THE

WAR.

AUSTRIAN NAVAL RAID.

MEETS WITH DISASTER.

COMPULSORY SERVICE BILL.

IRELAND MAY BE EXEMPT.

ALLIES NEW MOVE IN NEAR EAST.

RUSSIAN OFFENSIVE IN BUKOVINA,

THE NEAR EAST.

(THROUGH REUTER'S AGENCY.]

ALLIES' NEW MOVE.

OPERATIONS AGAINST TURKISH

PORT.

ATHENS, December 30th.

The Greek Government has been inform

NAVAL ACTIVITIES,

1HR HONGKONG DALLY, FRESS, SATURDAY, JANUARY 1ør, 1916.

[THROUGH REUTER'S AGENCY:]

AUSTRIAN NAVAL BAID MEETS WITH DISASTER.

TWO MODERN DESTROYERS SUNK.

PARIS, December 30th.

(THROUGH REUTER'S AGEHOY.]

IMPERIAL GOVERNMENT'S DECISION WELCOMED.

MELBOURNE, December 20th. The Commonwealth welcomes the Im perial Government's decision for National Borvice. It is believed that the news will: havo a very depressing effect on Grest Britain's enemies, and will be most hearten- ing to the Allies,-·|

The newspapers applaud the decjalon as showing Gront Britain's inveterate deter. mination to prosecute the war, to victory, They say that some of the Dominions will surely follow the Motherland's lead.

LONDON December 30th.

DYES FOR CANTON.

EXPORTED FROM HONGKONG.

HAMBURG-AMERICA LINE AND THE GERMAN NAVY.

Norman Hamilton, Collector of the. port of Newport News, Va., testified that he bad issued clearance papers to the Thor and that there was no mention of

The US Government asserted that she carried foodstuffs and other supplies.

Before Mr. Hazeland at the Magistracy HOW CRUISERS WERE SUPPLIED. other supplies than coal in her manifest. yesterday Hear Butterfield & Swire and Mr. Aitken of Holt'a Wharf, were summoned for exporting four packages of dyes by the Fatshun to a destination other than the United Kingdom or British possessions, to wit, Canton, without ob- United States, taiuing a permit,

It has been already reported by tele Hamilton testified also that he cleared gram how a number of H.A.L. officials at the steamship Maria Quesada, a Norwes gian vessel, which the Government charges New York have been convicted of grave was chartered by the defendants for Val- A man offences against the neutrality of the paraiso, December 15th, 1915.

named

testified Atkinson, Hamilton took a special oath as shipper of the coal How the Hamburg-American Fine sucahoard the vessel and Brown Willis certi

Mr. G. N. Orme (of the Crown Solici.ded in reaching German warships infied that he was the shipper of the provi

the Atlantiq in August and September,sions, tor's Department) prosecuted,

1814, with 2,000 tons of con and large quantities of foodstuffs, by means of the American ship Berwind, was told in New York on November 24th by the captain

A representative of Messrs. Butterfield and Swire pleaded not guilty, and Mr. Aitken pleaded guilty,

Mr. Orme said he had had two names

CAPTAIN BOY-ED'S CONNECTION WITH THE CANE

Evidence given by witnesses for the pro of the vessel-Fritz Edward Falkenbery.secution included the statement that Capt. Captain Falkenberg was a Government K. Boy-Ed, German Naval Attaché, per- witness in the trial of Dr. Karl Buenz, sonally directed the expenditure of ap- George Kotter, Adolph Hochmeister and proximately 8750,000 which, unsolicited Joseph Peppinghaus, all officials of the and unexpected, had been deposited to Hamburg-Amerika line, who were on trial the witnesses credit in a New York bank- on charges of conspiring to deceive and ing house early in September, 1914

Of this money, Gustave E. Kullen- defraud the United States.

kampff a German importer and exporter, The Berwin sailed from New York at testified. 8350,000 was telegraphed to the Buenos Ayres, with Poppinghaus as in one lump sum; 8213,000 was paid, in 9.30 p.m. on August, 5th, ostensibly for Novada National Bank at San Francisco super-cargo and in charge. Taking up several amounts, to the North Germa Falkenberg's story there, her movements Lloyd Steamship line here; about $75,000 were as follows:--

མན་-ནྡྷ། to the Hamburg-Amerika line in New York, and by cable Money Order in Ham- burg, and some of the remainder was still on hand. All of these disbursements, of Captain Boy-Ed. the witness asserted, were made by order

put on the summons because ho did not know who would accept responsibility. As Mr. Aitken accepted responsibility he KING RETURNS TO LONDON, { would withdraw the case against Messre, Butterfield and Swire. The facts were that on December 15th Mr. Hutchison (Superintendent of Imports and Exports) was rung up by telephone by Mr. Aitken, who asked whether a permit was neces

First Poppinghaus ordered the captain for the export of dyes and paper of the Herwind to stay within the three Mr. Hutchison replied that he could not mile limit after leaving Sandy Hook, to say definitely as, to paper, but a permited him to steer for Cape Roque. Thero

avoid British cruisers, but later instruct was necessary for dyes, and that he would he was told to steam back and forth, as require full particulars before he would be might meet German ships. For thirty

aix hours the Berwind did steam back and issue a permit. He refused to receive forth over a sixty-mile course and final- particulars over the telephone and told y at 6.30 am, August 28th, sighted a

German fleet of five ships. Mr. Aitken that he would have to pat them on the application form, On De cember 16th an application was sent to the office, which was referred to Mr. Hutchison, who noticed that some of the marks corresponded with these of Beuter,

His Majesty the King has returned to London from Sandringham. His Majes ty's return is believed to be earlier than expected, and is regarded as thowing his wishes to be in closest touch with the Premier during a time of the utmost im portance for the future of the war and the Empire. It is anticipated that a vital Cabinet meeting will be held to-morrow.

SCHEMES IN AMERICA.

NEW YORK, December 31st.

Montett, and Taylor and another of the A communiqué says that the Austrians accused who were apprehended in connec

application was signed by Messrs. Butter-

the

Kulenkampff's story was that he had been summoned by telephone to the Ham- burg-Amerike line offices in New York on the afternoon of August 5th, 1914, and there had met Dr. Buenz, John H. Gans, now dead; Kotter and Hochmeister. The ships were the Cap Trafalgar, the They told him that they wanted him to Puntar, the Eleanor Woerner, the Santa clear two American steamships Lucia and the tiny German gunboat. Eber Lorenza and the Berwind, loaded with The Cap Trafalgar hoisted the signaloon, with all possible speed that after- B.M., meaning "come nearer, after non. It then lacked only half-an-hour the Berwind, on Poppinghaus order, had of closing time at the custour house and Kulenkampf hesitated to do as they ask- The weather was stormy, the wind high ed, because he was not accustomed to able to discharge her cargo, stayed six- "They told me," he said, "that they teen days with the German feet. When did not want the Hamburg-Amerika line provisions, forty tons of many kinds of foodstuffs, and much of her coal to the Cup Trafalgar and the Eleanor Wormer

hoisted the same letters.

ed that detachments of French troops have attempted another Neral raid, but mattion with charges of plotting on behalf of Brocklemann & Co., a German firm. The and the sens heavy, so the Berwind, unclearing ships." bees landed on the island of Castellorign with disaster. A Naval division emerge Germans have been released on bail offeld and Bwith no agents for the Ocean the elements moderated she discharged her to appear in the transaction."

in order to facilitate action by the Allies From Cattaro with the object of bombard against Adalín, The Greek Governmenting Durazzo, and Allied flotillas gave

has protested.

Adalia is an important seaport in the Gulf of Adalie, Asia Minor, It is about midway between Smyrna and the island of Cyprus.]

CAMPAIGN AGAINST EGYPT.

ATTENB, December 30th.

A number of Austrian officers have gone to Syria to participate in the campaign- against Egypt

THE BALKANS.

[THROUGH REUTEE'S AGENCY.]

BULGARIA'S ASPIRATIONS. MONASTIR WILL BE RETAINED."

The modern Austrian destroyer battle. Like was blown up by a mine, and her sister-ship, the Triglav, was sunk by the Allies. The remainder of the Austrians fed, pursued by the Allies, RUSSIAN FRONT

{THROUGH REUTER'S AGENCY.]

RUSSIA'S NEW STROKE.

CONSIDERABLE OFFENSIVE IN

BUKOVINA.

LONDON, December 30th. Russia's new stroke just inside Bukovina seems to indicate a considerable offensive along a 40 mile front. At present big bat- tles are raging to the north of Rouniania, the Russians opening with intense bom-

AMSTERDAM, December 30th, According to Soba newspapers, at a lavoff, the Promier, declared that the Bul-attacks, between the River Pruth and a

£1,000 sterling each,

THE CHARTERED BANK.

OPENING OF PEKING BRANCH.

LONDON, December 31st.

The officialy gave a luncheon on the 20th inst. to celebrate the opening of the Peking. brauch of the Chartered Book The luncheon was attended by Sir John Jordan (British Minister), and a representative of President Yuan Shih-ki, who sent a message of congratulation.

[HAVAS SERVICE]

FRENCH STOCK.

French stock now stands at 63.75.

SAFETY AT SEA.

The French Minister for Marine, repy

Steamship Company, Mr. Hutchison then spoke to a clerk in the Ocean Steamship Company's office and told him that appli cation had been made and that some of the marks looked like those of Reuter Brocklemann & Co. and that he could not allow shipment without further parti- culars, The application was then de tained pending, further particulars. the following morning Mr. Hutchison had information that the goods had been ship. ped by the Fatehan and no permit had been obtained.

On

His worship asked Mr. Aitken why the goods were shipped without a permit and he replied that he telephoned to Mr. Hut chison, who said paper would not require & permit but dyes would. On the follow- ing day he sent over an application for a permit by a coelie with a chit book. The coolie came back with the book signed and told him the people said "maske." He then had the gluff loaded on a lighter and

THREE VESSELS LEAVE

On September 10th, or thereabouts, the Pontas and the Cap Trafalgar, to three of the flest sailed away, leaving only which the Berwind was still discharging her cargo. Before leaving, however, the Eber gave up her gune to four-inch rifles and six one-pounders to the Cup Trafalgar.

After a parley of several minutes, dur- ing which Kulenkampff told them he had a brother in business in Buenos Aires, he decided that he would accommodate them and swear to the clearance manifests, her in Buenos Aires as the consignee. giving his name as shipper and his bro Accordingly he went to the custom house and did so and the vessels sailed without delay, the Berwind that evening and the Lorenzo the next day.

Captain Boy-Ed's alleged connection with the relief plan for German warships was told by Kulenkampff. After he got the Berwind and Lorenzo off his hands, the witness testified, he went back to his

On the morning of September 14th, 1914 Captain Falkenberg testified, the Trafalgar and the lantas were surprised by the British auxiliary cruiser Curmanen and another British ship which came n fast, intending to give battle. The business and for nearly a month there- Then a bank messenger bearing advios mans turned to flee and the Berwind, after heard nothing more. weighing anchor, trailed slowly behind, that a large sum of money was deposited veering out of range.,

to his account at Speyer & Co.'s called on The Carmania gained fast, Captain him. Other messengers came soon after- steamed south about a mile and then 8750,000 on deposit at Speyer & Co.'s. The Cap Trafarward, and by September 6th he had Falkenberg said, turned right about and faced the Gar

of which was entirely unexpected. mane. They were about two and a hat one of which was owing to him, and all miles apart.

What was the next development ! ! asked Prosecutor Reger Wood.

CAP TRAFALGAB SUNK.

"The Carmanie fired the first shot and then another one before the Cap Trajal gar replied. They both then began bring fast. The Pontas kept on her way, leav

the Cap Trafalgar to fight alons. In

yar was sunk.

meeting of Bulgarian parties M. Rados-bardments, followed by massed infantrying to Deputy Outrey concerning the heard nothing more as Messrs. Butterfield half-an-hour both the Carmania and the garian frontiers would reach as far as the point to the north of the Dniester. Thinking of Fille de la Cistag, declared that and Swire omitted to tell him anything Cap Trafalgar were badly damaged by it was impossible for him to give any parti- Bulgarian soldiers advanced. Monastir, operations up to the present have been in culars about defence, but he emphasised the fact that all precautions were being taken in order to ensure safety at sea,

CALL TO THE COLOURS,

too, would remain Bulgariun.

VON MACKENSEN CONFERS

WITH FERDINAND.

AMSTERDAM, December 30th, A telegram from Sofia says that General von Mackensen arrived on Wedofday and visited the German and Austrian Minis- ters. He was received by King Ferdinand and returned to Headquarters in tho evening.

RUSSIANS BOMBARD FER- DINAND'S PALACE,

ATHENS, December 30th. A semi-official announcement says that a Russian Squadron bombarded the King's palace at Vorna, and also Traka. The Elect then sailed for an unknown destina-

tion,

GERMAN FORCES AT VARNA.

ATHENS, December 30th.

forces from Serbia are concentrated

Verna.

BULGARIAN WAR CREDITS.

AMSTERDAM December 30th,

favour of the Russiens,

Meanwhile the new Russian Army for the spring is rapidly being formed, and will be completely equipped in a few weeks.

GENERAL,

(THROUGH REUTER'S AGENCY-]

COMPULSORY SERVICE CONFERENCE OF LABOUR LEADERS.

LONDON, December 30th..

A very important Labour Conference sat last night on the question of compulsory military service. There was a most repre- sentative attendance. Mr. Henderson will report the findings of the Conference to the Cabinet to-morrow,

POLITICAL ATMOSPHERE

CLEARED.

LONDON, December 30th. The Cabinet's decision regarding Cou

until the following morning. He should have given instructions to hold back the dyes and ship the paper, but he omitted to do so. It was consigned to the Hongkong and Shanghai Banking Corporation, Canton

Replying to his worship, Mr. Orme said The French Senate has passed a Bill to there was no suggestion that the cargo was incorporate the 1917 class under the

for any wrongful destination. It was Prize colours.

Court cargo and had these marks upon it. and that was what made Mr. Hutchison ask for full particulars. It was a very CHINA'S PEERAGE GROWING. serious thing, as dyes were very particular. ly mentioned at a very early stage of the war among the articles which they were to

the fire and in two hours the Cup Frajal Poppinghaus was aboard the Eleanor permer at this time. The Berwind later rejoined the Eleanor Woermer and went to Rio Janeiro, gos a cargo and retard home. She faxed to reach Buenos Aires the port for which the cleared.

The U.S, Government asserted that the Berwing was the only one of the sixteen boats chartered by the defendants at a cost of $2,000,000 to relieve German crui- sors which succeeded in her errand. The others, it is believed were all captured before they reached the Germans.

tor.

PRESENT OF $600, Captain Falkenberg said George Kot superintendent of the Hamburg Amerik line, made him a present of 8600 in return for his services when the Berwind got back to New York,

Frederick F. Hasler, steamship Norwegian steamships, the Tur Sont merstad and Unita, to John H. Gans, now dead, for the Hamburg-Amerika line. These three steamships were among the sixteen dispatched with coal and other supplies for German cruisers.

From reliable source we learn, sava the Peking Gazette, that a number of the high officials of the Central Government be very particular about exporting. If broker, testified that he chartered three will be raised to, the peerage in a day or the leading Arms did not set a good two. Messrs. Liang Shib-yi, Chu Chi-example considerable difficulty would be chien, Lu Cheng-hsiang and Yang Shil chi will most probably be created Dukes experienced by the authorities in seeing of the First Class; and Yuan Chang-chu, that goods were properly checked before Yang Tu, Sua Yu-yun, Tsao Ju-lin and being sent off Chang Chung-hsiang, Marquesses of the First Class, and about afteen others, counts, etc., etc.

CHIEF OF CHINA'S CENSORATE,

RESIGNS ON ACCOUNT OF MONARCHY,

The defendant stated that the cargo had. been released by Commander Beckwith and if it had been otherwise they might have been more particular. The fact that be was acting under the instructions of the Hongkong and Shanghai Bank rather put him off his guard;

A-fine-of 860-weg-imposed.

Hasler testified that the Thor was cap tured by the Allies and sold and that the Hamburg-Amerika line afterwards paid him ber full value

BOY-ED CALLS UP.

"

“A man called me on the telephone," Kalenkampff replied, and said he was Captain Boy-Ed and that the money was to be spent as he said. I told him to present proof that such was the case and not long afterward a representative of the Deutsche Bank of Berlin caled on me, told me the man was Captain Boy- Ed and that the money was to be spent Эв ho said."

**Did you spend it as Captain Boy-Ed.

Mr. Wood asked. told you?

I did. The first disbursement was 8350,00. I was told to telegraph it to the Nevada National Bank at San Fran cisco and I did so."

Kulenkampff then told in detail of the other disbursements, all of which he said had been crdered by Captain Boy-Ed.

It was stated by the Prosecuting Coun se) that the Government would misko no great effort to bring before the jury what was done with the $350,000 that was brought to San Francisco. It would attempt to show, however he asserted, that the $213,000 paid by Kulenkampff by Bey-Ed's orders to the North German you also went to San Francisco and was there expended in-chartering and supplying steamships for the relief of German cruisers in the Pacific..

GOVERNMENT AND "THE

GLOBE,"

LIBERAL PRESS ON SIGNIFICANCE OF EPISODE.

the

Robert T. Hasler, brother of the pre- ceding witnesa, testified that a super Mr. Weiller, was placed aboard Thor and in charge. Bruce McIntyre, the

The Manchester Guardian says :—“' We the witness said, cleared the vessel. are de little inclined as any member of In cross-examination it was brought Parliament to defend the manners or the out that the Hasler brothers were born methods of The Globe, but wo are very It is reported that important. German pulsion has considerably cleared the poli

It is hoped that all Hongkong Impor in England and are both British subjects doubtful whether the suspension of a newspaper by executive act without ters of toys, fancy goods, china, earthen at the present time.

William Rand, Jr., counsel for the appeal to the courts is not a violation of tical atmosphere. The feeling is that what-

ware goods, glass-ware, and printing and Mr. Chuang Yun-kuan, the Chief of the stationery will specially instruct their defence, at this point offered a conces the spirit, if not of the letter, of even the over measures the Government proposes should now have undivided support, Censorate, has tendered his resignation to buyers at home to attend the British sion in the form of a typewritten state-drastic Defence of the Realm Rerulations thes Government. It is stated that the Trade Fair to be held under the auspices ment, showing that the Hamburg-Amerika while we are certain that it has created a The experiment Board of Trade from February line paid $1,419,394 for chartering, coal-very grave precedent. Much depends on the Cabinet meeting Chief Censor has been throughout opposed of the Board or at the Victoris. Alberting and supplying twelve steamships for having been made, and so far as

to the monarchical movement. An im-23st to A Sofia telegram says that the Bulgarian to-morrow, when it is expected that the peachment against the Chou An Hui was Museum, London It would no dougl the relief of German cruisers. The con- House of Commons is concerned to success- These vessels were the Thor, Berwind, to prevent it being repeated against other Parliament voted credite of £91,000,000, minority will express their considered lodged by the Chief Censor and some of greatly assist British manufactures foession was accepted by the Government fully made, with The Globe, what is there his colleagues with the Government, but samples of specialities of foreign manu- only a section of the Becialists staining views,

the efforts of the ceasora in checking the facture within the above limitations were Lorenzo, Heine, Nepos, Nowinckle Unite, newspapers until the freedom of the press monarchical movement were ineffective, sent to the Board of Trade, British Sommerstad, Fram, Graecia, Macedonia, cecists to exist i

and Navarra. The amounts conceded to from voting.

Since then Mr. Chuang has remained Industries Fair, 39 Cheapside, E.C.

have been spent by the defendants were: silent, witnessing the progress of the

Forecasting the personnel of the first For coal, $185,743 provisions, $102,149; movement without uttering a single word against it. As the movement for an Im Chinose Imperial Cabinet, a vernacular supplies,634,242 charter, $1,118,580 states that Mr. Chou against which was a credit of $21.050 for perial restoration has been "crowned with contemporary success," Mr. Chuang now considers is Hauch-hi, Minister of Fmance, and Mrsupplies placed on the Sommerstad and tia for him to relinquish his post and Chang Yilin, Minister of Education, will Fram, which did not sail as planned. retire into private life. His request for the included in it and that they will

Adolph Hochrister, purchasing agent leave to resign is couched in earnest be replaced by Mr. Chou Tc-chi, the words" and it is presumed that the Ta present Minister of Agriculture and of the Hamburg-Amerika line, bought the Huang Ti will accede to his wishes, Commerce, and Mr. Sun Yu-yan as Minis- 8300,000 worth of supplies in large mea The most expen Mr. Chao Er-shan, the Director of theters of Finance and Education respec. sure, Band conceded. Historiographie Bureau, in nederstood tively. It is said that Mr. Yang Tu will give boats were the Lorenzo and the also to have sent in his papers of resig- be appointed to Mr. Chou Tze-chi's pre lleines whose cost was $420,152 and nation. Mr. Chao has been on very sent office. Among others who are to re- $288,142 respectively.

attal terms with the Ta Huang Ti and main in their prescat offices are Mr. Lu is regarded by the latter as one of his few Cheng-liang a Premier or Secretary of old friends. The reason which prompts State and Minister for Foreign Affairs Mr. Chao to tender his resignation is not and Mr. Chu Chi-chien, Minister of In-

terior yet known-Peking Gazette.

FRANCO-BELGIAN FRONT

THROUGH MUTER'S JQESOY }

FAVOURABLE FRENCH

OPERATIONS."

It is understood that the drafting of the-Compulsion Bill will be entrusted to Sir John Simon and Mr. Walter Long. Possibly the Bill will not apply to Ireland. It is stated that the Bill, which will be short, will call upon singlo men from 19 to PARIS, December 30th. 40 to attest in age groups within a specific To-day's commuriqué saya that minor period, providing penalties for non-com- operations have courred which were pliance, Persons conscribed will have the - favourable to the French There was also same privileges as the recruits under Lord

good artillery work in Champagne, pre Derby's scheme. venting the Germans from repairing their demolished-trenches.

The French newspapers welcun decision.

the

ANOTHER POINT ADMITTED.

It must be noted that the precise 7ounds for the action taken against The Globe have not been stated, and in the speech made in the House of Lords there and so threatening as to promise the ex- have been formulated doctrines o vague tinction of all criticism. Mr. AsquiÊ's statement does not carry us mach arther. It is necessary to know the exact charge made against the suspended newspaper what distinguished its offence from that of certain other newspapers, and what is the policy the Government contemplates towards freedom of expression. Up till now we have had only the extreme Included in the $430,188 charred of vagueness on the part of the Govern against the Lorenzo, apparently, was the ment in a region where the most rigoroue 8350,000 repaid her owners as full value precision of definition is vital to the pre of the vessel, after the had been sold servation of an essential bulwark of under prize court orders.

liberty

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