ALL THE LATES 7 WAR NE WS B Y ASSOC! A TEt PRESS FULL LEASED WIRE SER VICE
The Omaha Daily Bee :
VOL. XLVIII. NO. 1. '" OMAHA, WEDNESDAY MORNING. JUNE 19, 1918. 10 PAGES , J&a?tE?i. TWO CENTS. .
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JABBED AS
GRAFTER
Lt. James C. Staley, Reserve
Officer Trained in Iowa, Ar-
; rested on Charge of Ac
: cepting Illegal Fee.
Washington, June 18. The
trail of the government's pur
suit of illegal profiteers on war
-contracts today led to the ar
rest in New York of Lt. James
C.; Staley, a reserve army of
ficer, on a charge of accepting
money from the' Truefit Rain
coat company of New York,, for
- a contract which he promised
" to procure.'
. The arrest was made by De
partment of Justice ag.ents,
who had followed the officer
during his inspection of the
plant of the raincoat company,
. i. n AinJ -I'M S
it n non TirnnriuiiirN xririi in i. w
operation with the government
to detect the fraud.
. 'The secret agents arrested Staley
; after he was said to have received a
-.sum of monev from Joshua Rosen
thal and Louis Wener, proprietors
..of the plant. It was charged that he
'' iold them he would expect more mon
ey as soon as the got the contracts
"" which they sought for 50,000 rain
coats costing nearly $250,000.
Lieutenant Staley made a complete
confession-of his part -in the transac-
tions, department officials said, and
gave much valuable information which
1 may lead to tne detection oi omci
cases of fraud. He will be tried by
a court-martial. ,
,; Other Arrests. Forecast.
, Thit was" the : first rre'sfr of an
srmy orticer since' tne uepariracni u
i. ' iH(.l Ui 4nvi.ctii3r3f ni -into
' ther system by which contingent fee
' agents have made millions by ob
" taining tontracts for manufacturers
who were charged a commission.
Other arrests may follow soon, as it
is known that a number of con
tractors in New York and elsewhere
are assisting the government in run
ning down agents by whom they have
;- been approached- .
I Lieutenant Staley is about 50 years
. old and came originally from Iowa.
He entered a training camp in that
statt last summer and later was trans-
ferred to Fort Snelling, near St. Paul,
where he was commissioned in Au
gust. Subsequently he was trained at
the quartermaster's school at Camp
Dodge, Iowa, and last December 11,
' was" appointed an inspector in the
quartermaster's department for rain
coats and other rubber goods. He
has been stationed in New York
most of the time srnce.
Score Involved m narges.
The shadow of complicity in the
extensive scheme by which commis
. sion agents made millions out of gov
iernment war orders acting as middle
. men in obtaining contracts for manu-
facturers, today extended to scores of
business men and attorneys in Wash
oe ington, New York, Boston and other
i cities, and even to a few secretaries
" of members of congress.
These men many of whom were
amateurs in the game of soliciting
war contracts, promised to use their
influence with government officials,
army ..officers or, members of con
; gress to asure the awarding of con
tract to special concerns, and in tarn
v to, receive compensation if the' con
tracts were Janded.
A large proportion of these cases,
disclosed by correspondence and
nther documents seized in the simul
taneous raids yesterday on officers of
several hundred manufacturing plants
and forwarded ftoday to the Depart
ment of Justice, were not prompted by
sinister motives, officials believe, and
.r 11-' . ty n r
prosecutions Will noi iuuuw. many
others, however, appear the result of
carefully panned plots to squeeze
' millions from contractors,, who in
turn were to -dd the contingent fees
to prices which the government was
required to pay.
' One of the principal aims of the in
quiry is now directed to learning
whether any army or navy officers
were subject to sinister influence.of the
agents. If it is found any officers were
implicated directly, they will be soeed
ily court-martialed, Secretaries Baker
and Daniels said today after the cab-
v met meeting. '
Mother of Nurse Executed
By Germans Passes to Rest
London, June 18. Mrs. Ida Cavell,
mother of the heroic nurse', Edith Ca
rd!, executed by the Germans in Bel
gium, has died at her home, Henley-on-Thames,
at the age of 81. She
, had been in failing, health since the
death of her daughter.
House Votes Big .increase
; In Navy Enlisted Personnel
Washington, June 18. Permanent
increase of the enlisted personnel of
the.navy, from 87,180 to 131,485. as
provided in the naval appropriation
f bill as it passed the senate, was ap
proved today by the house, '
REGENTS ASK RESIGNATIONS
FROM THREE UNI. PROFESSORS
. 1 : o
UNITED STATES
WILL WIN WAR,
SAYS BONAR LAW
Troops Pouring Into France at
Rate That Insures Victory;
Enemy Unable to Reach
Any Objectives.
(By Associated FreM.)
LondonJune i5. "After three days
of attack the Austrian offensive has
not secured the objectives hoped for
on the first day," said Andrew Bonar
Law in the House of Commons today.
He added that there was reason to
believe that the initiative for the Aus
trian offensive had come from Berlin.
Mr. Bonar Law read extracts from
the minutes of the last war council,
which was held at Versailles. They
stated that, thanks to the prompt and
cordial co-operation of America, it
would be impossible for the enemy to
gain a victory by wearing down the
allied reserves before exhausting his
own.
"America is not, coming into the
war, but is in the war," he said.
On the western front, after three
months of fighting, said Mr. Bonar
Law, although the allies have had to
give much ground, not one of the
enemy's strategic points had been at
tained. Cheers Given for Americans.
The chancellor said that American
troops were pouring into France and
had reached a figure which a few
months ago would have been thought
impossible. American military co-op
eration, he continued, would not be
limited by the lack of transports. '
The references. to the Americans
were loudly cheered. - '
The shipping figures which wilt be
published ttti Vweek he5 saidrwottld
show that world ship construction for
the first time since the German sub
marine warfare began is exceeding
the destruction of ships by U-boats.
Discussing the Austrian offensive,
Mr. Bonar Law said that the Italian
high command has 'no fear of the
result. ,
Mr. Bonar Law added that the re
sults which had been attained justified
the changes which were made leading
to unity of command of the allied
forces.
"Those responsible," he said in
conclusion, "look to the future with
out alarm. If three months hence
none of the strategic objectives which
I have indicated has been attained
by the Germans, then their campaign
will have failed, and, despite their
previous victories, will prove to be
the most disastrous campaign in which
they have engaged.
"The future of our country and of
the world depends upo the next few
weeks. But I have confidence that
our soldiers and those of all allies will
not fail us."
Omaha Woman Killed When
She Steps in Front of Train
Mrs. Thomas W. Cox, 2874 Ida
street, was instantly killed at Chev-
enne, Wyo., Sunday night when she
stepped off the train from Omaha di
rectly in front of another train.
Mrs. Cox and her 10-year-old son,
Marvin, were on their way from
Omaha to Idaho to visit Mrs. Cox's
sister.
She is survived by her husband and
two sons, Marvin, and Ralph, 20 years
old, who is in the United States army,
now stationed at Camp Cody, Deming
N. M.
She was a member of the Prettiest
Mile club and was prominent
Red Cross wcker.
as a
American War Activity Now
Destroys German Propaganda
Washington, "June . 18. A dispatch
to the State department today says
that the Berliner Tageblatt in its
issue of June 10 quoted a German
general as saying thai the American
military activity was very embarrass
ing to German military strategy and
military writers as it did not coin
cide with" the German program for
influencing opinion at home.
Wilson Pardons Two Soldiers'
Who Slept on Post; Warns Others
(15y Associated Press.)
Washington, June 18. In granting
unconditional pardon to two young
soldiers sentenced to death for hav
ig slept on post at the front, Presi
dent Wilson expected his action to
act "as a challenge to devoted serv
ice for the future.1.'
The text of his order,' identical in
both cases, and made public today,
says:
"In view of the youth of Private
1. Sebastian (and Jeff Cook) and the
fact that his offense seems to have
been wholly free from disloyalty or
conscious disregard of his duty, I
hereby grant him a full and uncondi
tional pardon and direct that he re
port to his company for further mili
tary duty, ;
GERMANS ADMIT AMERICAN
TROOPS WILL TURN WAR TIDE
(By Associated Press)
Geneva, June 18. The enthusiasm created by the
first German offensive has passed and a feeling of pro
found dejection reigns among the German people, accord
ing to an interview with a neutral diplomat, who has just
arrived in Geneva from Berlin, in La Suisse. The people
at home expected a quick victory from the early reports
in official bulletins, and above all, a quick peace. The
principal question asked in Berlin last week was:
"Have we entered Paris."
The economic situation in the interior of Germany, the
diplomat declared, is becoming more and more serious.
Germans, both military and civilians, realize and vir
tually admit that the constant arrivals of fresh American
troops will turn the tide of the war.
The diplomat concluded his interview with a state
ment that during a recent sitting of the reichstag the ques
ton of autonomy for Alsace-Lorraine was discussed offi
cially for the first time since the beginning of the war.
BOARD DENIES
TRACTION FARE
LIFT INIINCOLN
Order by State Railway Com
mission Decrees Entire Com
mon Stock Issue at Consol
idation Be Cancelled.
(From a Btff Correspondent.)
j Lincoln, June 18. (Special Tele
gram.) Application of the Lincoln
Traction company to the State Railway-commission
for a, raise of rates
from six for a auarter to straight 5
,njU Jare-iias' been denied bysr the
commission, vjuur n aumuon timers
that the common stock issue of $1,652,
000, made at the time of consolidation
with the Citizens' company be can
celled. It directs replacement of $198,
228 in the company's treasury as divi
dends wrongly paid on the common
stock, forbids" payment of any future
common stock dividends; allows an
additional preferred stock issue of
$281,200 to cover additions and better
ments, which may be sold at 85 cents
on the dollar, but requires that $98,
538.49 of the proceeds be turned back
into the fund for maintenance and de
preciation, from which it was taken
for other purposes.
While the order is a unanimous one,
Commissioner Wilson made a little
order of his own, in which he dis
sented somewhat from certain parts of
the majority order and then intimates
that the general order is not legal be
cause Hall and Taylor did not set out
in a specific manner the value of the
property year by year.
Aviation Corps Member
Will Be Bcried Today
Funeral services for Private Lucien
Muriat, a member of the aviation
corps who died Sunday at the Clark
son hospital, will be held this morn
ing at 9 o'clock at St. John's church.
The civilian relief committee of the
Red Cross has charge of the arrange
ments. He was an instructor in the aviatidn
corps schools in California uiitil
taken sick. He was 24 years old arM
is survived by an uncle, who was last
heard from beforethe battle of Ver
dun. Intermment will be at the Holy
Sepulcher cemetery.
Grace Lusk Declared Sane;
Prison Sentence Imposed
Waukesha, Wis., June 18. Grace
Lusk, who was found guilty of murder
in the second degree for slaying Mrs.
Mary Roberts, wife of David Roberts,
former state veterinarian, this after
noon was declared by a board of alien
ists to be sane and was sentenced
by Judge Martin Lueck to 19 years
imprisonment.
When sentence was .pronounced
Miss Lusk fell backward in a faint.
Before pronouncing sentence, Judge
Lueck delivered a 10-minute speech, in
which he severely scored Dr. Roberts.
"The needs of discipline in the
army with propriety impose grave
penalties upon those who im
peril the safety of their fellows and
endanger their country's cause by lack
of vigilance, or by infractions of rules
in which safety has been found to
rest. I am persuaded, however, that
this young man will take the restored
opportunity of his forfeited life as a
challenge to devoted service foi the
future and that the soldiers of the
army of the United States in France
will realize too keenly the high char
acter of the cause for which they are
fighting and the confidence which
their country reposes in them to per
mit the possibility of further danger
from any similar shortcomings.
FOUR MILLION
TO BE ARMED
BY JANUARY 1
May Become Necessary Soon
to Draw Men From Class 2;
Congress May Change
Draft Age Limits.
(By Associated Press.)
Washington, June 18.' Should con
gress decide that it is necessary at
this time to-extend the draft age lim
its either below 21 or above 30, or
.both, no opposition will be offered by
... It. .. . .. : .. . - " ' ' . - "
jne yvar qeparimenu ..-,, ;.,:.;
"' In authorizing'this statement today,
Secretary Baker said the department
could see no immediate need for such
action, although the date already is in
sight when it will become necessary
to replenish the class 1 reservoir;
A bill by Senator France of Michi
gan to extend the draft to men from
18 to 45 is now before the senate mili
tary committee and at'a hearing oh it
last Saturday, rPovost Marshal Gen
eral Crowder gave it as his opinion
that extension of the draft ages would
be necessary. He told the committee
that 3,000,000 would be under arms
by next August 1 and that class 1
would be exhausted by the first of
next year.
The present tentative schedule of
the War department is said to contem
plate the arming of .4,000,000 men by
next January 1. That would mean the
calling of 1,000,000 men between July
and January and the absorbing not
only of the men remaining in class 1
from the first registration, but those
placed in that class under the recent
registration as well as 200,000 ex
pected to be put in that class as the
result of the reclassification recently
ordered. s
May Train Other Nationals.
Congress is to be asked by the War
department for an appropriation to
provide training facilities in this coun
try for forces other than American
troops.
Governor Burnquist's Majority
Increases as Returns Pila Up
St. Paul, Minn., June 18. At mid
night tonight Gov. J. A. Burnquist
had increased his primary election
majority for renomination to more
than 50,000 over his republican op
ponent, Charles A. Lindbergh. Re
turns from 2,279 out of 3,119 precincts
in the state gave Burnquist 167,923
and Lindbergh 117,755. The returns
included 27, counties of 86 complete.
Judge W. L. Comstock of Mankato.
democratic candidate for governor and
United States Senator Knute Nelson,
republican candidate for renomina
tion, claimed decisive majorities.
Labor Federation. Protests
Western Union Attitude
St. Paul, Minn., June 18. rn ac
cordance with instructions from the
American Federation of Labor con
vention, President Samuel Gompers
today sent a telegram to President
Wilson protesting against the attitude
of Newton Carlton, president of the.
Western Union Telegraph company,
in issuing a call for a convention of
employes for the purpose of forming
a "company controlled association.
"The action of the company is in
tended as a continuance of its policy
denying its employes their right to
belong to a bona fide, legitimate trade
union," the message said.
Anti-Saloon League
Find8sAmerican8 Are
Sober and Efficient
New YorO June 18.American
soldiers and sailors serving in
Europe were termed "clean, sober
and efficient" in a formal report is
sued here tonight by a commission
sent abroad by the Anti-Saloon
League of America to investigate
moral conditions in the expedition
ary forces, .
DECREE OF BOARD
PERSINGER, HOPT,
LUCKEY MUST GO
In Addition to Others Cleared,
Six More Freed of Lack of
Whole-Hearted Support
of War.
Lincoln, Neb., June 18 The re
signation of Professors E. B. Hopt,
C. E. Persinger and G. W. A. Luckey
was demanded tonight by the board
of regents of the University of Ne
braska, following charges made by
the State Council of Defense that
faculty members lacked aggressive
Americanism in their attitude on the
war.
Six of the nine LTniversity instruc
ors cleared of suspicion of lacking
whole-hearted support to the govern
ment in the prosecution of the war
were Prof. Paul H. Grummann, L.
B. Tuckerman, Henry Jlumberg, L.
E. Aylsworth, H. W. Caldwell, and H.
K. Wolfe.
Criticize Dr. Fling.
Dissensions in the faculty caused in
part by utterances of Dr. F. M. Fling
and Mrs. Minnie T. English are crit
icised and unless they can explain
them, the board says, their connection
with the university should terminate.
Call Action Indiscreet.
In a statement explaining its ac
tion the regents said the position and
public utterances of Professors Per
(Contlnucd on Paga Two, Column Two.)
Venezuela Friendly to U. S.,
Minister Domlnici Affirms
Washington, June 18. Venezuela's
friendship to the United States and
freedom from German influence were
affirmed todav by Dr. Santos A.
JDominici, Venezuelan minister here,
in a statement commenting upon a
published statement by Dr. Carlos Lo
pez Buslamanti, Venezuelan editor,
who recently came to America with
a story of German intrigue and con
trol in the Latin-American country.
Tony Costanzo Hurt.
Anthony Costanzo, 2210 Poppleton
street, was lacerated about the face
and badly bruised when a motorcycle
on which he was riding and an auto
mobile driven by E. S. Miller, Twenty-sixth
and Center streets, collided
at Fifteenth and Farnam streets. Cos
tanzo's injuries were dressed by po
lice surgeons and, he was taken home.
Miller was arrested for investigation
in connection with the accident.
Wife of Dead Car Inspector Faints
As Attorney Describes Accident
, Mrs. Elizabeth Koch, Sixtieth and
Grover streets, widow of a young car
inspector, who was killed in the rail
road yards near' the Union Pacific
depot on November 24,, 1916, fainted
in court during the trial of her suit
for $20,000 against the railroad and she
remained unconscious for more than
an hour. She fainted during the clos
ing argument in the trial which was
made by Attorney J. C Kinsler.
Attorney Kinsler had given a dra
matic word picture to the jury of the
i finding of the young man's body, the
gathering of the torn fragments and
of the shock to the young manVwifc
when the body was takne home. His
talk was particularly forceful and
aroused many of the attendants in the
court room. Mrs. Koch had sat quietly
by during the long sessions of the
trial, which commenced last Wednes
day. As Mrt Kinsler hurled a particularly
scathing remark about the "rules of a
AUSTRIAN S FAIL
TO CLOSE PINCER
JA WS UPON ITALY
' f '
All Attacks in Alps Repulsed by Allied Troops Who, In
Counter Blows, Regain Lost Territory; Em
peror Charles' Troops Unable to Advance After '
Throwing 14 Bridges Across River
(By Associated Press.)
mi. J 1 i! '' 1 Ll-! TA1. ii-t- 1L.
ine Austrian pincers are noi closing upon naiy , wim uio .
precision of last October, when they forced back the Italian
armies of General Cadorna from the Julian Alps to the Have
river and from the northern mountain regions almost to the
plains of Venetia. In fact, they do not seem to be closing at all.
The upper jaw in the Venetian Alps is stalled under ihe
resistance of the British, French and Italian forces and the
nether one seems to lack the force necessary to bring it across :
the Piave river and push back the Italian troops which are clog
ging its path. ', .
1 O In the Alps the Austrians have been
AUSTRIANS USING
LARGE FORCES IN
VIOLENT ATTACK
Italians Resist Heroically On
slaught of 12 Divisions; Com
mand Foresees Days of
Arduous Fighting.
(Br Aooltd PrM.)
Rome, June 18. Additional light on
the Austrian offensive has been fur
nished by some of the 5,000 prisoners
captured up to today. According to
their testimony, the Austrian divi-
Isions ODeratinn on the Asiago plat-
teau had as their objective tor tne.
first day the plain between Marostica
and Bassaho: the Monte Grappa divi
sions were ordered to take the plain
between Castelfranco and Asolo, and
the Piave troops were told to invest
Treviso.
The second phase of the battle is
exceptionally violent. A bridgehead
has been established by the Austrians
on the lower Piave. The Italians con.
tinue to resist heroically the on
slaughts of 12 divisions, which con
stantly are being replenished by re
serves concentrated between Su
gana and Conegliano. The mass at
tack between Montello and the Piave
is being carried out by 25 first line
divisions and eight reserves.
Expected to Take Booty.
The enemy has concentrated at
Fonzaso, behind the lines on the
northern front, long lines of German
camions, with which they expected
to carry off the booty they hoped to
find.
Premier Orlando went to the bat
tle front today.
Whether the enemy effort upon
Montello plateau is an attempt to
move toward the rear of the famous
Monte Grappa, key to the Italian
mountain positions, or else to menace
the Venetian plains and the city of
Venice, it is certain that the Austrians
are fighting desperately to hold what
they have so far attained.
The Italian command feels that
while the first great attempt to ad
vance has been blocked, each (day will
bring new efforts and with eadh ef
fort the fighting will be most arduous.
Hindenburg Reported
Pkysical and Mental
Wreck in Sanitarium
Geneva, June 18. The Tribune
says it learns from a reliable source
that Field Marshal Von Hinden
burg is suffering from an acute
nervous disease, that his mental ca-
!acity is much affected and that he
s confined in a private sanitarium. -The
newspaper adds that Hinden
burg took no responsible part in the
recent offensive on the western
front, the work being chiefly done
by General Ludendorff.
railroad that allow for the death of a
man," Mrs. Koch fell forward in her
chair. Her attorney rushed to her
side and assisted her to a private
room. When he returned Judge Wake
ley, before whom the trial was heard,
asked if he had anything further to
say to the jury, and Mr. Kinsler re
marked: "That (referring to the sud
den collapse of Mrs, Koch) is my fin
ishing remark."
Mrs. Koch made allegations that it
was the carelessness of ;the railroad
that allowed the "flying switch of a
train of freight cars to be hurled
against a car under which her hus
band was working, killing him. The
railroad contended that Koch had dis
obeyed orders by not placing a "blue"
flag, a danger signal, at the end of the
car under which he was working.
The jury was out several hours, but
being unable to agree on a verdict,
was dismissed by Judge Wakeley
Tuesday. The plaintiff will ask for a
new trial
unable further td advance their lines
since their initial onslaught last week.
Everywhere from the Asiago plateau
sector eastward to the Piave river all
their attacks have quickly been re
pulsed by the allied troops, who, in
their turn, have delivered counter at
tacks, regained lost terrain, inflicted '
heavy casualties on the enemy and
taken considerable number of pris ,
oners. ';; ' "' '' ''.V::'
Fierce Fighting Going On.
All along the Piave river, from the
mountain ' passes, fierce fighting is .
going on, especially on the Montello
plateau; in ' the region of the, famous .
Zenson loop and further iouth from
Fossalta to the marsh country around ,
("ann sifi urm 0( mil mnm
Venice. ' ' . .. "' ? v: -
The Italian - war' office announces
that the enemy everywhere is being
sector of the Montello plateau, which,
bars the-way from the northeast to
the Venetian plains, the Italians have
strengthened their positions on the
northern edge of the plateau and re
pulsed two enemy attacks to advance
on the northern border. Likewise to
the south, near Maserada and Candelu,
attempts by the Austrians to effect
new crossings of the Piave were frus -trated
with heavy losses.
Vienna Claims Success.
From Vienna comes a variant re
port. It does not concede to the al
lies any gains of ground in the moun
tain region, saying that all their coun
ter attacks were repulsed. Concerning1
the fighting along the Piave, it asserts '
that the Austrians have gained ground
at numerous points and that the battle
is following its intended course. Con
soldation of the gains on the Montello
plateau and progress on the southern
wing, which runs from Fossalta to
Mestre, are claimed. '
In addition, the Austrian war office
says the number of prisoners taken
in the fighting has increased to 30,000
and that 120 guns in additiiti to mine'
throwers, machine guns and war'ma
. :-i i i i.
icnai nave oeen capiurea. me pris
oners taken by the Italians Monday
at one point amounted to 1,550, which
would bring their total and those
of the allies well in the neighborhood .
of 5,000.
Unofficial advices are to the effect
that the Austrians have thrown 14
bridges across the Piave alone a front
of about UVi miles between the. 7n.
son loop and the Conegliano railway,
bridge, but that the Italians are heav
ily engaging the enemy at all points
and have the pontoons under their
gun n re. , v , v-
Guns Roaring; on Western Front.
The infantry operations xn the bat
tle front in France continue virtually
at a standstill, hut th ali;i or, a n.-.
man guns are roaring on various sec
tors and it is not improbable - that
fighting on a large scale will be re
sumed somewhere shortly. Along the
Ancte, south of Albert and west of
crr tho Prlti.t, l
- noii auu vjcwiiaus arc
engaged in mighty artillery duels,
while spirited activity is noticeable
along the French sectors near Mont
didier and between Montdidier and
the Aisne. The French continue daily
to regain ground taken from them in
the recent German offensive south of
the Aisne and also to take prisoners
in their enterprises. '
Several attempts made '"Ey" the'
Germans to penetrate the American
lines in the Marne sector have been
smashed by the American machine J
gun fire.
Slightly Cooler Weather
(ln Sight for Today
The extreme heat wave under which'
Omaha and Nebraska have sweltered'
is nor broken according to the
weather sharks. . Their predictions
are borne out by a drop of 10. degrees
maximum Tuesday was 90 compared
with 100 on Monday and 105 Sunday.
They promise another drop today.
Cousin of Mrs; Drapier . 11
Dies of Wounds An France
Mrs. W. C. Drapier, 4102 California
street, has. received word that her
cousin, Sergt, James W. Walden bf
Toledo, died of wounds received with
the American Expeditionary' forces
in France June 11, , t
(
1
i
