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The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, January 04, 1918, LATE EDITION, Image 1

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VOL. XXX. NO. 156
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.
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.
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.
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
The following were nominated to be
lajor-generals in the' national army:
Brig.-Gen. William C. Langfilt,
John K. McMahon and William G.
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.
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
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.
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
$500,000,000 ASKED
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
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
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 -
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.
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-
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.
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.
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."
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.
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.
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
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.
Bolshevik ' Foreign Minister
Bargains With Persian
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
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.
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
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.
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.

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