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Full Leased Wire Dispatches Today s News Printed Today 7 nj r: r in .: n . L'lr: i". ,4-f -1--. 1 - E--rr - .i 1 mi u -wr THIRTY-SEVENTH YEAR STORY IF 1 Sock Island's Stock Watered ' to Five Times Its Actual Market Value ISSUED $350,000,000 IN STOCKS AND BONDS On Rock Island) Capital Mock ot)00,000 Je Salaries Paid s Washington, Oct. 16. F. C. Sharrod, an expert accountant employed by the interstate com merce commission, was the prin cipal witness today at the open ing session of the-commission's investigation into the alleged looting of the Rock Island rail road. He charged that the cor poration's stock had been watered to five times its value; that the Rock Island lost $10, 000,000 through the purchase of the St. Louis and San Francisco md the Chicago and Alto lines; that its officials were paid enormous salaries and that false entries were made in the com pany's books to boost the market value of the stock. Sharrod said that the Reid ""Moore syndicate, as soon as it obtained control of the road in 1902, organized holding com panies in Iowa and New Jersev, and issued $350,000,000 in stocks nnd bonds dependent entirely for earning power on the Rock Island's capital stock of $71., 000,000. He declared the fin ancial wrecking of the road was hastened by the purchase of the St. Louis and San Francisco line ;it a cost of $35,000,000 and that the Rock Island lost $0,000,000 by taking over the Chicago and Alton. Sharrod produced a contract between the Rock Island and L. F. Loree by which Loree was to resign the presidency of the Baltimore and Ohio railroad to become chairman of the board of directors of the Rock Island at n salary of $175,000 a year for J'ive years. WASHINGTON, Oft. 16. Ths fol lowing cablegram from the French war office at Bordeaux was received today nt the French embassy here today: "Violent com bate occurred north west of Leila and Vormollea, which we won. Wt have taken Huuioscamps, uouthwest of Arras," MW RULES ADOPTED WILL STOP PADDING Coder the ruling adopted yesterday ill the regular monthly meeting of the Mate fish and game commission, it will be a hard matter for the field game and fish wardens to "pail up" their ex pense accounts In the future as they will be required, In Hie absence of a receipt for their expenditures, to sub mit an affidavit lu support of all ct penses to accompany their several ac counts with the slate commission and Hive a reasonable excuse for not having dccured a receipt for each Item of out lay to which they lay claim. The commission also rejected the bill of a Mr, llosselkiiss, the owner of a private trout hntcherv, of Creede, Col., for :ifM for a shipment of Sfln.OliO trout V!K to the HoiineHlle hatchery some time ago on the ground that the egg arrived In such a poor condition that the entire shipment did not hatch and was n total loss. Hatchery (superin tendent II. B. ( Iniitnn was also author .ed In turn over 2.K0,000 salmon spawn nf the early rhinook variety to the government hatdiory for propaga tion as the take of spawn this year for 'hat species of salmon was so greet Hist he state hatcheries will be unable to care for all of them. Also, conditioned upon the guarlnto" oT the raiinerymen of Rogue rlier to fwrnlsh free food fur the little fishes. Mr. ( lanton was authorlred to continue hatchery operations at the mnulh of the llogue river tor the coming season. 1 , WIRELESS CLOSED. Wnshinirlnn rW 1(1 Tl ' .V department ordered today 'he Marconi Wireless sta- tiou ""onolulu be cloned with- in 2i'fc unless a satisfactory explanatu . given concerning the ilispati'h.ng of a message to certain German gunboats. The administration held this message was a violation of America's neutrality nroclnmation. Three Wanted in,Mnomah, the Other pai'arole Goes Back to Pen ' Four peace loving yegg men made the mistake of their lives In selecting Salem as a suitable place in which to spend a quiet vacation during the present fin ancial depression, and as a result Hugh Ilrennnii, alias Blacky, alias .Mm Moore and Jim Taylor and' John O'Noll wero taken to Portland this morning whero they are wanted in connection with the Troutdule safeblowing .job nud John Adnms, nn ex-convict from the Oregon State pen now on parole will be tnkeu back to that institution. Each of the four men arrested is II typical yegg and Sheriff Ksch has had them umler survailiince for some time. The men have been hanging around the city plnying cards and frequenting pool halls but were not disturbed by the local officers who were wailing for some ,job to bo pulled off In this vicinity, n looking up their records fiieriir l-.si n found tlint Iliennan and Tnylur were wanted In connection with the Tnmtdiile safe blowing job ninl he decided to arrest them and scatter the gi'K 8ome Sufrnteloua "Plundor," O'Niel and Adams were eloselv al lied with the other two here and the officers have every reason to believe that they were all in the same gang. When searched he officers found new pocket knives, safety razors and the same kind of gloves and silk mufflers nn them, all of the goods new. The men claimed that they purchased the goods from a street vendor but this storv was discredited. llrcnnun inul Tnvlor were arrested after a safe blnwinir iob nt Orweiio but released, and Sheriff .lap Keeves, of Washington county, said be had them in his jail at one time. Sheriff Tom Word, of Multnomah county, wns also III this city last night to look the men over aad took the first three back to Portland with him this morning ns the men wanted In connection with the Troutdulo escapade. Back to the Pen. Sheriff Hch and Deputies Necdhnni and Itnwois made the arrests, jdeking the men up on the street In pairs nml lodged them la jail to await Die arrival of the officers. Jnhn Alums, the ox convict from the pen hero, was sent up from Mini county for burglary sad wns n ived at the Institution on Julv (!, I!M1. lie was sentenced to serve fiem 2 o .1 veins ami was paroled July I', III I. 'I. Ho stoutly maintained his iniio-. cence to the officers but considering the fact that he owned some of the same property, which the officers are con fident was stolen, and. his couae ition with the well known gang of crooks, was enough to constitute breaking his parole and he will be taken back to the pen until the matter Is cleared up at least, ALL STATE OFFICIALS MUST MAKE SHOWING On mouth fnun tiday, November 8n, every state officer, heads of depart meats an I state institutions will be re quired, under the act of the legislature nf IUKI, to submit a detailed statement to the secretin- of state showing the amounts estimated as needed for their several departments, commissions, etc., for the biennial period embraced be tween January I, ll'lii, and December 31, llilil, in order lo have their estimates Included In the budget of appropria tloas to be submitted to the next ses sion of the legislature for action. Prior to the session of HUH there Was no fixed or compulsory method of securing these statements from the de partment and Institutional heads and their financial needs for the ensuing biennial period was from llielr bleu nial reports to the legislature, and II frequently occurred that the delay In making these reports made It linpns Flble lor the secretary of state to pre pare the budget for the legislature un til it. had convened, To correct these conditions, Kepresenlatlve Calkins, of Jackson county, prepared and presented a bill to the lust session which provided for a uniform system of reporting the needs of the different departments and Institutions to the secretary of state not Utter than November 1.1 of the even yean, and Secretary of Hlste (Ibotl has prepared special blanks containing the provisions nf Hie law to assist the offi'crs in making the reports and these were rent nut yesterday afternoon. London, Oct 1.That German cav alry occupied Ostend for a few heivri Thursday was stitud In advices received today by the London Ololv Whether or not the katser'i treeps left again the message did not My. The story ws entirely without dtuiU. SALEM. n PoIite French Officer Gave Them Quarters Next to - Cows Bed Chamber PROVIDED A GUARD FOR THEIR COMFORT Then Sent the Whole Party Back to Paris with Escort to Protect Them By William Phillip Sims. Paris, Sept. 30. (By mail to New Yor'i.) Durglars In a miser 'a money box ure welcomo visitors to the miser compared with what correspondents on tho firing line are to military com manders. War corresponding has be come a prison offense in France. (Ion era! Jortre simply won't have it. 1 have just passed two days under guard at the front, one day under guard in Paris and eight duvs on pa role, all because of this objection of Ucneinl Jnffru'a to having newspaper men giving his war oporutiurn the ouco over at short range. 1 was not the only member of this "seeing tho war" party, either. There were seven of us tour of us Ameri cans, including Kiclianl Hauling Davis, an old offender lit corrc3ouiling. Hav ing previously been pinched by nearly every other army iu i-jiropc, Davis re marked dolefully following his French aiTOi-t: "My gravy! This is my Waterloo I 'in Ruing home. " - I understand he H leaving tomor row, his "lime" being up, his eight (Jays' parole expired and his fine paid. Saw Small Scrap. Three of our party and our chauf feur had juut had the good luck to wit ness an action around the Trench left wing and were bound toward tho cen ter nt Klieims, when it happened. It Kits ii merry captain who nabbed us. "Hey!" he called out guily, In Fronh, of course, "where aie you folks going " "To Itheims," we chorused. "How lar i- it(" "liOt's go ask the general," mi i 1 the enptnin, grinning. The juke was on us, Itheims, the (Continued oo Pne Six.) Say They Fell Back to Select Battle Ground-Drove Ger mans Back 20 Miles IVtromad, 'let. 111. The war office simultaneously asserted tudiiv that the (leniKiu advance on Warsaw had been checked ami denied that the Austrian" had raised the siege of Prr.emvsl. "Too Hermans advanced to within ten miles of Warsaw," the official statement said, "because the Hiissians wnnlrd (o fight on a battleground of their own selection. me cnmiict wni.n rolloweii was one uf great severity, The Herman made the most determined efforts for two days to cut, our lines, but tailed " finally they were compelled lu give wny and had been driven back i!(l miles todnv. "The fighting still continues, with the advantage almost wholly on the Hussions' side. The Herman center has been pierced by a series of desper late rharged, and the kaiser's wings i were compelled to retreat hurriedly to losi'soe being overwhelmed, "III this movement we took in.fMHi prlrnnors and several cannon, machine guns and automobile batteries." BATTLE IS EXPECTED IN MEXICO TODAY Nnco, A r 1 v.. , Oct. 10 Deports came ncro the International border today that Hovernor Mnylnrcna and his Vil lain troops would attack Heneinl Hill's federals at Naco, Honors, again tonight, Maytoreaa being hivlly reinforced, It was reported. Aljuluot (leneral Harris, of the Arl nua militia, Is here as the special rep reseutntive of Hovernor Hunt, to keep that executive Informed of events on the bonier. Heveral shots were fired during Hie night. A few bullets fell on the Ameri can side but no one was In lured. The rsilr s.l station at Naco, Hoaoi I, was COKPilEH EXPERIENCES PURSUIT OF NEWS linrneii late yesterday. OREGON, FRIDAY, OCTOBER 16, 1914. iff BIO APPLE SALE MADE. Portland, Or., .Oct. 1. Deals involving a purchase of several hundred thousand dollars worth of apples wore closed horo today by the Northwestern Fruit Ex- change with Steinhnrdt & Kelly of New York. Tho lots sold in- elude the best packs in the Pa- cific Northwest. . Believe Germans Plan to Hurl Reserve Army on the Allied Forces GERMAN STRENGTH INCREASED 250,000 Allies Claim They Are Meeting With Success in Dislodg ing Germans (By William Philip Sims.) Pnris, Oct. 1(1. The war office's an nouncement today Hint the attics' lino in tho north extends from rprcs, Hob glum, to the sen wns generally inter lirotcd here ns inein.l nir t)i,,f Mia rir. mans were believed to be plaaaiag to nun ii reserve nriny vesrwar." n a des perate attempt finally to break ilnwn all resistance. The new line ?x'',..ypre to the sea, it was assumed, was: formed to resist flunking operations bv tilts Inure force of reserves. One report wns that the exnected ml. ditlon to the Herman stremitli num bered Ur,l,ili() men. The allies occupied strongly en trenched positions, from n point on the const between Dunkirk nu,l tin. I1..1. gian frontier, southwesterly to Ypres, men 10 me west aim soutlnvanl, in a wide curve to the angle or the Oise nml Aisne rivers; nest to the eastward to Verdun, nml finally to the southward ulong the Franco -Herman frontier to the Vosges mountains, Allies Claim Much, Paris, Oct, HI. There was so dense a silence nt the Itordcaux war office today that tho public was convinced important developments were taking place In the rampiilgn between the al lies and the Oerinuas, I'nuffleinl but reliable Information wns that ths Herman cavalry was prov ing incapable of withstanding the al lies' pressure on the kaiser's Hue In the region of Ypres and Kslnlres; that the Franco Hrltlsli forces were contlnu I ii 3 their efforts fo dislodge the enemy from their posltl mis In these districts and that It probably would lake several days to complete operations there. Concerning the situation nt (Intend no news was available, The French right's activity wns be lieved to have compelled the Hermans to wenken their center to protect Mcti. At any rale, many first line trenches nt the center were found to have I n abandoned. Ht ill further to the south the French wero reported still advancing In Lor raine and the Vosges, though It was snowing in the latter rcglun. Looks Good to (loraiani, Berlin, via The Hague, Oct. III. The Herman general staff reported the sit uation today, in both the eastern nod iseslern theatres of war, excellent, from tlinlr standpoint, It wns sold the French linil nimle no important gains anywhere, having ta ken positions only nhlcli the kroner's forces hnd abandoned voluntarily for strategic reasons. Ill the east, the Hub sisns were declared to have been over whelmingly repulsed nt all points with heavy losses. The llunslan story of the capture of Herman artillery was term ed "a ludicrous falsehood,'" Imperial (:hnacelur Von llethmsnn- Hollweg wns reported in Antwerp, ar ranging detnlls of the city government. TOKIO, Oct. 10. from both land and tea, Japanese and British forces wen bombarding the Oermana' Klao Ohm defense again today, On fort had been partly destroyed. The Weather Oregon: Rain tonight and Pstnr ky ayt southerly gale along Ike coast, TO MAKE DESPERATE ATTEMPT TO CRUSH THE ALLIED ARMIES GERMAN ELEET MAY TAKE TRE CHANCES DF BIG JEA FIGHT Success of Submarines May Stir Germans to Risking Big Naval Battle cum a cirirr wrnxi uuvu n i iuiii nun WOULD DECIDE WAR British and German Sub: marines May Have Battle Under the Ocean (By J. W. T. Mason, former London correspondent for United Press,) Now York, Oct. 16. Tho destruction of the British cruiser ITnwko by one of the kaiser's submarines means a gnin to the Germans lu nothing more than morale. From the point of view of sea power the vessel's destruction was of no Im portance. It had no offensive strength, and, being 23 yoars old, soon would have been retired. Nevertheless tho Incident marked a success for a German submnrine u suc cess which has a value quite apart from the extent of the actual loss inflicted on the British. Tho Herman navy has never had s.n opportunity to demon strnto its fitness and skill, and the initiative of its officer under condi tions of aetunl warfare has been an un known quantity to the Hermans them selves as well as to the rest of the world. Such victories under tho sea will givfl confidence to the Herman ailor and undoubtedly will jtlr them to grentor effort. In this lino the possibility of an ulti mate sweeping naval victory for the Iliitlsh. May Bisk Battle. Tho destruction of a few morn minor Vessels by tho kaiser's submarines may nroosc Herman naval commanders to snch a pilch of enthusiasm ns to result in a desperate attempt tu drive tho llrltish from tho seas, Tho tlorman battlcfleet mnv venture forth to risk a snrfneo engagement witn ureal Hrltnlii's grently superior squadrons. Such a fight, If Oermany won, would win the war for her. nut I ne ensures ngatnst this nrn much heavier than tho 11 to 1 superiority (Continued on Pago Five.) W HOLD FLEE! OFF Their Great Range and De structiveness Causes Change of German Flans By Ed L. Keen. Lou. Inn, Oct. III. Iliitlsh ordnance experts expressed themselves today as convinced Hint Hie (Ioniums depended on their big new Km hp guns, mounted at Ostein! and elsewhere along tli iut, to keep Kngland'a fleet too far off shore to be effective against tho dc lendi'is of such lleluian and I'rniicli ports as the kaiser might occupy. Kefugeos from cities which the Her minis have aliendv boiiiluinled said, In deed, that the llrltish should not be overconfident of their ability to annilil Into the Teutons In the coast towns, They declared the biggest of the kill ser's artillery to be tar more power fill, and yet easier to handle, than the monilrous weapons with which I. lege, Naiinir and Antwerp fortifications were reduced, and It. was reported that tests or tliem so lar surpsssed the Hermans fnudOFt hopes Hist they decided Inl ine, II itclv to occupy all iif llelgluiii, an enterprise they had not previously ei peeled to undertake. RusJi Them W Ooaat On account of their enormous calibre, It was said, these guns did uot lust long but that the eiecutliin they did was rbnost beyond belief. I n fornix t Ion was teceived hero that this artillery was already being mounted on railroad ; trains lu readiness to be rushed to the I roast, Tho llrltish admllally, however, did not seem disturbed, it was understood a llrltish fleet was already assembling with a view to striking ipilckly as soon as the Herman forces began taking pos session nf the fiorts they have been threatening, and the prediction was made that the bombardment directed against them would be so heavy as to render it Impossible for them to mount their uew cannon, lu any event, It was stated, llrltish aviators were depended upon to locate the monsters' position, signalling the range to the warships, which could then keep out or the way. PRICE TWO JOURNAL WILL BULLETIN THE FOOTBALL RESULTS The results of tho O. A. C. Willamette University football gamo at Corvallis, tho Oregon VV. B. C. game at Portland, and the other conference games will be posted on The Capital Jour nal bulletin board tomorrow night. Sa? ?s tonditions in Germany St !. SI Are Little Changed From Those in Time of Peace Wall, Kola Xeis is back and tho coun try la safe. If any of the wnrring countries wero using dumdum bullets, Kola knows nothing about it for no body offered him one and if they had he would not have taken it. Kola was in Hermanv from the first of May until the Mth of Heptomber nod bo says that, in the Interior, the towns are as peaceful and serene as they nre over hero and the only differ ence that he could note was the pres ence of soldiers. Ami us for the short age of food products and crops in tho f atnriniid, tnut is all Bosti, ror there wus plenty to eat, the prices for square nienis were not exorbitant, and tho stories of suffering have boon grently exaggerated. All tho crops of all of the countries, so fur as ho was able to learn, were harvested, with the poss ible exception of some sections In north ern I'luuce and Belgium, but men there the greater portion of the crops was taken care of. Ho says that all this talk nf the mis treatment of American tourists and sub jects is purely humbug nud that An American citiaeu, if he wore ft small . Am -lien ii flag In his buttonhole to dis tinguish himaell from nn I'luglishmau. ' was Just as safe and a eourteomsiy treated ns If he were mi his own shores. About the only evidence of war that Kola saw was the passing of prisoners und wounded soldiers through the country on the rnllionds, and none but tho best of feeling existed as the trains bearing wounded soldiers, both (lernuin and of the allied armies, were met by the people loaded down with I'loivcrs, fruits and nil kinds nf knick knacks and delicacies. Neither is there any truth III the reports that (Ionium citizens of America or any other for eign country were being pressed Into inillt'iiy service, us Hermiiny had plenty of soldiers of its own nud there was no need of drafting up to the time ho left. As lo the conditions of the hop mar ket, Kola does not pretend to give an explanation except that ho knows that ill Koglaml, (lei'mnny nml other foreign hop producing countries thero was an abundant crop of hops this year and that the crops were harvested lu all countries with the exception, us stated before, of the northern part of I'Vaacc ami lu llclgipnr, but these countries arc not taken ns serious factors in the hop Industry, Certainly the conditions that have existed sluco the war broko out would have n tremendous effect upon the market, since tho consumption of beer and other beverages has fallen nil' considerably, ns the men III tho field nf strife are not permitted to drink Intoxicant of any kind, nml the pcnple who remain nt home are naturally very sin lug lii tlicir funds against a " rainy day and Mr. Nels dues not expect any change In this phase of the situation until lifter the war, He says ho did not have any trouble in getting any lilacs ho wanted to go in 'leriunny and tho neutral cuuiiliics of Kurope, And could have come home months ago If he had so desired. He says Hint, he did not sen any evidence nf fighting nor any battlefields and, he says ''you bet your life I did not want to' see liny battlefields, either." Kola is In the pink of condition, looks the part, and says he Is ready lo go to work now alter his long vacation and rest. II. Kurlr, of liullns Is 111 tho city on a short business trip. OEBMAN8 HAVE OBTEND. London, Oct, 1(1. Heroian forces wero believed hero todnv to have occupied Ostend, though no official Information was available ami communication with the city was Interrupted, When Hie last boat left Thurs day, however, llliloos wero al ready In sight. The allies evacuated the port Tuesday, It was learned, retreat ing southward to escape Isola tion, It was reported to be raining heavily throughout Helglum to day, hampering military opera tions, but it was nevertheless evident that tho Hermans were attempting another general ad vance, Confirmation was received nf rumor that heavy Teutonic rein forcements were psssini All I.a Chapello. It was not known whether they were destined to strengthen the kaiser's right or to sweep to the southward along th coast. CENTS stand a. nvi cent GREATEST BATTLE IS BREWING Germans Will Attempt ta Overwhelm and Crush AH Resistance BIGGEST BATTLE OF THE WAR IS PROBABLE Great Guns Sent to Ostend to Prevent Attach by the Big British Fleet The British cruiser Hawlce lay1 today at the bottom of the North" Sea, torpedoed by a German sub marine Thursday. Of the Hawke'8 crew 52 were saved, and if its complement was complete at tho time of the dis aster, 492 perished. The British public clamored for revenge blaming the admir alty severely for not stopping German submarine raidjnpr. Tho Germans were believed about to hurl 250,000 reinforce ments into France. , The better ,o rp-n!nt th! attack, the nllioa' wf line northwest from Ypres, Bel gium to the sea. The British were reported concentrating a fleet to keep the Germans back from the const cities. The Germans were understood to be brinKinur up their mightiest guns to stand off this flent. (Mend's communication witK the outside world wns cut off but it was believed the Germans had occupied it. Practically nil Belgium was in their hnnds. The French claimed fresH gnins all along the allies' linen especially mentioning aban doned Gorman trenches opposite their center. The Germnns replied thnt they1 had abandoned no positions ex cept voluntarily, to gain strate gic advantages. The Russians claimed to hnve driven the Germans .10 mile back from Warsnw and to be still fighting them, with the advan tage on their own side. They also Insisted they werd victors nt Ivnngorod. The Hermans suld, with much empha sis, that It was tliry who beat the itua sinns both at Warsaw and Ivaogorod, The Hussions denied tho Austrian claim to liuve raised the siege of I'rso mysl, At any rate, a buttle between Ana trlniis nml llussiaiia was raging south of there, Hervluus and Montenegrins strove, desperately to capture Sernjevo to save (lavrlo 1'rlnzlp, who, with 111 nllegeil accomplices, was on trial for assassinat ing Archduks Francis Ferdinand. The llrltish and French resumed bombarding the Austrian port of Cat turn, which they waatcd for an Adriatle nnval base. The llritlsh royal family wns nt Una drliighain, which was deemed safer thai London against Zeppelin raids, A llritlsh defeat nf rebel lloers was reported from Cape Town. Tho .In panose mid llritlsh resumed bombarding the Hermans' Klaa Chan defenses. The Wellington navy department ordered the closing of the Marconi wireless station in Honolulu within S!t hours unless a satisfactory answer wat vlven of a message sent from there re I porting the arrival of the Herman gun ; boat (Icier. At the llritlsh embassy's request, the Washington administration promised to Investigate complaints that neutral ships were making Manila a base for roallng nml supplying German ships. PROMINENT ELK HURT, Pomona, Cel., Oct. 111. Frank rhnlth, former exulted ruler of the Klks in thin jelly sod tho present state treasurer of the order, wns accidentally struck by a charge of buckshot while quail hunt ing yesterday afternoon near Temee I till. 'The shuts are deeply Imbedded in 'his skull, but he Is especled to recover, j according to the physicians' statement I today.