called to the stand
of the more than 100 witnesses sub
poenaed.
The 12 defendants are William Rocke
feller, Lewis Cass Ledyard, D. Newton
Harney, Robert W. Taft, A. Hoaton Rob
ertson, Edward .I>. Robbins, .Tames S.
Hemingway, Charles F. Hr.ooker, Charles
M. Pratt, Henry K. MeHarg, Frederick
F. Brewster and George MacCulloch Mil
ler.
Confer on New Revenue Law
Montgomery, October 12.—(Special.)—Tax
Assessors D. E. McLendon of Jefferson
county, David C'rosland of Montgomery
and W. M. Hendon of Macon conferred
today with Chairman Thomas YV. Shut
of th<‘ state board of equalisation rela
tive to certain featanres of the new reve
nue law passed at the recent session of
the legislature.
TODAY’S AGE-HERALD
1— Rulgurlan offensive begins against
Servia.
Japanese premier declares world peact
is a fantasy.
Government,'defends income tax.
bill authorising American war loar
ratified by House of Commons.
2— Reserve board will delay placing Latin
American agenclea
3— The Holland letter.
4— Editorial comment.
6— Good ftpagp association denounces leg
islature.
Attendance record for State Pair agalr
" shattered. .,
Little boy badly injured by auto.
To view link of Jackson highway.
(I—Society. ,
7— News qf Ensley.
8— Sports. ,
8—Waller and Wallace tilt in HeaBeraci
probe., »
11— Mgrk'ts. •>.. _ -
12— Pierce fighting continues, oil westeri
DAY PASSES QUIERY
IN CHAIM S. C.
Hyde Reported Elected
Mayor by Slight Majority.
No Violence
Charleston, S. O.. October 12.—Charles
ton voters balloted today for Mayor and
other city officials, while state troops
were held in their armories here to pre
vent disorder. The day passed off quietly,
however, and the troops were not called
on. At 10 o'clock tonight they still were
at the armories, no orders having been
given for their release. The race for the
mayorality nomination was close with ap
proximately two-thirds of the vote count
ed. Tristram T. Hyde was said to be
leading for mayor by neary 100 votes.
Disorder had been predicted, it was
said, by adherents of Hyde, opponent of
Mayor John P. Grace, for mayor in the
democratic primary, which nomination is
considered equivalent to election. Affida
vits were presented to Governor Manning
recently at Columbia asking for troops,
and these were hacked up by the request
of Sheriff J. E. Martin, who also sought
and received permission to swear In spe
cial deputies. He had 50 deputies sworn
in. The troops comprised four com
panies of the national guard of South
Carolina, and three divisions of naval mi
litia.
The local city council and various other
I citizens went on record as opposing the
measures taken by the governor and shef
iff, declaring them unnecessary.
Columbia, S. C., October 12—No state
ment could be obtained from Governor
Manning tonight as to how long troops
would be kept 1 n their armories at
Charleston, where thtjy had been or
dered to be ready to take up police
duty, should that prove necessary In
today’s primary. It was stated unof
ficially, however, that the troops prob
ably would be released tomorrow'.
Pardon Board in Session
Montgomery, October 12.—(Special.)
Members of the state board of pardons
met in monthly session today in the of
Moe-of the secretary of state. The board
received a large number of applicants
for clemency, though only a few' cases
\ erC acted on favorably. The board will
* i iakte its recommendations to Governor
Henderson when he returns to MontgOm
* ryv' Members of the board are: Attor
ney' William L. Martin, Secretary of
ate John Purifoy and Auditor M. C.
Allgood.
Von Papen Not Molested
Washington, October 12.—No action in
ti e case of Captain Von Papen, the Ger
man- military attache here, who referred
t<* Americans as “Idiotic Yankees" in a
1- iter to his wife, is expected to be taken
i the state department. Officials have
i 1. on> unable to decipher Von Papen's
.upi— to his government found on
.l.ung* Archibald and it waa Inferred that
> no attention wua paid tortile letter to ilia
"“f
:| a .
GOVERNMENT FILES
BRIEF IN SUPREME
COURT DEFENDING
BIG INCOME TAXES
_
Direct Taxation of Large!
Incomes Mould Relieve
Poor of Great Burden of
Indirect Taxation
INCOME TAXATION
TENDS TO SHIFT
BURDEN UPWARD
i Attorney General Defends
Clauses Exempting Cor
porations as Necessary to
Avoid Double Taxation
Washington. Ot tobei 12.—Heavier taxa
tion on big incomes as a teller from the
"dlspioportiomile share" ol govei'i.
mental support borne by the poor under
indirect taxation was defended today by
Hie government in a brief filed with tite
supreme conn in the pending income lex
fuses.
The brief bears the mimes of Attorney
General Gregory, Solicitor General Dn\ is
and Assistant Attorney General William
Wallace. Jr., und represents months’ of
study of all the various attacks on tite
Income tax, the success of which would
reduce tlie government’s Income £>2.000,
000 a year.
"The ordinary system of indirect taxa
tion on consumption places on tite poor
persons a disproportionate share of the
burden of government support," say tit >
brief, in reply to a charge of discrimina
tion in tite additional or sur-lax on in
comes of more than $20,000.
Income Tax Helps Poor
"Income taxation tends to shift t tic
burden upward. It is undeniable that
Hi'' greater the Income the greater tite
fuse with which the payment of taxes
is met. Even allowing tor the normal
inevitable increase in the 'senie of liv
ing, h« wlm lias tite larger income can
tite more easily shoulder the burden .f
increasing, as the amount of tite income
Increases, not merely the total tax. but
also the rate ot taxation. At least Con
gress lias, in its discretion. cU termined
that the heavier burden can he carried
more easily by the larger income, and
It is not for tite courts to say that such
classification is outrageous,"
As to alleged discriminations, the gov
ernment contends Congress has the rec
ognized power to make classifications so
long as tiiey are not unnatural and are
bused on real distinction. Exemption of
persons from taaxtion on the first $:iooo
income and taxation of corporations on
all income Is justified on the ground that
corporations have no personal or family
expense.
Alleged Discrimination
Complaints or discrimination against
holding companies by requiring corpo
rations and not Individuals to pay a tax
on corporate dividends arc met with the
statement there Is a greater difference
between Individuals and holding com
panies than between Individuals and na
tive corporations, and that the court has
upheld n distinction in the latter Instance
in the corporation tax cases.
Collection of the additional tax from
individuals and not from corporations is
defended as avoiding double taxation. The
argument that there is an unlawful dis
crimination In the tax on husband and
wife living together ill that they are en
titled only to one exemption of $4000 is
answered with the point lliat Congress
was justified in making a distinction be
tween the separate maintenance of two
persons on the one hand and their com
bined maintenance ut lesser cost on the
other.
Tite corporation tax decisions ate re
ferred to in tite brief ns authority fur
arty Interference of the tnx with the
formation of holding companies, and ob
jections to requiring corporations to col
lect at the source is met with the con
tention that there is a very real differ
ence between a corporation with an in
terest paying indebtedness ami one not
ho organized.
JAPANESE TROOPS MAY
BE SENT TO BALKANS
Tokio. October X?.—Bulgaria's par
ticipation in the war and advicea re
ceived here from Isondon that British
opinion, in some quarters, at least, fav
ors the dispatch of Japanese troops to
the Balkans have reopened the question
in Tokio of what Japan's future course
will hr. There is a strong Impression
here that the return from Paris of
Baron Kikujiro Ishal, recently appoint- !
ed minister of foreign affairs, and pre- !
viouslv ambassador to France, is like
ly to be followed by a full reconsider
ation of the international situation
with special reference to Japan's pol
icy for the preservation of her own
permanent interests.
Another factor arousing; discussion
is the arrival of UtiKues Theroux, editor
of tlie Paris Matin, who although with
out official mission, comes, it is un
derstood, with introductions from and
the .approbation of M. Delcasse, the
French foreign minister to discuss mil
itary questions with prominent Japan
ese, with a view to determining wheth
er the latest developments justify a
change in Japan's decision not to send
an army to aid her allies and the like
lihood of dispatching troops to the Bal
kan theatre.
SECRETARY WADOO
CROSSING CONTINENT
Washington, October 12.—Secretary Me
Adoo and Assistant Secretary Newton
of . the treasury department 'eft Wash
ington tonight for a three weeks’ trio
across the continent snd back to study
the public building problem. Mr. New
ton is in direct charge of public build
ings.
Mr, McAdoo will speak tomorrow night
in Indianapolis and he may make other
addresses before he gets back. MI’S. Me
'Adoo accompanied him.
j. v ?fit itm
i j > * t U ..' » i ,. i
T| •• ' •
BILL AUTHORIZING
Measure Passed Upon Rec*
ommendation of Chancel*
lor McKenna Without
Much Opposition
CHANCELLOR SAYS
TERMS OF LOAN ARE
VERY REASONABLE
Defends Transaction as Nec
essary to Maintaining of
Foreign Exchange Mar
ket at Normal Level
London. October 12. A loan btll to
confirm the action of the government
in raising a I500.000.000 loan In the
United Htntos in conjunction with
France passed through all stages of
the House of Commons tonight. Royal
assent is expected as soon as the
House of Lords has passed the bill.
Previous to the passage of tho bill,
Reginald McKenna, chancellor of the
exchequer, explained the reasons Tor
the loan and Its terms and replied to
criticisms as to the rate of Interest
charged and profits made by the under
writers. These criticisms were made by
a few members of the house. A large
majority gave the bill their unquali
fied support and it was passed unan
imously.
It is not believed here that the pass
age of the bill will have an immediate)
effect on the exchange rate. In fact,
it is believed the government will have
to come into the market and sell ex
change before a pronounced or perma
nent Improvement can be attained. To- *
day’s news from New York that the
British financial commission was dis
cussing the exchange problem and the
establishment of a further credit, had
a slight hardening effect on the rate.
Terms Fair ami Reasonable
ChanciHor Reginald McKenna de
fined the terms of the loan as fair
and reasonable. v
Deducting \ccrued interest, V*' '’ ^
the British 4 It pW cent "loon now
stands at 96*4. As the American under
writers took the loan at 90, ho ar
gued, Great Britain was merely pay
ing one-half of one per cent more than
the market rate.
"The loan," said Mr. McKenna, “la
for the purpose of paying our trade
debt and maintaining our exchange in
the United States. Our Imports from
North America have laregly increased
since the beginning of the war and
our exports have diminished. The in
crease in imports for tho first six
months of 1915, excluding government
supplies not included in the custom*
returns, amounted to £58,500,000 ($292.
500,000) ami the reduction In export*
during the same period was £12,000,000,
thus making the adverse balance £70,
000,000,
McKenna Urges Passage
"Sonic relief for this balance against
us may be obtained by the sale in
America of securities held In this coun
try. Every effort has been made to ob
tain relief from this course, but of it
self tnis w'lll be insufficient.”
“We should not be uoing our duty. *
continued Mr. McKenna, "if we neg
lected to take other means of -maintain
ing the normal lev* 1 of exchange. I am
sure the House will desire to » xpress
its thanks to the commission. Its mem
bers accomplished their tusk with skill
and success.
“The American people are not ac
customed to large external loans, and
I believe this Is the first of any mag
nitude in the whole history of tho
United States. We must not overlook
the fact that there are many cross
currents of opinion in that country.
“Although the transaction was pure
ly for the purpose of meeting liabilities
already incurred, no little opposition
was raised by some parties whose sym
pathies were not on the side of the
allies. 1 hope the existence of these
parties will not be overlooked during
the debate and that care be taken to
avoid the use of any language that
might be twisted by a hostile element
to its advantage mid to tho detriment
of the allies.
“The loan is a trade transaction. Its
terms are fair and reasonable, and l
confidently recommend Its acceptance by
the House.”
High Interest Customary
Mr. McKenna pointed out that when
the fact was considered that, higher in
terest was generally pufd in America,
the terms of the loan were not more
onerous than could reasonably have
been expected. When the country was
at war It could not hope to borrow
in a neutral country on as easy terms
as at home.
He thought that the argument that
the freedom of the loan from the in
come tax was equivalent to paying an
additional 1 per cent was fallacious.
Putting the sum that Great Britain
owes the United Btutcs today for trade
engagements at £50.000.000 sterling, he
said the amount could only be paid by
the export of capital, presumably
American securities.
“But.” he added, “we said to our
American creditors, “allow us to defer
payments, upon such terms as can be
arranged. They agreed, and we were
thereby enabled to retain $50,000,000 of
capital which we must otherwise have
exported, and when we retain that cap
ital we get the income tax on the div
idends from it.**
Replying to criticisms, Mr. McKenna
said the house had received the pro
posal more favorably than he had ex
pected, as for the nation to pay *4 per
cent for an Anglo-French loan at any
time was startling, but when the mem
bers remembered the circumstances h*
thought they would agree that the
commission had done extremely well.
Tried to Get More
It had hoeii (aid that tho Americano
Sot an exceptionally Rood bargain, he
continued, but they wore offered dou
ble tho bargain and they would not
take it.
"Wo tried.” (aid llr. McKenna, “to
Bet 12m.OM.000, then (El 00,000.000. The
UPepypood an rage Mne*
'