New Britain Herald Newspaper, February 1, 1917, Page 1

- AMERICA - b L & New York, Feb. L—The effect of < = % hags of the Entente allies. ‘\‘ ¥ was said, a large fleet of small, fast "% ments. HERALD BEST OF ALL FOCAL NEWSPAPERS NE HERALD “ADS” ME BETTER BUSINE PRICE THREE CENTS. W BRITAIN HERALD NEW BRITAIN, CONNECTICUT, THURSDAY, FEBRUARY 1 President Wilson and 1917. —.TWELVE PAGES. ESTABLISHED PREPARES FOR QUICK ACTION ON GERMANY’S THREA Secretary Lansing Confer and Situation Is Believed Fraught Wi ‘Gravest Possibilities---Berustorff May Be Given Papers and Ordered Out of Country COMMERCE PARALYZED BY to Take Regarding . Sailings : PORT OF NEW YORK IS OPENED TODAY | Collector Malone Heard of Plot to b Scuttle German Ships Interned at | Hoboken, and Rushed Reserve : Guard to Docks—No Restrictions at Boston—Scandinavian Ship Post- pones Trip. Germany’s declaration of a sea block- ! ade of the Entente nations to be en- ! forced “with every avallable weapon ; and without further notice,” was felt today in every port on the AuanUc: coast. Owners and agents of vessels fiying neutral flags were in doubt as 35 their future course of action and it is belleved that most of them will keep their ships in port until instruc- tions are received from their govern- In the offices of British and French “dines it was said that there will be 'IN NOTE REFERENCE Ex-President Urges Hasten- ing of Naval and Mili- tary Preparation. Concord, N. H., Feb. 1.—A grossly unwarranted extension of the right of blockade was the characterization of the new German policy of unrestricted submarine warfare made by former President Taft, who addressed the state legislature today. HMe said in part: ‘““The dangerous crisis in our rela- tions with Germany by a declared in- tention to sink neutral vessels en- gaged in trade with France and Eng- land, their crews and passengers, without warning, by submarine war- fare, is a grossly unwarranted exten- sion of the right of blockade. It great- ly emphasizes the necessity for has- tening adequate military and naval preparations against unjust aggression “It also takes away the flattering unction that we are now so remote from a European war that we should decline to enter, a world league to en- force peace. Such a league in the fu- ture will be as useful and needed a protection to us as our leadership and participation in it are necessary to its formation and wise guidance. “It is our duty to ourselves and to the world to help it protect itself fro reduction in the sailing' from |against the horrors of another war.” s merican ports of ships carrying the To meet %gust such an emergency as this the .f{r!.tlsh government has assembled, it cruisers to be used as ‘‘submarine " chasers:” These vessels, sald to num- ber 4,000 will be available to keep the sea clear of raiders and sub- marines and act as convoys. No Danger For Americans. P. A, S. Franklin, president of the Tpternational Merchant Marine and ‘head of the American line, declared: “I do not think there is any danger Mr. Taft was speaking on subject of a world league to enforce peace. TARNOWSKI SURPRISED New Austrian Ambassador to United States Did Not Know Note Was Be- ing Prepared in Berlin. New York, Feb. 1.—Count’ Adam Tarnowski Von Tarnow, Austria-Hun- gary’s new ambassador to the United States who arrived here today on the for American ships on the present voyages.” Halvoord Jacobson, representative of the Scandinavian-American line, and Willlam Vandoorn, manager of the Holand-American line, expected ! to recelve cable instructions today om their governments. Neither of .Aese lines, it was said, has carrled | munitions of war or contraband since Jthe early days of the war. Shipping men pointed out that the most obvious effect of the German declaration would be the reduction in % the tonnage which the ships of the #European neutral lines could earry {4on account of the increased space Avhich would have to be sacrificed to ‘carry coal and provisions for the con- “tinuous voyage from American ports | to neutral ports. Hitherto neutral Nehips have relied largely upon British _ports to renew their supplies. ; Port of New York Closed. Mo shipping of any kind was per- zaitted to leave the port of New York 4dst night. The harbor gates were closed by Dudley Field Malone, col- L lector of the port, who has full au- thority to act upon his own initiative in cases of emergency Mr. Malone did #not disclose his ideas as to the nature S of this emergency but after station- ing two destroyers off quarantine, . where the harbor narrows like the & neck of a bottle, the federal officials % devoted most of their attention to the German merchant fleet which has been interned here since the begin- ning of the war. Collector Malone called upon police of New York and Hoboken for as- sistance and sent squads of men to as- =¥t the guards which have been on duty at all the piers where the German vessels lie. A search by the neutrality guards disclosed no evi- dence of any preparation to justify ; rumors that the Hamburg-American ' and North German Lloyd liners were . preparing to escape from the harbor. £ A rumor that the crews of these ships 2 svonld attempt to scuttle their v. “and destroy the machinery proved un- o far as - the federal officials (Continued on Ninth Page.) (v | We sec no 1 sels | steamer Noordam learned first from newspaper men of the despatch by Gesmany of its note outlining a new naval policy. “The note is a surprise to me,” he “I never knew about it until news- papermen showed me the newspapers containing it.”” “Did you know such a note was con- templated.” “I did not,” he replied. The new ambassador hastily read the text of the note and then, assert- ing it was too serious for discussion at this time, protested against fur- ther questions. He said he would take a train for Washington to assume his duties at the Austrian embassy. Count Tarnow stated that at Fal- mouth, where the Noordam put in, his twenty-eight trunks were searched by British government officials. He said this surprised him, but that he had no complaint to make.” “The treatment accorded me was very courteous,” he declared. AMERICAN LINE DEFIANT Steamship St. Louis Will Sail on Scheduled Time Without Markings As Designated By Kaiser. New York, Feb. 1.—The American line steamship St, Louis will sail Sat- urday be made to paint the ship in con- formity, with the regulations pre- scribed by the German government a guarantee for the safety of the ves- sels flying the American flag, accor ing to announcement today by the of- | ficials. ason,” said an official inge our i line ships. We | of the line “to ¢ lates for the Amel expect the St. I R SUNK. 1.—Lloyas DUTCH STEAM London, Peb. that the Dutch 3,211 tons has bee was landed. s scheduled and no effort will | iling | ouis to sall as usual.” | STOCK EXCHANGE IN BOLT FROM SKYOF BLUE| FRENZY OF SELLING Shipping Menin Doubt | T0 ARMS!" SAYS TAFT |Greatest Rush to Dispose of .. As to What Action Shares Since War Opened STRONG SUPPORT APPARENT Rally in Morning Indicates Effort to Stem Tide—Greatest Break in Short Time in History of Cotton Market. New York, Feb. 1.—The wildest rush to sell stocks that has been seen on the New York exchange since the beginning of the war reflected the stock market view of Germany’s an- naouncement of her intentions to re- sume unrestricted submarine warfare, Prices fell off under huge liquida- tion from 2 ‘to 20 points, the wave of selling affecting all issues of stocks, United States Steel, which closed last hight at 112, fell below par. Apparent efforts to support the market soon after the demoralized opening proved ineffective until about 10:30, when the ! markeét showed some.signs of rallying. Opening prices showed losses rang- ing from 1-4 to 13 points. International Mercantile Marine issues, which perhaps would be most directly affected by the German r strictions, were the heaviest sufferers, the preferred selling at 65, off moro than 17 points, and the common losing 8 points to 20. In the rally Steel rose to 103 1-2, Utah Copper which fell 14 1-4 points, | recovered 8 and there was improve- ment in the rest of the list. it became evident that stocks were iving support from strong quar- Marine preferred picked up six points to 71. The market continued active and the floor of the exchange was a scene of intense excitement.; TUnited States Steel was turned over in large lots between 10:30 and 10:40 a. m. Bethlehem Steel was off 26 points. The market was in a demoralized condition. Rails as well as industria suffered, Union Pacific dropping points, Reading 5, Erle 3 1-2 with losses of 2 to 3 for other active rails. Rallies of 2 to 10 points were re- corded within the first fifteen minutes, however, with signs of support in some of the leading stocks. Selling, nevertheless was of the most urgent character. The support however did not prove effective. United States Steel for the first time in many months dropped be- low par. Sales during the first hour reached more than three-quartens of a mil- lion shares as compared with 286,800 during the same period yesterday. Quotations Bewildering. Prices fluctuated with extreme rapidity during the early trading, rallies and furthér recessions alter- nating in bewildering confusion. Ad- ditions to early losses included United Fruit, which broke 11 points, Pitts- burgh Coal, Columbia Gas and New York Air Brake. Bethlehem Steel on a further sale made an extreme loss of 36 points. Commission houscg*were among the heaviest sellers in early trading orders coming from all parts of the count The urgency of the selling, which i included many issues of recognized in- | trinsic values, indicated that latest de- velopments had created grave appre- hension in the most conservative quar- ters. International bonds comprising the war issues were offered in large lots, United Kingdom 5 1-2 and Paris 6's ‘recording substantial concessions. Panic on Cotton Exchange. New York, Feb. 1.—Cotton broke wide open on the call of the future market today under a tremendous | wave of selling. March contracts | dropped 373 points. | amounted to more than .nd the market was ab- novalized. racts hroke to 12,50 with & points under figure making the | in such a short time in | | the nhistory of the market. Report of | conditions in the stock market in- crensed the excitement but after the | Violent liguidations had some- { | (Continued on- Ninth Page) | garding GERMAN SHIP AT CHARLESTON BELIEVED TO BE SCUTTLED Charleston, S. C., Feb. 1.—The German freight- er Liebenfels of the Hamburg-American line tied up here since the beginning of the war began sinking slowly at 9 o’clock this morning and marine men be- lieved she had ‘been scuttled. be borne out by the fact that the captain declined the aid of tugs. In an hour the vessel’s bow was high in the water and the stern was gradually settling, but Captain Kalttenhoff with five or six officers were still aboard. The steamer which is chored in about 41,000 feet of water about half a mile from the city water front. his belief seemed to of 2,600 tons gross is an- ENGLAND STUNNED; WILL WATGH WILSON! Considers-Gepman. Note Is Ad- dressed Strictly to Nentrals OTHER COUNTRIES SHOCKED Spanish Minister Appeals to Newspa- permen to Be Calm, Fearing Out- break of Populace—Danish Cabinet Discusses Communication. London, Feb. 1, 11:50 German declaration war at sea has a. m.—The unrestricted created a pro- found senation in England, where it was unexpected. All interest centers on the policy which neutral maritime nations will adopt. The decision of the United States is awaited with the most intense interest of as it is recognized that it will have a | strong influence on other neutrals and be the most important factor in the solution of one of the most crises of the war, Officials decline to discuss the ques- tion formally at present. 'It is pointed out that inasmuch as the note is ad- dressed to neutrals, and not to the British government, it is essentially for them to deal with. At a later time application of the measures in the note may involve questions affecting the Ententes as well as neutrals., serious Sensation in Madrid. London, Feb. 1.—An enormous sen- sation has been created in Madrid by the publication of the German notc announcing the inauguration of unre- stricted submarine warfare, according to a Reuter despatch from the Span- ish capital. The text of the Central powers’ note was made known in an official announcement by the foreign office. Spanish Cabinet Meets. Paris, Feb. 1.—According a Havas despatch from Madrid the Spanish cabinet met last night to con- sider the situation arising from the newly announced naval policy of the Central, powers. to Minister Fears Rioting. London, Feb. 1, 12:05 p. Reuter despatch from Madrid says the Spanish minister of the interior, on communicating to the newspapers the note of the Central powe re- their new naval measures, appealed to them, in view of the need of preservine their neutralit d on account of the gravity of the situation m.—A nth Page) (Continued on X WEATIIER. Uartford. Ieb, Iartford and vicinit and much colder, with a cold wave tonight. STAKE EVERYTHING ON NEW CAMPAIGN Entente Challenge Accepted, Vic- tory Seen, by German Chancellor 'MUST NOT WAIT LONGER Von Bethmann-Hollweg Declares, En- tente, by Its Stubborn Attitude, In- vited a Fight and Promises Invita- tion Will Be Accepted. Berlin, Jan. 31, via London, Feb. 1. —Chancellor Von Bethmann-Hollweg and other ministers attended ‘an im- portant session of the ways and ! means committee of the Reichstag today at which the entire war situa- tion was gone over and new steps planned by the Central powers werc considered. The chancellor opened ! the sitting with a speech of which the keynote words were: | “We have been challenged to fight | to the end. We accept the challenge, we stake everything and we shall be , victorious.” The chancellor was followed by the secretary of state for the admiralty !who spoke of the situation from the technical military and naval view- points. Detailed statistical data in regard to the economic position of the world was supplied by the secretary of the interior and Foreign Secretary Zimmerman repled to several special questions. After the ministers had spoken the committee went into se- | cret session at which speechgs were imade by representatives of the cen- terists, national, labor and progres- sive parties. Ententc Invited Fight. London, Feb. 1.—Chancellor Bethmann-Hollweg addressing the Reichstag committee declared that Germany was ready to stake every- thing and fight to the end, according to a Berlin despatch to Reuter’s by way of Amsterdam. The despatch says that the chancellor spoke as fol- Von 21, I explained to the Reichstag the reasons which led to our peace offer. The reply of our op- ponents clearly and precisely said that they declined peace negotiations | with us and want to hear only of a { peace which they dictate. By this, the whole question of guilt for the continuation of the war is decided. The guilt falls alone on our oppo- nents. Just as definite is our task. The conditions of the enemy we can- not discuss. They could only be ac- cepted by a totally defeated people. It means that we must fight. “President Wilson’s. message to con- gress shows a sincere wish to restore peace to the world. Mar of his maxims agree with our aims, numely freedom of the seas, abolishment of the system of halance of power which [ alwa is bound to lead to new diffi- culties, equal rights of all nations and an open door. But what are the peace conditions of the Entente? Germany's defensive force to be destroyed, we to (Continued on Ninth Page) Plans of Federal Government, Now Belie Well Under Way, Secret--Navy May Be Being Kept Stri§ Detailed to Safeg American Shipping--Officials Fear the W¢ Washington, Feb. 1.—Rut! augurated today by Germany face to face with what Preside hless submarine warfare brings the United Sta nt Wilson has solemnly clared to be the only alternative to recognition of A can rights on the-high seas—a break in diplomatic tions, with its accompanying grim possibilities. Washington awoke this morning with as! realization of this situation. the midst of lingering hopes f and speculation of what might hudder td It had come so suddenly or an early peace in Euro] be the president’s next mg toward that end that there had been little time for deli eration. In fact, even members of the foreign relatio committee of the senate read for the first time in morn newspapers the text of the/warning note handed yesterds to Ambassador Gerard at Berlin and delivered to the sta department by Count:Von Bernstorff. After an hours conference between the president and Secretary Lansing it became khown that the German situation is wiewed with extreme gray- ity and t the American govern- ment had already begun to formulate definite steps. It was regarded as not impossible that action of some kind had already been taken, but there was no' indica- tion of its nature. There also' were indications that no announéement of the course of the government would be made until certain steps had been taken throtigh the navy department and the treasury for safeguarding American ports and other interests. .. | ‘Wilson Secs' House. President Wilson, upon whom lies the burden of determining the na- ¢Many’s promises in the i acknowledging the new.assuraned a terse note which informed the’ lin government thet it was,taki granted that observance of can rights was not' conti the :}xwhme of negoti fifb‘rx‘\! b thé United States and ‘ahot The new situation hus sriséf the reserved Hberty ‘of #ction. is o used. According to information fi Teutonic sources here, Germauy ready from 300 to 500 submap| ready to wage relentless war shipping in the prescribed, area, great sedtion of the high seas stre ing three or four hunired miles f} the, coast of the British Isles i} almost the whole of the Medi can. A seore of American lives'hay Jost since the slate was wipad by Sussex tion’s course, was alone in his study | but in each instance thers were at the White House until late in the night avith a copy of the German note. e saw no callers, but is under- stood to have held several telsphone conferences with members of the cabinet and to have sent a summons to Col. E. N. House, his close friend and constant adviser on foreign ar- | fairs. Col. House, leaving his home after midnight, reached here early this morning. There is every indication that what- ever the American government does will be done quickly. Apparently it is agreed that there are but three courses open—handing Count; Von Bernstorff his passports without fur- ther delay; sending at once a warn- ing to Germany that she will violate American rights at her peril, or awaiting the development of the new starvation campaign against England, announced to begin today. | The president has given no intima- tion of the trend of his thoughts since he expresséd incredulous amazement vesterday when informed of which | was coming. through the Associated | Press despatches from Berlin. So far as could be learned early today no wurrangements had been made for him to appear before congress, as | he did last year to announce the dis- patch of the Sussex note informing | Germany that unless the imperial government abandoned the conduct of submarine warfare without regard to the principles of humanity and the rights of neutrals, the United States would be obliged to break off diplo- | matic relations. Return to Old Status. The new German warning carries the situation back virtually to where | it was upon the proclamation by Ger- many two years ago of a war zone around the Britiss Isles. That proc- lamation called for the famous ‘‘strict accountabilitv’’ note from the United States. It was followed by the sink- ing of the Lusitania and the virtually | ultimatum from the United States | which resulied in the German pledge | not to sink “liners” without warning | and provision for Lhe safety of those on board. Then came the long series of nlleged violations of this pledge, culminating in the atlack upon the channel passenger steamer Sussex. In [ her final note in tha Sussex case, Germany exicnded ser pledges to | cover all peaceful merchant craft, but gave notice that, if which she termed Great Britain’s illegal blockade was maintained, a new rsituation would be created in which she would re- | flicting influences and in each case peated assurances from the Ge! embassy here that nothing wou permitted to disturh relations the United States. After each of i new sinkings, came formal assur: that Germany was ready to mi amends if her submarine command had violated orders. In fact, the’ bassy here was the brightest spot 1 situation which American offi viewed as constantly growing dar! Note Toned Down. An evidence of the efforts of embassy here to koep relations tra quil is found in a comparison of. note handed yesterday to Secreta Lansing by Count Von Bernstorff wi the one handed by the Berlin forejf office to Mr, Gerard. 3 The note published in Berlin af nounces in bold terms the deter in) tion of Germany to wield weapon at her command wi quarter while the note presented ! the American state department the same thing in softened languag] American oflicials are not convine that Germany’s announcement of campaign of ruthlessness reveals tH entire situation. There have been i timations of discussion between tI Entente allies, all of which have bee denied, and there are other cireu stances which have come into posses sion of the American government t are not being disclosed. There is no assurance that the ne warfare will be confined to chang on the seas. ™ German Embassy Confident. The air of confidence which 8 openly expressed at the German em| bassy was generally interpreted as indication that the Berlin governmen was sure of the success of its PIAN New crisis however, brings new gers too the very shores of the UafY States where a score or more of man and Austrian ships have . b laid up since the beginning of the and where several commerce are interned, Bl Reports of $hips being armed = ses cretly for a dash to sea, of plots td sink them at their wharves, or td block American harbors by destroy: ing them in the channels have been under investigation for many months. This was diplomatic day at the stat department as set occasion for receiy. ing represenatives of foreign nations.| Secretary Lansing. however, cancelled it and those who had routine business| o e serve full liberty of action. The ex- changes closed with the United States (Continued on Ninth Fage.)