GERMAN REPLY MIES WASHINGTON OFFICIALS American Ships Engaged in Legitimate Trade Will Not Be Interfered With Nor Lives W* , on Neutral Ships Endangered. MAIN CONTENTIONS OF U. S. NOT ANSWERED Kaiser is Willing to Permit America to Place Four Hos tile Ships in Passenger Ser vice—Must Not Carry Con. troband - Full Text of Note. Berlin, via — Germany's otfer, embodied In the reply to the American note regarding the sinking of the Lusitanla and submarine war fare, which wag delivered to American Ambassador Gerard in: First, reiterated assurance that American ships engaged In legitimate trade will not be Interfered with nor the lives of Americana on neutral •hips be endangered. Second, that German submarine* will be instructed to allow American passenger ships to pass freely and cafely, Germany entertaining In re turn the confident hope that the Am- I erlcan government will see that these chips do not carry contraband; such chips to be provided with distinguish ing marks and their arrival announc- ) «*d a reasonable time In advance. i The same privilege is extended to a reasonable number of neutral pas- j cenger ships under the American Hag, j and should the number of ships thus available for passenger service prove Inadequate, Germany Is willing to per mit America to place four hostile pas cenger steamer* under the American flag to ply between North America and Europe under the same condit ions. The text of the note follows: "Berlin, July 8. "The undersigned has the honor to make the following reply to Ills Ex cellency, Ambassador Uerard, to the note of the 10th ultimo reference to the impairment of American Interests by the German submarine war. "The Imperial Government learned | ■with satisfaction from the note how I earnestly the government of Unit- i ed States Is concerned In seeing the ! principles of humanity realized in tho j present war. Also the appeal finds | ready echo In Germany and the lm- j perial Government Is quite willing to permit Its statements and decisions in ! the present case to he governed by 1 the principles of humanity Just as it j lias done always. "The Imperial /Government wel comed with gratitude when the Am- j erican government In the note lit May ; 15 itself recalled that Germany al ways had permitted Itself to be gov- j emed by the principles of progress 1 and humanity in dealing wltli the law of maritime war. Since tho v time ■when Frederick the (".real negotiated with John Adams, Benjamin Franklin «nd Thomas Jefferson the treaty of friendship arid'Tonimerce of Septem ber 9. 1785, between Prussia and the Republic of the West, German and American statesmen have, in fact, al- j •ways stood together In the struggle for the freedom of the seas and for the protection of pescable trade. In the international proceedings which cince have been conducted for the regulation of the laws of maritime • war Germany and America have joint ly advocated progressive principles, especially the abolishhment of the right of capture atYsea and the pro tection of the lnter/sts of neutrals. "Even at the beginning of the pres ent war the German government im mediately declared its willingness In response to proposals of the Ainerican Kovernment to ratify the Declaration of London and thereby subject Itself In the use of Its naval forces to all the restrictions provided therein in favor of neutrals. Germany likewise bas been always tenacious of the principle that war should be conduct ed against the armed and organized forces of an enemy country, but that the enemy civilian population must be spared as far as possible from the measures of war. The Imperial Government cherishes the definite hope that some way will be found when peace is concluded, or perhaps earlier, to regulate the law of marl time war in a manner guaranteeing the freedom of the seas, and will wel come It with gratitude and satisfac tion if It can work hand-in-hand with the American government on that oc casion. "If in the present war the princi pal which thotild be the Ideal of the future have been traversed more and more, the longer Its duration, the German government has no guilt therein. It Is known to tbe American government how Germany's adversar ies, by completely paralysing peace able traffic between Germany and neutral countries, hare aimed from rr~~ tto very beginning and witb Increasing lack of consideration at tfcf destruc tion, not so much of the armed fortes as the life of the German nation, repu diating in doing so all the rules of i international law and disregarding all rights of neutrals. "On November 3, 1914, England de jrlared the North Sea a war area and by planting poorly anchored mines and by the stoppage and capture of I vessels made passage extremely dan gerous and difficult for neutral ship ping, so (by?) that actually blockad j lng neutral coasts and ports contrary to all International law. Long before ; | the beginning of submarine war Eng- 1 land practically completely Intercept ed legitimate neutral navigation to Ger many also. Thus Germany was driven to a submarine war on trade. On No vember 14, 1914, the English Premier declared in the House' of Commons I that It w as one of England's principal tasks to prevent food for the German population from reaching Germany i via neutral ports. Since March 1 \ England has been taking from neutral i ships without further formallity all | merchandise proceeding to Germany j as well as all merchandise com i lng from Germany, even when neu j trnl property. Just as It was also with 11lie Boers, the German people Is now | to be given tho choice of perishing from starvation with its wouien and ! children or of relinquishing Its lnde | pendence. \/ "While our enemies thus loudly I and openly proclaimed without mercy | until our utter destruction, we were conducting a war In self-defense for our national existence and for the sake of peace of an assured perma nency. We have been obliged to adopt a submarine warfare to meet the declared intentions of our ene mies and the methods of warfare adop ted by them in contravention of inter national law. "With all its efforts In principle j to protect neutral life and property i from damage as much as possible, the I German government recognized unre j servedly In Its memorandum of Feb ruary 4 that tho interest of neutrals i might suffer from the submarine war ! fare. However, the American gov-; ernment will also understand and ap preciate that in the fight for existence j : which. lias been forced upon Germany j I by Its adversaries and announced by them It is tho sacred duty of tho Itn l perial Government to do all within lt(- I power to protect and -save the lives jof German subjects. If the Imperial ! government were derelict In these, its (lutes, It would bo guilty before God land history of the violation of those; I principles of highest humanity which I are the foundation of every national I existence. "The case of the Lusitanla shows j with horrible clearness to what Jeop ardizing of human lives the manner 1 iof conducting war employed by our (adversaries leads. In the most direct contradiction of international law, all distinctions between merchantmen | and war vessels have been ohllt rated i hy.-thu order to-British merchantmen to arm themselves and to ram subma rines and the promise of rewards therefor and neutrals who use nier j chant men as travelers thereby have been exposed In an increasing degree | to all the dangers of war. "If the commander of tho German | submarine which destroyed the Lusi- i tanla had caused the crew and passen gers to take to the boats before tiring a torpedo this would have meant the' I sure destruction of lis own vessel. I ' After the experiences in sinking j much smaller and less seaworthy ves ! sels, it was to be expected that a j mighty ship like the Lusitanla would I remain above water long enough even after the torpedoing to permit passen -1 gers to enter the ship's boats, .Cirfrum , stances of a very peculiar kind, espe cially the presence on board of large quantities of highly explosive mate j rials (word omitted, possibly 'dissipat ed') this expectation. In addition it : may be pointed out that if the Lusi ! tanla had been spared thousands of leases of munitions would have been sent to Germany's enemies and thereby thousands of German mrt'hers and children robbed of breadwinners. "In the spirit of friendship whdfce wlth the German nation has been lrn i bued towards the Union and its lxv | habitants since the earliest days of its . existence, the Imperial government j will always be ready to do all It can ! during the present war also to prevent | the jeopardizing of lives of American j citizens. The Imperial government therefore repeats the assurance that ! American ships will not be hindered j in the prosecution of legitimate ship ping and the lives of American citizens in neutral vessels shall not be placed in Jeopardy. "In order to exclude any unfore seen dangers to American passenger steamers. made possible in view of the conduct of maritime war -by Ger many's adversaries. German subma rine* will be Instructed to permit the free and safe passage of eucli pas •. ■ '"HE ENTERPRISE, WTLLIAMSTOW, NORTH OAROLiyA. senger steamers when made recog nizable by special markings and noti fied a reasonable time in advance. The Imperial government, however, confi dently hopes that the American gov ernment will assume to guarantee ! that these vessels have no contraband on board details of arrangements for the unhampered passage of these ves sels to be agreed on by the naval au thorltis of both sides. "In order to furnish adequate facili ties for travel across ths Atlantic for American citizens, the German gov ernment submits for consideration a proposal to increase the number of available steamers by installing In paa senger service a reasonable number of neutral steamers under the American flag, the exact number to be agreed upon under the same condition as the .above-mentioned American steamers. "The Imperial government believee it can assume that in this manner ade quate facilities for travel across the Atlantic Ocean can be afforded Ameri can citizens. Tliere would, therefor, appear to be no compelling necessity for American citizens to travel to Eu rope in time of war on ships carrying an enemy flag. "In particular, the Imperial govern ment is unable to admit that American citizens can protect an enemy ship through the mere fact of their pres ; ence on hoard. "Germany merely followed Eng land's example when she declared part of the high seas an area of war. Con sequently, accidents suffered by neu trals on enemy ships in this area of war cannot well be Judged differently from accidents to which neutrals are at all times exjHwed at the seat of war on land when they betake themselves within dangerous localities in spite of previous warnings. "If. however, It should not be pos sible for the American government to acquire an adequate number of neu tral passenger steamers, the Imperial government Is prepared to interpose no objection as to placing under the American ling by the American gov ernment of four enemy passeger steamers for passenger traffic between North America and England. Assur ances of 'free and safe' passage for American passenger steamers would extend to apply under the Identical pro-conditions to these formerly hos tile passenger steamers. "The presldeht of the United State* has declared his readiness In a way deserving of thanks, to communicate and suggest proposal to the govern ment of Great Britain with particular reference to the alteration of maritime war. The Imperial government will always he glad to make use of the good offices of the president and fiopea that his efforts in the present case, as well as In the direction of the lofty Ideal of the freedom of the seas, will lead to an understanding. "The undersigned resquests the am bassador to bring the above to the knowledge of the American govern ment and avails himself of the oppor tunity to renew to His Excellency the assurance of his most distinguished consideration. (Signed) "VON JAGOW." Power of Appeal in Advertising. San Francisco, Cal.—The growing power of the newspaper advertisement and Its advance to a higher plane of moral appeal and responsibility ware pointed out by Talcott Williams, direc tor of the Columbia University School of Journalism, In an address here, as powerful and encouraging 'factors .in the past half century's newspaper his tory. "The American advertisement In the past half century has made an advance greater than In all Its history before through the pressure of public opinion, the increased vigilance of the American newspaper and the higher .standards of the solicitor ami advertiser," said IM\ Williams, \\h> spoke before the International Press i ongress at the Panama-Pacific Ex position. "The moral advance of the adver tisement began the futile at tempts to exclude lottery notices three quarters of a century ago. Any man I who will compare American adver tisements with thoae of the English, French, Herman and other European | newspapers will find our press and our public not apart, but together, has raised the moral standards of out newspapers to a level nowhere else maintained. "Truth In the advertisement is rnpre and more enforced under a so cial law which in all Jurisprodiice, | age by age. Imposes heavier penalties j and wider sanctions on all written agreements which affect value. The I American public has been the first, as Its laws and its newspapers show, fto see that the advertisement Much began as the tool of trade, has become | the weapon of democratic lnstruc | tions. "The use of the advertisement to hring all causes and pleas before the tribunal of the people will grow. Churches, education corporations, must turn to this agency or the public will turn from them. The newspa per must keep its columns worthy of this new task and remember that all publicity which Bhould pay is an unjustt tax upon the publicity which pays." Dtnger In Waiting. Just because an Oregop scientist de clares that old men do the best work is no reason, of course, why young ' fellows should put oft contemplated achievements until the arrival of de ; clining years. It may be that the man a accomplishes little in his early maturity will make up for the lack when ho starts down the western slope of life, it doesn't Bound reasonable^ U»oweir*r r J GERMANY'S REPLY MOW CRISIS CRITICAL POINT BETWEEN THE TWO COUNTRIES HAS BEEN REACHED. STUDY ADDS TO PESSIMISM Official* Feel That United States Must Refuae to Accept Proposal* te Americans. Washington.—Study on Germany's reply to the American note on sub marine warfare strengthens the con vl. tlon of high officials that a criti cal point in the relations between the two countries has been reached. Not only do officials feel the United States must refuse to accept Ger man proposals for the future conduct of American on the high seas, it was declared, but the failure of Germany to disavow the sinking of tne I.usltania with the loss of Ameri can lives, in their view, has brought on a crisis. That there will bf no action by the United States for at least another week was indicated. Several days will be required to measure fully the consequences and resposlbllities the American government will Incur in framing a policy to meet the situation. Secretary Lansing probably will go to Cornish, N. H., to confer with Prenldent Wilson. Ho said he would study the note carefully and then communicate wth President. Count von Bernstorff, the German Ambassador, Intends to call on Secre tary I.ansing during the week to learn Informally whether he can be of any service in the situation. LOOK OUT FOR BOMBS ON SHIPS. New Orleans Paper Receives Letter Saying Bhlpa Will Be Sunk. Washington.—Warning to look out for bombs concealed in their holds were flashed from the nsral wireless towers at Arlington to two ships at sea, which sailed from New Orleans July S. Sending of the warning was order ed by Secretary Daniels after receipt of a telegram from a New Orleans newspaper saying a letter to that pa per signed "Pearce" Indicated that explosives had been placed aboard these vessels. The radio message was sent broad caid over the sea and even if it is not picked up directly by the Howth Head or Baron Napier, some other ship in the neighborhooa may relay it. Naval officers think responses may be caught by some of the wireless stations along the South Atlantic coast. Both the vessels, the British steam ships Howth Head and Baron Napier cleared with cargoes of mues for the British army July 8 and sailed the next day. the former for Dublin and Belfast via Norfolk, and the latter di rect for Avonniouth. Arras Shelled by Germana. ~, Arras, France via Paris, —'9>he4ks have lieen dropping into Arras at in tervals ns they have boeu for twenty five days. Every 24 hour# a few more buildings crumple nnd burn, although the Are department still Is efficient in extinguishing flames. Comment on Note. Berlin, via London. —Paul Harmor devotes the leading paragraph in The Tageblatt's weekly review to not over optimistic ccunment regarding differ ences between America and Germany. He refers to the American demand that ships be warned before they are sunk and declares this would mean giving up the submarine as a weapon. Women as Section Hands. Berlin. —Women, who have gradual ly replaced men on the German rail roads as ticket choppers at the sta tions. as guards, etc., are now being installed by the management of the Bromberg railroad as section hands. C. A. Blakealey Dead. Knasas City.—Charles A. Blakesiey, 41, for many years paragrapher of the Kansas City Star, is dead. Bryan Issues Statement. Lon Angeles, Cal. —William Jen nings Bryan, former Secretary of State, issued a statement In which he said editorial comment on Germany's reply to the American Luaitania note represented the extremes of senti ment, but that he believed most of the people were interested solely In protecting American rights and that they would "heartily aprove any steps the President may see fit to take to keep Americans out of the danger sone or separate passengers from contraband, especially ammunition." War Insurance Premium Raised. Chhristiania. —The government war insurance premium for the merchant marine has been raised from 12 pel cent to 24 per cent in the case of ships sailing in the North Sea, the English Channel and the East At lantic. While the insurance of ships is handled through the government cargo is taken care of by a mutual in surance company nude up of ship owners. The premium on cargo from the United States has been Increased to 4 per cent, while the rate from Norway remains at 1 per cent. FRENCH DEFEATED WITH GAS AND BOMB IN SAVAGE ATTACK GERMANS WREST FROM FRENCH SOUCH EZ CEMETERY. LOSS ADMITTED BY FRANCE V Renewed Activities In Other Areas ef France »nd Begium.—No Crises In the East. London.—By a savage attack In the west the Germane beve wrested from the French the Souchez cemetery, sev en mile* north of Arras. The battle was 4>ne of the severest of the war. The cemetery taken after a gas attack, followed by hand-to-hand fight ing with bomb and bayonet. The French admit the loss and are fighting to regain the ground, which they had won at a heavy cost. Slowly tht French had been tight ening their grip on the village of Souchez. until the Germans awsre that the capture of the entire position would be an important step in the French offensive toward Lens and Lille, launched a terrific counter stroke, which left them master of the shattered burial ground, with more than 150 prisoners In their hands. Fighting among the houses which fringe the western edge of the town still rages. There also has been a renewal of activity in other areas of France and Belgium. but nothing comparable with the strategic Importance of the Sou chez struggle. The Germans claim the destruction of the British position on Hill 60. near Ypres, but this finds no confirmation from either French or British sources. The situation In Poland and Galicla has not reached a crisis, but the public is weary of following the complexities of the Russian retirement and. so long as Warsaw appears to be In no imme diate danger, is turning to the west, hazarding guesses as to whether the British and French or the Germans will be the first to take the general of fensive. With the arrival of mid-sum mer, this is a big question, for It is felt that one aide or the other must strike before long; otherwise another Winter of tedious trench warfare Is inevitable. BTATE POLICY IN NOTE, Nsxt Nots To Germany Will Be Posi tive and Specific. Washington. Secretary Lansing spent most of the day preparing data and opinions for the American reply to the latest note on submarine war fare. He indicated that he probably would not go to Cornish, but that President Wilson would return soon. The situation was described in offi cial quarters as critical and there was no concealment of the fact that rela tions between Germany and the Uni ted States has become more strained than at any time In th«*ir history. High officials said the policy of the American government would be work ed out carefully and that to meet the situation firmly, the utmos delibera tion was required. The information was given out that a delay 6f possibly a week or more in preparing an answer might not he misinterpreted as mean ing that the United States intended to recede from the position it had iaken In the two notes already sent to Berlin. Spanish Order Submarine. Quincy, Mass.—A contract for a 750- ton submarine "for the Spanish navy was closed by the Fore River Ship building Corporation. Construction will be begun at once. The submarine will have a spaed of 18 knots on the surface and 11 knots submerged. She will be equipped with directive torpedo tubes and rapid-fire guns and will correspond to the M tjipe of submarines now building for the United States navy. Better Things For Mexico. Washington.—With the occupation of Mexico City by General Gonzales' Carranza forces, officials here hope for the establishment of a government in that city and the uninterrupted pass age of food supplies to the famine stricken population. Wilson Sees No Need For Alarm. Cornish, N, H.—Although be does not consider the situation critical. President Wilson is not inclined to underestimate the possibilities of the problem presented by Germany's lat est note on submarine warfare. The President. H is declared, is firmly de termined to uphohl the dignity of the United States. The President receiv ed the official text of the note and im mediately began consideration at the American reply. He instructed Secre-' tary Lansing to prepare a memoran dum on diplomatic problems involved. Dyestuffs In Switzerland. Washington.—Negotiations were be gun through the trade advisors in the state department and the bureau of foreign and domestic commerce for co operation between dye manufacturers of the United States and Switzerland to meet serious scrscity of dyestuffs reeulting from the cutting off of Ger man coal-tar dyes. American manu facturers seek to utilise the Swiss dye works pending the development of the industry. In the United States. The Swiss plants have received from Ger many a quantity of supplies, -r- A 25-YEAR CASE OF ECZEMA CURED Mr. Butler Edgar of Danville, Pa., writes: "I have bad an aggravated eass of Eczema for over 25 year*. My hands were unsightly for a great part of that long period. I hare used seven 60c. bottles of Hancock'* Sulphur Compound and one Jar of Hancock's - Sulphur Ointment. I feel as though I bad a brand new pair of hands. My case has been neh an aggravated one. Hancock's Sulphur Compound has cured me and I am certain it will cure anyone if they persist In using it according to directions." Hancock's Sulphur Compound and Ointment are sold by all dealers. Hancock Liquid Sulphur Co.. Baltimore, Md. —Adv. No Sals. "Can I interest you In a set of the Secret Memoirs of the Court of Loula XIV?'" asked the book agent. "No, you can't,' answered his in tended victim. "I'm all fed up with that kind of reading. I'm a court stenographer, snd I've Just finished transcribing the testimony in a sensa tional divorce case." Good Fortune. "I found a four-leaf clover on my lawn today," said Mr. Croaslots. "1 suppose you think that's lucky?" "I do. I'm lucky to find snything in that lawn except dandelions and ragweed." A woman has more honor than a man—that is, more clothes on 'er. To Cleanse o f> Rusty Nail jJr r Wounds >Ki\ : It to the Z Bottom . 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