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THE CHATTANOOGA AT
EWSr LATE EDITION LATE EDITION CHATTANOOGA; TONN;' FHIDAY EVKNING, JANUARY 4, 1918 PRICE: THREE CENTS VOL. XXX. NO. 156 POSED AS COM) ERORATP iACE CONFERENC GERMANY rotz CENTRALPOWERS' ENVOYS CLASHED AT PEACE MEET While Her Allies Were Concili atory, Germany Was Domi neering; Leaders in Open ; ' Disagreement. . Petrograd, Jan. 3. Disclosure of de tail! of the Brett Litovsk peace negoti ation makes it clear that Germany assumed a domineering attitude, while ' Austria-Bulgaria and . Turkey were very conciliatory and disagreed with the German position.' There were differences also among the German delegates. Foreign Min ister Von Kuehlmann and Gen. Hoff man clashed openly during the general meetitngs. Germany posed constantly as a conqueror, while her trye. allies showed eagerness for peace and . dis- position to compromise. 1 !.c;ii hu th. Hn Khavlkl T 7.7t 7h-t th. .nemv emphasizes the fact that the enemy delegations now in Petrograd have no diplomatic standing and are here merely to arrange details, growing out of the armistice, such as the exchange of prisoners and the resumption of pos tal service. ASKS MONEY FOR SHIP PLANTS Petitions Chairman Hurley Congress for $82,000,000 More for Next Year. Washington, Jan. 4. Chairman Hur , ley, of the shipping board, today asked . i V engress foc ji&2,000,000 -for acquisition or establishment of shipbuilding plants in addition to the $169,000,000 hereto , ' fore asked for the next fiscal year? Hs also asked for increase of authority for '.'";". construction of ships from $1,234,000, 000 to $1,935,000,000. SWEDISH COUNCIL TO RECOGNIZE FINLAND King Gustave Presides at Ses sion Decidng to Acknowledge independence of Province. London, Jan. 4. The Swedish coun cil of ministers, at a session presided bvsr by King Gustave, has decided to recognize the independence of Finland, according to a Reuter dispatch from Stockholm todiy. WILSON NOMINATES ARMY MEN FOR HIGHER POSTS Washington, JaT 4. Brig.-Gen. Peyton C. March, major-general in the national army, was today nominated by President Wilson a major-general in the regular army. Brig.-Uen. Edwin B. Babbit, ord nance department, was nominated to be a brigadier-general In the regular army. The following were nominated to be lajor-generals in the' national army: Brig.-Gen. William C. Langfilt, John K. McMahon and William G. Hnan. The following colonels were nominated to be brigadier-gen- , erals In the national army: John B. McDonald, Edward A. Miller. Derosey C. Cabell. Thomas H. Ree.s, George W. Gatchell. P. P. Ixchrldge, Samuel J. McClure, Peter C. Harris, Munroe McFar land. William R. Sample, Eli A. Helmick. John S. Winn, Robert L. Howze, Clement A. F. Flagler, Charles V. Rhodes. William W. Harts, Charles Crawford. William S. Graves, Frank P. Webster, Jo seph D. Leitch, Robert Alexander. William C. Pavis, Francis C. Marr shall. Edgar Jadwin, James A. Ryan, Fred N. Horn, Palmer E. Pierce and William Chaniborlalne. BERLIN HEARS JAPS WILL ' NOT TREAT WITH RUSSIA Copenhagen, Jan. 4. The I,okaI 1 Anzeiger, of Berlin, says it learns from Tokio that the Japanese government had decided to enter into diplomatic relations with the new Russian govern ment. NORWAY SHIP LOSSES FOR PAST YEAR TOTAL 367 I,ondon, Jan. 4. Last- year J67 Nor wegian vessels, with an aggregate ' tonnage of 666,000 were sunk, an Er i change Telegraph dispatch from Copenhagen reports. Since the beginning of the war !15 Danish ships, with a total tonnag or 224.000. have been sunk, and 234 Panes have been killed. SIAM FLOODS WORST IN YEARS; CATTLE DYING Washington. Jan. 4. Floods in Siam, th worst since 1SJ1. are devastatire the country. Dispatches today from the American legation at Bangkok say the water has. risen to the roofs of houses on which peasants are living. Great crop iosxes have len caus-d and cattle are dying by drowning and starvation. ky $500,000,000 ASKED GOVERNMENT Guarantee to Railway Owners Chief of Items For Legislation Recommend ed by Administration; Admitting Responsibility of Assuming Con trol Transportation Systems, Wilson Declares It Less Weighty One Than Failure Washington, Jan. 4. President Wilson laid? 'before congress today his recommendations for legislation to carry out government operation of railroads, and administration bills to that purpose were, introduced imme diately in both houses. ' 'ft'kV'&' While the president, in his address, laid stress on the importance of , riv nvAcsprvino tViP T rr'r''SZn'tZ' specincaj.iy proviaes inat 1 1 ii J ?1 war ana unui congress Many government of their belief that the railways never would return to- private hands. - The president's program, beside calling for a; $500,000,000 appro priation, to be used as a "revolving fund" witti railroad income for opera tion and maintenance, calls for compensation to the .roads, at the rate of their net operating income for the last three fiscal years. Any deficien pi'pss unnlrl hp mn'H nnf nf thp $500 DOO 000 frmrL and Vrnp.anwhile no rail- road ay increase its dividends; roads that have j resume with rates fixed by the president. ; ! One section of the i ii. . nu'j 1 ir iirfiiiwairi iriiriutrifirririuriu i 11 u trol" of the roads. It is All new railroad president and the government would be authorized to support . railroad credit by buyin railway v v .All advances on money. to tne roads or experiaiture'S f or betterments would be reimbursable to the government. v ' ;"T' In the house, the bill was introduced by Chairman Sims, of the inter state commerce committee, which will meet Monday to consider it. In the senate, it was introduced by Senator Smith, of South Caro lina, and will be considered by the senate committee also on Monday. Text of Address. The president spoke as follows: Gentlemen cf Congress I have askc-d the privilege of addressing you in order to report that on the ?8th of December, last, during the recess of congress, acting through the secretary of war and under the authority conferred upon me by the act of congress approved Aug. 29, 1916, I look possession and asssnmed control of the rail way lines of the country and the systems of water transportation under their control. This step seemed to be imperatively neces sary in tho interest of the, public welfare, in the presence of the great tasks of war with which we are now dealing. As our experi ence develops dititculties and makes it clear what they are, I have deemed it my duty to re move those difficulties wherever 1 have the legal power to do so. To assume control of the vast rail way systems of the country is, I realize, a very, very great respon sibility, but to fail to do so in the . existing circumstances would have trt'en much grenter. I assumed the less responsibility rather than the weightier. To Forward Mobilization. -I am sure that I am speaking tlie riiind of all thoughtful Ameri cans when I say trat it is our duty as the representatives of Jhe nation to do everything that it is necessary to da to secure the com plete mobilization of Uio whole resources of America by as rapid and effective a means as can be found. Transportation supplies all the arteries of mobilization. Unless it be under a single and unified direction. the whole process of the nation's action is embarrassed. " It was til the true spirit of America, and it was rlghf that we should first try to effect the necessary unification under the voluntary action of those who were In charge of the great rail way properties: and we did try it. Commends Railway Directors. The directors of fhe railways re sponded to the neod promptly and generously. The group of railway executives w?io were charged with the task of actual co-ordination , and general direction performed their difficult duties with patriotic zeal and marked ability, as was to have been ejrpected. and did. I be lieve, everything that it wns pos , sible for them to do in the cir cumstance. If I have taken th task out of their hands. It has not been becau of any dereliction or failure on their pirt, bnt only be cause there were .vtme thing which the government ccn do and rrivate management cannot. We shall continue to value most highly the pdvice and assistance of the!" rentlemen. and I am sure we shall not find them withhold ing It Only Under Government Control. It had become unmistakably plain that only under government administration can the entire equipment of the several systems of transportation h fully and un reservedly thrown into a common service without injurious discrimi ii re aits to Remove Any Difficulties Impeding Great Tasks of War. nrnnpTT.ips for thpir return, the administration bill g-overnmenv-cuiiuui &uau vmlsuu uuuuguyui uic l 11 LI i'J I snail uiereai ter uruer yuiei wi&c . . . .....).'., , officials and railroad men made no concealment proposed law, considered very significant, lays a t: i ttjM:n - vh:, v regarded as precluding a strike. ' financine would be under Ythe approval of the securities and holding them tor better markets. nation against particular proper ties. 1 Only under government admin - istratioa can an absolutely unre stricted and unembarrassed com mon use be made of all tracks, terminals, terminal facilities and equipment of every kind. Only under that authority can new ter minals be constructed and devel oped without regard to the re quirements or limitations or par . ticular roads. But under government adminis tration all these things will be possible not instantly, but as fast as practical difficult le, which ca.nnot be merely conjured away, give way before the new man agement. Intend Few Changes. The common administration wHl bo carried out with as little disturbance of the present operat ing organizations and personnel of the railways as possible. . Nothing will be altered or disturoed which it is not necessary to disturb. We are servirg the public interest and safeguarding tlie public safety, but we are also regardful of the interest of those by whom these great properties art owned and tflad to avail ourselves of the ex perience and trained ability of those who ha-e been managing them. It is necessary that the transportation of troops and of war materials, cf food and of fuel, and of everything that it neces sary for the full mobilization of the energies and resources of the country, should be first considered, but it is clearly in the public in terest also that the ordinary ac tivities and the normal industrial and commercial life of tho coun try should be interfered with and dislocated as little as possible, and the public may rest assured that the interest and convenience of the private shipper will be as carefully served and safeguarded as it is possible to serve and safe guard it in the present extraordi nary circumsU-.nces. Guarantee All Owners. While the present authority of the executive suffices for all pur poses of administration, and while of course all private Interests must for the present give way to the public necessity, it is, I am sure you will agree with uie, right and necessary that the owners and creditors- of the railways, the holders of their stocks and bonds, should receive from the govern ment an unqualified guarantee that their properties will be maintained throughout the period of federal control in as good repair and as complete equipment as at present, and that the several roads will re ceive under federal management such compensation as is equitable and just alike to their owners and the general public I would sug gest the average net railway op erating income of the three years ending Jun 30. 1917. I earnestly recommend that these guarantees be given by appropriate legislation, and given as promptly as circum stances permit. Financial Argument Best. "1 need not point out the essen tial justice of such guarantees and, their great Influence and sig Wit h OPERATION l A. " skipped dividends may v 7' i .11 .t 1 - 1 yi 1 11 11 1 f 1-1 ia nificance as elements In- the pres ent financial and industriaJ sit uation of the- country. Indeed, one of the strong arguments for as suming control of the railroads at this time is the financial argument. It is necessary that the values of the railway securities should be justly and fairly protected nd that the large financial operations every year necessary in connec tion with the maintenance, opera tion and development of the roads should, during the period of the war, be wisely related to the finan cial operations of the government. Our first duty is, of course, to con serve the common interest and the common safety and to make certain that nothing stands in the way of the successful prosecution of the great war for liberty and justice, but it is also an obligation of pub lic conscience and of public honor that private interests we disturb, should be kept safe from unjust injury, and it is of the utmost con sequence to the government Itself" that all great financial operations should be stabilized an "i co-ordinated with the financial operations of the government. No borrowing should run athwart the borrowings of the federal treasury, and no fundamental Industrial values should anywhere be unnecessarily Impaired. In the hands of many thousands of small investors in the country, as well as in national banks, in insurance companies, in savings banks, in trust com panies, in financial agencies of every kind, railway securities, the sura total of which runs up to some ten or eleven thousand mil lions, constitute a vital part of the structure of credit, and the un questioned solidity of that struc ture must be maintained. As to McAdoo's Appointment. The secretary of war and I easily agreed that, Jn view of the many complex interests which must be safeguarded and, harmonized, as well as because of his exceptional experience and ability fn this new field of governmental action, the Honorable William G. McAdoo was the right man to assume direct administrative control of this new executive task. At our request, he consented to assume the authority and duties of organizer and director-general of the new railway ad ministration. He has assumed those duties and his work is in active progress. Deal With Thm Greatly. It is probably too much to ex- Warmer, Says B1II7 'Possum Now put aside the trinkets, girls. The cross-guns and the sabers. The spurs you won ' through camps that were To compensate your la bors; And order belladonna and A box of brand-new 'blushes." New of ficers in embryo Will soon commence their rushes. - The weather? Fair and slowly rising tern-, perature tonight and Saturday. I - Persia OPENING DATE RUSSIAN ASSEMBLY SET JAN. 18 Petrograd, Jan. 8. The bol shevlkl have fixed the opening of the constituent assembly for January. 18, providing there is present at that time a quorum of 400 members. pect that even under the unlfipd railway administration which will now be possible sufficient econo mies can be effected In the opera tion of tho railways to make it possible to add to their equipment and extend their operative facili ties nti much as the present ex traordinary demands upon their use will render desirable without resorting to the national treasury for the funds. If it Is not possible, it will, qf course, be necessary to resort to the congress for grants of money for that purpose. The secretary of the treasury will ad vise with your committees with regard to this very practical aspect of the matter. For the present, I suggest only the guarantees I have indicated and such appropriations as are necessary at the outset of this task. I take the liberty for expressing the hope that the con gress may grant these promptly and ungrudgingly. We are deal ing with great matters and will, I am sure, deal wltfi them greatly. RUSSIANS MAKE COUNTER-PROPOSALS Unless there is a ohange in original plans, the emissaries of Russia and the central powers will meet today to continue their dis cussion of peace terms, which the bolshevik! have deolared are un acceptable. Russia's delegates have proposed that the conference meet ' .in Stockholm, which, if agreed to by the Germans, will make for de- lay. A news dispatch received in London says the Russians have made counter proposals to the Germans. It is added that they will be discussed at the next meet ing at Brest-Litovsk on Saturday, which would indicate the Russians have not persisted in their demand that future meetings be bald on neutral soil. The new Russian proposals call for complete evac uation of occupied territory pend ing a referendum on self-definition. Reports that the German and Austrian emperors and the military and political advisers are much perturbed over the Russian atti tude are followed by one that Count Von Hertling, the German imperial chancellor, is ill. Berlin political circles have a rumor that Von Hertling, who is 74 years old, is to be ousted in favor of Prince Von Buelow, the former chancellor, who ia very close to the German crown prince. Recognition of the Lenine Trotzky regime in Russia as a de facto government by the entente allies is probable, according to the London Daily Chronicle. Such a change of sentiment, .it is said, would be due to the threatened break in peace negotiations' and might bring from the allies a statement of democratio policy toward Russia. Meanwhile the question of the conetituent assembly still bothers the bolsheviki and demands are made that it be called at once. The government of the Ukraine has sent to the bolsheviki a de mand that it withdraw its troops from the Ukraine and decide whether or not it is at war with that government. Nothing has occurred to break the inactivity of the infantry en the western and Italian fronts. Small raids have taken place here and tnere and the German artil lery fire continues strong at vital points on the western front. England will soon be under com pulsory rationing. In making this announcement Lord Rhondda, the food controller, said the situation was not alarming and would im prove, although shortage in certain foodstuffs would continue. SIXTEEN INJURED WHEN NORFOLK TRAINS COLLIDE Njrfolk, Va., Jan. 4. Sixteen men were injured when an engine with two coaches carrying workmen to the con centration depot at I'ortlock, Va, ran into a light engine standing on the main line of the Norfolk & Western in Portlock yard early today. AH of the injured were brought to Norfolk and rushed to St. Vincent's hospital. While it is said that none of the men were fatally hurt, it was be lieved one man was internally injured. When entering the yards at Portlock the train smashed into an engine that was standing on the main line. The passengers were thrown to the Boor and against the seats In the cars. Noses were broken, heads and faces badly bruised and some were injured about the body. While a majority of the men in the two coaches were government employes, a few were In the employ of the Norfolk & Western. MAY RECOGNIZE LENINE'S POWER Developments In Russo-German Peace Negotia tions Place Radicals In Different Position; Revival of War In Russia Probable. London, Jan. 4. Recognition of the Lcnine government in Rus sia by the entente allies is probable, owing to the development1 ht the Russo-German negotiations, according to ths Daily Chronicle. , The statement apparently is based on a contribution "by ft diplo malic correspondent," which is printed beneath it, Th writer Bays that, owing to the bolshevik discovery of German duplicity, anything may happen. "There are," he says, "three alterna tives: The bolsheviki may give way, the Germans may give way or there will be a rupture of relations. The first Is hardly' likely in view of For eign Minister Trotzky's declaration. The second is possible, for the Ger mans are postmasters in the art of peclous compromise. But the third Is most probable since the bolsheviki have exhibited a perspicacity which was hardly expected in this country. Keep Germans on Frontier. "Russia may quite possibly witness a revival of the war. If not in the most active form it might at least bo a sullenly defensive war necessitating the keeping on the frontier of a con siderable German force. It would pre vent those pleasant lv and profitable commercial exchanges which Germany hopes for. "Assuming such a situation and the consolidation of bolshevik power, pro vided failure to extract a peace does not wreck the Tjenlne regime, then recognition of that power as the de facto government follows. Since that Is so, a socialist would be the logical representative of that government and Maxim Lltvinoff, who has been ap pointed, is a likely enough occupant of tho embassy." Referring to the retirement of Sir George W. Buchanan, the British am bassador to Russia, whose services are praised highly, the writer savs: "In his place probably would be sent a diplomat in marked sympathy with the idnss of revolutionary Russia, t Strengthened Allied Cause. "Be that Is it may, we may expect shortly some new statement of policy with regard to Russia, which, should It lean toward the latest developments and democracy would undoubtedly strengthen the allied cause In Russia." GERMAN TROOPS REPULSEATTACK Berlin Dispatch Announces the Failure of British Efforts East of Ypres. Paris, Jan. 4. -Violent artillery fighting on the Champagne, and Verdun fronts is reported in to day's official communication. A German attack in upper Alsace was repulsed. Eight German air planes and a captive balloon were brought to earth yesterday. Berlin, Jana. 4. (via London.) At tacks by the British in the region east of Ypres and north of La Bassee canal were repulsed by German troops, who captured prisoners and machine guns in the fighting, army headquarters an nounced today. CRITICISES WILSON FOR . HOLDING OVER CABINET Washington, Jan. 4. Senator Hard- wick, democrat, declared In the senate today that President Wilson's action n holding over his cabinet from his first term without submitting renom- inations was a "contemptuous disre gard" of senatorial courtesy, and he Introduced a resolution calling on the president to Inform the senate by what "warrants of law or authority" the present cabinet officers hold their of fices. The resolution went over without action and Senator Hardwick prom ised to make a speech on it later. WAYCR0SS INSURANCE MAN SHOT AT GREENWOOD Wayrross. Ga.. Jan. 4. According to information received here, James Knox, former Insurance man and banker of Way cross, and well known throughout the stat, was not acci dentally killed at Greoenwood, Miss., but was shot to d'.'iith while going from the railway station to the home of his daughter, Mrs. Gorsotn. A man, said to be T. I Esper. is reported to have surrendered to te county au thorities at Greenwood but has re fused to make any statement other than to say he met Mr. Knox at the station.. TAMPA HAS HEAVY R0ST; LITTLE DAMAGE FEARED Tampa, FIa Jana. 4. Tampa had heavy frost last n Ight with 31 degrees and freezing weather overspread most of the state, Miami reporting S!; Fort Myers. S4: Eustis. 22. and Jacksonville, 14. As December and November were coldl months citrus trees at dormant and little damage has been done. IF TURKEY WILL WITHDRAW ARMY SO WILL RUSSIA Bolshevik ' Foreign Minister Bargains With Persian Government. London, Jan, 4. The bolshevik for eign minister, Leon Trotzky, is said , by the Petrograd correspondent of the ' Exchange Telegraph company to have sent a communication to the Persian government offering to begin nego tiations for the withdrawal of Rus sian troops from Persian territory, provided Turkey will withdraw hers. The Russian commissioners, the cor respondent says, have decided to ne gotiate with the government of Ukraine on the basis of recognition of the , Ukrainian republic, provided . H does not hinder military operations against Gen. Kaledines, the Cossack leader. It is suggested that these negotia tions be held, at Smolensk or Vitebsk. According to the same correspon dent, M. Kerensky, the deposed pre mier, has prepared an account of his services during the period of the first revolution which will be presented to the constituent assembly. It includes full details of conditions at the front during the June offensive and the rea-, sons why M. Kerensky decided to re move former Emperor Nicholas to Si beria. In the archives of the Russian for eign office there have been discov ered documents of unusual interest dealing with negotiations between Ger many and tho imperial Russian gov ernment in regard to a national con- vention to combat LJciallsm. Other documents relating to the origin of the war throw light on certain as pects of (iermun policy. These pa pers will be published as soon as they have been classified. EISENMATH'S PLANS WERE VISIONARY Washington, Jan. 4. Failure of the government to call on many large clothing manufacturers to make uni forms was assailed by Frank 8. Turn- " bull, of New York, president of Rog ers, I'eet Ac. Co., when the war inquiry wns resumed today by the committee. 'There was no earthly reason why we couldn't have clothed the men and clothed them fast," he said. - To conserve wool, Mr. Turnbull saMT" Charles E. Klsenman, vice-chairman of the. supplies committee of the coun cil of national defense, had proposed that all civilian clothing during the war be made of shoddy. "That was visionary and '.r?practl- "cal," Mr. Turnbull said, "add .-.ould only be done by law. Mr. Kiserman wanted to start a propaganda to stop wearing of ail-wool garments by civil ians." The new standard of army cloth containing shoddy, the witness pre dicted would not be as durable or warm, contradicting testimony given by other manufacturers. t Julius Forstmann, a manufacturer, . of Passaic. N. J., told the committee a limited percentage of shoddy would not deteriorate quality of army over coats, but he opposed its use in other clothing. 1 ukarTinIans WILL CONDUCT OWN AFFAIRS Amsterdam. Jan. 4. According to a telegram from Brest 14 tovsk, peace delegates from I'kralne have arrived here and reported that the Ukrainlaa government is preparing to conduct Its own International affairs everywhere. A telegram from Warsaw says that a special train carrying the peace del egates of the central powers bas passed through there on the way to Brest Litovsk. UNKNOWN MAN JUMPS FROM NASHVILLE BRIDGE Nashville, Jan. 4. An unknown maa tied a rope arontnd his neck, made the rope fitst to the Sparkman street bridge ovor Cumberland river, and re- moving Ma overcoat Jumped of? tti afternoon. The rope parted and whirl ing body went on into the rivwr. In the overcoat was a piece of ppr con taining the name of A. Balaurvh. The coat bore the label Of a Chicago txil oring concern. The body had not fceea recovered late this aftcrnvon.