- : .'., . r , - v v ' - 7 . - ;. t . - V: ' , , - ' - Si. - - - - i ; - v - - v -: v . fei Lil ;) 'i. Keep j-our eye on the toi maklac ard -nvtlee their P prop rlatl on . for . atf-rerttolna;. om pre the values tkey olfer - vrlth th store that dees not advertise and In ,mot every ' c.-e, snrely in a greater majority o ease, : the nooa-ajdverUaear Trtll aak hlgger prleea. " " - 4 THE WEATHER- Lccal thunder showers - Friday and rrobatly Saturday. VOL. XCVIO. 102. WILMrtfGTOIN, ST C, FBIDY MOKKlKCf, JULY 2, 1915 WHOLE NUMBEE 39,248 ARMENIAN REFUSED TO HAL T A T COMMAND OF OFFICER OF SUBMARINE Washington Officialr .Take View That Torpei ljkg ... ; was jusne( o ADMILTY -s-u - . Report of Amba ov Paige Does Not Stater t What Extent Engaged. Only Eleven Americans Lost Their Lives. Washington, July 1. -Official Infor mation on which to base an accurate Judgment of 'circumstances under w hich the British ' steamer Armenian w as destroyed with the loss of Ameri can lives was lacking tonight and until details are available Secretary Lansing said the position of the United States could not be determined r . From news dispatches,.-however, and a closer reading of official reports, offi cials were inclined to the view:that as "the" Armenian apparently refused to h< at the command ojf" the German submariae, according to international law, the sinking of the vessel was. jus tified even . though non-combatants were on board.. There" was little tension over the in cident in official quarters here after it became known that the Armenian had sought to evade capture. It was ad mitted that if official reports bore out press dispatches there" was no likeli- . hood that any new cause of complaint would be added to issues pending be- twecn the United States and Germany. -One or two officials suggested that since Germany had given warning that enemy ships would be torpedoed with out warning, a merchantman carrying contraband -inigliiJe justinedi in . at tempting to .escape., , Under Admiralty Control. The only fact of importance receiv ed officially of the State Department came in a report from Ambassador Page, who said the British Admiralty had informed him the Armenian was -"engaged in rAdmiralty business." De partment officials declared - the ques tion of whether a ship so engaged . should be treated by hostile vessels as a ship of war or a defenseless mer chantman was 'a close question of in ternational law," and an opinion could not 'be given until the extent of the belligerent government's , control over ; the ship and crew was , definitely known. " . - '-. When "it. was suggested to" officials -Athat if the. Armenian, were, a public ' ship' of war she . could not -have sailed from;the United States without violat ing neutrality it was pointed out that there had been cases before the .Fed eral courts in which this point arose and it had been ruled that the charter ing of a vessel by a foreign consul for his government to transport munitions of war or supplies loaded to . supply a belligerent fleet at sea, however, the United States has ruled that such ships must be treated as ships of war'. ? " , The question of charter and belliger ent control was overshadowed - by press dispatches telling of - the desper ate attempts of the Armenian to es , cape and if official reports should bear out these accounts, the incident, will have little connection with- the Amer ican negotiations with Germany over submarine warfare. SIGNALLED TO STOP Captain Surrendered Ship Only After Being Forced to Do So. . London, July 1. Captain Trickey, of the British steamer Armenian, in an Interview today said he surrendered to the German submarine only when his ship was afire in three places, her en gines were out of action and a ?bzen of the. crew had been killed by shrap nel fire. ; N " Most of the members of the crew .who perished, Captain Trickey saj. fttere Americans. ' S, "The submarine, as a signal for us to stop," said Captain Trickey,' "first put a couple of shots - over our. bows when we were four miles off. I put my stern to him and ran for It. - "The submarine ' then began' to " Shell us in earnest, the . shrapnel bursting all around us, killing several of the crew and knocking others overboard. I. soon realized that the enemy was gaining on ust but I did not propose to surrender wljthout ' a struggle, - but my steering gear was , soon hit and placed out of commission. Then a shell fell into the engine room and another carried the Marconi house away; ? Still another cut down the funnel and dis abled the stakers. By this. time the ship was afire in three places and 'I decided to surrender. We had resisted the. en emy for an hour, and 12 or 13 men lay .dead on the deck. - "The submarine commander, . then forced me to clear ship and 'at -seven minutes past eight the Armenian went down, shattered by two' torpedoes.4 "T must say that the submarine com mander showed us every fairness after we had given . up, picking up' man'y of . the crew, who because of a damaged boat, had fallen into the water.'-' London Evening papers today did not print the fact that the Armenian "was engaged in Admiralty .business.: - All (Continued on Page Six.) ; ; Deposits made today in -SAVINGS DEPARTMENT of the AMERICAN NATIONAL BANK will receive ' full quarter's INTEREST on October flTSt. This BANK is Designated ' Depository for . the United States Government, fetate of North Carolina, City of Wil rnington and County of ' New" Hanover. -ays 4 per cent, compounder every quarter. Advertisement. GER MANS KEEPING ENGLAND PUZZLED Invasion of Russia is Serious Problem. SUCCESS IN GALLIPOLI Britian Report Progrecun There Turk ih Strong-hold of Kritiiia Captured No Decisive Blow' in Arras Section For Either Side. f . ' London, July 1. The Austro-German advance into Poland from Galicia tis gaining momentum and England is puzzled as to whether the German pur pose is to make this the main effort or to continue a. concentrated offensive to force the Russians from the southeast trip of Galicia. "Whatever the ultimate object is, fighting along the Gnila Lipa river has not abated and Berlin not only records progress here, but. also farther north In the Arc around Lemberg and along what has become the northern front, between the Vistula and the Bug. j .The Austro-German forces on this front are estimated at -2,000,000 and their progress has been rapid. They have crossed the- forest fringing the Tenew river and are not f ar from the Zamorc fortress, 25 miles north of the Galician frontier. .. . I . Only, a hundred miles to the north is the great Russian base Brest-Lit-"1 oysk, linked with Warsaw by several railways and lying almost due east of the Polish capital. . .The department of the Galician cam paign has created a situation entirely unexpected by the Allies. Unmrian " Invaston Seringa; : -4 A few months, ago the. Russians were at the Carpathian passes and in the spring confident predictions were made in England and Prance that Hungary soon- would be . overrun. The British press has been optimistic for weeks that the Russians would trun but ! it now frankly concedes that the inva sion of Russia is serious. The papers, however, put fafth in Russia's cam paign for the production of more mu nitions. The Arras section maintains its rep utation as the storm center of the west, but! although losses are piling up daily, neither side delivers a decisive blow: An Athens dispatch tonight says the Allies have taken the Turkish strong hold of Krithia, on the Gallipoli penin sula, to the. western edge of which General Ian Hamilton's "report f yes terday carried his forces. Gratification over the British prog ress in Galipoli is hardly more pro (Continued on Page Bight.) i THREATENED PRESIDENT WITH "POLITICAL CRIME" Rudolph Malik, Austrian Sales man, is Arrested. 1 Malik Indicted by Federal Grand Jury and Held .in- Default of Bond Demanded Indemnity of Government. New York, July " 1. The Federal Grand jury today indicted Rudolph Ma lik an Austrian salesman, arrested here last night, charging that in a let ter mailed June 23 to President Wil son he threatened the President with a "political crime" should the Presi dent refuse to pay him $300. . The money, it was charged, was demanded as nt indemnity for Malik's inability to return to his family In Austria. Malik has been in the country only 11 months, it is said. The letter was dated' June 22 and was mailed in this city. It was written in German, sign ed "Rud. Malik" and gave as the writ er's address the house on the east side where Malik was arrested. The let ter said in part: j "My finances are exhausted and I am here without any help. The Austrian consul will not help me ascie-is in duty bound to do, because his government has called for this horrible war. The United States is also guilty of my mis fortune.1 Through the delivery of war material to the Allies you are pro longing the war indefinitely. J "I therefore, have the right to de mand indemnity from your government. This amounts to a sum of 300 which you will send, to my address within a week at latest. Should this amount, however, not be placed within the time I will without further ceremony, com mit a political crime, for it is abso (Continued on Page Eight.) Deposits made today in SAVINGS DEPARTMENT of the AMERICAN NATIONAL BANK will - receive full quarter's INTEREST on October first. This BANK is Designated Depository tor r the' United ,' States .Government, State of North Carolina, City of Wil mington and County" of New ; Hanover. Pays 4 per . cent, -compounded v every Quarter.-r-AdvertiBcrnent, MSUSE AMERICAN FLAG IS ALLEGED Several Cases Reported Against British Ship. GAINING INFORMATION British Charged Vlth Using Emblem to Escape German - Submarines. Would Place American Ves sels in Danger. Washington, July 1. The United States is nonduetiner searching inves- tigation into several cases in which it has been reported officially that British ships flew the American flag apparent ly to escape German submarines. Reports have been received from Ambassador Gerard in Berlin, and through American consular sources in Great Britain with affidavits tending to show alleged misuse of the flag. The use is regarded sol important to the 'safety of the ships really entitled to fly the American flag that a note may be sent soon to Great Britain re newing representations previously made. Some of the affidavits state that, iri certain cases,' the British admiralty's agents have advised masters of vessels to use the American flag. The" : United States will not act until it has received complete information, but in view of the emphasis which is laid In Berlin on the dangers, of such a practice, Ambassador Gerard's in formation on specific' cases as obtained from the German government is being carefully investigated. American Vessels Endangered. Germany in her proclamation of a war zone announced that in view of the misuse of neutral flags it would not always be possible to distinguish between craft entitled to fly neutral emblems' and ships of belligerent na tionality. Use by the Lusitania of the American flag while crossing the Irish sea to Liverpool, was dealt with in the American note to Great Britain dated February 6. It pointed out "the ser ious consequences which may result to American Vessels and American citi zens if the -practice Is continued." This note concluded: vThe- government of the United States,' therefore, trusts, that his maJ- esty' goverihiir-'wlir do all in1 their power- to restrain vessels of British nationality from the deceptive use of the flag of the ."United States in the sea area defined in the German decla ration since such practice would great ly endanger the vessels of a friendly power navigating those waters and would even seem to impose on the gov ernment of Great Britain a measure of responsibility-for th.e loss of American lives and Vessels in case of an attack by a German naval force." The British government replied that inasmuch as Great Britain always had permitted other countries to make use of the British flag in time of war, it would be "contrary to fair expecta tion", to begrudge the British ships the liberty to take similar action now, but added that the British government "had no intention of advising merchant ship ping to use foreign, flags. as a general practice or to resort to them other wise than for escaping capture and destruction." GIVEN DEATH PENALTY George Joseph Smith Still Claims Innocence. Robbed Three Women He Had Married, Then Murdered Them to Collect Insurance Much Evidence Circumstantial. London, June 1. A verdict of guilty was brought in today by the Jury which tried George Joseph Smith for the mur der of three of his wives. It had been alleged by the crown that Smith hadJ killed his wives while they were in their baths and had collected insur ance money on theie lives. - Smith was sentenced to death. It took the jurv 22 minutes to find a verdict. Asked if he had anything to say before sentence was passed, the prisoner, who at first seemed dazed, finally said: "I can only say I am not guilty." He stared blankly at the judge as he assumed the blackcap but bore the pronouncement of sentence grimly. He walked firmly to ljis cell. Addressing the prisoner the judge remarked . that he entirely concurred in the verdict. - After passing sentence the judge re marked that the jury might .be inter ested to know that there was evidence which had not been presented in court that the prisoner had gone through the ceremony of .marriage with two other women, both of whom he had robbed of considerable suni of money. "You will hang me before you're done, My Lord," was Smith's excited outburst while Justice Scrutton was summing upthe case to the.jury.'You cannot hang me for murder; I've done no murder. This Is a disgrace to a Christian country-" Deposits ' made today in SAVINGS DEPARTMENT of the AMERICAN NATIONAL BANK -will receive full quarter's INTEREST on October first. This BANK is, Designated Depository to? ::. the United States Government, State of North Carolina, City of Wil mington and County of New Hanover; Pays " 4 ' per- cent, compounded every quarter. Advertisement. . FOR MURD ERING WIVES ANOTHER HEARING ON THE LDSITANIA Principally to Clear Up Testi mony as o Boats. IN LONDON YESTERDAY Witness Becomes Indignant When Baron Mersey Tells Him His Tes timony Conflict Capt. Turner Says No Troop Aboard. London, July 1. To clear up certain points in the . Lusitania case. Baron Mersey held another public hearing here today. " . , Professor Marchal, of Kingston, On tario, caused a diversion "by complain ing of the treatment accorded rescued passengers by the Cunard company. He declared the survivors had the. great est difficulty in obtaining dry clothes, foods, accommodations or transporta tion. Prof. Marchal also said the second explosion on the . ship resembled the sound which will be caused by am munition "like a Maxim gun." He also charged the company with indifference to the passengers carrying a danger ous cargo and criticised the manner of conducting rescue work. Counsel for the Cunard Line then read a letter written by Prof. Marchal to the company after the disaster in which the writer asked that cash be ad vanced on his lost, baggage or he would give evidence "not to the credit of the company or the admiralty." "Doesn't that Imply you wanted money to keep your mouth closed?" asked Baron Merseyl The witness explained he meant he would bring a separate action unless he was paid. He denied that he re mained silent at the previous inquiry for that reasonr "I don't believe you," declared Lord Mersey. . Witness Indignant. The witness .expressed Indignation at such an interpretation of the letter and left the stand in high enger. One of the oSjects of re-opening the inquiry was to- review the testimony relative to collapsible boats. The evi dence regarding these boats was large ly technical.. Lord Mersey said he de sired to know whether the grips and lashings were ldo'si"'the .evidence re garding which - was contradictory. An expert stated that if the lashings had been loose the boats would have floated from the deck when the vessel sank. Chief Carpenter Robinson testified that he himself had removed the lash ings on eight life boats and saw that the remainder was being attended to by stewards. He believed all the boats floated after the ship sank. Captain Turner of the Lusitania was called and asked whether there were Canadian or other troops aboard. He replied-.5 "NOne whatever." A board of trade expert testified that a distance' of 150 feet with two bulk heads,Wseparated the' hold where the empty shell cases were stowed and the nearest points struok by the tor pedo. That ended the inquiry. THREE MORES MIDSHIPMEN ARE MADE DEFENDANTS. Now Total of Twenty-six Before Navy Court of Inquiry. Annapolis, Md., July 1. Three more midshipmen today were made defend ants before the court of inquiry inves tigating the examinations scandal at the Naval, Aca"(my. They are C. F. Holden and J. fH. Keege, of the pres ent second; 61ass, and T. R. Denny, .of the present third class. This increas es the number of defendants, origi nally seven, to 26. Chaplin E. Evans, of the second classi testified today that Midshipman Moss had given him a sheet that af terward appeared to be an examina tion taken by his class. . He thought it was an old examination paper or some kind of "dope sheeet'", he said, "and did not regard it seriously." CHICAGO MANUFACTURERS AND DEALERS CLOSE UP SHOPS Endeavor, to End Strike of Union Car penters 200,000 Ont of Work, Chicago, July l.--Manufacturers and dealers in building materials today en deavored to end the strike of 16,000 Union carpenter by shutting up shop. James Fryer', president of the Build ers Commercial Agency, estimated that 200,000 men n - Chicago . would be thrown out of work by the lockout. He added that 300,000 meit employed In miles in Illinois outside of. Chicago and in Wisconsin and in Indianapolis would be affected as the outside mills dis posed of most of their output to Chica go contractors. H"I"I"I"H 4. I"I"M"I"I"I GERMANY'S REPLY BEING REVIEWED BY EMPEROR Berlin, July 1 (fPia London). The German, reply; to the Amer- lean note on subrharine warfare is in the hands of Emperor Wil- liam at army headquarters. The . Emperors' decision is expected in time fqr the note to be presented . to American Ambassador Gerard probably July 5 or 6. High offi- cials are trying to bring about a friendly settlement with Ameri- ca and .; appear anxious v to make proposals as acceptable as possible. Thes officials,, how- G ever, have to reckon with strong t. 'public opinion whichTuHdoubtedly will oppose - anything savoring of complete acquiescence in the American proposals. The public J opinion is being skilfully exploit- ed by those -who oppose all con- cessions. ' -rV Friends of a . settlement are working with considerable dif f i- ciilty and the q09 probably will represent a 'compromise 'not. in J accordance with their desires. T-1-T..T..TMr.A 1L 4. EDITORS ENDORSE t POLIGY OF WILSON Associations of Two Carolina V in Joint Session. COWAN IS PRESIDENT Wilmington Man Heads IV. C. Press As sociation' Movement Launched for Monument to Caldwell. Joyner Speaks. (Special Star Telegram.) Montreat, N. C, July 1. The North Carolina Press Association and the South Carolina Press , Association met in joint session here ,today for the first time in about thirty years, and the two organizations featured an interesting day with a rousing endorsement of the European policy of President Wilson and pledged him whole-hearted sup port and the upholding of his hands to the finish in this cruciable period in the country's history. A movement for the erection of a monument in memory of the late Jos. P. Caldwell, of the Charlotte Observer, was endorsed and the newly elected president, James H. Cowan, was in structed to name a committee to take the matter in charge. A number of fine addresses were de livered today, including a strong ef fort by Dr. J. .Y. Joyner, for the ad vancement of education, especially the establishment of "moonlight schools." Tonight the newly elected officers were installed and the 1915 conven tion then adjourned. The North Carolina association unanimously elected Editor James H. Cowan, of the Wilmington Dispatch, president. Other officers elected were Edward E. BrittoTT; of the Raleigh News and Observer, first vice president; San ford Martin, of the Winston-Salem Journal, second vice president; W. B. Harker. of the Maxton Scottish Chief, third vice president; J. B. Sherrill, of the Concord Tribune, secretary and treasurer 1 (re-elected).; oet, William Laurie HH1, Presbyterian Standard; orator, Isaac London, Siler City Grit; historian, W. B. Thompson, Chapel Hill News. The old executive com mittee was re-elected. i' The , South Carolina editors reached the scene on a special trairi at 1 o'clock being met at the depot by a special committee, composed of - E. E. Brixton, H. B. Varner, Isaac London and James H .Cowan, and were escorted in pomp to the convention hall., Tomorrow the editors will spend the day taking a railroad trip -to Mount Mitchell. Saturday a barbecue and pic nic will be tendered the editorial party by the citizens of Black Mountain. The convention assembled at 9:30 this morning and the following pro gramme of interesting exercises, ad dresses, papers, etc., gave the editors a very busy day: "Advantages and Disadvantages of the Clubbrg System,", H. C. Martin, of the LenOir News. "The Best Methods of Securing Cir culation,"! F. Beasley, of the Monroe Journal. "Extension Activities in Our Uni- (Continued on Page 8.) Atlanta District Reports Stea dy and Sound Improvement. Federal Reserve Agents Throughout Country Report to Federal Re serve Board Some Cotton Mills "Making Money." Washington, July 1. Information about business conditions throughout the country in June, as reported by Federal Reserve agents, was -made public tonight by the Federal Reserve Board. Richmond reported retail trade quiet. Some of the cotton mills, the agent said, claim to be making money but "it is probable that most of them are satisfied with nominal profits." A steady and sound improvement in the economic situation with conserva tism as the dominant feature was an nounced from the. Atlanta district. From Boston came the news that weather conditions and a "wave of economy which is affecting all class es," probably had been important fac tors in the general business situation. FrOm New York bankers throughout the state" were quoted as representing that crops in general had a good start and that increased activity and better, employment for labor in many indus iles were : shown. J Business In jthe Philadelphia district was reported still below normal. Cleveland reported business in some large", industrial plants with special lines as booming with general business "only 'fair." , Chicago reported a steady, but slow progress in business, with labor troub les still t in the building trades and dis tributors. , St. Louis reported that the output of (Continued On Page Eight) Deposits made today in SAVINGS DEPARTMENT- of the AMERICAN NATIONAL V BANK , will receive full quarter's INTEREST on October first. This BANK is Designated Depository for . ' the rUnited States Government,1 State Of North- Carolina, City, of Wil mington and County-of ; New Hanover. Pays, 4 per cent, - compounded every quarter. Advertisement. - . , BUSINESS CONDITIONS III COUNTRY REVIEWED CONDITIONS OF FAMINE AND ANARCHY WITHOUT A PARALLEL IN MEXICO HUERTA WANTED III CHIHUAHUA STATE Request for Extradition Made to Texas Governor. MORE COMPLICATION Extradition Question Hardly to be De clined as Long M.Former Dictator '! Is Wanted in America Car s. ransa Wants Him. Washington, July 1. Formal request for the extradition of General Vlctorl- ano Huerta on various criminal charg es has been presented to Governor Fer guson, of Texas, by the Villa governor of Chihuahua state. This latest complication in the sta tus of the former Mexican dictator, new facing prosecution at; El Paso for alleged violation of American neutral ity laws, was brought to the attention of the lAederal Government todasr Governor Ferguson, who forwarded the Villa governor's request to the State Department. Secretary Lansing referred the mat ter to Solicitor Johnson for consider ation. As long as Huerta is wanted by the Department of Justice, the charges preferred by Federal agents will - take precedence, and until they are disposed of it is hot expected that the extradition question will be de cided. Both the Villa and Carranza factions charge that Huerta was implicated in the murder of President -Madero and Vice President Suarez,, which followed the . overthrow of the Madero adminis tration and Huerta's : assumption of power. Inasmuch as the Mexico-American extradition treaty' provides that requi sition shalF- hot - be granted -for politi cal offenses, there have been no cases which citizens of prominence in either country have ever been surrendered even when charged with, civil crimes. The , request for extradition usually has been followed, however, by pro visional arrest for 40 days while evi dence was being forwarded. It was thought in some quarters to night that in event of dismissal of the pending American' charges Huerta might be re-arrested and held at least pending investigation. Bail frequent ly has been refused in such cases in the past and prisoners often have been held indefinitely awaiting .the collec tion': of evidence. ' The treaty between the United States and Mexico concluded in 1899, gives the right to governors of frontier states in thej two countries to t)ake up extra dition questions directly. An effort once was made to extradite General (Continued on Page Eight) THAW DECIDES TO BE FOB-STATE Is Reluctant to Testify Against Husband. Documentary Evidence Rend at Yes terday's Session of Court State Witnesses Probably Today. Slaton In. Court Room. o New York, July 1. Although news was received here today from Malone, N. Y., that Evelyn Nesblt ThaW has announced that she would decline to obey the subpoena summoning her to New York to testify as a state witness at the trial- to test the sanity of her husband, Harry K. Thaw, information considered authentic reached the dep uty attorney general's office today that she had reluctantly decided to submit to the ordeal. Accordingly plans to -compel her at tendance were abandoned! She Is ex pected to be here to take the stand on Tuesday. Mrs. Thaw, who is camping at Cha-teau-at-Lake near Malone, is said to be in poor health and her reluctance to testify was based on the fear, it was reported, that she might be unable to stand the strain of cross examination. Today's session of the trial was oc cupied entirely with the reading of documentary evidence, consisting of testimony bearing on Thaw's saaity given at previous proceedings. The reading of this testimony, State's at torneys thought, would be completed in time to call their first witness some time tomorrow. - Slaton Hears Proceedings. Former Governor John M. Slaton, of Georgia, who recently commuted the death sentence of-Leo M. Frank to life (Continued on Page Eight.) -: . Deposits made today in SAVINGS DEPARTMENT of the AMERICAN NATIONAL BANK will receive full quarter's INTEREST on October first. This BANK is Designated - Depository for ; the . United- States Government, State tf North Carolina, City of Wil mington and County, of - New Hanover. rays i per cent, compounaea quarter Advertisement. . - IS WITNESS United States Giving Serious Consideration to Relief Measures. CITY AS YET UNTAKEN Only Opening of Railroad Can Bring Relief , Says Bra- zilian Minister Fighting Around Capital and Elsewhere Serious. Washington, July 1. With unparal elled conditions of famine and anarhy in Mexico City threatening the safety of foreigners, officials of the United. States were giving serious considera tion tonight to relief measures. Long distance dispatches by courier to Vera Cruz from the Brazilian min ister at MexicoCity were before Sec retary Lansing nere and President Wil son at Cornish, N. H., who may au thorize an effort to obtain the consent of General Carranza to send supplies into the old capital through nueutral agencies. The diplomatic corps in. Mexico City is counted on to provide for the removal of foreigners from the fighting zone. "Only the opening of the railroad from Mexico City Jo Vena Cruz," said one of the Brazilian minister's mes sages, "can bring relief to. the situa tion." The despatches, the first the depart ment had received in nearly two weeka from the Mexican capital, said that, while the cable from the city is not cut, Carranza authorities refuse to per mit messages to pass. It is understood the United States will require of Car ranza to learn the responsibility for stoppage of diplomatic communications. While it appeared today that the. Za pata forces stilly controlled the capital,', fighti'iig was continuing in' the-' out-" skirts. ' The political, situation in Mexico, it generally is believed, depends on- the course" of military operations. Con tinued Zapata successes 'in resisting the entry of Carranza's troops into the capital ' has deadlocked operations in the South, while in the vicinity of Aguas Calientes General Villa claims to have re-taken Lagos and defeated General -Hill, who succeeded Obregon in active command of the Carranza forces. Carranza officials, however, de clare their troops are having contin- uous successes. "Efforts to restore peace wait to some extent upon the return here of PresI-. dent Wilson, although the outcome oi the military situation in the next few weeks will, have an important bear ing on the problem. --Many Villa leaders are In Washing ton' and their group will be augmented by the early arrlvaP of Miguel Dlai; Lpmbardo, Villa's foreign minister. General Felipe Angeles, another Villa leader, will participate in conferences to be held here. CARRANZA ARMY CHECKED. Zapata Forces Defending Mexico Cifcy -Food Shortage Serious. . V. Mexico City, June 27 (by Wireless telegraphy via steamship City of Mex- X ico, to New .Orleans, July Repeated attempts by the Carranza army direct ed by General Pablo Gonzalez to cap ture Mexico City, have failed so far, and the forces under Generals Zapata and Gonzalez Garcia claim to have had the advantage in the fighting. The Carranza army penetrated to tha city but was driven back and the Za pa.ta forces say. that , the constitution alists have received, a definite check. Looting is feared, by the merchants should . the Carranza forces capture the city. All business establishments have been barricaded. The members of the diplomatic coips are meeting daily in an endeavor' to protect the lives of foreigners. The shortage of food is becoming serious. Forty thousand poor were in line in front of the international relief offices today. - The convention government archives and treasury funds have been removed to Cuernavaca, 40 miles south of the capital. A .train is being held in readi ness to take the officials of the govern ment to the southern town should the constitutionalists . enter the Federal district., ...... - REPORT FROM PUEBLO. Citizens of Mexico City Oppose Return of Constitutionalists. Pueblo, Mexico, June 24, via Havana, July 1.- Fighting for possession of Mexico City, by the forces of General Carranza and General Zapata has been in progress for eight days. Reports received in Pueblo indicate that General Gonzalez at the head of the constitutionalist army of 30,000, which marched on the Federal capital from Pueblo, "met with severe resist ance by General ' Zapata's army and armed citizens who barricaded the ap proaches to the city. The Carranza forces on June 20th penetrated to Xochomllice, a suburb, hoping to gain possession of the water works, but they are reported to have been driven back with heavy losses. Suffering among the poor in the cap (Continued on Page Eight.) Deposits made today in SAVINGS DEPARTMENT of the AMERICAN NATIONAL BANK will receive full quarter's INTEREST on October first. This BANK is Designated Depository, for the United 'States Government, -State. of North Carolina, City of Wil-". mlngton and County of New Hanover. ... every, Pays -4 pen-cent.-compounded every quarter. Advertisement. - . m S :'4 "m r. 'iC ! r Til 4 i V f t g ft i e 4 ::. . ft x ' . i 1 A it