THE GERMAN BREAK CAME SATURDAY PASSPORTS HANDED AM BASSADOR BERNSTORFF. President Wilson Warns the Kai ser That Ruthless Sacrifice of American Lives Means War. Ambassador Gerard and All Consuls Ordered Out of Ger many. Neutrals Are Notified of the Action Taken. An Associated Press dispatch from Washington dated Febru ary 3, and published in Sunday's dailies, says: President Wilson has broken off diplomatic relations with Germany and warned the Kaiser that ruthless sacrifice of Ameri can lives and rights m^ans war. Similar action is waiting for Austria when she notifies this government that she joins in the campaign of unrestricted sub marine warfare. The President made formal announcement of his action to the country and to the world Saturday at a joint session of Congress. Passports have been handed to Count Von Bernstorff. Am bassador Gerard with all his staff and all American consuls have been ordered out of Ger- , many. All German consuls in | the United States are expected! to withdraw that the severance j of relations may be complete, j American diplomatic interests j in Berlin have been turned over to Spain ; German diplomatic I interests in the United States | have been taken over by Switz- j erland. Foreign diplomatic inter- j ests which the United States had in charge in Germany have been j turned over to various neutrals, j Two years of diplomatic ne- j gotiation, marked with frequent j crises and attended with the loss | of more than 200 American lives on the high seas, have culminat ed with an act which in all the history of the world always has led to war. Every agency of the American government has been set in motion to protect the country against acts of German sympathizers. These moves are of necessity being kept secret. With the notice of severance of relations the United States sent to Berlin a demand for the immediate release of 64 Ameri cans taken from ships captured by German raiders in the South Atlantic. At the request of the Presi dent Congress immediately after hearing his address began work on new laws framed by the De partment of Justice to check conspiracies and plots against the United States which cannot now be reached under existing statutes. The question of convoying American merchant ships through the submarine blockade has been taken up and is being considered as one of the next moves by this government. The news of the torpedoing of the American steamer Housa tonic, coming almost before President Wilson's words in Congress had died away, creat ed a tremendous sensation but it does not necessarily consti tute an invasion of American rights as the President said he would meet by asking Congress for additional authority to act. Only the establishment of the exact facts can determine whether the sinking of the ship was a new attack on American rights or whether the case comes within the range of other Amer ican ships carrying contraband, destroyed in accordance with in ternational law and presenting a case to be settled under its pre cepts. Admittedly, if the Housatonic was sunk without warning, or with loss of American life, it will amount to little less than an act of war and be followed by all the consequences which the President so clearly pointed out in his address. Neutral governments have been notified of the action of the United States and have openly been invited to follow its action if the new submarine campaign violates their rights. The breaking . of relations came with a crash, despite the fact that it had been discounted, and practically determined up on last night. The President returning from his night confer ence with the Senators deter mined that a break in relations was the only act "consistent with the dignity and the honor of the United States." He work ed most of the night preparing his address to Congress. PLAN U. S. ARMY OF 2,000.000. All Youths From 18 to 20 May Be Called. The General "KtafT of Army Working on Flans for More Sol diers. Washington, Feb. 3. ? Plans for im mediate action in case of war with Germany have been worked out by the General Staff of the army, it was learned to-day. They involve these projects: To use the regular army and the National Guard as a nucleus to train an army of 2,000,000 a ye^r, sending no troops to Europe during that pe riod. To obtain immediate passage of a universal military service law and calling out the first three classes un der it. Extensive establishment of train ing camps in every State. Putting American munition plants and other factories to work furnishing supplies and munitions for an army of 2,000,000 men and converting other factories for this work. It would be futile, army men say, to send any of the present army to Europe. Russia lost 80,000 officers in the first ten months of the war, they said ? more than the total strength of the United States army. General staff plans call for 100 ar my divisions of 20,000 each. Fifty thousand officers would be needed. At present there are 6,000 officers avail able. Youths reaching the years of 18, 19 and 20, the first year would be called. Each year 1,000,000 boys reach each of these ages. One-third of them, it is estimated, are unfit physically for military service ? leaving about 666, 000 in each class. The plan suggested is that of Ja pan, which has sent no troops to Eu rope, but has defended its own waters and has prepared steadily for any trouble. This it is declaied, is the log ical plan for the United States. ? New York Evening Sun. GERMANY TO RELEASE MEN. Accedcs to Demand of United States to Let Go Free Seventy-Two Americans. Berlin, Feb. 4 (via London, Feb 5) ? Germany today acceded to the American demands for the immediate release of the 72 Americans taken from ships sunk by the raider in the Atlantic and brought to a German port aboard the steamer Yarrowdale. One of the last things to be done by the United States government before severing relations with Ger many was to demand that the Ameri cans taken by the German raider from the British steamers Georgic, Mount Temple and Voltaire and who were being held in German prison camps be released. A Washington dispatch Saturday said there were 60 of these men. Germany, in holding them con tended that as paid members of the crews of armed enemy merchantmen they were due no immunity. SIMMONS AND WILSON CONFER. Both Are Satisfied Congress Will Ap- < prcpriate For War Any Funds Nec essary. No $3,000,000,000 Bond Is sue. Washington, Feb. 4. ? Senator Sim mons stated tonight, after an hour's conference with President Wilson at the White House, that he discussed in a general way with the President the prospects of getting the present revenue bill through the senate be fore March 4th. ^he senator admit ted that the proposition of raising additional revenue by bond issue or otherwise, should this country be forced into war with Germany, was discussed. There was a report about town that the President had asked the senator if he thought a $5,000,000, 000 bond issue could be put through the present Congress, immediately if necessary, but the North Carolina senator said no such proposition was discussed. The President arKl Sena tor Simmons went over the revenue proposition in a general way and both apparently are satisfied that Congress will appropriate any amount of money needed, in the event that war is actually declared. National Committeeman A. W. McLean arrived here tonight to spend several days. Accompanied by Mrs. McLean, he has been spending some time in the east. He said the people with whom he met are standing with the President, and a large per cent of them heartily approve his course with regard to the severance of diplomatic relations with the central powers. ? Parker R. Anderson, in The Grensboro News. STRIKING CHANGES IN COTTON Most Spectacular Slump n History. May Option Breaks 500 Points. Dun's Review, 3rd. Nothing in previous experience parallels the week's events in the cot ton market. With the unexpected announcement, of the nc\y German submarine policy, and the conse quent threate ?d rupture of diplo matic relations with that country, prices sustained the worst shakedown in history, breaking 375 to 500 points and more soon after the opening on Thursday. Thus, from a previous closing of about 17" a nt.s, the March delivery derlired vith bewildering ra pidity to ct.ju , M*;.:le the May option dropped in even more startling fashion, going down from 17.66 cents to 12% cents with in a few minutes. Such wild fluctuations have never be fore been approached, much less du plicated, and the readjustments in December, which were with reason called spectacular, seem moderate by comparison. Pressure to sell cotton contracts, because of the grave pos sibilities in the international situa tion, came at a time when there was no large outstanding short interest in the market, and the absence of this supporting influence naturally accen tuated the depression, as did the col lapse of priccs on the Stock Exchange. Buying orders, however, appeared at the bottom levels and a quick and violent recovery was witnessed, though quotations, both for spot and futures, ended the week materially lower. It seems strange, in viewing the present position of the market, to re call thfe fact that little more than two months age some people were predict ing 25 cents for the southern staple. All realize now, and have for some time, that the great speculative boom which raised the May and July deliv eries to the 21% -cent basis in Novem ber was carried beyond the point of safety, and in the light of this week's events it is fortunate that drastic readjustments were experienced on the November advance, the May de livery has sustained an extrema break of 9 cents a pound, or $45 a bale, and spot middling uplands at New York has declined from 20.95 cents to 14.30 cents, a loss of about $33 a bale. Yet the options still are $15 a bale higher than a year ago, while spots show a similar difference of 'fully $10. Roosevelt Pledges His Support. Oyster Bay, Feb. 3. ? Col. Theodore Roosevelt tonight pledged his support to President Wilson in upholding the honor of the United States. He offered to the country his own services and those of his four sons in the event of hostilities. BERNSTORFF'S VOICE HUSKY. Lierman Ambassador Declares His Life Work Has Failed; He Is Out of Politics. Tears Filled His Eyes. Washington, Feb. 3. ? Count J. H. von Bernstorff, the German ambassa dor, heartbroken that his years of un remitting toil to preserve friendly re lations between the United States and Germany had collasped in failure, to night prepared to leave the country. He told friends that nothing in his long and brilliant career in diplomacy had affected him so much as to be handed his passports and told to leave a country for which he always had ielt the closest attachment. "I don't care what happens to me now; I am out of politics forever; my life work has failed," the ambassador said, with a show of emotion soon af ter he had been handed his passports by a state department representative. Tears welled in his eyes as the am bassador talked to the newspaper men in the red room of the embassy fol lowing the state department embas sy's visit. His voice was husky and he faltered in speech at times, showing unmistakable evidence of regret that he must depart from the scene of his many triumphs in other years. Ambassador von Bernstorff receiv ed his passports at 1:52 o'clock this afternoon from the hands of Assist ant Solicitor Lester H. Woolsey, of the State department. With the pass port which provided for the recall not only of the ambassador but his family and suite, the ambassador was given a duplicate of the speech the Presi dent delivered before Congress. Before the passports were deliver ed, the ambassador and other officials of the embassy knew that a break was imminent. When he received definite word that diplomatic relations had been broken, he informed Countess Bernstorff of the news. The embassy officials and employes were immedi ately called into the ambassador's of fice and told what had happened. All attaches of the embassy immediately began packing up their personal ef fects, preparatory to their departure. There was a complete suspension of business within the embassy and the clerical forces talked only of the pos sibilities of war growing out of the diplomatic break. All connected with the embassy were apprehensive that a bigger crisis may soon come. MUST FRNCE DUPLIN COUNTY. Will Be About 218 Miles of Fence Estimated to Cost Over $100,600. The restraining order against the county commissioners of Duplin, to restrain them from building a fence around the county, was dismissed by Judge C. C. Lyon at the hearing at Kenansville Wednesday. The mandamus to compel them to build the fence was heard at the same time, and the judge issued an order of pre-emptory mandamum, compell ing the commissioners to build the fence as required by the statute. The statute requires the "building of a fence around the county, or such parts thereof as border on stock law territory," and around all the old special stock law districts, about 219 miles of fence estimated to cost over $100,000. The sentiment in the county has changed considerably since the vote was taken in 1915, and a great many of the people who voted for the free range are now opposed to the old system, and to the paying of a tax for building the fence. ? Warsaw special in Charlotte Observer. Congress Overrides President's Veto. Washington, Feb. 5. ? Congress has overridden a veto by President WilsOn for the first time and enacted into law the immigration bill with its long fought literacy test provision. The senate voted late today 62 to 19 to pass the measure, the eleventh-hour information that Japan again had protested against the language of the Asiatic exclusion section. The house overturned the veto last week by a vote of 287 to 106, so the senate's action ends the contest of 20 years' standing in which three presi dents have repudiated similar bills passed by Congress. Snow In Charleston. Charleston, Feb. 5. ? At 1 o'clock this morning a light fall of snow be gan accompanied by a strong wind. It is the first snow of the winter. PRESIDENT HOPING FOIt PEACE, i American Officials Are Now Only S Awaiting An Overt Act. Eavestone Case Is Not Final. It Will lie Inves tigated Before Assigned As Factor In the Situation. Our Course .Must He Above Criticism. (Grensboro News.) Washington, Feb. 5. ? While the United States stands before the world court of public opinion in the anxious waiting period which will determine peace /or war with Germany, Presi dent~Wilson is determined that there shall be no word or deed to merit a reproach, even from Germany hersolf. Nothing is to be done which is not fully justified by the laws of nations and humanity; nothing is to be done for expediency; nothing is to be done which is not legal and just. With a hope for pcacc and a readi ness to meet war if it must be, the President has made it clear to all his officials that the course of the United States, difficult as it is, must be en tirely beyond criticism. To that end German rights and property in the United States are to have full protection of law, and the President wishes every American cit izen to forbear from any thought or act which might lead his country nearer to war. Hope that Germany might at the last moment modify her declaration of unrestricted submarine warfare was almost dissipated today by n~ws despatches from Berlin which gave the word of high German officials that there would be no turning back. With that hope waning, American officials now only wait an actual dem onstration of how the new decree will affect American rights. The news of the killing of an American seaman in the shelling of the boats of the Brit ish steamer Eavestone is not now re garded as the long-feared overt act. It will be thoroughly investigated before it is assigned to its proper place as a factor in the situation. Meanwhile Austria's case still is undetermined. While it is known that the dual monarchy has officially ad hered to Germany's declaration, as it now stands before the State Depart ment, her announced intentions are somewhat different from Germany's, but it is doubtful if there can be a real distinction. Rupture of relations with Austria seems no less certain than it did, but the situation must go through definite processes before a decision is announced. Although engrossed in the tack of preparing the country for any event uality, President Wilson has not lost sight of the participation neutrals must have in the terms of peace ? terms which he hopes will insure the world against another conflagration. AMERICAN KILLED IN A SUBMARINE ATTACK. London, Feb. 5. ? The British steam er Eavestonc, 1,791 tons, has been sunk and the captain and four mem bers of the crew killed, says an an nouncement by Lloyd's. It is officially announced that Rich ard Wallace an American seaman be longing at Baltimore, was killed in the shelling of the boats which left the sinking steamer. The official statement says: '^Survivors of the steamship Eave stone who landed today, report that their ship was sunk by shell fire from a German submarine. The crew aban doned the sinking ship and were shell ed in their boats by the submarine. "The master and three seamen were thus killed and the second mate was severely wounded. Among the killed was Richard Wallace, of Baltimore." The steamer Eavestone sailed from Liverpool. Her subsequent movements have not been recorded in available shipping registers. The British ship Isle of Arran, of 1,918 tons has been sunk by a sub marine, two of her crew being injur ed by shell fire, Lloyd's shipping agency announced today. ? Greensbo ro News. HENRY FORI) OFFERS HIS PLANT TO THE GOVERNMENT Detroit, Mich., Feb. 4. ? Henry Ford, the automobile manufacturer and peace advocate, is said to be in Wash ington today conferring with Presi dent Wilson and other officials of the government. It is reported here that Mr. Ford goes to offer the use of the Ford plant here to the- government. ? International News Service. SATURDAY IN LEGISLATURE. uHrage !*sue In House February 9. A (till Passed Authorizes Highway Commission to Receive Federal Road 1' und. Another Duplin Free Range Bill Introduced. Hard Fight Ahead for Newspaper Bill. House Does Day's Work. Raleigh,, N. C., Feb. 3.? Only the House of Representatives did legis lative work today. The bill of most in terest passed by the House was that to authorize the State Highway Com mission to receive from the Federal Government the State's portion of the $85,000,000 road fund. The measure carries no appropria tion or other means for providing the maintenance of highways that is es sential on the part of State to benefit by any part of this Federal fund. When the bill was first laid before the House some thought it was in volving the automobile tax fund, and they were ready to fight it. Suffrage Question, February 9th. The House voted to set the suffrage question as it is to come up this ses sion as a special order for February 9th. This will be in the form of a bill by Roberts, of Buncombe, to pro vide that any municipality can by ma jority portion elect to extend the fran chise to its women in elections on municipal issues. The bill has favora ble report from committee and is now on the calendar awaiting its fate un der this special order for considera tion next Friday. It looks like the bill by the after noon press association to have a revis ion and some advance in the compen sation for legal advertising will have to have a fight on the floor in its be half before it gets through. It was offered on second reading in the House today and Representative Brummitt called on the members of the House to look into the bill very carefully. He said opposition had developed in the committee and numbers of members had been obliged to go to their homes and were not here today for its con sideration. Therefore, he wanted it to go over to Monday. This course was taken after such men as Dougliton, of /illeghany, Clark, of Pitt, and others had spoken strongly in its support. It looks like it may be necessary for some of the members to hear from their newspaper constituents at home before they line up for the bill. Petitions for the Anti-Saloon League legislation were presented from Alamance, Union, Bertie and other counties, also a number of pe titions for election of county school boards by the people. New Bills in House. New bills were presented as fol lows: Brummitt? Regulate the sale of fertilizers. McRackan? Regulate fishing and hunting in Columbus County. Pergram (by request) Amend the law of 1913 as to the practice of os teopathy; authorize city aldermen to levy sufficient taxes to pay interest on indebtedness. Sanders ? Provide for greater se crecy in the presentments made by grand juries. Another Duplin Free Range Bill. Representative Pegram introduced by request a bill for the repeal of the Duplin County stock law, explaining that the representative from Duplin is sick now in a hospital. Representative Sawyer, of Graham, introduced a bill to provide for the care of dependent families of prison ers. ? W. J. Martin, in Wilmington Star. WILSON'S VETO IS OVERRIDDEN. House Passes I m migration Bill by Vote of 285 to 106. Washington, Feb. 1. ? The House of Representatives tonight passed the immigration bill, prescribing a liter acy test for applicants for admission to this country, over the veto of Pres ident Wilson. The vote was 285 to 106, a substantial margin over the two thirds vote required by the constitu tion. The supporters of the bill will make an earnest effort to force the measure through the Senate by a two-thirds vote before the session ends. They de clare they have the necessary vote. The five-story brick building oc cupied by Thomas Kelly & Co., blan ket manufacturers, of Boston, was de stroyed by fire Monday at a loss of $350,000.

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